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 resighed 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 Monthly Salary Monthly Income Tax Withheld Employee Anett Nov. 16 $6,000 $1,132 Jan. 2 Cruz 4,600 798 Edwards Oct. 1 8,200 5,900 1,632 1,052 Harvin Dec. 1 Nicks Feb. 1 12,000 2,820 2,533 Shiancoe Mar. 1 11,300 Nov. 16 Ward 4,700 788 Nov. 16 Print item 4,700 Required: 788 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 Withheld Social Security Tax Withheld Medicare Tax Withheld Arnett 5,400 X 799.50 X Cruz - 70,800 X Edwards Harvin Nicks Shilance Ward 218,650 x 2. Compute the following employer payroll taxes for the year: (a) social security. (b) Medicare, (e) state unemployment compensation at 5.0 on the first $10,000 of each employee's 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) $ 15,239 (b) Check My Work Previous Next > 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. $ 15,239 X (a) (b) @ @ Feedback " Check My Work Consider each employee's date of hire. Remember there is a limit on how much the employer pays for state and federal unemployment taxes per employee. Previous Next