The form below shows the amounts that appear in the Earnings to Date column of the employees' earnings records for 10 full- and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11.In the state where Unger 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 SUTA1.8% 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 October 11 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 October 11 payroll.If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. Enter the tax rates as decimals, carried out to four decimal places when required.UNGER COMPANYTaxes to Be Withheld fromEmployer Taxes: Portion of Employees'GrossEmployees' Earnings UnderEarnings Taxable UnderEarnings toEarningsFICAFICAEmployeeDateOct. 11OASDIHISUTAOASDIHIFUTASUTA1. Weiser, Robert A.$138,680$2,08030.16$2. Stankard, Laurie C.15,04531019.224.503. Grow, Joan L.4,07023014.263.341.154. Rowe, Paul C.8,13521013.023.055. McNamara, Joyce M.7,4251509.32.180.756. O'Connor, Roger T.137,5701,670103.5424.227. Carson, Ronald B.8.86029017.984.218. Kenny, Ginni C.4,38519011.782.760.959. Devery, Virginia S.57,11062538.759.0610. Wilson, Joe W.3.64523514.573.411.18Total employee taxesTotal taxable earningsApplicable tax rate (enter as decimals, not percentages)TotalsTotal payroll taxes

The Federal Insurance Contribution Act is shortly known as FICA. It projects a system of Medicare…

Answered: The form below shows the amounts that…

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- and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 4, the company's last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 11.

In the state where Unger 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	1.8% 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 October 11 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 October 11 payroll.
If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent. Enter the tax rates as decimals, carried out to four decimal places when required.
UNGER COMPANY
Taxes to Be Withheld from
Employer Taxes: Portion of Employees'
Gross
Employees' Earnings Under
Earnings Taxable Under
Earnings to
Earnings
FICA
FICA
Employee
Date
Oct. 11
OASDI
HI
SUTA
OASDI
HI
FUTA
SUTA
1. Weiser, Robert A.
$138,680
$2,080
30.16
$
2. Stankard, Laurie C.
15,045
310
19.22
4.50
3. Grow, Joan L.
4,070
230
14.26
3.34
1.15
4. Rowe, Paul C.
8,135
210
13.02
3.05
5. McNamara, Joyce M.
7,425
150
9.3
2.18
0.75
6. O'Connor, Roger T.
137,570
1,670
103.54
24.22
7. Carson, Ronald B.
8.860
290
17.98
4.21
8. Kenny, Ginni C.
4,385
190
11.78
2.76
0.95
9. Devery, Virginia S.
57,110
625
38.75
9.06
10. Wilson, Joe W.
3.645
235
14.57
3.41
1.18
Total employee taxes
Total taxable earnings
Applicable tax rate (enter as decimals, not percentages)
Totals
Total payroll taxes

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