Gridiron Concepts Co. began business on January 2, 2013.Salaries were paid to employees on the last day of each month, andsocial security tax, Medicare tax, and federal income tax werewithheld in the required amounts. An employee who is hired in themiddle of the month receives half the monthly salary for thatmonth. All required payroll tax reports were filed, and the correctamount of payroll taxes was remitted by the company for thecalendar year. Early in 2014, before the Wage and Tax Statements(Form W-2) could be prepared for distribution to employees and forfiling with the Social Security Administration, the employees'earnings records were inadvertently destroyed.
None of the employees resigned or were discharged during theyear, and there were no changes in salary rates. The socialsecurity tax was withheld at the rate of 6.0% and Medicare tax atthe rate of 1.5%. Data on dates of employment, salary rates, andemployees' income taxes withheld, which are summarized as follows,were obtained from personnel records and payroll records:
Employee Date FirstEmployed MonthlySalary Monthly IncomeTax Withheld Brooks Jan. 2 $3,700 $548 Croom Oct. 1 5,400 1,015 Fulmer Apr. 16 2,800 347 Johnson Nov. 1 2,100 260 Nutt Jan. 16 9,700 2,183 Richt Dec. 1 3,500 536 Spurrier Feb. 1 8,800 1,901
Required:
1. Calculate the amounts to be reported on eachemployee's Wage and Tax Statement (Form W-2) for 2013. Enteramounts to the nearest cent if required. Enter all amounts aspositive numbers.
Employee GrossEarnings Federal IncomeTax Withheld Social SecurityTax Withheld Medicare TaxWithheld Brooks $ $ $ $ Croom Fulmer Johnson Nutt Richt Spurrier $ $
2. Calculate the following employer payrolltaxes for the year: (a) social security; (b) Medicare; (c) stateunemployment compensation at 4.8% on the first $8,000 of eachemployee's earnings; (d) federal unemployment compensation at 0.8%on the first $8,000 of each employee's earnings; (e) total.
(a) $ (b) $ (c) $ (d) $ (e) $
Gridiron Concepts Co. began business on January 2, 2013.Salaries were paid to employees on the last day of each month, andsocial security tax, Medicare tax, and federal income tax werewithheld in the required amounts. An employee who is hired in themiddle of the month receives half the monthly salary for thatmonth. All required payroll tax reports were filed, and the correctamount of payroll taxes was remitted by the company for thecalendar year. Early in 2014, before the Wage and Tax Statements(Form W-2) could be prepared for distribution to employees and forfiling with the Social Security Administration, the employees'earnings records were inadvertently destroyed.
None of the employees resigned or were discharged during theyear, and there were no changes in salary rates. The socialsecurity tax was withheld at the rate of 6.0% and Medicare tax atthe rate of 1.5%. Data on dates of employment, salary rates, andemployees' income taxes withheld, which are summarized as follows,were obtained from personnel records and payroll records:
| Employee | Date FirstEmployed | MonthlySalary | Monthly IncomeTax Withheld | ||
| Brooks | Jan. 2 | $3,700 | $548 | ||
| Croom | Oct. 1 | 5,400 | 1,015 | ||
| Fulmer | Apr. 16 | 2,800 | 347 | ||
| Johnson | Nov. 1 | 2,100 | 260 | ||
| Nutt | Jan. 16 | 9,700 | 2,183 | ||
| Richt | Dec. 1 | 3,500 | 536 | ||
| Spurrier | Feb. 1 | 8,800 | 1,901 | ||
Required:
1. Calculate the amounts to be reported on eachemployee's Wage and Tax Statement (Form W-2) for 2013. Enteramounts to the nearest cent if required. Enter all amounts aspositive numbers.
