Appendix A Continuing Payroll Project: Wayland Custom Woodworking $(1$ Month, Part $1)($Static$)$

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Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and complete a month of payroll information for Wayland.

Wayland Custom Woodworking is located at $12850$ Old Highway $50,$ Glenbrook, Nevada, $89413,$ phone number $775-555-9877.$ The owner is Mark Wayland. Wayland$$s EIN is $91-7444533,$ and the Nevada Employer Account Number is E$6462582020-6.$ Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method for manual payrolls with Forms W$-4$ from $2020$ or later.

For Part $1$ of this project, you will complete payroll for the last month $($December$)$ of the fourth quarter $($Q$4)$ of $2023,$ which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W$-2$ in Part $2.$

Note: Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to $5$ decimal places. Take the employee's salary and divide it by $2,080(52$ weeks at $40$ hours per week$)$ for full$-$time, nonexempt employees. NOTE: Leave the hourly rate rounded to five decimal places as shown in the next example. After the gross pay has been calculated, then round the result to two decimal points before calculating taxes or other withholdings.

Example: Annual Salary to an Hourly Rate, Nonexempt Employee

Employee Cooper$$s annual salary is $$62,000,$ and he is a nonexempt employee.

Hourly rate $=$ $$62,000-$: $(52\backslash$times $40)=$ $$62,000-$: $2,080$

Hourly rate $=$ $$29\mathrm{.}80769$ per hour

Example: Period Gross Pay, Salaried Employee

Employee Chinson earns an annual salary of $$48,000$ and is paid semimonthly.

Period gross pay $=$ $$48,000-$: $24=$ $$2,000$ gross pay

For pay periods with holiday hours: determine the amount paid per day, and multiply by the number of days applicable to each pay period.

Annual salary: $$48,000-$: $(52\backslash$times $5)=$ $$48,000-$: $260=$ $$184\mathrm{.}61538($rounded to five decimal points$)$ per day. Once you have the holiday pay, subtract it from their salary for the period for regular time.

Employees are paid for the following holidays occurring during the final quarter:

Thanksgiving day and the day after, Thursday and Friday, November $23-24.$

Christmas is on Monday. Employees receive holiday pay for Monday, December $25.$

For the completion of this project, refer to the tax$-$related information in the table below. Employees' $401($k$)$ and insurance are pre$-$tax for federal income tax. The SUTA $($UI$)$ rate for Wayland Custom Woodworking is $2\mathrm{.}95\%$ on the first $$40,100$ of employee wages. There is an additional $0\mathrm{.}05\%$ for Career Enhancement Program $($CEP$).$ FUTA, SUTA, and CEP allow for a deduction for Section $125$ contributions, not for $401($k$)$ contributions. Employer contribution of section $125$ is $1\mathrm{.}5$ times the employee portion and should be added to wages for completion of FUTA and SUTA forms. For federal tax withholding calculations, use the percentage method tables for manual payroll systems with Forms W$-4$ from $2023$ or later. Assume, all W$-4$s are received in $2023$ and the Step $2$ of Form W$-4$ is not checked.

Semimonthly Federal Percentage Method for Manual Payrolls with Forms W$-4$ from $2020$ or later Tax Table Appendix C

Federal Unemployment Rate $($employer only$)($less Section $125)0\mathrm{.}6\%$ on the first $$7,000$ of wages

State Unemployment Rate $($employer only$)($less Section $125)2\mathrm{.}95\%$ on the first $$40,100$ of wages

Career Enhancement Program $($employer only$)($less Section $125)0\mathrm{.}05\%$ on the first $$40,100$ of wages

October $1$:

Wayland Custom Woodworking $($WCW$)$ pays its employees according to their job classification. Wayland$$s staff comprises the following employees:

Employee Number Name and Address Payroll information

$00-$Chins Anthony Chinson

$530$ Chimney Rock Road

Stateline, NV $89449$

$775-555-1212$

Job title: Account Executive Married Filing Jointly; $2<17$

Exempt

$$48,000$ per year $+$ commission

Start Date: $10/1/2023$

SSN: $511-22-3333$

$00-$Wayla Mark Wayland

$1650$ Power House Drive

Glenbrook, NV $89413$

$775-555-1110$

Job title: President or Owner Married Filing Jointly; $3<17,1$ Other

Exempt

$$85,000$ per year

Start Date: $10/1/2023$

SSN: $505-33-1775$

$01-$Peppi Sylvia Peppinico

$1575$ Flowers Avenue

Glenbrook, NV $89413$

$775-555-2244$

Job title: Craftsman Married Filing Jointly; $1<17,1$ Other

Exempt $$58,500$ per year

Start Date: $10/1/2023$

SSN: $047-55-9951$

$01-$Coope Stevon Cooper

$2215$ Lands End Drive

Glenbrook, NV $89413$

$775-555-9981$

Job title: Craftsman Single; None

Nonexempt

$$62,000$ per year

Start Date: $10/1/2023$

SSN: $022-66-1131$

$02-$Hisso Leonard Hissop

$333$ Engine House Circle

Glenbrook, NV $89413$

$775-555-5858$