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SUTA/FUTA Earnings

SUTA/FUTA Earnings

FINANCIAL ACCOUNTING
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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I'm struggling with C & D portions of #2 on this problem. Plz help!! Thx :)

b. Medicare tax paid by employer 4,945.20 C. and d. SUTA/FUTA Employee Earnings Arnett Cruz Edwards Harvin Nicks Shiancoe State unemployment compensation tax Ward Total Federal unemployment compensation tax e. Total employer payroll taxes $ 28,450.80
Transcribed Image Text:b. Medicare tax paid by employer 4,945.20 C. and d. SUTA/FUTA Employee Earnings Arnett Cruz Edwards Harvin Nicks Shiancoe State unemployment compensation tax Ward Total Federal unemployment compensation tax e. Total employer payroll taxes $ 28,450.80
PR 11-3A Wage and tax statement data on employer FIICA tax Ehrlich Co. began business on January 2, 20Y8. 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 payroll taxes was remitted by the company for the calendar year. Early in 20Y9, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administra- tion, 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%. Data on dates of employment, salary rates, and em- ployees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: OBJ. 2,3 Monthly Income Tax Withheld Date First Monthly Salary $ 5,500 Employee Employed Arnett Nov. 16 $ 944 Cruz Jan. 2 4,800 833 Edwards Oct. 1 8,000 1,592 Harvin Dec. 1 6,000 1,070 Nicks Feb. 1 10,000 2,350 Shiancoe Mar. 1 11,600 2,600 Ward Nov. 16 5,220 876 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8, arranging the data in the following form: Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Wthheld 2. Calculate 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 0.6% on the first $10,000 of each employee's earnings: (e) total.
Transcribed Image Text:PR 11-3A Wage and tax statement data on employer FIICA tax Ehrlich Co. began business on January 2, 20Y8. 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 payroll taxes was remitted by the company for the calendar year. Early in 20Y9, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administra- tion, 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%. Data on dates of employment, salary rates, and em- ployees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: OBJ. 2,3 Monthly Income Tax Withheld Date First Monthly Salary $ 5,500 Employee Employed Arnett Nov. 16 $ 944 Cruz Jan. 2 4,800 833 Edwards Oct. 1 8,000 1,592 Harvin Dec. 1 6,000 1,070 Nicks Feb. 1 10,000 2,350 Shiancoe Mar. 1 11,600 2,600 Ward Nov. 16 5,220 876 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y8, arranging the data in the following form: Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Wthheld 2. Calculate 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 0.6% on the first $10,000 of each employee's earnings: (e) total.
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