Required information

Appendix A Continuing Payroll Project: Wayland Custom Woodworking (1 Month, Part 1) (Static)

[The following information applies to the questions displayed below.]

Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Waylands EIN is 91-7444533, and the Utah Employer Account Number is 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method.

For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2.

The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees. No employee will reach the SUTA wage cap.

Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees.

Example: Annual Salary to Hourly Rate, Nonexempt Employee

Employee Vardens annual salary is $42,000, and he is a nonexempt employee.

Hourly rate = $42,000 / (52 40) = $42,000 / 2,080

Hourly rate = $20.19231 per hour

Example: Period Gross Pay, Salaried Employee

Employee Chinson earns an annual salary of $24,000 and is paid semimonthly.

Period gross pay = $24,000 / 24 = $1,000 gross pay

For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days applicable to each pay.

Annual salary: $24,000 / (52 5) = $24,000 / 260 = $92.30769 (rounded to 5 decimal points) per day.

After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings.

Employees are paid for the following holidays occurring during the final quarter:

Thanksgiving day and the day after, Thursday and Friday, November 2829.

Christmas, which is a Wednesday. Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25.

For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage method tables in Appendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status). Both 401(k) and insurance are pre-tax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay.

Federal Withholding Allowance (less 401(k), Section 125)

$175.00 per allowance claimed

Federal Unemployment Rate (employer only) (less Section 125)

0.6% on the first $7,000 of wages

Semimonthly Federal Percentage Method Tax Table

Appendix C Table #3

State Unemployment Rate (employer only) (less Section 125)

2.6% on the first $35,300 of wages

State Withholding Rate (less 401(k), Section 125)

See Utah Schedule 3, Table A-1 or use the Excel Version of Schedule 3

October 1:

Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Waylands staff:

Employee Number

Name and Address

Payroll information

00-Chins

Anthony Chinson

Married, 1 Withholding allowance

530 Sylvann Avenue

Exempt

Logan, UT 84321

$24,000/year + commission

435-555-1212

Start Date: 10/1/2019

Job title: Account Executive

SSN: 511-22-3333

00-Wayla

Mark Wayland

Married, 5 withholding allowances

1570 Lovett Street

Exempt

Logan, UT 84321

$75,000/year

435-555-1110

Start Date: 10/1/2019

Job title: President/Owner

SSN: 505-33-1775

01-Peppi

Sylvia Peppinico

Married, 7 withholding allowances

291 Antioch Road

Exempt

Logan, UT 84321

$43,500/year

435-555-2244

Start Date: 10/1/2019

Job title: Craftsman

SSN: 047-55-9951

01-Varde

Stevon Varden

Married, 2 withholding allowances

333 Justin Drive

Nonexempt

Logan, UT 84321

$42,000/year

435-555-9981

Start Date: 10/1/2019

Job title: Craftsman

SSN: 022-66-1131

02-Hisso

Leonard Hissop

Single, 4 withholding allowances

531 5th Street

Nonexempt

Logan, UT 84321

$49,500/year

435-555-5858

Start Date: 10/1/2019

Job title: Purchasing/Shipping

SSN: 311-22-6698

00-Succe

Student Success

Single, 1 withholding allowance

1650 South Street

Nonexempt

Logan, UT 84321

$36,000/year

435-556-1211

Start Date: 10/1/2019

Job title: Accounting Clerk

SSN: 555-55-5555

The departments are as follows:

Department 00: Sales and Administration

Department 01: Factory workers

Department 02: Delivery and Customer service

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 1650 South Street, Logan, UT 84321. Your phone number is 435-556-1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 07/16/2024, and your Social Security number is 555-55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year.

The balance sheet for WCW as of November 30, 2019, is as follows:

Wayland Custom Woodworking

Balance Sheet

November 30, 2019

Assets

Liabilities & Equity

Cash

$

1,085,722.16

Accounts Payable

$

112,640.22

Supplies

42,240.12

Salaries and Wages Payable

10,508.46

Office Equipment

87,250.00

Federal Unemployment Tax Payable

89.55

Inventory

167,090.00

Social Security Tax Payable

3,219.22

Vehicle

25,000.00

Medicare Tax Payable

752.88

Accumulated Depreciation, Vehicle

State Unemployment Tax Payable

674.99

Building

164,000.00

Employee Federal Income Tax Payable

1,501.38

Accumulated Depreciation, Building

Employee State Income Tax Payable

1,160.92

Land

35,750.00

401(k) Contributions Payable

1,018.66

Total Assets

1,607,061.28

Employee Medical Premiums Payable

750.00

Notes Payable

224,750.00

Utilities Payable

Total Liabilities

357,061.28

Owners' Equity

1,250,000.00

Retained Earnings

-

Total Equity

1,250,000.00

Total Liabilities and Equity

1,607,061.28

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

Varden

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 through Part 1 of this project, please download the student project guide here.

rev: 12_09_2019_QC_CS-193117, 04_17_2020_QC_CS-208815, 05_14_2020_QC_CS-212632

Pay Periods 12/15 and 12/31 (2 periods) (Static)

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

December 15

December 15 is the end of the first pay period for the month of December. Employee pay will be disbursed on December 19, 2019. Remember that the employees are paid on a semimonthly basis.

