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: Date First Monthly Monthly Income Tax Employee Employed Salary Withheld Arnett Nov. 16 $6,000 $1,132 Cruz Jan. 2 4,600 798 Edwards Oct. 1 8,200 1,632 Harvin Dec. 1 5,900 1,052 Nicks Feb. 1 12,000 2,820 Shiancoe Mar. 1 11,300 2,533 Ward Nov. 16 4,700 788 Required: 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter all amounts as positive numbers. When required, round your answres to two decimal places. Employee Gross Earnings Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld 2. Compute 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, and (e) total. Round your answers to two decimal places. (a) (b) @@ (d) (c) $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Date First
Monthly
Monthly
Income Tax
Employee
Employed
Salary
Withheld
Arnett
Nov. 16
$6,000
$1,132
Cruz
Jan. 2
4,600
798
Edwards
Oct. 1
8,200
1,632
Harvin
Dec. 1
5,900
1,052
Nicks
Feb. 1
12,000
2,820
Shiancoe
Mar. 1
11,300
2,533
Ward
Nov. 16
4,700
788
Required:
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 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: Date First Monthly Monthly Income Tax Employee Employed Salary Withheld Arnett Nov. 16 $6,000 $1,132 Cruz Jan. 2 4,600 798 Edwards Oct. 1 8,200 1,632 Harvin Dec. 1 5,900 1,052 Nicks Feb. 1 12,000 2,820 Shiancoe Mar. 1 11,300 2,533 Ward Nov. 16 4,700 788 Required:
1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter all amounts as positive
numbers. When required, round your answres to two decimal places.
Employee
Gross Earnings
Arnett
Cruz
Edwards
Harvin
Nicks
Shiancoe
Ward
Federal Income Tax
Withheld
Social Security Tax
Withheld
Medicare Tax
Withheld
2. Compute 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, and (e) total. Round your answers to two decimal places.
(a)
(b)
@@
(d)
(c)
$
Transcribed Image Text:1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter all amounts as positive numbers. When required, round your answres to two decimal places. Employee Gross Earnings Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld 2. Compute 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, and (e) total. Round your answers to two decimal places. (a) (b) @@ (d) (c) $
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