3. Complete the employee earnings records for December for each of the four employees. Divide the voluntary deductions from the payroll register appropriately across the associated columns within the employee earnings records. Record the necessary journal entries for each pay period.
Payroll Accounting Chapter -Based Versions One-Month Project NOTE! Templates needed to complete these exercises, including one containing year-to-date payroll data, are included in the Student Exercise Files download for this course. Ellipses Corp. is a small business that operates in Herndon, VA. The company is located at 10 Period Lane, Herndon, VA 20170. Its federal Employer Identification 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 2019 four individuals are employed by Ellipses Corp. These employees are as follows: Social Federal W/H State W/H Marital Name Address Security # Allowances Allowances Status Hunter Cranston 85 Southern Road 111-11-1111 2 2 Married Herndon, VA 20170 Allison Harrison 203A Pine Court 777-77-7777 3 Married Herndon, VA 20170 John Parker 212 Tradition Lane 444-44-4444 Single Herndon, VA 20170 Pierre Sternberg 41 Seward Boulevard 333-33-3333 2 2 Married Herndon, VA 20170 away Note that Pierre Sternberg was hired in November, and his first day of work was Monday, November 25. Additionally, due to an economic downturn, Allison Harrison was laid off in mid-December, with her last day of work on Friday, December 13. All employees of Ellipses Corp. work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours), receive overtime pay at a rate of 15 times the regular wage rate, and are paid weekly on Friday for the current week (which runs from Saturday 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 $8,000.Earnings and voluntary deduction information for each of the four employees is as follows: Regular Annual Weekly 401(k) Weekly Charitable Name Wage Rate Salary Deduction Contribution Hunter Cranston $15/hour N/A 6% of gross pay $5 Allison Harrison $23/hour N/A 5% of gross pay $5 John Parker N/A $203,000.20 N/A $20 Pierre Sternberg N/A $112,000.20 1% of gross pay N/AThe first 11 months of the year have passed, and all payroll-related activity has been properly accounted for as of 11/30/2019. Payroll data for each of the four employees for the first three quarters of the year, as well as for the months of October and November, is as follows: Hunter Cranston Gross Federal State Social Medicare 401(k) Charitable Period Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 2nd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 3rd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 October $2,400 $68 $112.80 $148.80 $34.80 $144 520 November $3,000 $85 $141 $186 $43.50 $180 $25 Allison Harrison U Gross Federal State Social Medicare 401(k) Charitable Period Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter $11,960 $416 $568.10 $741.52 $173.42 $598 $65 2nd quarter $11,960 $416 $568.10 $741.52 $173.42 $598 565 3rd quarter $11,960 $416 $568.10 $741.52 $173.42 $598 $65 October $3,680 $128 $174.80 $228.16 $53.36 $184 $20 November $4,600 $160 $218.50 $285.20 $66.70 $230 $25John Parker Gross Federal State Social Medicare 401(k) Charitable Period Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter $50,750.05 $10,929.36 $2,537.47 $3,146.52 $735.93 SO $260 2nd quarter $50,750.05 $10,929.36 $2,537.47 $3,146.52 $735.93 SO $260 3rd quarter $50,750.05 $10,929.36 $2,537.47 $1,946.76 $735.93 SO $260 October $15,615.40 $3,362.88 $780.76 SO $226.44 SO $80 November $19,519.25 $4,203.60 $975.95 SO $283.05 SO $100Pierre Sternberg Gross Federal State Social Medicare 401(k) Charitable Period Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter