McBean Farms has the following information on their Form 941: What amount should be entered in Column 2,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)

Question

McBean Farms has the following information on their Form 941:  What amount should be entered in Column 2,Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)

Quizplus · Accepted Answer

Column 2, Line 5a is for Social Security wages and tips, which for McBean Farms is $132,485. Column 2, Line 5c is for Medicare wages and tips, which for McBean Farms is $32,835. Multiplying these amounts by the corresponding tax rates (Social Security at 12.4% and Medicare at 2.9%) and adding them gives a total of $17,400.67 for Line 5a and $4,069.51 for Line 5c.

McBean Farms Has the Following Information on Their Form 941