As the accountant for Veneskey & Sons, you have been hired to prepare the payroll and everything
Question:
As the accountant for Veneskey & Son’s, you have been hired to prepare the payroll and everything that goes along with it for Ol’Fashion Industries which has 4 employees. Their necessary payroll information is listed below and in the Excel spreadsheet for the current year. The employees are paid monthly (last day of the current month) and were last paid Sept. 30th. Assume this is an Indiana company and use the Indiana withholding rates. SUTA rate = 3.5%.
Employee Gross Wages Marital Status Recent Termination per check Hire date
Larry 13,500 Married N/A
Keagan 4,400 Single N/A
Martha 3,700 Single Aug. 1st Nov. 30th
Nancy 3,500 Married Sept. 1st
***All Medical Premium Insurance and Flexible Spending are part of a cafeteria plan***
Larry – Has $450/ pay deducted for 401K, $500/pay deducted for Medical Premium insurance , and $400 withheld for his Flexible Spending Account (FSA). Step 3 of W4 = $2,500. Spouse does not work.
Keagan - Has $300/ pay deducted for 401K, $250/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Step 3 of W4 = $500
Martha- Has $50/ pay deducted for 401K, $200/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Nothing for Step 3 or 4
Nancy- Has $50/ pay deducted for 401K, $350/pay deducted for Medical Premium insurance , and $400 withheld for FSA. Spouse makes the same as her (checked step 2 on W4)
**Employer will match 401K contributions up to $500. Employer’s portion of the Medical Premiums is twice what the employee pays.**
Instructions:
Principles of Information Systems
ISBN: 978-1133629665
11th edition
Authors: Ralph Stair, George Reynolds