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 Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11. In the state where Unger Company is located, the tax rates and bases are as follows: Тах on Emploуees: FICA-OASDI 6.2% on first $128,400 FICA-HI 1.45% on total earnings SUTA 0.5% on first $8,000 Тах on Emploуer: FICA-OASDI 6.2% on first $128,400 FICA-HI 1.45% on total earnings FUTA 0.6% on first $7,000 SUTA 1.8% on first $8,000 In the appropriate columns of the form shown below, do the following: 1. Compute the amount to be withheld from each employee's earnings on October 11 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 October 11 payroll. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. Enter the tax rates as decimals, carried out to four decimal places when required. UNGER COMPANY Taxes to Be Withheld from Employer Taxes: Portion of Employees' Gross Employees' Earnings Under Earnings Taxable Under Earnings to Earnings FICA FICA Employee Date Oct. 11 OASDI HI SUTA OASDI HI FUTA SUTA 1. Weiser, Robert A. $127,015 $1,910 $ 2. Stankard, Laurie C. 14,930 285 3. Grow, Joan L. 4,000 255 4. Rowe, Paul C. 8,145 290 5. McNamara, Joyce M. 7,480 200 6. O'Connor, Roger T. 124,770 1,815 7. Carson, Ronald B. 8,885 260 8. Kenny, Ginni C. 4,295 190 9. Devery, Virginia S. 57,050 570 10. Wilson, Joe W. 3,615 215 Total employee taxes Total taxable earnings Applicable tax rate (enter as decimals, not percentages) Totals $ Total payroll taxes
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 Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11. In the state where Unger Company is located, the tax rates and bases are as follows: Тах on Emploуees: FICA-OASDI 6.2% on first $128,400 FICA-HI 1.45% on total earnings SUTA 0.5% on first $8,000 Тах on Emploуer: FICA-OASDI 6.2% on first $128,400 FICA-HI 1.45% on total earnings FUTA 0.6% on first $7,000 SUTA 1.8% on first $8,000 In the appropriate columns of the form shown below, do the following: 1. Compute the amount to be withheld from each employee's earnings on October 11 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 October 11 payroll. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. Enter the tax rates as decimals, carried out to four decimal places when required. UNGER COMPANY Taxes to Be Withheld from Employer Taxes: Portion of Employees' Gross Employees' Earnings Under Earnings Taxable Under Earnings to Earnings FICA FICA Employee Date Oct. 11 OASDI HI SUTA OASDI HI FUTA SUTA 1. Weiser, Robert A. $127,015 $1,910 $ 2. Stankard, Laurie C. 14,930 285 3. Grow, Joan L. 4,000 255 4. Rowe, Paul C. 8,145 290 5. McNamara, Joyce M. 7,480 200 6. O'Connor, Roger T. 124,770 1,815 7. Carson, Ronald B. 8,885 260 8. Kenny, Ginni C. 4,295 190 9. Devery, Virginia S. 57,050 570 10. Wilson, Joe W. 3,615 215 Total employee taxes Total taxable earnings Applicable tax rate (enter as decimals, not percentages) Totals $ Total payroll taxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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