I only need the answer to question 2 **PR 10-3A Wage and Tax Statement Data on Employer FICA Tax**Ehrlich Co. began business on January 2, 2015. 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 2016, 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 Data Table| Employee | Date First Employed | Monthly Salary | Monthly Income Tax Withheld ||----------|---------------------|----------------|-----------------------------|| Arnett | Nov. 16 | $5,500 | $944 || Cruz | Jan. 2 | 4,800 | 833 || Edwards | Oct. 1 | 8,000 | 1,592 || Harvin | Dec. 1 | 6,000 | 1,070 || Nicks | Feb. 1 | 10,000 | 2,350 || Shiancoe | Mar. 1 | 11,600 | 2,600 || Ward | Nov. 16 | 5,220 | 876 |### Instructions1. Calculate the amounts to be reported on each employee’s Wage and Tax Statement (Form W-2) for 2015, arranging the data in the following form: | Employee | Gross Earnings | Federal Income Tax Withheld | Social Security Tax Withheld | Medicare Tax Withheld | |----------|----------------|----------------------------|-----------------------------|-----------------------|2. Calculate

Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

2. Calculate 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; (e) total.

2. Calculate 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; (e) total.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 1E

See similar textbooks

Related questions

Q: why are all the answerer are wrong please help

A: Inventory valuation method includes: First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted…

Q: What is the solution is it 1600 as I stated above that is wrong

A: Tax credits are sums of money that taxpayers can deduct directly from their taxes. Tax credits, as…

Q: How do I solve these?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:- Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: can you be more clear of what the answer is? thanks

A: Given: Beginning of the Year Common Stock = $8 Additional Paid in Surplus = $138 End of the Year…

Q: I need help

A: A payroll journal is a written record of accounting transactions pertaining to payroll. Payroll…

Q: Finch Corporation expects to incur indirect overhead costs of $110,700 per month and direct…

A: Predetermined Overhead Rate= Total Indirect Overhead Cost for 4 months/Expected Unit Of Production…

Q: question 33

A: Traditional IRA is one of the plans which are used by the taxpayers so that the tax amount which is…

Q: Uncollectible Accounts-Percentage of Sales and Percentage of Recelvab At the end of the current…

A: We shall answer the first question since the exact one was not specified. Please resubmit a new…

Q: Preparation of the statement of changes in stockholders' equity The purpose of this exercise is to…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

Q: What are the answers

A: The answer is as fallows

Q: Hello, could i depend on this solution is it an expert solution?

A: Variance - It is the difference between budgeted and actual data.There are many types of variances…

Q: Required Choose an appropriate cost driver for each of the overhead costs and determine the total…

Q: 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: can you answer d

A: Indifference curve is graph showing the different combination of risk and return for the given level…

Q: Can you answer part E of this qu

A: Payroll taxes are defined as the amounts collected by the government or revenue collection authority…

Q: Thornton Manufacturing Company produced 2,000 units of inventory in January 2018. It expects to…

A: a. Pre determined over head rate = (Supplies + Salaries + Depreciation + Utilities + Rental fee) Pre…

Q: need help with this question

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: a. Identify each cost as being a direct or indirect cost assuming the cost objects are the…

Q: need help with question 6

A: The purchase term 2/15, n/30 means 2% discount is available if the payment made in 15 days, the…

Q: What about D-J?

A: IRR is also known as Net Present calue. It is a capital budgeting techniques which helps in decision…

Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

I only need the answer to question 2

**PR 10-3A Wage and Tax Statement Data on Employer FICA Tax**

Ehrlich Co. began business on January 2, 2015. 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 2016, 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 Data Table

| Employee | Date First Employed | Monthly Salary | Monthly Income Tax Withheld |
|----------|---------------------|----------------|-----------------------------|
| Arnett | Nov. 16 | $5,500 | $944 |
| Cruz | Jan. 2 | 4,800 | 833 |
| Edwards | Oct. 1 | 8,000 | 1,592 |
| Harvin | Dec. 1 | 6,000 | 1,070 |
| Nicks | Feb. 1 | 10,000 | 2,350 |
| Shiancoe | Mar. 1 | 11,600 | 2,600 |
| Ward | Nov. 16 | 5,220 | 876 |

