Question

Wage and Tax Statement Data on Employer FICA 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 Administration, 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 employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: Date First Monthly Monthly Income Employee Employed Salary Tax Withheld Arnett Jan. 2 $3,700 $518 Cruz Oct. 1 5,400 972 Edwards Apг. 16 2,200 275 Harvin Nov. 1 2,200 275 Nicks Jan. 16 5,650 1,271 Shlancoe Dec. 1 3,400 527 Ward Feb. 1 6,500 1,398

Answer 1

1	Employee		Gross Earnings	Federal income Tax withheld	Social security tax withheld @ 6%	Medicare Tax @ 1.5%
			a		a*6%	a*1.5%
	Arnet		44400	6216	2664	666
			(3700*12)	(518*12)
	Cruz		16200	11952	972	243
			(5400*3)	(976*3)
	Edwards		18700	2337.5	1122	280.5
			(2200*8.5)	(275*8.5)
	Harvin		4400	550	264	66
			(2200*2)	(275*2)
	Nicks		64975	14616.5	3898.5	974.625
			(5650*11.5)	(1271*11.5)
	Shiancoe		3400	527	204	51
			(3400*1)	(527*1)
	Ward		71500	15378	4290	1072.5
			(6500*11)	(1398*11)
2	Employee		Gross Earnings	Social security tax withheld @ 6%	Medicare Tax @ 1.5%	State Unemployment Compensation	Federal Unemployment Compensation
			a	a*6%	a*1.5%	(a*5.4% )with $ 10000 limit	(a*0.6% )with $ 10000 limit
	Arnet		44400	2664	666	540	60
			(3700*12)			(10000*5.4%)	(10000*0.6%)
	Cruz		16200	972	243	540	60
			(5400*3)			(10000*5.4%)	(10000*0.6%)
	Edwards		18700	1122	280.5	540	60
			(2200*8.5)			(10000*5.4%)	(10000*0.6%)
	Harvin		4400	264	66	237.6	26.4
			(2200*2)			(4400*5.4%)	(4400*0.6%)
	Nicks		64975	3898.5	974.625	540	60
			(5650*11.5)			(10000*5.4%)	(10000*0.6%)
	Shiancoe		3400	204	51	183.6	20.4
			(3400*1)			(3400*5.4%)	(3400*0.6%)
	Ward		71500	4290	1072.5	540	60
			(6500*11)			(10000*5.4%)	(10000*0.6%)
	Total			13414.5	3353.625	3121.2	346.8
	(a)	13415
	(b)	3354
	©	3121
	(d)	347
	e)	20237