The form on page shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 workers in Ranger Company. These amounts represent the cumulative earnings for each worker as of November 8, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, November 15. In the state where Ranger Company is located, the tax rates and bases are as follows:

Tax on Employees:

FICA—OASDI. . . . . . . . . . . . . . . . . . . . . . . . 4.2% on first $110,100

FICA—HI . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.45% on total earnings

SUTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5% on first $8,000

Tax on Employer:

FICA—OASDI. . . . . . . . . . . . . . . . . . . . . . . . 6.2% on first $110,100

FICA—HI . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.45% on total earnings

FUTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6% on first $7,000

SUTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8% on first $8,000

In the appropriate columns of the form on page 6-67, do the following:

1. Compute the amount to be withheld from each employee's earnings on November 15 for (a) FICA-OASDI, (b) FICA-HI, and (c) SUTA, and determine the total employee taxes.

2. Record the portion of each employee's earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employer's payroll taxes on the November 15 payroll.

Transcribed Image Text:

RANGER COMPANY Taxes to Be Withheld from Gross EarningEaming to Date HCA FICA Nov. 15 SUTA OASDI HI OSADI HI 1. Watso Ruth T 2. Kinder Ralph A. 3, Sanhez, Roben T 4. Carey, Mary C. 5. Cox. Mason M $100900 $1,890 14950 410 8,190 6-460 095001850 7. Britmayer, Ti A. 8. Candi, Mark B 9. Boxer, Barbar a C 6,825 57.010 3615 325 1,150 195 Total employee taxes . L.(a) I.(b) L(C x Applicable tax rate Total pay roll tases . . . 2.