### Instructions

1. Calculate the amounts to be reported on each employee’s Wage and Tax Statement (Form W-2) for 2015, arranging the data in the following form:

| Employee | Gross Earnings | Federal Income Tax Withheld | Social Security Tax Withheld | Medicare Tax Withheld |
|----------|----------------|----------------------------|-----------------------------|-----------------------|

2. Calculate

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition

VIEW

Step 2: Calculations

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Click the Chart sheet tab. On the screen is a chart of the four payroll taxes that a company might incur in total during the year. The four taxes are federal unemployment, state unemployment, Social Security, and Medicare. By the behaviors shown on the chart, identify below which of the four taxes each represents. Series 1 _____ Series 2 _____ Series 3 _____ Series 4 _____ When the assignment is complete, close the file without saving it again. TICKLERS (optional) Worksheet. A new employee was hired during November and was mistakenly omitted from the payroll register. The employees last name is Zuckerman, and his gross pay for November is 1,300. Add the new employee to the PR5 worksheet and include all standard withholding rates in computing net pay. Federal income tax withheld is 101. He is a union member. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as PRT. Chart. Using the PR4 file, prepare a 3-D pie chart to show the percentage of an employees gross pay that is withheld for taxes, Social Security, and so on, and how much is left over as net pay. Use Smith as your example. Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as PR4. Print the chart.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Barneys Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended July 15 of the current year.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Kathy s Cupcakes for the week ended June 21 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended June 21 of the current year.
CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employers payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA tax is 0.6%, SUTA tax is 5.4%, Social Security tax is 6.2%, and Medicare tax is 1.45%.
The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows: Payroll taxes are imposed as follows: Social Security tax, 6.2%; Medicare tax, 1.45%; FUTA tax, 0.6%; and SUTA tax, 5.4%. REQUIRED 1. a. Prepare the journal entry for payment of this payroll on March 31, 20--. b. Prepare the journal entry for the employers payroll taxes for the period ended March 31, 20--. 2. Nix Company had the following balances in its general ledger before the entries for requirement ( 1 ) were made: a. Prepare the journal entry for payment of the liabilities for federal income taxes and Social Security and Medicare taxes on April 15, 20--. b. Prepare the journal entry for payment of the liability for FUTA tax on April 30, 20--. c. Prepare the journal entry for payment of the liability for SUTA tax on April 30, 20--.
The following information about the payroll for the week ended December 30 was obtained from the records of Qualitech Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State unemployment (employer only), 5.4% Federal unemployment (employer only), 0.8% Instructions 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries: a. December 30, to record the payroll. b. December 30, to record the employers payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, 35,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries: a. December 30, to record the payroll. b. January 5, to record the employers payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all 675,000 in salaries is subject to unemployment compensation taxes.
Payment and distribution of payroll The general ledger of Berskshire Mountain Manufacturing Inc. showed the following credit balances on January 15: Direct labor earnings amounted to 10,500 from January 16 to 31. Indirect labor was 5,700, and sales and administrative salaries for the same period amounted to 3,800. All wages are subject to FICA, FUTA, state unemployment taxes, and 10% income tax withholding. Required: 1. Prepare the journal entries for the following: a. Recording the payroll. b. Paying the payroll. c. Recording the employers payroll tax liability. d. Distributing the payroll costs for January 1631. 2. Prepare the journal entry to record the payment of the amounts due for the month to the government for FICA and income tax withholdings. 3. Calculate the amount of total earnings for the period from January 1 to 15. 4. Should the same person be responsible for computing the payroll, paying the payroll and making the entry to distribute the payroll? Why or why not?
Payroll Accounting and Discussion of Labor Costs Blitzen Marketing Research paid its weekly and monthly payroll on January 31. The following information is available about the payroll: Blitzen will pay both the employers taxes and the taxes withheld on April 15. Required: 1. Prepare the journal entries to record the payroll payment and the incurrence of the associated expenses and liabilities. ( Note: Round to nearest penny.) 2. What is the employees' gross pay? What amount does Blitzen pay in excess of gross pay as a result of taxes? ( Note: Provide both an absolute dollar amount and as a percentage of gross pay, rounding to two decimal places.) 3. How much is the employees' net pay as a percentage of total payroll related expenses? ( Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION If another employee can be hired for $60,000 per year, what would be the total cost of this employee to Blitzen?