Ampersand, Inc., is a small business that operates in Somerset, VT. The company is located at 732 Appalachiar Way, Somerset, VT 05363. Its federal and state identification numbers are 12-3456789, its state unemployme number is 2222222, and its president, who signs all tax forms, is Stacey Jones (telephone #802-555-3917). Th business does not wish to name a 3rd party designee on forms. Within QuickBooks the industry associated wi the company is General Business Service and the business type is Corporation. Ampersand, Inc., is on a weekly payroll schedule. During 2016 four individuals are employed by Ampersand, Inc. These employees are as follows. Social Security # Federal w/H Allowances State W/H Allowances Marital Status Name Address William Finnegan 999-99-9999 2 2 Married 7 Smith Boulevard Somerset, VT 05363 Maggie Hough 222-22-2222 1 1 13 Spruce Street Somerset, VT 05363 Single Stacey Jones 555-55-5555 2 1 Single 8110 Browning Place Somerset, VT 05363 Francine Stewart 888-88-8888 3 3 Married 101 Park Court Somerset, VT 05363 Social Security # Federal W/H Allowances State W/H Allowances Marital Status Name Address William Finnegan 999-99-9999 2 2 Married 7 Smith Boulevard Somerset, VT 05363 Maggie Hough 222-22-2222 1 1 Single 13 Spruce Street Somerset, VT 05363 Stacey Jones 555-55-5555 2 1 Single 8110 Browning Place Somerset, VT 05363 Francine Stewart 888-88-8888 3 3 Married 101 Park Court Somerset, VT 05363 Note that Francine Stewart was hired in September, and her first day of work was Monday, September 26. Additionally, due to an economic downturn, Maggie Hough was laid off in late November, with her last day of work on Friday, November 25. All employees of Ampersand, Inc., work a regular 40-hour workweek, receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Wednesday for the prior week (which runs from Monday through Sunday, although employees never work on weekends). The SUTA tax rate applicable to Ampersand, Inc., is 2.5%, while the SUTA wage base in Vermont is $16,800. Earnings and voluntary deduction information for each of the four employees is as follows. Regular Wage Rate Annual Salary Weekly 401(k) Deduction Weekly Charitable Contribution Name William Finnegan $18/hour N/A 4% of gross pay $5 Maggie Hough $14/hour N/A 5% of gross pay $10 Stacey Jones N/A $262,000.44 N/A $15 Francine Stewart N/A $94,000.40 2% of gross pay N/A The first three quarters of the year have passed, and all payroll-related activity has been properly accounted for as of 9/30/2016. Note that retirement deductions are made in association with the Franklin Insurance Agency. Quarterly payroll data for each of the four employees is as follows. William Finnegan Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Charitable Cont. Quarter 1st quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 2nd quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 3rd quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 Maggie Hough Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. Quarter 1st quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 2nd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 3rd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 Maggie Hough Gross Earnings Federal Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. Quarter 1st quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 2nd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 3rd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 Stacey Jones Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Quarter Charitable Cont. 1st quarter $65,500.11 $16,643.90 $3,274.96 $4,061.07 $949.78 $0 $195.00 2nd quarter $65,500.11 $16,643.90 $3,274.96 $3,285.93 $949.78 $0 $195.00 3rd quarter $65,500.11 $16,643.90 $3,274.96 $0 $949.78 $0 $195.00 Francine Stewart Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Quarter Charitable Cont. 1st quarter $0 $0 $0 $0 $0 $0 $0 2nd quarter $0 $0 $0 $0 $0 $0 $0 3rd quarter $1,807.70 $188.23 $88.58 $112.08 $26.21 $36.15 $0 Note that all tax payments and filings are made on the due date and that the company is a monthly depositor. Based on the data provided here, you will complete the following: 1. Within QuickBooks, process payroll for the 4th quarter (October through December) for each of the four employees. Note that as of November 28, Stacey Jones requests that her federal withholding allowances decrease from two to one. (Ampersand, Inc., makes this change.) Payroll checks are remitted to the employees in the same order (Finnegan, Hough, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. This bank account has been established within QuickBooks to reflect a balance of $146,000 at the beginning of October. The first payroll check written in October is check #4711. 1. Within QuickBooks, process payroll for the 4th quarter (October through December) for each of the four employees. Note that as of November 28, Stacey Jones requests that her federal withholding allowances decrease from two to one. (Ampersand, Inc., makes this change.) Payroll checks are remitted to the employees in the same order (Finnegan, Hough, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. This bank account has been established within QuickBooks to reflect a balance of $146,000 at the beginning of October. The first payroll check written in October is check #4711. Employees may be subject to additional Medicare tax. You must calculate this and enter the deduction on the paycheck. Furthermore, you must verify the employer taxes calculated on each paycheck and adjust the amounts if needed. Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the processing of payroll for the two employees who are compensated with an hourly wage. Weekly Hours Worked Weekly Hours Worked Weekly Start Date William Finnegan Maggie Hough Weekly Start Date William Finnegan Maggie Hough September 26 40 40 November 14 40 39 October 3 14 40 November 21 34.5 41 October 10 37 42 November 28 40 0 October 17 40 38 December 5 41 0 October 24 46.5 40 December 12 43.5 0 October 31 42 43.5 December 19 42.5 0 November 7 45 40 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. 