ABC, Inc. is a seasonal company that is only open the first and last quarters of the year. By the end of 2017 there were 3 employees.Carol Wolfe and Mary Ray worked both quarters; whereas, Ryan Kruger worked the last 2 pay periods only.

The three employees are paid semi-monthly on the 15th and the last day of the month.

For the pay period ending December 31st both Carol Wolfe and Mary Ray received a bonus.Each of their bonuses was equal to 15% of annual regular wages.The bonus is to be paid along with the regular salaries on December 31, 2017.Federal income taxes pertaining to the bonuses was withheld at a flat 25% rate.

Carol Wolfe and Mary Ray both contributed to the company's 401(k) plan each pay period.

ABC, Inc. is a monthly depositor for 941 purposes.

Company Information:

Address: 5380 Industrial Lane

Austin, TX78711

Telephone number: (215) 555-0017

Texas state ID number: 00-0-1052

Federal ID number: 74-0005923

State SUTA rate: 3.4%

Employee Data: Payroll Data:

Carol Wolfe Single, 0 allowances

54 Gradison Place $9,600 per semi-monthly period

Austin, TX78711 SS #:155-62-2010

Deduction for 401 (k) plan:$500 per pay period

Mary Ray Married, 5 allowances

338 North Side Avenue $7,800 per semi-monthly period

Austin, TX78711 SS #:000-25-2011

Deduction for 401 (k) plan:$350 per pay period

Ryan Kruger Single, 3 allowance

4900 Terrace Ridge $2,100 per semi-monthly period

Austin, TX78711 SS #:888-00-2012

Note: Regular federal income taxes to be withheld for Carol Wolfe and Mary Ray should be calculated using thepercentage methold.Use the wage-bracket method for Ryan Kruger.

Use $118,500 as the taxable maximum OASDI earnings.

Use .6% as your net FUTA rate.

Required:

1.Prepare the payroll registers for the periods ending January 15, 2017 and December 31, 2017.

(Use the Excel template which I have created and is named 'PR registers'.)

2.Record the following journal entries:

Payroll for the period ending January 15, 2017.

Employer's payroll taxes for the period ending January 15, 2017.

Payment of 941 taxes for January.

Payroll for the period ending December 31, 2017.

Employer's payroll taxes for the period ending December 31, 2017.

(Use the general journal computer form which I have created and is named 'general journal'.)

3.Complete "Payroll Recap for 2017".

(Use the Excel template which I have created and is named 'PR recap'.)

4.Compute the monthly 941 tax liability for months Jan., Feb., March, Oct., Nov., and Dec.

(Use the Excel template which I have created and is named '941 tax liability'.)

5.Compute the FUTA and SUTA liability for the first and fourth quarter of 2017.

(Use the Excel template which I have created for you.)

6.Prepare Form 941 for the quarter ending March 31, 2017.

(Use the fill-in form on the IRS website.)

7.Prepare the SUTA quarterly report for the quarter ending March 31, 2017.

(Use the excel template which I have created and is named 'SUTA for 3-31-2017.)

8.Prepare Form 941 for the quarter ending December 31, 2017.

(Use the fill-in form on the IRS website.)

9.Prepare the SUTA quarterly report for the quarter ending December 31, 2017.

(Use the excel template which I have created and is named 'SUTA for 12-31-2017.)

10.Prepare the annual Form 940 for 2017.

(Use the fill-in form on the IRS website.)

11.Prepare the W-2s for the three employees for 2017.

(Use the word document which I have placed on Blackboard.)

12.Prepare W-3 for 2017.

(Use the word document which I have placed on Blackboard.)

13.Upon completion your project should be in the following order:

