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Ehrlich Co. began business on January 2. 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 the following year, 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% on salary. 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: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $6,000 4,600 8,200 5,900 12,000 11,300 4,700 Monthly Income Tax Withheld $1,132 798 1,632 1,052 2,820 2,533 788

Ehrlich Co. began business on January 2. 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 the following year, 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% on salary. 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: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $6,000 4,600 8,200 5,900 12,000 11,300 4,700 Monthly Income Tax Withheld $1,132 798 1,632 1,052 2,820 2,533 788

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1MP: The totals line from Nix Companys payroll register for the week ended March 31, 20--, is as follows:...
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Wage and tax statement data on employer FICA tax Ehrlich Co. began business on January 2. 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 the following year, 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% on salary. 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: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $6,000 4,600 8,200 5,900 12,000 11,300 4,700 Monthly Income Tax Withheld $1,132 798 1,632 1,052 2,820 2,533 788
Transcribed Image Text:Wage and tax statement data on employer FICA tax Ehrlich Co. began business on January 2. 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 the following year, 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% on salary. 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: Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Date First Employed Nov. 16 Jan. 2 Oct. 1 Dec. 1 Feb. 1 Mar. 1 Nov. 16 Monthly Salary $6,000 4,600 8,200 5,900 12,000 11,300 4,700 Monthly Income Tax Withheld $1,132 798 1,632 1,052 2,820 2,533 788
Required: 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter all amounts as positive numbers. When required, round your answres to two decimal places. Accounting numeric field Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward (a) (b) (c) (d) (e) Check My Work Gross Earnings $ ederal Income Tax Withheld Social Security Tax Withheld 2. Compute 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 0.8% on the first $10,000 of each employee's earnings, and (e) total. Round your answers to two decimal places. Medicare Tax Withheld $ Previous Next
Transcribed Image Text:Required: 1. Compute the amounts to be reported for the year on each employee's Wage and Tax Statement (Form W-2). Enter all amounts as positive numbers. When required, round your answres to two decimal places. Accounting numeric field Employee Arnett Cruz Edwards Harvin Nicks Shiancoe Ward (a) (b) (c) (d) (e) Check My Work Gross Earnings $ ederal Income Tax Withheld Social Security Tax Withheld 2. Compute 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 0.8% on the first $10,000 of each employee's earnings, and (e) total. Round your answers to two decimal places. Medicare Tax Withheld $ Previous Next
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