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MBA (IT), PHD
Kaplan University
Apr-2009 - Mar-2014
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University of Santo Tomas
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I have attached an Excel spreadsheet that has to be done with it. I have figured out the employees's taxes that are due but am having a hard time figuring out the employers side of them.
The form on page 6-45 shows the amounts that appear in the Earnings to Date column of the employees’ earnings records for 10 full-time and part-time workers in Unger Company. These amounts represent the cumulative earnings for each worker as of October 7, the company’s last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, October 14. In the state where Unger Company is located, the tax rates and bases are as follows:
Tax on Employees:
FICA—OASDI ................................................. 6.2% on first $118,500
FICA—HI ........................................................ 1.45% on total earnings
SUTA ............................................................... 0.5% on first $8,000
Tax on Employer:
FICA—OASDI ................................................. 6.2% on first $118,500
FICA—HI ........................................................ 1.45% on total earnings
FUTA ............................................................... 0.6% on first $7,000
SUTA ............................................................... 1.8% on first $8,000
In the appropriate columns of the form on page 6-45, do the following: 1. 2. Compute the amount to be withheld from each employee’s earnings on October 14 for (a) FICA—OASDI, (b) FICA—HI, and (c) SUTA, and determine the total employee taxes. Record the portion of each employee’s earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employer’s payroll taxes on the October 14 payroll.
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