Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
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 all 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 Date First Employed Nov. 16 Monthly Salary Monthly Income Tax Withheld 51,132 36.000 Employee Anett Cruz Edwards Harvin 790 Jan 2 Oct. 1 4600 8200 1.632 1052 Dec 5900 12.000 Feb1 2820 Nicks Shioncoe Ward 11.300 Mat1 Nov. 16 2533 788 4700 Required: 1. Compute the amounts to be reported for the year on each employee's 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 Withhelt Social Security Tax Withheld Medicare Tax Withheld Amell Cruz Edwards Harvin Nicks Shianco Ward 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 employee's earnings, (d) federal Required: 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers. Employee Croan Enringe Federal Income Tax withheld Social Security Tex Wished Medicare Tax Withheld 9,000 1.698 Anett Cruz Edwards Harvin NICKS Shiance Ward 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 employee's earnings, (d) federal unemployment compensation at 0.8% on the first $10,000 of each employee's earnings, and (e) total. Round your answers to two decimal places. (a) (5 (c) (d) (e)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

14th Edition

1260247821, 978-1260247824

Students also viewed these Accounting questions