- Wage And Tax Statement Data On Employer Fica Tax Ehrlich Co Began Business On January 2 20y8 Salaries Were Paid To Em 1 (54.3 KiB) Viewed 15 times
Wage and Tax
Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 20Y8. 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 20Y9, 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%. 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 Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Required: Date First Employed Jan. 2 Oct. 1 Apr. 16 Nov. 1 Jan. 16 Dec. 1 Feb. 1 Monthly Salary $3,500 5,800 2,200 2,500 5,800 3,500 6,600 Monthly Income Tax Withheld $490 1,044 275 313 1,305 543 1,419 1. Determine the amounts to be reported on each employee's Wage and Tax
Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values.
1. Determine the amounts to be reported on each employee's Wage and Tax
Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values. Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Gross Earnings (a) $ (b) (c) (d) (e) $ 5,250 X Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld 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 0.6% on the first $10,000 of each employee's earnings; (e) total. Round amounts to the nearest whole dollar and enter all amounts as positive values.