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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 Date First
Employed Monthly
Salary Monthly
Income Tax
Withheld
Arnett Nov. 16 $6,000 $1,132
Cruz Jan. 2 4,600 798
Edwards Oct. 1 8,200 1,632
Harvin Dec. 1 5,900 1,052
Nicks Feb. 1 12,000 2,820
Shiancoe Mar. 1 11,300 2,533
Ward Nov. 16 4,700 788
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.

Employee Gross Earnings Federal Income Tax
Withheld Social Security Tax
Withheld Medicare Tax
Withheld
Arnett $fill in the blank 1
9,000
$fill in the blank 2
1,698
$fill in the blank 3
540
$fill in the blank 4
135
Cruz fill in the blank 5
55,200
fill in the blank 6
9,576
fill in the blank 7
3,312
fill in the blank 8
828
Edwards fill in the blank 9
24,600
fill in the blank 10
4,896
fill in the blank 11
1,476
fill in the blank 12
369
Harvin fill in the blank 13
5,900
fill in the blank 14
1,052
fill in the blank 15
354
fill in the blank 16
88.5
Nicks fill in the blank 17
132,000
fill in the blank 18
31,020
fill in the blank 19
7,920
fill in the blank 20
1,980
Shiancoe fill in the blank 21
113,000
fill in the blank 22
25,330
fill in the blank 23
6,780
fill in the blank 24
1,695
Ward fill in the blank 25
7,050
fill in the blank 26
1,182
fill in the blank 27
423
fill in the blank 28
105.75
Total $fill in the blank 29
346,750
$fill in the blank 30
74,754
$fill in the blank 31
20,805
$fill in the blank 32
5,201.25
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.

Payroll Taxes Amount
(a) $fill in the blank 33
20,805
(b) fill in the blank 34
5,201.25
(c) fill in the blank 35
(d) fill in the blank 36
(e) $fill in the blank 37