FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full-time and part-time workers in Ranger Company. These amounts represent the cumulative earnings for each worker as of November 1, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, November 8.

In the state where Ranger Company is located, the tax rates and bases are as follows:

Tax on Employees:  
  FICA—OASDI 6.2% on first $137,700
  FICA—HI 1.45% on total earnings
  SUTA 0.5% on first $8,000
Tax on Employer:  
  FICA—OASDI 6.2% on first $137,700
  FICA—HI 1.45% on total earnings
  FUTA 0.6% on first $7,000
  SUTA 2.8% on first $8,000

 

In the appropriate columns of the form shown below, do the following:

1.  Compute the amount to be withheld from each employee's earnings on November 8 for (a) FICA-OASDI, (b) FICA-HI, and (c) SUTA, and determine the total employee taxes.

2.  Record the portion of each employee's earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employer's payroll taxes on the November 8 payroll.

 

If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Enter the tax rates as decimals, carried out to four decimal places when required.

RANGER COMPANY
   
Gross
  Taxes to Be Withheld from
Employees' Earnings Under
  Employer Taxes: Portion of Employees'
Earnings Taxable Under
  Earnings to Earnings   FICA     FICA    
Employee Date Nov. 8   OASDI HI SUTA   OASDI HI FUTA SUTA
1. Watson, Ruth T. $139,000    $1,890         $fill in the blank 1 $fill in the blank 2 $fill in the blank 3   $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 $fill in the blank 7
2. Kinder, Ralph A. 14,950    410         fill in the blank 8 fill in the blank 9 fill in the blank 10   fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14
3. Sanchez, Robert T. 4,060    395         fill in the blank 15 fill in the blank 16 fill in the blank 17   fill in the blank 18 fill in the blank 19 fill in the blank 20 fill in the blank 21
4. Carey, Mary C. 8,190    295         fill in the blank 22 fill in the blank 23 fill in the blank 24   fill in the blank 25 fill in the blank 26 fill in the blank 27 fill in the blank 28
5. Cox, Mason M. 6,460    425         fill in the blank 29 fill in the blank 30 fill in the blank 31   fill in the blank 32 fill in the blank 33 fill in the blank 34 fill in the blank 35
6. Kenni, Jack T. 137,500    1,850         fill in the blank 36 fill in the blank 37 fill in the blank 38   fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42
7. Britmayer, Tim A. 8,905    490         fill in the blank 43 fill in the blank 44 fill in the blank 45   fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49
8. Candi, Mark B. 6,825    325         fill in the blank 50 fill in the blank 51 fill in the blank 52   fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56
9. Boxer, Barbara C. 57,010    1,150         fill in the blank 57 fill in the blank 58 fill in the blank 59   fill in the blank 60 fill in the blank 61 fill in the blank 62 fill in the blank 63
10. McBride, James W. 3,615    195         fill in the blank 64 fill in the blank 65 fill in the blank 66   fill in the blank 67 fill in the blank 68 fill in the blank 69 fill in the blank 70
Total employee taxes       $fill in the blank 71 $fill in the blank 72 $fill in the blank 73          
Total taxable earnings               $fill in the blank 74 $fill in the blank 75 $fill in the blank 76 $fill in the blank 77
Applicable tax rate (enter as decimals, not percentages)         fill in the blank 78 fill in the blank 79 fill in the blank 80 fill in the blank 81
Totals               $fill in the blank 82 $fill in the blank 83 $fill in the blank 84 $fill in the blank 85
Total payroll taxes               $fill in the blank 86
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