A Company's Employer Payroll Taxes Are 0

Essay

A company's employer payroll taxes are 0.8% for federal unemployment taxes,5.4% for state unemployment taxes,6.2% for FICA social security taxes on earnings up to $106,800 and 1.45% for FICA Medicare taxes on all earnings.Compute the W-2 Wage and Tax Statement information required below for the following employees:
$\begin{array}{|l|c|c|}\hline \text { Employee } & \text { Gross Earnings } & \text { Federal Income Taxes Withheld } \\\hline \text { A. Barker } & \$ 84,000 & \$ 17,600 \\\hline \text { C. Dirkson } & 52,000 & 8,200\\\hline \end{array}$
$\begin{array}{|l|l|l|}\hline \text { W-2 Information } & \text { A. Baker } & \text { C. Dirkson } \\\hline\text { Federal Income Tax Withheld } & & \\\hline \text { Wages, Tips, Other Compensation } & & \\\hline \text { Social Security Tax Withheld } & & \\\hline \text { Social Security Wages } & & \\\hline \text { Medicare Tax Withheld } & &\\\hline\end{array}$