Ehrlich Co. began business on January 2, 2018. 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 2019, 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%. 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: Monthly Income Date First Monthly Tax Employee Employed Salary Withheld Jan. 2 Oct. 1 Apr. 16 Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Required: 1. Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values. $3,400 $476 5,200 936 2,100 263 2,300 288 5,800 1,305 481 3,100 6,600 Nov. 1 Jan. 16 Dec. 1 Feb. 1 1,419
Ehrlich Co. began business on January 2, 2018. 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 2019, 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%. 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: Monthly Income Date First Monthly Tax Employee Employed Salary Withheld Jan. 2 Oct. 1 Apr. 16 Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Required: 1. Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values. $3,400 $476 5,200 936 2,100 263 2,300 288 5,800 1,305 481 3,100 6,600 Nov. 1 Jan. 16 Dec. 1 Feb. 1 1,419
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 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%. 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:
Monthly
Income
Date First Monthly
Employee Employed Salary
Jan. 2
$3,400
$476
Oct. 1
5,200
936
Apr. 16
2,100
263
Nov. 1
2,300
288
Jan. 16
5,800 1,305
Dec. 1
3,100
481
Feb. 1
6,600
1,419
Arnett
Cruz
Edwards
Harvin
Nicks
Shiancoe
Ward
Required:
Tax
Withheld
1. Determine the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8. Round amounts to the nearest whole dollar and enter all amounts as positive values.
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