Reference no: EM132682448

Problem - Wage and tax statement data on employer FICA tax

Courtside Concepts Co. began business on January 2, 2011. 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 2012, 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
Garnett	Jan. 2	$ 4,400	$ 706
Kidd	Oct. 1	7,200	1,442
J. O'Neal	Apr. 16	3,600	506
Bryant	Nov. 1	3,000	356
S. O'Neal	Jan. 16	12,800	3,012
Marbury	Dec. 1	5,000	856
Duncan	Feb. 1	11,200	2,564

Required -

1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for 2011,

2. Calculate the following employer payroll taxes for the year:

(a) Social security;

(b) Medicare;

(c) State unemployment compensation at 4.6% 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.