Payroll Registers

General Journal

Payroll Recap for 2017

Computation of Monthly 941 Tax Liability

Computation of FUTA and Computation of SUTA

Form 941 for Quarter Ending March 31, 2017

SUTA Report (TX Form UC-2) for Quarter Ending March 31, 2017

Form 941 for Quarter Ending December 31, 2017

SUTA Report (TX Form UC-2) for Quarter Ending Decemberh 31, 2017

Form 940, Annual FUTA Report

W-3 for 2017

W-2s for 2017 for each of the three employees

Payroll Project - Spring 2017 ABC, Inc. is a seasonal company that is only open the first and last quarters of the year. By the end of 2017 there were 3 employees. Carol Wolfe and Mary Ray worked both quarters; whereas, Ryan Kruger worked the last 2 pay periods only. The three employees are paid semi-monthly on the 15th and the last day of the month. For the pay period ending December 31st both Carol Wolfe and Mary Ray received a bonus. Each of their bonuses was equal to 15% of annual regular wages. The bonus is to be paid along with the regular salaries on December 31, 2017. Federal income taxes pertaining to the bonuses was withheld at a flat 25% rate. Carol Wolfe and Mary Ray both contributed to the company's 401(k) plan each pay period. ABC, Inc. is a monthly depositor for 941 purposes. Company Information: Address: 5380 Industrial Lane Austin, TX 78711 Telephone number: Texas state ID number: Federal ID number: State SUTA rate: (215) 555-0017 00-0-1052 74-0005923 3.4% Employee Data: Payroll Data: Carol Wolfe 54 Gradison Place Austin, TX 78711 Single, 0 allowances $9,600 per semi-monthly period SS #: 155-62-2010 Deduction for 401 (k) plan: $500 per pay period Mary Ray 338 North Side Avenue Austin, TX 78711 Married, 5 allowances $7,800 per semi-monthly period SS #: 000-25-2011 Deduction for 401 (k) plan: $350 per pay period Ryan Kruger 4900 Terrace Ridge Austin, TX 78711 Single, 3 allowance $2,100 per semi-monthly period SS #: 888-00-2012 Note: Regular federal income taxes to be withheld for Carol Wolfe and Mary Ray should be calculated using the percentage methold. Use the wage-bracket method for Ryan Kruger. Use $118,500 as the taxable maximum OASDI earnings. Use .6% as your net FUTA rate. Required: 1. Prepare the payroll registers for the periods ending January 15, 2017 and December 31, 2017. (Use the Excel template which I have created and is named 'PR registers'.) 2. Record the following journal entries: Payroll for the period ending January 15, 2017. Employer's payroll taxes for the period ending January 15, 2017. Payment of 941 taxes for January. Payroll for the period ending December 31, 2017. Employer's payroll taxes for the period ending December 31, 2017. (Use the general journal computer form which I have created and is named 'general journal'.) 3. Complete "Payroll Recap for 2017". (Use the Excel template which I have created and is named 'PR recap'.) 4. Compute the monthly 941 tax liability for months Jan., Feb., March, Oct., Nov., and Dec. (Use the Excel template which I have created and is named '941 tax liability'.) 5. Compute the FUTA and SUTA liability for the first and fourth quarter of 2017. (Use the Excel template which I have created for you.) 6. Prepare Form 941 for the quarter ending March 31, 2017. (Use the fill-in form on the IRS website.) 7. Prepare the SUTA quarterly report for the quarter ending March 31, 2017. (Use the excel template which I have created and is named 'SUTA for 3-31-2017.) 8. Prepare Form 941 for the quarter ending December 31, 2017. (Use the fill-in form on the IRS website.) 9. Prepare the SUTA quarterly report for the quarter ending December 31, 2017. (Use the excel template which I have created and is named 'SUTA for 12-31-2017.) 10. Prepare the annual Form 940 for 2017. (Use the fill-in form on the IRS website.) 11. Prepare the W-2s for the three employees for 2017. (Use the word document which I have placed on Blackboard.) 12. Prepare W-3 for 2017. (Use the word document which I have placed on Blackboard.) 