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

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9.

Employee	Hours Worked	Hourly Rate	Weekly Salary	Federal Income Tax	U.S. Savings Bonds
Aaron	46	$68.00		$750.20	$100
Cobb	41	62.00		537.68	110
Clemente	48	70.00		832.64	120
DiMaggio	35	56.00		366.04	0
Griffey, Jr.	45	62.00		641.84	130
Mantle			$1,800	342.45	120
Robinson	36	54.00		382.56	130
Williams			2,000	398.24	125
Vaughn	42	62.00		584.72	50

Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1 times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employees annual earnings. The next payroll check to be used is No. 901.

	Required:
1.	Prepare a payroll summary for Throwback Industries Inc. for the week ended December 9. Assume the normal working hours in a week are 40 hours. Enter amounts as positive numbers and round your intermediate calculations and final answers to the nearest whole cent (two decimal places).
2.	Journalize the entry to record the payroll for the week. If required, round your answers to two decimal places. Refer to the Chart of Accounts for exact wording of account titles.