Jocame Inc. began business on january 2,2013. salaries were paid to employees on
ID: 2777773 • Letter: J
Question
Jocame Inc. began business on january 2,2013. 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 taxes was remitted by the company for the calendar year. early in 2014, before the wage and tax satements( form W2) 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% and medicare tax at the rate of 1.5% on salary. data on dates of employment , salary rates, and employees income tax withheld , which are summarized as follows, were obtained from personal records and payroll records.
Employees Date first employed Monthly Salary Monthly Income Withheld
Addai July 16 $8,160 $1,704
Kasay June 1 3,600 533
McGahee Feb 16 6,420 1,238
Moss Jan 1 4,600 783
Stewart Dec 1 4,500 758
Tolbert Nov 16 3,250 446
Wells May 1 10,500 2,359
Instructions:
1. Calculate the amounts to be reported on each employees wage and tax statement (form W2) for 2013, arranging the data in the following form:
Employees Gross Earnings Federal Income tax withheld Social security tax withheld medicare tax withheld
2. calculate the following employer payroll taxes for the year :(a) Social security , (b) medicare, (c) state unemployment at 5.4% on the first $10,000 of each employees earnings, ( d) federal unemployment compensation at 0.8% on the first $10,000 of each employees earnings, (e) total.
3. Please help me determine the SUTA/FUTA earnings of each employee in the included template. Thanks, i just don't understand it.
1.
Amounts to Be Reported on Wage and Tax Statements (Form W-2)
Gross
Federal Income
Social Security
Medicare
Employee
Earnings
Tax Withheld
Tax Withheld
Tax Withheld
Addai
$44,880
$ 9,372
$ 2,693.00
*
$ 673.00
*
Kasay
25,200
3,731
1,512.00
378.00
McGahee
67,410
12,999
4,045.00
*
1,011.00
*
Moss
55,200
9,396
3,312.00
828.00
Stewart
4,500
758
270.00
68.00
*
Tolbert
4,875
669
293.00
*
73.00
*
Wells
84,000
18,872
5,040.00
1,260.00
Totals
$ 55,797
$ 17,165.00
*
$ 4,291.00
*
2.
Employer Payroll Taxes
a.
Social security tax paid by employer
$ 17,165.00
*
b.
Medicare tax paid by employer
4,291.00
*
c. and d.
SUTA/FUTA
Employee
Earnings
Addai
$ 44,880
*
Kasay
McGahee
Moss
Stewart
Tolbert
State unemployment compensation tax
59375*5.4%=3208
*
Wells
Total
Federal unemployment compensation tax
59375*0.8=475
*
e.
Total employer payroll taxes
$ 25,137.00
*
1.
Amounts to Be Reported on Wage and Tax Statements (Form W-2)
Gross
Federal Income
Social Security
Medicare
Employee
Earnings
Tax Withheld
Tax Withheld
Tax Withheld
Addai
$44,880
$ 9,372
$ 2,693.00
*
$ 673.00
*
Kasay
25,200
3,731
1,512.00
378.00
McGahee
67,410
12,999
4,045.00
*
1,011.00
*
Moss
55,200
9,396
3,312.00
828.00
Stewart
4,500
758
270.00
68.00
*
Tolbert
4,875
669
293.00
*
73.00
*
Wells
84,000
18,872
5,040.00
1,260.00
Totals
$ 55,797
$ 17,165.00
*
$ 4,291.00
*
2.
Employer Payroll Taxes
a.
Social security tax paid by employer
$ 17,165.00
*
b.
Medicare tax paid by employer
4,291.00
*
c. and d.
SUTA/FUTA
Employee
Earnings
Addai
$ 44,880
*
Kasay
McGahee
Moss
Stewart
Tolbert
State unemployment compensation tax
59375*5.4%=3208
*
Wells
Total
Federal unemployment compensation tax
59375*0.8=475
*
e.
Total employer payroll taxes
$ 25,137.00
*
Explanation / Answer
Calculation of SUTA and FUTA
Name Taxable Amount SUTA(5.4%) FUTA(0.8%) Addai 10,000 540 80 Kasay 10,000 540 80 Mcgahee 10,000 540 80 Moss 10,000 540 80 Stewart 4,500 243 36 Tolbert 4,875 263.25 39 Wells 10,000 540 80 Total 3,206.25 475Related Questions
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