SUTA/FUTA Earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I'm struggling with C & D portions of #2 on this problem. Plz help!! Thx :)

Transcribed Image Text:b.
Medicare tax paid by employer
4,945.20
C. and d.
SUTA/FUTA
Employee
Earnings
Arnett
Cruz
Edwards
Harvin
Nicks
Shiancoe
State unemployment compensation tax
Ward
Total
Federal unemployment compensation tax
e.
Total employer payroll taxes
$ 28,450.80

Transcribed Image Text:PR 11-3A Wage and tax statement data on employer FIICA 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 Administra-
tion, 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 em-
ployees' income taxes withheld, which are summarized as follows, were obtained from
personnel records and payroll records:
OBJ. 2,3
Monthly
Income Tax
Withheld
Date First
Monthly
Salary
$ 5,500
Employee
Employed
Arnett
Nov. 16
$ 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 20Y8, arranging the data in the following form:
Employee
Gross
Earnings
Federal Income
Tax Withheld
Social Security
Tax Withheld
Medicare
Tax Wthheld
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 0.6% on the
first $10,000 of each employee's earnings: (e) total.
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