Please help me answer second question and explain the answer.

Thank you!

One-Month Project NOTE! Templates needed to complete these exercises are included in the Student Exercise Files download for this course. Ellipses Corp. is a small business that operates in Hemdon, VA. The company is located at 10 Period Lane, Hendon VA 20170. Its federal Employer Identification Number is 77-7777777, and its president, who signas all tax forms, is John Parker (telephone #571-555-0073). The company does not wish to name a third-party designee on forms. During 2018 four individuals are employed by Ellipses Corp. These employees are as follows. Marital Social Federal w/H Allowances State W/H Allowance Name Address Security # Status Hunter 85 Southem Road 111-11-1111 2 Married 2 Cranston Hendon, VA 20170 Married Allison 777-77-7777 4 203A Pine Court Harrison Hendon, VA 20170 212 Tradition Lane John Parker 444-44-4444 1 1 Single Herndon, VA 20170 333-33-3333 2 Pierre Married 41 Seward Boulevard 2 Stemberg Hendon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work w2s Monday, November 26. Additionally, due to an economic downtum, Allison Harrison was laid off in mid-December, with her last day of work on Friday December 14 All employees of Ellipses Corp. work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours). teceive overtime pay at a rate of15 times the regular wage rate, and are paid weekly on Friday for the current week (which runs from Saturdzy through Friday, although employees never work on weekends). The SUTA tax rate applicable to Ellipses Corp. is 3.1 %, while the SUTA wage base in Virginia is s8.000. Earnings and voluntary deduction information for ezch of the four employees is 2s follows. Allison Harrison Gross Federal Social Medicar 401k) Charitabl State Earnings Income Tax Period Income Security Deductio e e Tax x Tax Cont. 1st $65 $11,960 $429 $568.10 $741.52 $173.42 S598 quarter 2nd $11,960 $429 $568.10 $741.52 $173.42 $598 $65 quarter rd $11,960 $429 $568.10 $741.52 $173.42 S598 $65 quarter $53.36 $184 S3,680 $132 October $174.80 $228.16 $20 Novembe $66.70 $230 $4,600 $165 $25 $218.50 $285.20 John Parker Social Medicar 401(k Gross Federal State Charitabl Earnings Income x Period Income Security Deductio e e Tax x ax Cont. 1st $50,750. $2,537.47 $3,146.52 $11,035.18 S0 $735.93 $260 05 quarter $50,750. 2nd $2,537.47 $3,146.52 S0 $11,035.18 $735.93 $260 05 .auarter 3rd $50,750. $2,537.47 $1,667.76 $0 si1,035.18 $735.93 $260 05 quarter $15,615 $3,395.4 $780.76 $0 $226.44 $0 October $80 40 4 Novembe $19,519 $4,244.3 $975.95 $0 $283.05 S0 $100 25 0 r Diorro Sombor. John Parker Charitabl Gross Federal State Social Medicar 401(k) Earnings Income Tax Period Income Security Deductio e Tax Tax Tax Cont. 1st $50,750. $11,035.18 $2,537.47 $3,146.52 $735.93 $0 $260 05 quarter $50,750 2nd $11,035.18 $2,537.47 S0 S3,146.52 $735.93 $260 auarter 3rd 05 $50,750. S2,537.47 $0 $11,035.18 $1,667.76 $735.93 $260 05 quarter $15,615. $3,395.4 $780.76 $0 October $226.44 S0 $80 40 4 Novembe $19,519 $4,244.3 $975.95 S0 $283.05 S0 $100 25 r |Pierre Stemberg Gross Federal State Social Medicar 401(k) Charitabl Earnings Income Tax Period Income Security Deductio e Tax Tax Tax Cont. 1st $0 $0 $0 $0 $0 $0 $0 quarter 2nd $0 So so so so So so quarter 3rd $0 $0 $0 $0 $0 $0 so quarter October $0 $0 $0 $0 $0 $0 $0 Novembe $0 S2.153.85 $228.94 s106.62 133.54 31.23 $21.54 r Note that all tax payments and filings are made on the due date. Based on the data provided here, you will 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 during December. When calculating federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. Note that as of December 8, Hunter Cranston requests that his federal withholding allowances increase from two to three (Ellipses Corp. makes this change). Additionally, for simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (which is the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated using the applicable state's withholding tables. Payroll checks are remitted to the employees in the same order (Cranston, Harrison, Parker Stermberg) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in December is check #762 Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two employees who are compensated via an hourly wage Weekly Hours Worked Weekly Start Date Hunter Allison Cranston Harrison December 1 40 37 December 8 38 41 