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Veryclear Glassware is a new business owned by Samantha Peoples, the company president. Her first year of operation commenced on April 1, 2020.

EIN: 78-7654398
Address: 23051 Old Redwood Highway, Sebastopol, California 95482, phone 707-555-5555
Number of employees: 13
Wages, tips, and other compensation paid during second quarter 2018: $299,423
Income tax withheld from employees: $59,884.60
Social Security tax withheld from employees: $18,564.23
Medicare tax withheld from employees: $4,341.77
Monthly tax liability:
April $ 35,232.20
May 35,232.20
June 35,232.20

Required:
Complete the State of California Form DE-9.


Sagot :

Answer:

Veryclear Glassware

EIN: 78-7654398

Address: 23051 Old Redwood Highway, Sebastopol, California 95482, phone 707-555-5555

Number of employees: 13

State of California Form DE-9

Total wages paid to employees = $299,423.00

Taxes withheld from employees =  $82,790.60

Total tax liability for the quarter =  $105,696.60

Under-withheld taxes =                    $22,906.00

Explanation:

a) Data and Calculations:

Wages = $299,423

Income tax withheld from employees:           $59,884.60

Social Security tax withheld from employees: $18,564.23

Medicare tax withheld from employees:            $4,341.77

Total taxes withheld from employees =         $82,790.60

Monthly tax liability:

April                        $ 35,232.20

May                            35,232.20

June                          35,232.20

Total tax liability = $105,696.60                   $105,696.60

Taxes not withheld (due)                               $22,906.00

b) A reconciliation of the taxes withheld with the quarter's tax liability shows that $22,906 was still due to be paid to the state for employee taxes.

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