Payroll Project Due in 2 segments - Please see instruction item #9 on the final page for more details. Your accounting company has been hired to prepare the payroll and everything that goes along with it for Ol'Fashion Industries which has 4 employees. The 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. Their SUTA rate is 3.5%. The company utilizes the "Quick Chart" for all eligible employees, otherwise the longer method must be used to calculate Federal withholding tax. Employee Gross Wages Marital Status Hire date Termination per check Denise 16,600 Married/Joint 7 years ago Erin 7,500 Single 7 years ago Frank 3,400 Single Aug. 1st Nov. 30th Grant 3,300 Married/Joint Sept. 1st *All Medical Premium Insurance and Flexible Spending are part of a cafeteria plan Denise - Has $450/ pay deducted for 401K, $500/pay deducted for Medical Premium insurance , and $400 withheld for Flexible Spending (FSA). Step 3 of W4 = $2,500. Spouse does not work. Erin - Has $300/ pay deducted for 401K, $250/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Step 3 of W4 = $500 Frank- Has $50/ pay deducted for 401K, $200/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Nothing for Step 3 or 4 Grant- Has $50/ pay deducted for 401K, $350/pay deducted for Medical Premium insurance , and $400 withheld for FSA. Spouse makes the same and 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: 1. Using the attached Excel Spreadsheet as a guide to the proper layout, adapt your own preformatted payroll template. Add a new sheet for Nov. and Dec. and copy and paste your template. Copy and paste the trial balances given for each month in 3 separate new sheets (copy the opening trial balance as well to reference). Make sure your sheets contain all the answers requested in the nonformatted attachment (ie.

Check stubs). 2. Using your Excel template, complete the payroll journal entries for each month. Also include the entries to record payment of taxes and other benefits to the respectable parties as outlined below in #3. ** Note: Do Not include the Employers portion of 401K and Medical Premiums in with the Payroll Tax Expense. These are not taxes, but separate expenses and must be journaled separately. 3. Payroll taxes and other payroll benefit expense payment schedule: a. F/W & FICA - every month (last paid Sept. 15th) next due Oct. 15th (Sept pay) i. Note: Refer to the open trial balance to determine the balance needed to be paid for each type of tax. Due to the prior accountant not paying the correct amount in Sept., the Sept balances due will be a little different than the Oct. balances calculated. b. The four following taxes are paid every 2 months (last paid Sept. 15th). Next due Nov. 15th. i. State withholding ii. 401K iii. Medical Premium iv. FSA c. FUTA & SUTA - Not paid until Jan. next year. 4. Make a checkbook record of each check written (included in each months Excel tab) a. Start with check 500 for the Oct 15th payment and then continue with checks 501 - 504 for each employee's check. b. Combine F/W and FICA for one check to the "Department of Treasury". c. The following are the names of each department receiving checks i. St/W = "Ind. Dept. of Treasury" ii. 401K = TIAA Cref iii. Medical Ins. Prem. = "Anthem" iv. FSA = "Star Bank" 5. updated trial balance for the end of each month ( use separate Excel tabs for each month). a. Only update the balances for the entries you make. Thus leave all balances as is that are already filled in for each month (ie A/R and Capital). b. If needed, use a T-Acct sheet to help keep balances up-to-date. c. The Oct. trial balance should start with the balances from the "Opening Balances" tab

6. Complete the W-2 for each employee (included in Dec. Excel tab) a. Copy and paste the Dec W-2 format, Form 941, and Form 940 into your template (Dec payroll) b. Show all work as formulas in current tab or in a separate tab for longer work explanations. 7. Complete Form 941 for the 4th Qtr (included in Dec. Excel tab) a. Show all work as formulas in current tab or in a separate tab for longer work explanations. 8. Complete Form 940 (included in Dec. Excel tab) a. Show all work as formulas in current tab or in a separate tab for longer work explanations. 9. This project will be submitted over two (2) assignments. The first required submission will cover only the October tab (payroll register, journal entries, and checkbook register) and the October trial balance. This part will be worth the first 40 points. Use the corrections provided from your instructions grading to update any incorrect October amounts and then continue with the remaining two months. The remaining part of the project is worth 125 points for a total of 165 points.