Calculate Payroll

Part 1 and Part 2 have been completed. See part 3 and 4

Group insurance30 for each $1,000

FICA-OASID: 6.2%

FICA-HI: 1.45%

FUTA: 0.6%

SUTA: 3.6890%

Group Insurance Calculation

Group insurance will only be deducted from the last paycheck of each month. The rate is $.30 for each $1,000 of coverage. You can find the coverage for each employee in Figure 7.2. For example, Bonno has $55,000 in life insurance. Divide 55,000 by 1,000 to arrive at 55. Multiply 55 by .3 to arrive at the deduction of $16.50.

November 4

Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet.

Virginia Russellcompleted a new Form W-4, changing the number of withholding allowances to 2. Change Russell's earnings record (her marital status has not changed).

No. 6

Thomas J. Sokowskicompleted a new Form W-4, showing that his marital status changed to single and that the number of withholding allowances remains at 2. Change Sokowski's earnings record accordingly.

No. 7

Dewey Manncompleted a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly.

Pay the treasurer of the union the amount of union dues withheld during the month of October.

Prepare the payroll for the first pay period in November from Time Clerk's Report Nos. 42 and 43 and record the paychecks issued to all employees. Record this payroll at the top of the second payroll register sheet.

Note: Virginia Russellworked only 38 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate).Ruth Williamsworked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate).

Also, record the employer's payroll taxes.

November 13

Because of her excessive tardiness and absenteeism during the year, the company dischargedRuth Williamstoday. For the week ending November 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending November 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24.

1 Record a separate payroll register (on one line) to show Williams's total earnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams.

Pay Points

Wage and Tax Statement, Form W-2, to be given to Williams.

The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Williams's discharge on this date.

2 Prepare the journal entries to transfer the net cash and to record Williams's final pay and the employer's payroll taxes. Post to the ledger accounts.

3 Use the blank Form W-2. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2.

November 16

LO 4

No. 11

Electronically deposit the amount of FICA taxes and federal income taxes for the October payrolls and complete the Federal Deposit Information Worksheet. Since the company is subject to the monthly deposit rule, the deposit is due on the 15th of the following month. See the deposit requirements explained in Deposit Requirements (Nonagricultural Workers). November 15 is a Sunday; therefore, the deposit is to be made on the next business day.

Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts.

Pay Points

On all tax and deposit forms requiring a signature, use Joseph O'Neill's name.

No. 12

Since Glo-Brite Paint Company withholds the city of Philadelphia income tax, you must deposit the taxes with the Department of Revenue. The deposit rule that affects Glo-Brite Paint Company states that if the withheld taxes are between $350 and $16,000 per month, the company must deposit the tax monthly by the 15th of the following month. The withheld taxes for the October payrolls were $1,215.29.

1 Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts.

2 Complete the Philadelphia Employer's Return of Tax Withheld coupon (Monthly Wage Tax).

November 17

No. 13

employee's earnings record forBeth Anne Woods, a new employee who began work today, Tuesday. Woods is single and claims one withholding allowance. She is employed as a programmer at a monthly salary of $2,600. Address, 8102 Franklin Court, Philadelphia, PA 19105-0915. Telephone, 555-1128. Social Security No. 000-00-1587. She is eligible for group insurance coverage of $47,000 immediately, although her first deduction for group insurance will not be made until December 18.

Department: Office

Weekly rate: $600.00

Hourly rate: $15.00

7-3jNovember 18

No. 14

Deposit with the state of Pennsylvania the amount of state income taxes withheld from the November 6 and 13 (Ruth Williams) payrolls and complete the information worksheet.

Salary increases of $30 per week,effective for the two weeks covered in the December 4 payroll, are given toCatherine L. FordandVirginia A. Russell. The group insurance coverage for Ford will be increased to $50,000; for Russell, it will be increased to $49,000. Update the employees' earnings records accordingly. The new wage rates are listed below.

Employee

Weekly Rate

Hourly Rate

Ford, Catherine L.

$640.00

$16.00

Russell, Virginia A.

630.00

15.75

November 30

No. 17

employee's earnings record forPaul Winston Young, the president's nephew, who began work today. Young is single and claims one withholding allowance. He is training as a field sales representative in the city where the home office is located. His beginning salary is $2,730 per month. Address, 7936 Holmes Drive, Philadelphia, PA 19107-6107. Telephone, 555-2096. Social Security No. 000-00-6057. Young is eligible for group insurance coverage of $49,000.

Department: Sales

Weekly rate: $630.00

Hourly rate: $15.75