As the accountant for Veneskey & Son’s, you have been hired to prepare the payroll and everything that goes along with it for Ol’Fashion Industries which has 4 employees. Their necessary payroll information is listed below and in the Excel spreadsheet for the current year. The employees are paid monthly (last day of the current month) and were last paid Sept. 30^th. Assume this is an Indiana company and use the Indiana withholding rates.   SUTA rate = 3.5%.

Employee        Gross Wages     Marital Status           Recent             Termination                                                     per check                                           Hire date

Larry               13,500             Married                       N/A

Keagan            4,400             Single                         N/A

Martha             3,700               Single                          Aug. 1^st             Nov. 30^th

Nancy             3,500               Married                       Sept. 1st

***All Medical Premium Insurance and Flexible Spending are part of a cafeteria plan***

Larry – Has $450/ pay deducted for 401K, $500/pay deducted for Medical Premium insurance , and $400 withheld for his Flexible Spending Account (FSA).   Step 3 of W4 = $2,500.   Spouse does not work.

Keagan - Has $300/ pay deducted for 401K, $250/pay deducted for Medical Premium insurance , and $150 withheld for FSA.    Step 3 of W4 = $500

Martha- Has $50/ pay deducted for 401K, $200/pay deducted for Medical Premium insurance , and $150 withheld for FSA. Nothing for Step 3 or 4

Nancy- Has $50/ pay deducted for 401K, $350/pay deducted for Medical Premium insurance , and $400 withheld for FSA.   Spouse makes the same as her (checked step 2 on W4)

**Employer will match 401K contributions up to $500. Employer’s portion of the Medical Premiums is twice what the employee pays.**

Instructions:

1.     

1. Using the attached Excel Spreadsheet tabs, complete the payroll register for Oct., Nov., and Dec. (There is a separate monthly tab at the bottom of the Excel file). a. You may be creative and use your payroll template sheets instead of the nonformatted sheets in this Spreadsheet for Oct, Nov, and Dec register and journal entries. However, make sure your template sheets, if you use them, contain all the answers found in the original tabs provided. 2. Using the Excel Spreadsheet or template sheet, complete the payroll journal entries for each month. Also include the entries to record payment of taxes and other benefits to the respectable parties as outlined below. Note: Do Not include the Employers portion of 401K and Medical Premiums in with the Payroll Tax Expense. These are not taxes, but separate expenses.