Jocame Inc. began business on January 2, 20Y7. 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 20Y8, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administra- tion, 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: Monthly Income Tax Withheld Date First Monthly Salary $ 8,160 Employee Employed July 16 Addai $1,704 Kasay McGahee June 1 3,600 533 Feb. 16 6,420 1,238 Mss Jan. 4,600 783 758 Stewart Dec. 1 4,500 Tolbert Nov. 16 3,250 446 Wells May 1 10,500 2,359 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y7, arranging the data in the following form: Social Security Tax Withheld Medicare Tax Withheld Gross Federal Income Tax Withheld Employee Earnings 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 0.6% on the first $10,000 of each employee's earnings; (e) total.
Jocame Inc. began business on January 2, 20Y7. 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 20Y8, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administra- tion, 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: Monthly Income Tax Withheld Date First Monthly Salary $ 8,160 Employee Employed July 16 Addai $1,704 Kasay McGahee June 1 3,600 533 Feb. 16 6,420 1,238 Mss Jan. 4,600 783 758 Stewart Dec. 1 4,500 Tolbert Nov. 16 3,250 446 Wells May 1 10,500 2,359 Instructions 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 20Y7, arranging the data in the following form: Social Security Tax Withheld Medicare Tax Withheld Gross Federal Income Tax Withheld Employee Earnings 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 0.6% on the first $10,000 of each employee's earnings; (e) total.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 4E
Related questions
Question
Transcribed Image Text:Jocame Inc. began business on January 2, 20Y7. 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
Transcribed Image Text:calendar year. Early in 20Y8, before the Wage and Tax Statements (Form W-2) could be
prepared for distribution to employees and for filing with the Social Security Administra-
tion, 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:
Monthly
Income Tax
Withheld
Date First
Monthly
Salary
$ 8,160
Employee
Employed
July 16
Addai
$1,704
Kasay
McGahee
June 1
3,600
533
Feb. 16
6,420
1,238
Mss
Jan.
4,600
783
758
Stewart
Dec. 1
4,500
Tolbert
Nov. 16
3,250
446
Wells
May 1
10,500
2,359
Instructions
1. Calculate the amounts to be reported on each employee's Wage and Tax Statement
(Form W-2) for 20Y7, arranging the data in the following form:
Social Security
Tax Withheld
Medicare
Tax Withheld
Gross
Federal Income
Tax Withheld
Employee
Earnings
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 0.6% on the first
$10,000 of each employee's earnings; (e) total.
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