Gridiron Concepts Co. began business on January 2, 2013. Salaries were paid to e
ID: 2475202 • Letter: G
Question
Gridiron Concepts Co. began business on January 2, 2013. 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 2014, 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% on the first $100,000 of salary 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:
Required:
1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2013. Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.
2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 4.8% on the first $8,000 of each employee's earnings; (d) federal unemployment compensation at 0.8% on the first $8,000 of each employee's earnings; (e) total.
Employee Date First Employed Monthly Salary Monthly Income Tax Withheld Brooks Jan. 2 $3,100 $459 Croom Oct. 1 5,600 1,053 Fulmer Apr. 16 2,500 310 Johnson Nov. 1 2,400 298 Nutt Jan. 16 10,700 2,408 Richt Dec. 1 3,200 490 Spurrier Feb. 1 8,500 1,836Explanation / Answer
Social security tax is limited at 6 % on 100000 , That is maximum it can be deducted is 6000 as applicable in case of Nutt
1) Employee wage and tax statement Employee Time employed Gross Earnings Federal Income Tax Withheld Social security tax withheld Medicare tax witheld Brooks 12 months 37200.00 5508.00 2232.00 558.00 Croom 3 months 16800.00 3159.00 1008.00 252.00 Fulmer 8.5 months 21250.00 2635.00 1275.00 318.75 Johnson 2 months 4800.00 596.00 288.00 72.00 Nutt 11.5 months 123050.00 27692.00 6000.00 1845.75 Richt 1 month 3200.00 490.00 192.00 48.00 Spurrier 11 months 93500.00 20196.00 5610.00 1402.50 Totals 299800.00 60276.00 16605.00 4497.00Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.