ppear in the Earnings to Date column of the employees’ earnings records for 10 full- and part-time workers in Ranger Company. These amounts represent the cumulative earnings for each worker as of November 1, the company’s last payday. The form also gives the gross a
The form below shows the amounts that appear in the Earnings to Date column of the
employees’ earnings records for 10 full- and part-time workers in Ranger Company. These
amounts represent the cumulative earnings for each worker as of November 1, the company’s
last payday. The form also gives the gross amount of earnings to be paid each worker on the
next payday, November 8.
In the state where Ranger Company is located, the tax rates and bases are as follows:
Tax on Employees:
FICA—OASDI 6.2% on first $137,700
FICA—HI 1.45% on total earnings
SUTA 0.5% on first $8,000
Tax on Employer:
FICA—OASDI 6.2% on first $137,700
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 below, do the following:
Compute the amount to be withheld from each employee’s earnings on November 8 for (a)
FICA—OASDI, (b) FICA—HI, and (c) SUTA, and determine the total employee taxes.
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 8 payroll. Once you have
calculated the payroll taxes then:
1.
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