2. Within QuickBooks, create a Payroll Report that summarizes payroll for the 3rd quarter (July-September). Export this report to Microsoft Excel and complete Form 941 for the 3rd quarter. Assume that the employees earned the same amount during each pay period of the 3rd quarter and that there were four, five, and four pay periods during the months of July, August, and September, respectively. Note that based on the lookback period, the company is a monthly depositor that made timely payments throughout the entire year. Although Vermont quarterly state payroll forms are also filed by Ampersand, Inc., you will not complete these. 3. Within QuickBooks, create three Payroll Reports that summarize payroll data for each of the three months (October-December) of the 4th quarter (in the same manner that a payroll register summarizes such data). Export these three reports to Microsoft Excel. 4. Within QuickBooks, create a Payroll Report that summarizes payroll data for the 4th quarter (October- December). Export this report to Microsoft Excel. Then complete Form 941 for the 4th quarter. Note that based on the lookback period, the company is a monthly depositor that made timely payments throughout the entire year. Although Vermont quarterly state payroll forms are also filed by Ampersand, Inc., you will not complete these. 5. Within QuickBooks, create a Payroll Report that summarizes payroll data for the entire year. Export the report to Microsoft Excel. Then complete Form 940 for Ampersand, Inc. Note that 401(k) deductions are taxable for FUTA and that FUTA payments are made only when required (i.e., if the employer is permitted to postpone the payment of these taxes, it will do so until a point in time when payment must be remitted). 6. Calculate total SUTA tax owed by the employer. Although Ampersand, Inc., will file state forms in which this figure is reported, you are required to calculate only the total amount owed for the year and provide it to your instructor via a Microsoft Excel file. 7. Based on the QuickBooks reports previously generated, complete Copy A of Form W-2 for each of the four employees using the blank PDF form available in the Student Exercise Files download from the Learning Resource Center (labyrinthelab.com/lrc). State wages were the same as federal wages for each of the four employees, and the state identification number for Ampersand, Inc., is the same as its federal Employer Identification Number. 8. Based on the QuickBooks reports previously generated, complete Form W-3 for Ampersand, Inc. Note that the company files the paper version of the form and selects None apply in the Kind of Employer section. Ampersand, Inc., is a small business that operates in Somerset, VT. The company is located at 732 Appalachiar Way, Somerset, VT 05363. Its federal and state identification numbers are 12-3456789, its state unemployme number is 2222222, and its president, who signs all tax forms, is Stacey Jones (telephone #802-555-3917). Th business does not wish to name a 3rd party designee on forms. Within QuickBooks the industry associated wi the company is General Business Service and the business type is Corporation. Ampersand, Inc., is on a weekly payroll schedule. During 2016 four individuals are employed by Ampersand, Inc. These employees are as follows. Social Security # Federal w/H Allowances State W/H Allowances Marital Status Name Address William Finnegan 999-99-9999 2 2 Married 7 Smith Boulevard Somerset, VT 05363 Maggie Hough 222-22-2222 1 1 13 Spruce Street Somerset, VT 05363 Single Stacey Jones 555-55-5555 2 1 Single 8110 Browning Place Somerset, VT 05363 Francine Stewart 888-88-8888 3 3 Married 101 Park Court Somerset, VT 05363 Social Security # Federal W/H Allowances State W/H Allowances Marital Status Name Address William Finnegan 999-99-9999 2 2 Married 7 Smith Boulevard Somerset, VT 05363 Maggie Hough 222-22-2222 1 1 Single 13 Spruce Street Somerset, VT 05363 Stacey Jones 555-55-5555 2 1 Single 8110 Browning Place Somerset, VT 05363 Francine Stewart 888-88-8888 3 3 Married 101 Park Court Somerset, VT 05363 Note that Francine Stewart was hired in September, and her first day of work was Monday, September 26. Additionally, due to an economic downturn, Maggie Hough was laid off in late November, with her last day of work on Friday, November 25. All employees of Ampersand, Inc., work a regular 40-hour workweek, receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Wednesday for the prior week (which runs from Monday through Sunday, although employees never work on weekends). The SUTA tax rate applicable to Ampersand, Inc., is 2.5%, while the SUTA wage base in Vermont is $16,800. Earnings and voluntary deduction information for each of the four employees is as follows. Regular Wage Rate Annual Salary Weekly 401(k) Deduction Weekly Charitable Contribution Name William Finnegan $18/hour N/A 4% of gross pay $5 Maggie Hough $14/hour N/A 5% of gross pay $10 Stacey Jones N/A $262,000.44 N/A $15 Francine Stewart N/A $94,000.40 2% of gross pay N/A The first three quarters of the year have passed, and all payroll-related activity has been properly accounted for as of 9/30/2016. Note that retirement deductions are made in association with the Franklin Insurance Agency. Quarterly payroll data for each of the four employees is as follows. William Finnegan Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Charitable Cont. Quarter 1st quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 2nd quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 3rd quarter $9,360.00 $494.00 $449.28 $580.32 $135.72 $374.40 $65.00 Maggie