December 15 43.5 December 22 40 0 '7 One-Month Project NOTE! Templates needed to complete these exercises are included in the Student Exercise Files download for this course. Ellipses Corp. is a small business that operates in Hemdon, VA. The company is located at 10 Period Lane, Hendon VA 20170. Its federal Employer Identification Number is 77-7777777, and its president, who signas all tax forms, is John Parker (telephone #571-555-0073). The company does not wish to name a third-party designee on forms. During 2018 four individuals are employed by Ellipses Corp. These employees are as follows. Marital Social Federal w/H Allowances State W/H Allowance Name Address Security # Status Hunter 85 Southem Road 111-11-1111 2 Married 2 Cranston Hendon, VA 20170 Married Allison 777-77-7777 4 203A Pine Court Harrison Hendon, VA 20170 212 Tradition Lane John Parker 444-44-4444 1 1 Single Herndon, VA 20170 333-33-3333 2 Pierre Married 41 Seward Boulevard 2 Stemberg Hendon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work w2s Monday, November 26. Additionally, due to an economic downtum, Allison Harrison was laid off in mid-December, with her last day of work on Friday December 14 All employees of Ellipses Corp. work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours). teceive overtime pay at a rate of15 times the regular wage rate, and are paid weekly on Friday for the current week (which runs from Saturdzy through Friday, although employees never work on weekends). The SUTA tax rate applicable to Ellipses Corp. is 3.1 %, while the SUTA wage base in Virginia is s8.000. Earnings and voluntary deduction information for ezch of the four employees is 2s follows. Allison Harrison Gross Federal Social Medicar 401k) Charitabl State Earnings Income Tax Period Income Security Deductio e e Tax x Tax Cont. 1st $65 $11,960 $429 $568.10 $741.52 $173.42 S598 quarter 2nd $11,960 $429 $568.10 $741.52 $173.42 $598 $65 quarter rd $11,960 $429 $568.10 $741.52 $173.42 S598 $65 quarter $53.36 $184 S3,680 $132 October $174.80 $228.16 $20 Novembe $66.70 $230 $4,600 $165 $25 $218.50 $285.20 John Parker Social Medicar 401(k Gross Federal State Charitabl Earnings Income x Period Income Security Deductio e e Tax x ax Cont. 1st $50,750. $2,537.47 $3,146.52 $11,035.18 S0 $735.93 $260 05 quarter $50,750. 2nd $2,537.47 $3,146.52 S0 $11,035.18 $735.93 $260 05 .auarter 3rd $50,750. $2,537.47 $1,667.76 $0 si1,035.18 $735.93 $260 05 quarter $15,615 $3,395.4 $780.76 $0 $226.44 $0 October $80 40 4 Novembe $19,519 $4,244.3 $975.95 $0 $283.05 S0 $100 25 0 r Diorro Sombor. John Parker Charitabl Gross Federal State Social Medicar 401(k) Earnings Income Tax Period Income Security Deductio e Tax Tax Tax Cont. 1st $50,750. $11,035.18 $2,537.47 $3,146.52 $735.93 $0 $260 05 quarter $50,750 2nd $11,035.18 $2,537.47 S0 S3,146.52 $735.93 $260 auarter 3rd 05 $50,750. S2,537.47 $0 $11,035.18 $1,667.76 $735.93 $260 05 quarter $15,615. $3,395.4 $780.76 $0 October $226.44 S0 $80 40 4 Novembe $19,519 $4,244.3 $975.95 S0 $283.05 S0 $100 25 r |Pierre Stemberg Gross Federal State Social Medicar 401(k) Charitabl Earnings Income Tax Period Income Security Deductio e Tax Tax Tax Cont. 1st $0 $0 $0 $0 $0 $0 $0 quarter 2nd $0 So so so so So so quarter 3rd $0 $0 $0 $0 $0 $0 so quarter October $0 $0 $0 $0 $0 $0 $0 Novembe $0 S2.153.85 $228.94 s106.62 133.54 31.23 $21.54 r Note that all tax payments and filings are made on the due date. Based on the data provided here, you will 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 during December. When calculating federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. Note that as of December 8, Hunter Cranston requests that his federal withholding allowances increase from two to three (Ellipses Corp. makes this change). Additionally, for simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (which is the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated using the applicable state's withholding tables. Payroll checks are remitted to the employees in the same order (Cranston, Harrison, Parker Stermberg) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in December is check #762 Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two employees who are compensated via an hourly wage Weekly Hours Worked Weekly Start Date Hunter Allison Cranston Harrison December 1 40 37 December 8 38 41 December 15 43.5 December 22 40 0 '7