During the first full week of 2018, the Payroll Department of Quigley Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 5. In this problem, you will complete six of the forms in order to gain some experience in recording the different kinds of information required.
Assume each employee earned the same weekly salary for each of the 52 paydays in 2017. Using the following in- formation obtained from the personnel and payroll records of the firm, complete Copy A of the six Forms W-2 reproduced on the following pages. Also complete Form W-3. The form is to be signed by the president, Kenneth T. Ford, and is prepared by Ralph I. Volpe.

*The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (see Figure 4.7).

Transcribed Image Text:

Company Information: Address: 4800 River Road Philadelphia, PA 19113-5548 Pennsylvania state identification number: Federal identification number: Philadelphia identification number: 00-0-1066 00-0000972 0001895 Telephone number: (215) 555-0017 Fax number: (215) 555-0010 Income Tax Information: The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage-bracket table and multiply the answer by 52. The other taxes withheld are shown helow. Employee Data Payroll Data Annual Taxes Withheld Kelly B. Roach 54 Gradison Place Philadelphia, PA 19113-4054 SS#: 000-00-4310 Single, 1 allowance $715 per week 2,305.16 539.24 1,141.40 1,453.92 Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld Deduction for 401(k) plan: $50/week Ralph I. Volpe 56 Andrews Court, Apt. 7 Philadelphia, PA 19103-3356 SS#: 000-00-8804 Married, 1 allowance $785 per week 2,530.84 591.76 Social security tax withheld Medicare tax withheld State income tax withheld 1,253.20 1,596.40 Local income tax withheld Dependent care payment: $950 $70/week-401(k) Randi A. Myer 770 Camac Street Single, 0 allowances $885 per week Philadelphia, PA 19101-3770 SS#: 000-00-3316 2,853.24 667.16 Medicare tax withheld Social security tax withheld 1,412.84 State income tax withheld 1,799.72 Union dues withheld: $102 Local income tax withheld Kenneth T. Ford 338 North Side Avenue Philadelphia, PA 19130-6638 SS#: 000-00-6839 Married, 7 allowances $1,350 per week 4,368.69 1,021.97 2,155.40 2,745.08 Local income tax withheld Social security tax withheld Medicare tax withheld State income tax withheld Cost of group-term life insurance exceeding $50,000: $262.75* $100/week-401(k) Chrissy C. Carman 4900 Gladwynne Terrace Philadelphia, PA 19127-0049 SS#: 000-00-5771 Married, 3 allowances $820 per week Social security tax withheld 2,643.68 618.28 Medicare tax withheld 1,308.84 1,667.12 State income tax withheld Union dues withheld: $102 Local income tax withheld Hal B. Zuber 480-A Hopkinson Tower Philadelphia, PA 19101-3301 SS#: 000-00-8703 Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld Single, 1 allowance $790 per week 2,546.96 595.92 1,261.00 1,606.28 Educational assistance payments (job- required): $675 $50/week-401(k)