Hough Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. Quarter 1st quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 2nd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 3rd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 Maggie Hough Gross Earnings Federal Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. Quarter 1st quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 2nd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 3rd quarter $7,280.00 $689.00 $345.80 $451.36 $105.56 $364.00 $130.00 Stacey Jones Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Quarter Charitable Cont. 1st quarter $65,500.11 $16,643.90 $3,274.96 $4,061.07 $949.78 $0 $195.00 2nd quarter $65,500.11 $16,643.90 $3,274.96 $3,285.93 $949.78 $0 $195.00 3rd quarter $65,500.11 $16,643.90 $3,274.96 $0 $949.78 $0 $195.00 Francine Stewart Gross Earnings Federal Income Tax State Social Income Tax Security Tax Medicare Tax 401(k) Deduction Quarter Charitable Cont. 1st quarter $0 $0 $0 $0 $0 $0 $0 2nd quarter $0 $0 $0 $0 $0 $0 $0 3rd quarter $1,807.70 $188.23 $88.58 $112.08 $26.21 $36.15 $0 Note that all tax payments and filings are made on the due date and that the company is a monthly depositor. Based on the data provided here, you will complete the following: 1. Within QuickBooks, process payroll for the 4th quarter (October through December) for each of the four employees. Note that as of November 28, Stacey Jones requests that her federal withholding allowances decrease from two to one. (Ampersand, Inc., makes this change.) Payroll checks are remitted to the employees in the same order (Finnegan, Hough, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. This bank account has been established within QuickBooks to reflect a balance of $146,000 at the beginning of October. The first payroll check written in October is check #4711. 1. Within QuickBooks, process payroll for the 4th quarter (October through December) for each of the four employees. Note that as of November 28, Stacey Jones requests that her federal withholding allowances decrease from two to one. (Ampersand, Inc., makes this change.) Payroll checks are remitted to the employees in the same order (Finnegan, Hough, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. This bank account has been established within QuickBooks to reflect a balance of $146,000 at the beginning of October. The first payroll check written in October is check #4711. Employees may be subject to additional Medicare tax. You must calculate this and enter the deduction on the paycheck. Furthermore, you must verify the employer taxes calculated on each paycheck and adjust the amounts if needed. Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the processing of payroll for the two employees who are compensated with an hourly wage. Weekly Hours Worked Weekly Hours Worked Weekly Start Date William Finnegan Maggie Hough Weekly Start Date William Finnegan Maggie Hough September 26 40 40 November 14 40 39 October 3 14 40 November 21 34.5 41 October 10 37 42 November 28 40 0 October 17 40 38 December 5 41 0 October 24 46.5 40 December 12 43.5 0 October 31 42 43.5 December 19 42.5 0 November 7 45 40 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. 2. Within QuickBooks, create a Payroll Report that summarizes payroll for the 3rd quarter (July-September). Export this report to Microsoft Excel and complete Form 941 for the 3rd quarter. Assume that the employees earned the same amount during each pay period of the 3rd quarter and that there were four, five, and four pay periods during the months of July, August, and September, respectively. Note that based on the lookback period, the company is a monthly depositor that made timely payments throughout the entire year. Although Vermont quarterly state payroll forms are also filed by Ampersand, Inc., you will not complete these. 3. Within QuickBooks, create three Payroll Reports that summarize payroll data for each of the three months (October-December) of the 4th quarter (in the same manner that a payroll register summarizes such data). Export these three reports to Microsoft Excel. 4. Within QuickBooks, create a Payroll Report that summarizes payroll data for the 4th quarter (October- December). Export this report to Microsoft Excel. Then complete Form 941 for the 4th quarter. Note that based on the lookback period, the company is a monthly depositor that made timely payments throughout the entire year. Although Vermont quarterly state payroll forms are also filed by Ampersand, Inc., you will not complete these. 5. Within QuickBooks, create a Payroll Report that summarizes payroll data for the entire year. Export the report to Microsoft Excel. Then complete Form 940 for Ampersand, Inc. Note that 401(k) deductions are taxable for FUTA and that FUTA payments are made only when required (i.e., if the employer is permitted to postpone the payment of these taxes, it will do so until a point in time when payment must be remitted). 6. Calculate total SUTA tax owed by the employer. Although Ampersand, Inc., will file state forms in which this figure is reported, you are required to calculate only the total amount owed for the year and provide it to your instructor via a Microsoft Excel file. 7. Based on the QuickBooks reports previously generated, complete Copy A of Form W-2 for each of the four employees using the blank PDF form available in the Student Exercise Files download from the Learning Resource Center (labyrinthelab.com/lrc). State wages were the same as federal wages for each of the four employees, and the state identification number for Ampersand, Inc., is the same as its federal Employer Identification Number. 8. Based on the QuickBooks reports previously generated, complete Form W-3 for Ampersand, Inc. Note that the company files the paper version of the form and selects None apply in the Kind of Employer