13. Upon completion your project should be in the following order: Payroll Registers General Journal Payroll Recap for 2017 Computation of Monthly 941 Tax Liability Computation of FUTA and Computation of SUTA Form 941 for Quarter Ending March 31, 2017 SUTA Report (TX Form UC-2) for Quarter Ending March 31, 2017 Form 941 for Quarter Ending December 31, 2017 SUTA Report (TX Form UC-2) for Quarter Ending Decemberh 31, 2017 Form 940, Annual FUTA Report W-3 for 2017 W-2s for 2017 for each of the three employees Payroll Register for January 15, 2017: No. of allow. marital status Employee Name C. Wolfe M. Ray Totals Previous YTD Gross OASDI Taxes Withheld 6.20% Current Gross New YTD Gross Regular Earnings Bonus Total Earnings Regular FIT Previous YTD Gross Current Gross New YTD Gross OASDI Taxes Withheld 6.20% Taxable Earnings OASDI FUTA SUTA HI Taxes FIT Taxes Withheld Withheld 1.45% 401 (k) contrib. - Payroll Register for December 31, 2017: Employee Name Supp'l. FIT 25% Total FIT C. Wolfe M. Ray R. Kruger Totals No. of allow. C. Wolfe M. Ray R. Kruger Totals marital status Employee Name Taxable Earnings OASDI FUTA SUTA HI Taxes FIT Taxes Withheld Withheld 1.45% (as above) 401 (k) contrib. Net Pay Net Pay General Journal Date Account Titles and Explanation PR Debit Credit Payroll Recap for 2017: Pay Period Ending: Employee Name 1/15/2017 1/31/2017 2/15/2017 2/28/2017 3/15/2017 3/31/2017 Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe total for qrt 1 10/15/2017 10/31/2017 11/15/2017 11/30/2017 12/15/2017 12/31/2017 Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe Carol Wolfe total for qrt 4 total for 2017 1/15/2017 1/31/2017 2/15/2017 2/28/2017 3/15/2017 3/31/2017 Mary Ray Mary Ray Mary Ray Mary Ray Mary Ray Mary Ray total for qrt 1 10/15/2017 10/31/2017 11/15/2017 11/30/2017 12/15/2017 12/31/2017 Mary Ray Mary Ray Mary Ray Mary Ray Mary Ray Mary Ray Regular Salary Bonus Total Gross OASDI HI Deductions FIT 401(k) Net Pay total for qrt 4 total for 2017 Pay Period Ending: 12/15/2017 12/31/2017 Employee Name Regular Salary Bonus Total Gross Bonus 401(k) Net Pay OASDI Deductions HI FIT 401(k) Net Pay OASDI HI Total Gross Deductions FIT Ryan Kruger Ryan Kruger total for qrt 4 total for 2017 Recap for the quarter ending March 31, 2017: Employee Name Regular Salary Carol Wolfe Mary Ray Total Recap for the quarter ending December 31, 2017: Employee Name Regular Salary Bonus Total Gross OASDI HI Deductions FIT 401(k) Net Pay Regular Salary Bonus Total Gross OASDI HI Deductions FIT 401(k) Net Pay Carol Wolfe Mary Ray Ryan Kruger Total total for 2017 Totals for the entire year: Employee Name Carol Wolfe Mary Ray Ryan Kruger Total Computation of Monthly 941 Tax Liability: January Semi-monthly wages for: Carol Wolfe Mary Ray Ryan Kruger (only for December) Total wages for the semi-monthly period times 2 semi-monthly periods per month Total regular wages for the month Bonuses paid during PPE Dec. 31, 2017 Total wages for the month Taxable OASDI wages for the month Combined OASDI Combined HI FIT withheld Total February 2 March 2 October 2 November 2 December 2 2 Name: Computation of FUTA: 1st quarter Name Carol Wolfe Mary Ray Ryan Kruger Total FUTA rate FUTA taxes current gross ytd gross - - taxable wages 0.6% - current gross 4th quarter ytd gross - - current gross 4th quarter ytd gross - - taxable wages 0.6% - Computation of SUTA: 1st quarter Name Carol Wolfe Mary Ray Ryan Kruger Total SUTA rate SUTA taxes current gross ytd gross - - taxable wages 3.4% - taxable wages 3.4% - TX Form UC-2, Employer's Report for Unemployment Compenstion For Quarter Ending March 31, 2017 Employer's State Account No.: 00-0-1052 Employer's Federal ID No.: 74-00005923 1. Total employees in pay period including 12th of first month of quarter Employer's Contribution Rate = 3.4% 2. Gross wages ABC, Inc. 5380 Industrial Lane Austin, TX 78711 3. Taxable employer wages 4. 5. Employer contributions due (rate X item 3.) Interest Due 6. Penalty Due 7. Total Remittance (items 4., 5., and 6.) TX Form UC-2A, Employer's Quarterly Report of Wages Paid to Each Employee Employer Name: ABC, Inc. Employer TX account no.: 00-0-1052 For Quarter Ending March 31, 2017 Employee's Social Security Number Total gross wages for this page Employee's Name Gross wages paid this quarter For Dept. TX Form UC-2, Employer's Report for Unemployment Compenstion For Quarter Ending December 31, 2017 Employer's State Account No.: 00-0-1052 Employer's Federal ID No.: 74-00005923 1. Total employees in pay period including 12th of first month of quarter Employer's Contribution Rate = 3.4% 2. Gross wages ABC, Inc. 5380 Industrial Lane Austin, TX 78711 3. Taxable employer wages 4. 5. Employer contributions due (rate X item 3.) Interest Due 6. Penalty Due 7. Total Remittance (items 4., 5., and 6.) TX Form UC-2A, Employer's Quarterly Report of Wages Paid to Each Employee Employer Name: ABC, Inc. Employer TX account no.: 00-0-1052 For Quarter Ending December 31, 2017 Employee's Social Security Number Total gross wages for this page Employee's Name Gross wages paid this quarter For Dept