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—OASDI6.2% on first $137,700 FICA—HI1.45% on total earnings SUTA0.5% on first $8,000Tax on Employer: FICA—OASDI6.2% on first $137,700 FICA—HI1.45% on total earnings FUTA0.6% on first $7,000 SUTA2.8% 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 fromEmployees' Earnings Under Employer Taxes: Portion of Employees'Earnings Taxable Under Earnings toEarnings FICA FICA EmployeeDateNov. 8 OASDIHISUTA OASDIHIFUTASUTA1. 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 72. Kinder, Ralph A.14,950 410 fill in the blank 8fill in the blank 9fill in the blank 10 fill in the blank 11fill in the blank 12fill in the blank 13fill in the blank 143. Sanchez, Robert T.4,060 395 fill in the blank 15fill in the blank 16fill in the blank 17 fill in the blank 18fill in the blank 19fill in the blank 20fill in the blank 214. Carey, Mary C.8,190 295 fill in the blank 22fill in the blank 23fill in the blank 24 fill in the blank 25fill in the blank 26fill in the blank 27fill in the blank 285. Cox, Mason M.6,460 425 fill in the blank 29fill in the blank 30fill in the blank 31 fill in the blank 32fill in the blank 33fill in the blank 34fill in the blank 356. Kenni, Jack T.137,500 1,850 fill in the blank 36fill in the blank 37fill in the blank 38 fill in the blank 39fill in the blank 40fill in the blank 41fill in the blank 427. Britmayer, Tim A.8,905 490 fill in the blank 43fill in the blank 44fill in the blank 45 fill in the blank 46fill in the blank 47fill in the blank 48fill in the blank 498. Candi, Mark B.6,825 325 fill in the blank 50fill in the blank 51fill in the blank 52 fill in the blank 53fill in the blank 54fill in the blank 55fill in the blank 569. Boxer, Barbara C.57,010 1,150 fill in the blank 57fill in the blank 58fill in the blank 59 fill in the blank 60fill in the blank 61fill in the blank 62fill in the blank 6310. McBride, James W.3,615 195 fill in the blank 64fill in the blank 65fill in the blank 66 fill in the blank 67fill in the blank 68fill in the blank 69fill in the blank 70Total 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 77Applicable tax rate (enter as decimals, not percentages) fill in the blank 78fill in the blank 79fill in the blank 80fill in the blank 81Totals $fill in the blank 82$fill in the blank 83$fill in the blank 84$fill in the blank 85Total payroll taxes $fill in the blank 86

The tax that is withheld, charged, or imposed on an employer's paycheck is known as payroll tax. Wages, gross salary, incentives, and any other type of payment provided to workers shall be included. The tax withheld, charged, or imposed on an employer's paycheck is known as payroll tax.

Answered: shows the amounts that appear in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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