Are Form 8655 Payroll 2024

Here, hi, good morning everybody. This is a chapter 8 exercise. I'm going to assign exercise 8 a-3 from the textbook. In that, this exercise is very similar, same problem, different numbers. Okay, but this is the solution, and this is the form 941 partially completed down through line six. There are more lines, I'm not going to get involved in. I just want you to be familiar with the fact that every quarter the employer has to file a form 941 with the employee wages withholdings for federal income taxes, and also the obligation for the FICA taxes on both the OASDI and the Medicare. So, what the starting point is in filling this form out, which is pretty self-explanatory, is you have to lift the total wages in this case, which is $26,100.94 earned by three employees. Now, the employer has withheld, still in the company funds, a total of $2,175. Now, the employer has to pay that quarterly so that the amount withheld from each employee gets reported to the IRS, and it's also done on an individual basis on another form so that the IRS knows exactly how much each employee has already paid in to the federal income tax. Now, the other part of the payments that must be made is the combined FICA liability. FICA liability, of course, you know that the rate is 6.2%. Now, the employee, in addition to the employee's withholding, has to pay an additional 6.2% out of his own pocket. That's one of the employee or taxes on top of the withholding amount. So that's why they take the total social security wages and multiply it by 12.4% to do the arithmetic. So that, if we took the $26,124.98 × 0.124, which we decimalize the percentage, that means we are responsible...