Compute the net pay and update the Employees' Earnings Records with the December 15 pay and the new YTD information. Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees.

Complete the Employee Gross Pay tab.

Complete the Payroll Register for December 15 Pay. Employee pay will be disbursed on December 19, 2019.

Refer to the Employee Earning Record Forms for each employee for the current YTD amounts after you have completed the December 15 Payroll Register and update each EERF with the amounts from the current period. YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee.

Complete the General Journal entries for the December 15 payroll.

Post the journal entries to the General Ledger. Amounts for the ledger accounts from the previous four pay periods of the fourth quarter are shown.

December 31

The final pay period of the year will not be paid to employees until January 3, 2020. The company will accrue the wages for the final pay period only. Because the pay period is complete, there will not be a reversing entry for the accrual. As a result, paychecks will not be issued for this pay period since they will be paid in the following year and reflected on the Employee Earning Record forms for each employee when paid. The remainder of the employer liability will be paid with the final filing for the year.

The company pays for Christmas Eve and the day of Christmas for 2019. Employees will be paid for both Tuesday and Wednesday as holiday pay. Standard time for the pay period was 96 hours, but employees worked extra hours on Saturday during the week of 12/2312/27. Reminder, holidays and vacations are not included as hours worked for calculation of overtime.

Complete the Employee Gross Pay tab.

Complete the Payroll Register for December 31.

Complete the General Journal entries for the December 31 payroll.

Update the General Ledger with the ending ledger balances from the December 15 pay period ledger accounts first, and then post the journal entries from the current period to the General Ledger.

