Employees are paid for the following holidays occurring during the final quarter: Thanksgiving day and the day
Question:
Employees are paid for the following holidays occurring during the final quarter:
- Thanksgiving day and the day after, Thursday and Friday, November 26-27.
- Christmas, which is a Friday. Employees receive holiday pay for Thursday, December 24, and Friday, December 25.
For the completion of this project, refer to the tax-related information in the table below. Employees' 401(k) and insurance are pre-tax for federal income tax. The SUTA (UI) rate for Wayland Custom Woodworking is 3.25% on the first $32,500. There is an additional 0.05% for Career Enhancement Program (CEP). Both FUTA and SUTA have a deduction for section 125 but not for 401(k) contributions by the employee. Employer contribution of section 125 is 1.5 times the employee portion and should be added to wages for completion of FUTA and SUTA forms. For federal tax withholding calculations, use the percentage method tables for manual payroll systems with Forms W-4 from 2020 or later. Assume, all W-4s are received in 2020 and the Step 2 of Form W-4 is not checked.
Federal Unemployment Rate (employer only)(less Section 125) | 0.6% on the first $7,000 of wages |
---|---|
Semimonthly Federal Percentage Method for Manual Payrolls Tax Table | Appendix C |
State Unemployment Rate (employer only)(less Section 125) | 3.25% on the first $32,500 of wages |
Nevada Career Enhancement Program (employer only) (less Section 125) | 0.05% on the first $32,500 of wages |
October 1:
Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland’s staff:
Employee Number | Name and Address | Payroll information |
---|---|---|
00-Chins | Anthony Chinson | Married/Joint; 2 < 17 |
530 Chimney Rock Road | Exempt | |
Stateline, NV 89449 | $48,000/year + commission | |
775-555-1212 | Start Date: 10/1/2020 | |
Job title: Account Executive | SSN: 511-22-3333 | |
00-Wayla | Mark Wayland | Married/Joint; 3 < 17, 1 Other |
1650 Power House Drive | Exempt | |
Glenbrook, NV 89413 | $85,000/year | |
775-555-1110 | Start Date: 10/1/2020 | |
Job title: President/Owner | SSN: 505-33-1775 | |
01-Peppi | Sylvia Peppinico | Married/Joint; 1 < 17, 1 Other |
1575 Flowers Avenue | Exempt | |
Glenbrook, NV 89413 | $58,500/year | |
775-555-2244 | Start Date: 10/1/2020 | |
Job title: Craftsman | SSN: 047-55-9951 | |
01-Coope | Stevon Cooper | Single; None |
2215 Lands End Drive | Nonexempt | |
Glenbrook, NV 89413 | $62,000/year | |
775-555-9981 | Start Date: 10/1/2020 | |
Job title: Craftsman | SSN: 022-66-1131 | |
02-Hisso | Leonard Hissop | Single; 1 Other |
333 Engine House Circle | Nonexempt | |
Glenbrook, NV 89413 | $51,500/year | |
775-555-5858 | Start Date: 10/1/2020 | |
Job title: Purchasing/Shipping | SSN: 311-22-6698 | |
00-Succe | Student Success | Single; None |
16 Kelly Circle #2 | Nonexempt | |
Glenbrook, NV 89413 | $42,000/year | |
775-556-1211 | Start Date: 10/1/2020 | |
Job title: Accounting Clerk | SSN: 555-55-5555 |
You have been hired as of October 1 as the new accounting clerk. Your employee number is 00-SUCCE. Your name is Student Success. Your address is 16 Kelly Circle #2, Glenbrook, NV 89413. Your phone number is 775-556-1211, you were born July 16, 1985, your Nevada driver’s license number is 168575381944 expiring in 07/16/2024, and your Social Security number is 555-55-5555. You are considered a nonexempt employee, have no dependents or other income, and paid a rate of $42,000 per year.
The balance sheet for WCW as of November 30, 2020, is as follows:
Wayland Custom Woodworking Balance Sheet November 30, 2020 | |||
Assets | Liabilities & Equity | ||
---|---|---|---|
Cash | $ 1,075,258.73 | Accounts Payable | $ 112,747.25 |
Supplies | 42,240.11 | Salaries and Wages Payable | 14,038.32 |
Office Equipment | 87,250.00 | Federal Unemployment Tax Payable | 58.67 |
Inventory | 167,099.00 | Social Security Tax Payable | 3,967.36 |
Vehicle | 25,000.00 | Medicare Tax Payable | 927.88 |
Accumulated Depreciation, Vehicle | State Unemployment Tax Payable | 1,039.82 | |
Building | 164,000.00 | Career Enhancement Program Payable | 16.00 |
Accumulated Depreciation, Building | Employee Federal Income Tax Payable | 1,423.27 | |
Land | 35,750.00 | 401(k) Contributions Payable | 1,203.14 |
Total Assets | 1,596,597.84 | Employee Medical Premiums Payable | 750.00 |
Notes Payable | 210,426.13 | ||
Total Liabilities | 346,597.84 | ||
Owner's Equity | 1,250,000.00 | ||
Retained Earnings | - | ||
Total Equity | 1,250,000.00 | ||
Total Liabilities and Equity | 1,596,597.84 |
Voluntary deductions for each employee are as follows:
Name | Deduction |
---|---|
Chinson | Insurance: $50/paycheck |
401(k): 3% of gross pay | |
Wayland | Insurance: $75/paycheck |
401(k): 6% of gross pay | |
Peppinico | Insurance: $75/paycheck |
401(k): $50 per paycheck | |
Cooper | Insurance: $50/paycheck |
401(k): 4% of gross pay | |
Hissop | Insurance: $75/paycheck |
401(k): 3% of gross pay | |
Student | Insurance: $50/paycheck |
401(k): 3% of gross pay |
For additional instructions on how to navigate and work through Part 1 of this project, please download the student project guide here.
rev: 02_18_2021_QC_CS-253787, 05_26_2021_QC_CS-265303, 06_02_2021_QC_CS-265303
Required:
2. Complete the payroll process for Wayland Custom Woodworking's last two pay periods of the fourth quarter. Please note that you must carry the ending balance from each account in the December 15 General Ledger to the following period's General Ledger to the input boxes titled "Ending account balance from the prior period" before posting the payroll journal entries from the current period to the Ledger.
For additional instructions on how to carry information from one pay period, General Ledger, to another, along with a guided walkthrough example of this process, refer to the project user guide in the project information section above.
December | ||||||
Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | ||
6 | 7 | 8 | 9 | 10 | 11 | 12 |
13 | 14 | 15 | 16 | 17 | 18 | 19 |
20 | 21 | 22 | 23 | 24 | 25 | 26 |
27 | 28 | 29 | 30 | 31 |
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura