Question
Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day
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Wage and Tax Statement Data on Employer FICA Tax
Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in the following year, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the employees' earnings records were inadvertently destroyed.
None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records:
Employee Date First Employed Monthly Salary Monthly Income Tax Withheld Arnett Nov. 16 $6,000 $1,132 Cruz Jan. 2 4,600 798 Edwards Oct. 1 8,200 1,632 Harvin Dec. 1 5,900 1,052 Nicks Feb. 1 12,000 2,820 Shiancoe Mar. 1 11,300 2,533 Ward Nov. 16 4,700 788 Required:
1. Compute the amounts to be reported for the year on each employees Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.
Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Arnett $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Cruz fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Edwards fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Harvin fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Nicks fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 Shiancoe fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 Ward fill in the blank 25 fill in the blank 26 fill in the blank 27 fill in the blank 28 fill in the blank 29 fill in the blank 30 $fill in the blank 31 $fill in the blank 32 2. Compute the following employer payroll taxes for the year: (a) social security, (b) Medicare, (c) state unemployment compensation at 5.4% on the first $10,000 of each employees earnings, (d) federal unemployment compensation at 0.8% on the first $10,000 of each employees earnings, and (e) total. Round your answers to two decimal places.
(a) $fill in the blank 33 (b) fill in the blank 34 (c) fill in the blank 35 (d) fill in the blank 36 (e) $fill in the blank 37
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