Appendix A Continuing Payroll Project: Wayland Custom Woodworking Month, Part Sie The following informations to the questioned below) Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. She have en to establish payroll records and to complete a month of payroll Information for Wayland Wayland Custom Woodworking is located at 1796 col Street 84321, phone number 435-555-9877. The owner is Mark Wayland. Wayland's EN IS 9-744453, and the Employer Account Number is 9000W Waytend has determined it will pay its employees on a commonly basis. Federal income tax should be computed using the percentagem For Part of this project, you will complete payroll for the last month December of the fourth quarter of 2011, which cons of the final pay periods of the Once payroll has been completed for the fourth quarter, you will then the the annual tax forms for Wayland as well as prepare cachemployees Form w22 The SUTA U rate for Wayland Custom Woodworking w 25 percent on the first $3.300 The state withholding rate is 4.95 percent for all income deduction and marital statuses, a table has been included to assist with calculations of state tax due for employees. No employee will reach the SUTAR Rounding can create a challenge. For this project, the hourly rate for the individets should be rounded to the decimal places. So take their story and ide by 2.000 152 weeks at 40 hours per week for full me, non employees Bample: Annual Salary to Hourly Rate, Montmpt Employee Employee Varden's annual salary is $42.000, and he is a nonexemptemployee Hourly rate $42.000 (52 40 $42.000 / 2,080 Hourly rate - 52019231 per hour Emple Period Gross Pey, Salaried Employee Employee Chinson ears an annual salary of $24.000 and is paid semimonthly Period gross pay - $24,000/24 - $1000 gross pay For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days plicable to each pay. Annual salary: $24,000 / (525) - $24,000/200 - 92,30769 rounded to 5 decimal points per day After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings Employees are paid for the following holidays occurring during the final quartier Thanksgiving day and the day after, Thursday and Friday, November 28-29 Christmas, which is a Wednesday. Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25. For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage methods in Appendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule tax tables linked below sure to the propriate table based on each employee's marital status). Both 40% and insurance are pre-tax for federal income tax and Utah Income tax Round calculations to get to final tax amounts and 40% contributions after calculating gross pay. Federal Wholding Allowance fess 4, Section 125) Federal Unemployment Rate employer only less Section 125) Semimonthly Federal Percentage Method Tax Table State Unemployment Rate employer only less Section 125 State Withholding Rate less 401, Section 125 $175.00 per allowance claimed 0.6% on the first $7.000 of wages Appendix Tables 26% on the first 35.300 of wages See Utah Schedule Table or use the Excel Version Sched October 1 Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland's stat Employee Number Name and Address Payroll information 0o-Chins Anthony Chinson Married, 1 Withholding allowance 530 Sylvain Avenue Exempt Logan, UT 84321 $24,000/year commission 435-555-1212 Start Date: 1012019 Job title: Account Executive SSN: 511-22-3330 00-Wayle Mark Wayland Married, 5 withholding allowances 1570 Love Street Exempt Logan, UT 84321 $75,000/year 435-555-1110 Start Date: 10/2019 Job title: President Owner SSN: 505-33-1775 01-Peppi Sylvia Peppinico Married, 7 witholding allowances 291 Antioch Road Exempt Logan, UT 84321 $43.500/year 435-555-2244 Start Date:10/2019 Job title: Craftsman SSN: 047-55-9951 01-Varde Steven Varden Married 2 withholding allowances 333 Justin Drive None empt Logan, UT 84321 $42,000 year 435-555-9981 Start Date: 10/1/2019 Job titleCraftsman 02- 00-Succe Leonard Heissop 531 5th Street Logan, UT 84321 435-555-5858 Job: Purchasing Shipping Student Success 1650 South Street Logan, UT 84321 435-556-126 Job title: Accounting Clerk SSN 022-66-001 Single 4 withholding slowances Nonomo $49.500/year Start Date:102019 SSN 122-6600 Single, 1 withholding allowance None mot $36.000/year Start Date: 2010 SSN: 555-55-5555 The departments are as follows: Department 00 Sales and Administration Department of Factory workers Department 02: Delivery and Customer service You have been hired as of October 1 as the new accounting clerk. Your employee number is OO SUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321 Your phone number is 435-556-121. you were born July 16, 1985, your Utah driver's license number is 387743 expiring in 07/16/2024, and your Social Security number is 555-55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year, The balance sheet for WCW as of November 30, 2019, is as follows: Wayland Custom Woodworking Balance Sheet November 30, 2019 Assets Cash Labs & Equity $ 1085722.16 Accounts Payable Supplies $ 112.640.22 42.240.12 Salaries and Wages Payable 10.508.45 Omice Equipment 87.250.00 Federal Unemployment Tax Payable 89.55 Inventory 167090.00 Social Security Tax Payable 3.29.22 Vehicle 25,000.00 Medicare Tax Payable 752.00 Accumulated Depreciation, Vehicle State Unemployment Tax Payable 674.90 Building 164,000.00 Employee Federal Income Tax Payable 150138 Accumulated Depreciation Building Employee State income Tax Payable 1160.92 Land 35,750.00 40100 Contributions Payable 1,018.60 Total Assets 1,60706128 Employee Medical Premiums Payable 750.00 Notes Payable 224,750.00 Utilties Payable Total Liabilities 357,06128 Owners' Equity 1.250,000.00 Retained Earnings Total Equity 1,250,000.00 Total Liabilities and Equity 1607,06128 Voluntary deductions for each employee are as follows: Name Chinson Wayland Peppinico Deduction Insurance: $50/paycheck 401(k): 3% of gross pay Insurance: $75/paycheck 4014: 6% of gross pay Insurance: $75/paycheck 401): $50 per paycheck Insurance: $50/paycheck 401K): 4% of gross pay Insurance: $75/paycheck 401(k): 3% of gross pay Insurance: $50/paycheck 401K): 3% of gross pay Varden Hissop Student Required 2. Complete the payroll process for Wayland Custom Woodworking's last two pay periods of the fourth quarter. Pense note that you must carry the ending balance from each account in the December 15 General Ledger to the following periods General Ledger to the input bonestled "Ending account balance from the prior period before posting the payroll journal entries from the current period to the Ledger Por additional instructions on how to carry information from one pay period General Ledger to another, along with a guided withrough example of this process, refer to the project User Guide in the project information section above December Sunday Monday Tuesday Wednesday Thursday Feday Saturday 2 3 4 5 8 9 10 11 12 13 14 16 18 20 21 27 30 31 December 15 December 15 is the end of the first pay period for the month of December. Employee pay will be disbursed on December 19, 2019. Remember that the employees are paid on a semimonthly basis. Compute the net pay and update the Employees Earnings Records with the December 15 pay and the new YTD information. Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees Complete the Employee Gross Pay tab Refer to the employee Earning Record Forms for each employee for the current YTD announts ater you have completed the December 15 Payrol Register and update each EERF with the amounts from the current period. YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee Complete the General Journal entries for the December 15 payroll Post the journal entries to the General Ledger. Amounts for the ledger accounts from the previous four pay periods of the fourth quarter we shown. Complete the question by filling in all answers in the tabs below. Employee Payroll Chinson Wayland Poppinice Varden te Hiasop BERE Succes General General Gross pay Register FERF EER EERF Journal Lediger Compute the gross earnings for regular, overtime, and holiday pay for each employee for the December 15 pay period. Remember that while an hourly shown for all employees, the period pay for exempt employees should be calculated by taking their yearly salary and dividing it by the number of semim pay periods in a year, which should then be split between the number of hours considered regular time and holiday time. (Round answers for hourly rate decimal places and all other answers to 2 decimals.) Regular Overtime Holiday Hourly rate Rounded Pay Period Hours 12101-12295 to 5 Decimals) 80 hours (exempt 80 hours exem 80 hours Last Name Chinson Weyland Peppino Varden Commission $ 1.580.00 Hissop Success BO hours hours