Ehrlich Co. began business on January 2, 2013. Salaries werepaid to employees on the last day of each month, and socialsecurity tax, Medicare tax, and federal income tax were withheld inthe required amounts. An employee who is hired in the middle of themonth receives half the monthly salary for that month. All requiredpayroll tax reports were filed, and the correct amount of payrolltaxes was remitted by the company for the calendar year. Early in2014, before the Wage and Tax Statements (Form W-2) could beprepared for distribution to employees and for filing with theSocial Security Administration, the employees’ earnings recordswere inadvertently destroyed.