Wage and Tax Statement Dete on Employer FICA Tax Ehrich Co. began business on Je
ID: 2592526 • Letter: W
Question
Wage and Tax Statement Dete on Employer FICA Tax Ehrich Co. began business on Jenuary 2, 20YB. Salaries were paid to employees on the lest day of each month, and social security tax, Medicere tax, and federel income tax were withheld in the required amounts. An employee who is hired in the middie of the month receives half the monthly salary for thet month. All required payroll tax reports were ed, and the correct emount of payroll taxes was remitted by the company for the calendar year. Earty In 20v9 before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Sociel Security Administration, the employees' eamings records were inadvertentty destroyed None of the employees resigned or were discharged during the yeer, and there were no changes in salary rates. The social security tax was withheld at the rate or 6.0% and Medicare tax at the rate of 1.S%. Data on dates er 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 Cruz Edwards Harvin Nicks Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 $5,500 4,800 8,000 6,000 10,000 11,600 5,220 833 1,592 1,070 2,350 2,600 876 Ward Required 1. Calculate the amounts to be reported on each employee's wage and Tax Statement (Form W-2) for 20Y8. Enter amounts to the nearest cent if required. Enter all amounts as positive numbers Gross Federal Income Social Security Medicare Employee Earnings Arnett Tax Withheld Tax Withheld Tax Withheld Edwards 2. Caculate the fuilawing emplaver payral taxes for the year (a) sodiat securily: (b) Medicare: t4) stale ompensaton at a 6% on the frst St 0,000 of each enplo_eSearn_gsrejimit (e) s (e) 3Explanation / Answer
1…. Date first employed Months Monthly salary Gross Earnings Federal Income tax withheld Social security tax withheld Medicare tax withheld State unemployment compensation at 5.4% Federal unemployment compensation at 0.6% 1 2 3 4 5=3*4 6(Given) 7=4*6% 8 Arnett Nov.16 1.5 5500 8250 944 495 123.75 445.5 49.5 Cruz 2-Jan 12 4800 57600 833 3456 864 540 60 Edwards Oct.1 3 8000 24000 1592 1440 360 540 60 Harvin 1-Dec 1 6000 6000 1070 360 90 324 36 Nicks 1-Feb 11 10000 110000 2350 6600 1650 540 60 Shiancoe Mar.1 10 11600 116000 2600 6960 1740 540 60 Ward Nov.16 1.5 5220 7830 876 469.8 117.45 422.82 46.98 Total 329680 10265 19780.8 4945.2 3352.32 372.48 Taxes for the Year Social security 19780.8 Medicare 4945.2 State unemployment compensation at 5.4% 3352.32 Federal unemployment compensation at 0.6% 372.48 Income tax payable 10265
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