Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. 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 the following year, 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% on salary, 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 Date First Employed Monthly Salary Monthly Income Tax Withheld Arnett Νov . 16 $3,500 $518 Cruz Jan. 2 5,400 1,015 Edwards Oct. 1 2,300 285 Harvin Dec. 1 2,200 273 Nicks Feb. 1 10,100 2,273 Shiancoe Mar. 1 3,500 536 Ward Nov. 16 8,900 1,922 Required: 1. Calculate the amounts to be reported on each emplovee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.
Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. 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 the following year, 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% on salary, 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 Date First Employed Monthly Salary Monthly Income Tax Withheld Arnett Νov . 16 $3,500 $518 Cruz Jan. 2 5,400 1,015 Edwards Oct. 1 2,300 285 Harvin Dec. 1 2,200 273 Nicks Feb. 1 10,100 2,273 Shiancoe Mar. 1 3,500 536 Ward Nov. 16 8,900 1,922 Required: 1. Calculate the amounts to be reported on each emplovee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wage and Tax Statement Data on Employer FICA Tax
Ehrlich Co. began business on January 2. 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 payrol taxes was remitted by the company for the calendar year. Early in
the following year, 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% on salary, Data on dates of employment, salary rates, and emplovees' income taxes withheld,
which are summarized as follows, were obtained from personnel records and payroll records:
Employee Date First Employed Monthly Salary
Monthly Income Tax Withheld
Arnett
Nov. 16
$3,500
$518
Cruz
Jan. 2
5,400
1,015
Edwards
Oct. 1
2,300
285
Harvin
Dec. 1
2,200
273
Nicks
Feb. 1
10,100
2,273
Shjancoe
Mar. 1
3,500
536
Ward
Nov. 16
8,900
1,922
Required:
1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter
all amounts as positive numbers.
Transcribed Image Text: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.
Round your answers to two decimal places.
(a)
(b)
(c)
(d)
(e)
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