Wage and Tax Statement Dete on Employer FICA Tax Ehrich Co. began business on Jenuary 2, 20YB. Salaries were paid to employees on the lest day of each month, and social security tax, Medicere tax, and federel income tax were withheld in the required amounts. An employee who is hired in the middie of the month receives half the monthly salary for thet month. All required payroll tax reports were ed, and the correct emount of payroll taxes was remitted by the company for the calendar year. Earty In 20v9 before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Sociel Security Administration, the employees' eamings records were inadvertentty destroyed None of the employees resigned or were discharged during the yeer, and there were no changes in salary rates. The social security tax was withheld at the rate or 6.0% and Medicare tax at the rate of 1.S%. Data on dates er 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 Cruz Edwards Harvin Nicks Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 $5,500 4,800 8,000 6,000 10,000 11,600 5,220 833 1,592 1,070 2,350 2,600 876 Ward Required 1. Calculate the amounts to be reported on each employee's wage and Tax Statement (Form W-2) for 20Y8. Enter amounts to the nearest cent if required. Enter all amounts as positive numbers Gross Federal Income Social Security Medicare Employee Earnings Arnett Tax Withheld Tax Withheld Tax Withheld Edwards 2. Caculate the fuilawing emplaver payral taxes for the year (a) sodiat securily: (b) Medicare: t4) stale ompensaton at a 6% on the frst St 0,000 of each enplo_eSearn_gsrejimit (e) s (e) 3