One-Month Project: Ellipses Corp.Ellipses Corp. is a small business that operates in Herndon, VA. The company is locatedat 10 Period Lane, Herndon, VA 20170. Its federal Employer Identication Number is 77-7777777, and its president, who signs all tax forms, is John Parker (telephone #571-555-0073). The company does not wish to name a third-party designee on forms.During 2023 these four individuals are employed by Ellipses Corp.:ELLIPSES CORP. EMPLOYEESName Address SSNFederalW/HAllow.StateW/HAllow.MaritalStatusHunterCranston85 Southern RoadHerndon, VA 20170 111-11-1111 2 2 MarriedAllisonHarrison203A Pine CourtHerndon, VA 20170 777-77-7777 4 3 MarriedJohn Parker 212 Tradition LaneHerndon, VA 20170 444-44-4444 1 1 SinglePierreSternberg41 Seward BoulevardHerndon, VA 20170 333-33-3333 N/A N/A MarriedPierre Sternberg was hired in November and his rst day of work was Friday, November17. On his W-4 Form Pierre checked box 2c and left sections 3 and 4 blank. Pierre les asmarried ling jointly on his tax return. Additionally, due to an economic downturn,Allison Harrison was laid off in mid-December. Her last day of work was Thursday,December .7All employees of Ellipses Corp. work a regular 40-hour workweek (all hours worked over40 in a given week are overtime hours), receive overtime pay at a rate of 1.5 times theregular wage rate, and are paid weekly on Thursday for the current week (which runsfrom Friday through Thursday, but employees never work on weekends). The SUTA taxrate for Ellipses Corp. is 3.1%, and the SUTA wage base in Virginia is $8,000.Earnings and voluntary deduction information for each of the four employees is asfollows:EARNINGS AND VOLUNTARY DEDUCTIONSName RegularWage RateAnnualSalaryWeekly 401(k)DeductionWeeklyCharitableCont.Hunter Cranston $15/hour N/A 6% of gross pay $5Allison Harrison $23/hour N/A 5% of gross pay $5John Parker N/A $203,000.20 N/A $20Pierre Sternberg N/A $112,000.20 1% of gross pay N/AThe rst 11 months of the year have passed, and all payroll-related activity has beenaccounted for as of 11/30/2023. Payroll data for each of the four employees for the rstthree quarters of the year, as well as for the months of October and November, is asfollows:HUNTER CRANSTONPeriod GrossEarningsFederalIncomeTaxStateIncomeTaxSocialSecurityTaxMedicareTax401(k)DeductionCharitableCont.Q1 $7,800 $143 $366.60 $483.60 $113.10 $468 $65Q2 $7,800 $143 $366.60 $483.60 $113.10 $468 $65Q3 $7,800 $143 $366.60 $483.60 $113.10 $468 $65October $2,400 $44 $112.80 $148.80 $34.80 $144 $20November $3,000 $55 $141.00 $186.00 $43.50 $180 $25ALLISON HARRISONPeriod GrossEarningsFederalIncomeTaxStateIncomeTaxSocialSecurityTaxMedicareTax401(k)DeductionCharitableCont.Q1 $11,960 $338 $568.10 $741.52 $173.42 $598 $65Q2 $11,960 $338 $568.10 $741.52 $173.42 $598 $65Q3 $11,960 $338 $568.10 $741.52 $173.42 $598 $65October $3,680 $104 $174.80 $228.16 $53.36 $184 $20November $4,600 $130 $218.50 $285.20 $66.70 $230 $25JOHN PARKERPeriod GrossEarningsFederalIncomeTaxStateIncomeTaxSocialSecurityTaxMedicareTax401(k)DeductionCharitableCont.Q1 $50,750.05 $10,182.51 $2,537.47 $3,146.52 $735.93 $0 $260Q2 $50,750.05 $10,182.51 $2,537.47 $3,146.52 $735.93 $0 $260Q3 $50,750.05 $10,182.51 $2,537.47 $3,146.52 $735.93 $0 $260October $15,615.40 $3,133.08 $780.76 $492.84 $226.44 $0 $80November $19,519.25 $3,916.35 $975.95 $0 $283.05 $0 $100PIERRE STERNBERGPeriod GrossEarningsFederalIncomeTaxStateIncomeTaxSocialSecurityTaxMedicareTax401(k)DeductionCharitableCont.Q1 $0 $0 $0 $0 $0 $0 $0Q2 $0 $0 $0 $0 $0 $0 $0Q3 $0 $0 $0 $0 $0 $0 $0October $0 $0 $0 $0 $0 $0 $0November $4,307.70 $641.98 $213.24 $267.08 $62.46 $43.08 $0All tax payments and lings are made on the due date. Based on the data provided, youwill complete the following:1. Establish an employee earnings record for each of the company’s four employees.Complete the top portion of each record.2. Establish and complete the payroll register for each weekly pay period inDecember. When calculating federal income tax withholding, use the withholdingtables where possible and refer to the percentage method only when necessary.For simplicity, calculate the state income tax withholding as 5% of eachemployee’s taxable pay (which is the same as taxable pay for FWT). Recall thatstate income tax withholding would ordinarily be calculated using the applicablestate’s withholding tables. Payroll checks are remitted to the employees in thesame order (Cranston, Harrison, Parker, Sternberg) each pay period and arewritten from a bank account used solely for these payments. The rst payrollcheck written in December is check #762.All charitable contributions are deemed to be made on the nal day of each payperiod. The following information will be required for the completion of theserecords for the two employees who are compensated via an hourly wage:WEEKLY HOURS WORKEDWeekly Start Date Hunter Cranston Allison HarrisonDecember 1 38 41December 8 43.5 0December 15 40 0December 22 40 03. Complete the employee earnings records for December for each of the fouremployees. Divide the voluntary deductions from the payroll registerappropriately across the associated columns within the employee earningsrecords. If directed, you may record the necessary journal entries for each payperiod.WARNING! These dates are weekly start dates. Refer to a calendar todetermine the weekly end dates and associated pay dates.Remember, tax liability and payment amounts are determinedbased on the weekly pay dates.4. Complete Form 941 for the fourth quarter. Based on the lookback period, thecompany is a monthly depositor. Assume all necessary deposits were made on atimely basis and that the employer made deposits equal to the total amount owedfor the quarter. Although Virginia quarterly state payroll forms are also led byEllipses Corp., you will not complete these. If directed, record the journal entriesassociated with Form 941 (including those required for any tax payments made).5. Complete Form 940 for Ellipses Corp. Note that FUTA payments are made onlywhen required (i.e., if the employer is permitted to postpone the payment of thesetaxes, it will do so until a point in time when payment must be remitted). Ifdirected, record the journal entry associated with Form 940.6. Calculate total SUTA tax owed by the employer. Although Ellipses Corp. will lestate forms in which this gure is reported, you are required to calculate only thetotal amount owed for the year.7. Complete Copy A of Form W-2 for each of the four employees. State wages werethe same as federal wages subject to federal withholding tax for each of the fouremployees, and the state identication number for Ellipses Corp. is the same asits federal Employer Identication Number.8. Complete Form W-3 for Ellipses Corp. The company les the paper version of theform and selects “None apply” in the section.

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Employee Earnings Record Name Hunter Cranston Address 85 Southern Road Herndon VA 20170 SSN 11111111... View the full answer