Question

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 FICA-HI SUTA Tax on Employer: 6.2% on first $132,900 1.45% on total earnings 0.5% on first $8,000 FICA-OASDI FICA-HI 6.2% on first $132,900 1.45% on total earnings 0.6% on first $7,000 2.8% on first $8,000 FUTA SUTA 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.

Answer 1

Please find attached Employee payroll taxes and Employer Taxable Earnings:and payroll taxes:

Employer Employee Taxes Taxable Earnings FICA-OASDI FICA-HI SUTA FICA-OASDIFICA-HI FUTA SUTA 6.20% 1.45% 0.50% 6.20% 1.45% 0.60% 2.80% YTD Earnings Nov 8 Earnings 132,900.00 8,000.00 132,900.00 | 7,000.00 8,000.00 IF (A+B) IF (A+B) 132900, 8,000, B*6.2% (or) B*0.5% IF (A+B)< IF (A+B)< IF (A+B)< (A+B- (or) (A+B- 132,900, B 7000, B 8000, B 132900)*6.2B*1.45 8000)*0.5 (or) (A+B- (or) (A+B- (or) (A+B- % 132900) 7000) 8000) % - 272 1.98 395.00 395.00 2.13 425.00 425.00 Watson, Ruth Kinder, Ralph Sanchez, Robert Carey, Mary Cox, Mason Kenni, Jack Britmayer, Tim Candi, Mark Boxer, Barbara Mcbride, James Total Employee Taxes Total Taxable Earnings Applicable tax rate Totals Total Payroll Taxes 139,000 14,950 4,060 8,190 6,460 132,700 8,905 6,825 57,010 3,615 1,890 410 395 295 425 1,850 490 325 1,150 195 25.42 24.49 18.29 26.35 12.40 30.38 20.15 71.30 12.09 240.87 27.41 5.95 5.73 4.28 6.16 26.83 7.11 4.71 16.68 2.83 107.69 410.00 395.00 295.00 425.00 200.00 490.00 325.00 1,150.00 195.00 1,890.00 410.00 395.00 295.00 425.00 1,850.00 490.00 325.00 1,150.00 195.00 1.63 175 325.00 195.00 195.00 0.98 6.72 3,885.00 0.062 240.87 7,425.00 0.0145 107.66 1,190.00 0.006 7.14 1,340.00 0.028 37.52 393.19