Question: Problem 2: The form below shows the amounts that appear in the Earnings to Date column of the employees earnings records for 10 full- and
Problem 2: The form below shows the amounts that appear in the Earnings to Date column of the employees earnings records for 10 full- and part-time workers in Ranger Company. These amounts represent the cumulative earnings for each worker as of November 1, the companys last payday. The form also gives the gross amount of earnings to be paid each worker on the next payday, November 8. In the state where Ranger Company is located, the tax rates and bases are as follows: Tax on Employees: FICAOASDI 6.2% on first $137,700 FICAHI 1.45% on total earnings SUTA 0.5% on first $8,000 Tax on Employer: FICAOASDI 6.2% on first $137,700 FICAHI 1.45% on total earnings FUTA 0.6% on first $7,000 SUTA 2.8% on first $8,000 In the appropriate columns of the form below, do the following: Compute the amount to be withheld from each employees earnings on November 8 for (a) FICAOASDI, (b) FICAHI, and (c) SUTA, and determine the total employee taxes. Record the portion of each employees earnings that is taxable under FICA, FUTA, and SUTA, and calculate the total employers payroll taxes on the November 8 payroll. Once you have calculated the payroll taxes then: 1. Journalize the entry to record the payroll. 2. Journalize the entry to record the employer's payroll taxes. 3. Journalize the entry to deposit the FICA and FIT taxes.
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