AC-490 Accounting Capstone - Payroll Accounting Problem Karen Kluster opened Lube and Wash on January 1, 2016. The business is subject to FICA taxes. At the end of the first quarter of 2016, Kluster, as president of the company, must file Form 941, Employer's Quarterly Federal Tax Return. Using Form 941 (Part I through 5), prepare, sign, and date the return on the basis of the information shown below. Employer's address: 234 Oak, Austin, TX 78711-0234 Employer's ID number: 00-0005874 Phone number: (512) 555-1111 Each employee is paid semimonthly on the 15" and last day of each month. Shown below is the payroll information of the first quarter of 2016. All pay periods were the same. Employee Paul Purson Matt Dirkson Joan Howard Dorrie Smith PAYROLL INFORMATION FOR JANUARY-MARCH Federal Quarterly OASDI Income SSN Wage Tax HI Tax Tax 000-00-7233 $12,000.00 $ 744.00 $174.00 $1,260.00 000-00-8451 12,600.00 781.20 182.70 1,200.00 000-00-3668 12,500.00 775.02 181.26 1,080.00 000-00-6527 10,800.00 669.60 156.60 1.140.00 $47.900.00 $2.969.82 $694.56 $4.680.00 Total Deductions Net Pay $2,178.00 $ 9,822.00 2,163.90 10,436.10 2,036.28 10,463.72 1.966.20 8.833.80 $8,344.38 $39.555.62 Employer's FICA taxes for the quarter $2.969.80 OASDI $694.55 HI The total taxes per payday are: Employees' FICA Tax-OASDI Employers' FICA Tax-OASDI Employees' FICA Tax-HI Employers' FICA Tax-HI Employees' FIT S494.97 494.97 115.76 115.76 780.00 $2,001.46 x 6 deposits = $12,008.76 for the quarter Total None of the employees reported tips during the quarter. Note: Lines Sa and 5c of Form 941, tax on total taxable wages, are computed by multiplying by the combined tax rate for both employer and employee. Small differences due to rounding may occur between this total and the total taxes withheld from employees each pay period and the amount of the employer's taxes calculated each pay period. This difference is reported on line 7 as a deduction or an addition as Fractions of Cents." OMB No 1545-0029 Fom 941 for 2016: Employer's QUARTERLY Federal Tax Return Rev. January 2016 Department of the Treasury - Internal Revue Service Einsteypur untetien sumber en O OOO6581 Report for this Quarter of 2016 Check one Name of your trade name Karen Kluster 1: January, February March Trade name of arwyl LUBE AND AND WASH 2 April May June July August September 1234 Oak D October, November, December Instructions and prior year forms are Austin TX 78711-6234 available at www.lrs.gov/form941. Address Number St City Foreign country rare Forer Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: Answer these questions for this quarter. 1 Number employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1). June 12 (Quarter 2). Sept. 12 (Quarter of Dec. 12 (Quarter 4 1 hoog S. 2 2 Wages, tips, and other compensation TU 3 3 Federal income tax withheld from wages, tips, and other compensation 4. Logo Check and go to line 6 4 If no wages, tips, and other compensation are subject to social security of Medicare tax Colum Column 2 Sa Taxable social security wages.. -34955-62.124- 5b Taxable social security tips. x. 124 3955,602 029 5c Taxable Medicare wages & tips. 5d Taxable wages & tips subject to Additional Medicare Tax withholding 4900 405939.60 138 9.10 7.328.70 teos2 -01 12.009.10 Se 5e Add Column 2 from lines 5a, 5b, 50, and 5d 51 Section 31211) Notice and Demand-Tax due on unreported tips (see instructions) 6 6 Total taxes before adjustments. Add lines 3.5e, and Sf 7 7 Current quarter's adjustment for fractions of cents B Current quarter's adjustment for sick pay 12,009:70 9 Current quarter's adjustments for tips and group-term life insurance 10 10 12,008.70 11 Total taxes after adjustments. Combine lines 6 through 9 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter 11 12 12 Balance due. I line 10 is more than line 11. enter the difference and see instructions 13 Overpayment. W line 11 is more than line 10, enter the difference Check one: to read to Send a refund Next Cat No. 17001Z Form 941 Rev. 1-2016 You MUST complete both pages of Form 941 and SIGN IL For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. ahol your bra Part 2: Tell us about your deposit schedule and tax liability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, se section 11 of Pub, 15. 14 Check one: Line 10 on this return is less than $2.500 or line 10 on the return for the prior was then 2.0 and you did not have $100.000 est-day deposit obligation during the current quarter, line 10 for the prioriter was then 2.00 butine 10 on this sum Is $100,000 or more, you must provide a record of your federal taxy. If you are a monthly schedule depositor, come the deposit schedule below if you are a weekly schedule depositor, attach Schede B Form 41). Go to Parts You were a monthly schedule depositor for the entire quarter. Enter your tax ability for each month and total liability for the quarter, then go to Part 3. Tax liability: Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 10. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B Form 941). Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. 15 If your business has closed or you stopped paying wages. Check here, and enter the final date you paid wages 1 / 16 If you are a seasonal employer and you do not have to file a return for every quarter of the year. Check here Part 4 May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Yes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS NO Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN It. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which pruparer has any knowledge. Print your name here Print your Sign your name here title here Best daytime phone Date 7 115, 2020 Paid Preparer Use Only Check if you are self-employed PTIN Preparer's name Date Preparer's signature EIN Firm's name for yours it self-employed Phone Address State ZIP code City Form 941 Rev. 1-2016