| Employee | GrossEarnings | Federal IncomeTax Withheld | Social SecurityTax Withheld | Medicare TaxWithheld | ||||
| Brooks | $ | $ | $ | $ | ||||
| Croom | ||||||||
| Fulmer | ||||||||
| Johnson | ||||||||
| Nutt | ||||||||
| Richt | ||||||||
| Spurrier | ||||||||
| $ | $ | |||||||
2. Calculate the following employer payrolltaxes for the year: (a) social security; (b) Medicare; (c) stateunemployment compensation at 4.8% on the first $8,000 of eachemployee's earnings; (d) federal unemployment compensation at 0.8%on the first $8,000 of each employee's earnings; (e) total.
| (a) | $ |
| (b) | $ |
| (c) | $ |
| (d) | $ |
| (e) | $ |
Related questions
Wage and Tax Statement Data on Employer FICA Tax
Gridiron Concepts Co. began business on January 2, 2013.Salaries were paid to employees on the last day of each month, andsocial security tax, Medicare tax, and federal income tax werewithheld in the required amounts. An employee who is hired in themiddle of the month receives half the monthly salary for thatmonth. All required payroll tax reports were filed, and the correctamount of payroll taxes was remitted by the company for thecalendar year. Early in 2014, before the Wage and Tax Statements(Form W-2) could be prepared for distribution to employees and forfiling with the Social Security Administration, the employees'earnings records were inadvertently destroyed.
None of the employees resigned or were discharged during theyear, and there were no changes in salary rates. The socialsecurity tax was withheld at the rate of 6.0% on the first $100,000of salary and Medicare tax at the rate of 1.5% on salary. Data ondates of employment, salary rates, and employees' income taxeswithheld, which are summarized as follows, were obtained frompersonnel records and payroll records:
| Employee | Date FirstEmployed | MonthlySalary | Monthly IncomeTax Withheld | ||
| Brooks | Jan. 2 | $3,300 | $488 | ||
| Croom | Oct. 1 | 5,700 | 1,072 | ||
| Fulmer | Apr. 16 | 2,400 | 298 | ||
| Johnson | Nov. 1 | 2,100 | 260 | ||
| Nutt | Jan. 16 | 10,400 | 2,340 | ||
| Richt | Dec. 1 | 3,400 | 520 | ||
| Spurrier | Feb. 1 | 8,800 | 1,901 | ||
Required:
1. Calculate the amounts to be reported on eachemployee's Wage and Tax Statement (Form W-2) for 2013. Enteramounts to the nearest cent if required. Enter all amounts aspositive numbers.
| Employee | GrossEarnings | Federal IncomeTax Withheld | Social SecurityTax Withheld | Medicare TaxWithheld | ||||
| Brooks | $ | $ | $ | $ | ||||
| Croom | ||||||||
| Fulmer | ||||||||
| Johnson | ||||||||
| Nutt | ||||||||
| Richt | ||||||||
| Spurrier | ||||||||
| Totals | $ | $ | ||||||
2. Calculate the following employer payrolltaxes for the year: (a) social security; (b) Medicare; (c) stateunemployment compensation at 4.8% on the first $8,000 of eachemployee's earnings; (d) federal unemployment compensation at 0.8%on the first $8,000 of each employee's earnings; (e) total.
| (a) $ | |
| (b) $ | |
(c) $ | |
| (d) $ | |
| (e) $ |
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.: Salaries: Sales salaries $325,000 Warehouse salaries 196,000 Office salaries 131,000 $652,000 Deductions: Income tax withheld $119,000 Social security tax withheld 39,120 Medicare tax withheld 9,780 Retirement savings 14,344 Group insurance 11,736 $193,980 Tax rates assumed: Social security 6% Medicare 1.5% State unemployment (employer only) 5.4% Federal unemployment (employer only) 0.6% Required: 1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
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A. December 30, to record the payroll. B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $44,000 is subject to unemployment compensation taxes. 2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles): A. On page 11 of the journal: December 30, to record the payroll. B. On page 12 of the journal: January 5, to record the employerâs payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.
