Question

1. Wage and Tax Statement Data on Employer Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare).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 The total amount paid to employees for a certain period.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 A detailed record of each employee's earnings.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	$3,300		$488
   Cruz	Jan. 2	5,100		959
   Edwards	Oct. 1	2,500		310
   Harvin	Dec. 1	2,600		322
   Nicks	Feb. 1	10,200		2,295
   Shiancoe	Mar. 1	3,600		551
   Ward	Nov. 16	8,400		1,814

   Required:

   1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.

   Employee	Gross Earnings		Federal Income Tax Withheld		Social Security Tax Withheld		Medicare Tax Withheld
   Arnett	$		$		$		$
   Cruz
   Edwards
   Harvin
   Nicks
   Shiancoe
   Ward
   					$		$

   2. Calculate 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; (e) total. Round your answers to two decimal places.

   (a)	$
   (b)	$
   (c)	$
   (d)	$
   (e)	$

   
   

Answer 1

PART 1: FORM W-2

Based on employment date, numbers of months are calculated and taxes are calculated in below table:

Accordingly form W-2 is generated below in desired format:

PART 2: Employer payroll taxes for the year:

Employer payroll taxes are calculated in below table:

Answers are listed here:

a	Social security	$14,223.00
b	Medicare	$   3,555.75
c	State unemployment compensation	$   2,972.70
d	Federal unemployment compensation	$      440.40
e	Total	$21,191.85