Instructions 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statemer (Form W-2), arranging the data as follows. Round all amounts to the nearest cent. Employee Gross Earnings 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 eac employee's earnings, (d) federal unemployment compensation at 0.8% on the first $10,000 c each employee's earnings, and (e) total. Round all amounts to the nearest cent.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
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Author:James A. Heintz, Robert W. Parry
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Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1MP: The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows:...
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Obj. 2
PR 10-3A 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 cor-
rect 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 dis-
tribution 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 with-
held, which are summarized as follows, were obtained from personnel records and payroll records:
Employee
Arnett
Cruz
Edwards
Harvin
Nicks
Shiancoe
Ward
Date First
Employed
Nov. 16
Jan. 2
Oct. 1
Dec. 1
Feb. 1
Mar. 1
Nov. 16
Monthly
Salary
$ 6,000
4,600
8,200
5,900
12,000
11,300
4,700
Monthly
Income Tax
Withheld
$1,132
798
1,632
1,052
2,820
2,533
788
Transcribed Image Text:Obj. 2 PR 10-3A 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 cor- rect 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 dis- tribution 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 with- held, which are summarized as follows, were obtained from personnel records and payroll records: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $ 6,000 4,600 8,200 5,900 12,000 11,300 4,700 Monthly Income Tax Withheld $1,132 798 1,632 1,052 2,820 2,533 788
Instructions
1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement
(Form W-2), arranging the data as follows. Round all amounts to the nearest cent.
Employee
Gross
Earnings
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 all amounts to the nearest cent.
Transcribed Image Text:Instructions 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2), arranging the data as follows. Round all amounts to the nearest cent. Employee Gross Earnings 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 all amounts to the nearest cent.
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