A company's employer 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 $84900, 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:

Employee: A Baker
Gross Earnings: 84000
Federal Income taxes withheld: 17600

Employee: C Dirkson
Gross Earnings: 52000
Federal Income Taxes withheld: 8200


Here I've filled in what I know/have calculated; the blanks, I'm just not sure what do to with...


W-2 Information: A Baker C Dirkson
Federal income tax withheld 17600 8200
Wages, tip, other compensation ------ -----
Social Security Tax withheld 5208 3224
Social Security Wages ------- --------
Medicare Tax Withheld 1218 754
Medicare Wages ------- ------

Hope it makes sense... thanks in advance!

You have the W-2 form in front of you?

A.Baker would be the following:

Box 1 (Wages, Tips, Other Compensation) 84000.00
Box 2 Federal Income tax withheld 17600.00
Box 3 Social Security Wages 84,000.00
Box 4 Social Security withheld 5,263.80
Box 5 Medicare Wages and Tips 84,000.00
Box 6 Medicare tax withheld 1,218.00
Box 15 State and state number
Box 16 State Earnings 84,000.00
Box 17 State Withholding (calculate state rate)

C. Dirkson would be the following:

Box 1 (Wages, Tips, Other Compensation) 52,000
Box 2 Federal Income tax withheld 8,200
Box 3 Social Security Wages 52,000.00
Box 4 Social Security withheld 3,224.00
Box 5 Medicare Wages and Tips 52,000.00
Box 6 Medicare tax withheld 754.00
Box 15 State and state number
Box 16 State Earnings 52,000.00
Box 17 State Withholding (calculate state rate)

Your wages are the Gross wages shown at the top. Since you are not over the limit and have no pretax deductions shown the wages are the same for every wage box. You have miscalculated the Fica on Baker... take another look at it.

Also need a W-3

Hope this helps.

Shirley