SO SO SO SO SO SO SO 2nd quarter SO SO SO SO SO 3rd quarter SO SO SO SO SO October SO SO SO SO SO SO November $2, 153.85 $224.36 $106.62 $133.54 $31.23 $21.54 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.Weekly Hours Worked Weekly Start Date Hunter Cranston Allison Harrison November 30 40 37 December 7 38 41 December 14 43.5 0 December 21 40 0 WARNING! The above dates are weekly start dates. Refer to a calendar to determine the weekly end dates and associated pay dates. Keep in mind that tax liability and payment amounts are determined based on the weekly pay dates. 3. Complete the employee earnings records for December for each of the four employees. Divide the voluntary deductions from the payroll register appropriately across the associated columns within the employee earnings records. If directed to do so by your instructor, record the necessary journal entries for each pay period.Employee Earnings Record Name Hunter Cranston Marital Status Married Address 85 Southern Road Fed. Withholding Allow. 2 (Through 12/6); 3 (12/7-12/31) Herndon, VA 20170 State Withholding Allow. 3 SS# 111-11-1111 Earnings Deductions Charitable Contribution Federal Withholding Tax Additional Withholding Retirement Contribution State Withholding Tax Regular Hours Worked Overtime Hours Worked Social Security Tax Pay Period Ending Overtime Pay Rate Regular Pay Rate Overtime Wages Check Number Regular Wages Medicare Tax Gross Pay Net Pay 12/6 $ 15.00 - $ 22.50 $ S 1 1 762 12/13 $ 15.00 0 $ 22.50 S 766 12/20 $ 15.00 $ 22.50 770 12/27 $ 15.00 $ 0 $ 22.50 773Employee Earnings Record Name Allison Harrison Marital Status Married Address 203A Pine Court Fed. Withholding Allow. 4 Herndon, VA 20170 State Withholding Allow. 3 SS# 777-77-7777 Earnings Deductions Retirement Contribution Overtime Hours Worked Federal Withholding Tax Charitable Contribution Regular Hours Worked State Withholding Tax Additional Withholding Overtime Pay Rate Social Security Tax Pay Period Ending Overtime Wages Regular Pay Rate Regular Wages Check Number Medicare Tax Gross Pay Net Pay 12/16 $ 23.00 $ $ 34.50 - - 763 - 12/13 $ 23.00 S $ 34.50 767Employee Earnings Record Name John Parker Marital Status Single Address 212 Tradition Lane Fed. Withholding Allow. 1 Herndon, VA 20170 State Withholding Allow. SS# 444-44-4444 Earnings Deductions Retirement Contribution Federal Withholding Tax Charitable Contribution Overtime Hours Worked Additional Withholding State Withholding Tax Regular Hours Worked Social Security Tax Overtime Pay Rate Overtime Wages Pay Period Ending Check Number Regular Pay Rate Regular Wages Medicare Tax Gross Pay Net Pay 764 VALUE 12/6 n/a n/a Salary n/a n/a n/a Salary # VALUE VALUE 12/13 n/a n/a Salary n/a n/a n/a Salary VALUE VALUE 768 VALUE 12/20 n/a n/a Salary n/a n/a n/a Salary VALUE S VALUE 771 VALUE 12/27 n/a n/a Salary n/a n/a n/a Salary # VALUE S $ 83.61 S 774 VALUEEmployee Earnings Record Name Pierre Sternberg Marital Status Married Address 41 Seward Boulevard Fed. Withholding Allow. 2 Herndon, VA 20170 State Withholding Allow. 2 SS# 333-33-3333 Earnings Deductions Retirement Contribution Charitable Contribution Overtime Hours Worked Federal Withholding Tax Additional Withholding State Withholding Tax Regular Hours Worked Overtime Pay Rate Social Security Tax Pay Period Ending Regular Pay Rate |Overtime Wages Check Number Regular Wages Medicare Tax Gross Pay Net Pay 12/6 n/a n/a Salary /a n/a n/a Salary # VALUE VALUE 765 VALUE 769 VALUE 12/13 n/a n/a Salary /a na n/a Salary VALUE VALUE 12/20 n/a n/a Salary n/a n/a n/a Salary VALUE VALUE 772 VALUE 12/27 VALUE 774 VALUE n/a n/a Salary n/a n/a n/a Salary # VALUE
