Complete the form W-2 for the six employees filling the boxes with the respective amounts and the W-3 using the wage bracket tax table for 2019
During the first full week of 2020, the Payroll Department of Quigley Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 10. In this problem, you will complete six of the forms in order to gain some experience in recording the different kinds of information required.
Assume each employee earned the same weekly salary for each of the 52 paydays in 2019. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of the four Forms W-2 reproduced below. On the second half of the problem (PR 04-13A (Part 2)) you will complete the other two W-2s and the W-3. The form is to be signed by the president, Kenneth T. Ford, and is prepared by Ralph I. Volpe.
| Company Information: |
| |
| Address: | 4800 River Road | | |
| | Philadelphia, PA 19113-5548 | Pennsylvania state identification number: | 00-0-1066 |
| Telephone number: (215) 555-0017 | Federal identification number: | 00-0000972 |
| Fax number: (215) 555-0010 | Philadelphia identification number: | 0001895 |
| |
FORM W-2
Income Tax Information: The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage bracket table and multiply the answer by 52. The other taxes withheld are shown below. Employee Data Payroll Data Annual Taxes Withheld Randy A. Kellison Single, 1 allowance Social security tax withheld $2,305.16 54 Gradison Place $715 per week Medicare tax withheld 539.24 Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld 1,141.40 Deduction for 401(k) plan: $50/week Local income tax withheld 1,446.64 22.36 Ralph I. Volpe 2,530.84 56 Andrews Court, Apt. 7 591.76 Philadelphia, PA 19103-3356 1,253.20 1,588.08 Married, 1 allowance $785 per week SS#: 000-00-8804 Dependent care payment: $950 $70/week-401(k) Single, 0 allowances $885 per week SS#: 000-00-3316 Union dues withheld: $102 24.44 2,853.24 Randi A. Myer 770 Camac Street Philadelphia, PA 19101 667.16 State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** 1,412.84 1,790.36 27.56 4,368.69 Kenneth T. Ford 338 North Side Avenue Philadelphia, PA 19130-6638 1,021.97 2,155.40 2,731.04 Married, 7 allowances $1,350 per week SS#: 000-00-6839 Cost of group-term life insurance exceeding $50,000: $262.75* $100/week-401(k) Married, 3 allowances $820 per week SS#: 000-00-5771 42.12 2,643.68 Chrissy C. Carman 4900 Gladwynne Terrace Philadelphia, PA 19127-0049 Social security tax withheld Medicare tax withheld State income tax withheld 618.28 1,308.84 1,658.80 25.48 Hal B. Zuber 2,546.96 Union dues withheld: $102 Local income tax withheld State unemployment tax withheld** Single, 1 allowance Social security tax withheld $790 per week Medicare tax withheld SS#: 000-00-8703 State income tax withheld Educational assistance payments Local income tax withheld (job-required): $675 $50/week-401(k) State unemployment tax withheld** 480-A Hopkinson Tower Philadelphia, PA 19101-3301 595.92 1,261.00 1,598.48 24.44 The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (See Figure 4.7). State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14. If an amount box does not require an entry, leave it blank. Round your calculations and final answers to the nearest cent. Note: You must enter in the hyphens in the social security numbers, employer identification number, etc. Click here to access the Wage-Bracket Method Tables. a Employee's social security number For Official Use Only 22222 Void OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 3 Social security wages 4 Social security tax withheld c Employer's name, address, and ZIP code 5 Medicare wages and tips 6 Medicare tax withheld Quigley Corporation 4800 River Road Philadelphia, PA 19113-5548 $ 8 Allocated tips 7 Social security tips d Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Chrissy C. Carman Code 13 12b 4900 Gladwynne Terrace 14 Other Code $ 12c Philadelphia, PA 19127-0049 Code $ 12d f Employee's address and ZIP code Code $ 15 State Employer's state ID number 19 Local income tax 20 Locality name 16 State wages, tips, etc. $ 17 State income tax $ 18 Local wages, tips, etc. $ Form W-2 Wage and Tax Statement 20-- Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. For Official Use Only 33333 a Control number OMB No. 1545-0008 b kind of Payer Kind of Employer Third party sick pay c Total number of forms W-2 1 Wages, tips, other compensation 2 Federal income tax withheld d Establishment number e Employer identification number (EIN) 3 Social security wages 4 Social security tax withheld $ 6 Medicare tax withheld f Employer's name 5 Medicare wages and tips Quigley Corporation $ 7 Social security tips 8 Allocated tips 4800 River Road 10 Dependent care benefits 9 Philadelphia, PA 19113-5548 $ 12a Deferred compensation 11 Nonqualified plans g Employer's address and ZIP code 13 For third-party sick pay use only 12b h Other EIN used this year 15 State Employer's state ID number 14 Income tax withheld by payer of third-party sick pay 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax $ Employer's contact person Employer's telephone number For Official Use Only Employer's fax number Employer's email address NA Under penalties of perjury, I declare that I have examined this return and accompanying documents and, to the best of my knowledge and belief, they are true, correct, and complete. Signature Title Date Form W-3 Transmittal of Wage and Tax Statements 20-- Department of the Treasury Source: Internal Revenue Service Income Tax Information: The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage bracket table and multiply the answer by 52. The other taxes withheld are shown below. Employee Data Payroll Data Annual Taxes Withheld Randy A. Kellison Single, 1 allowance Social security tax withheld $2,305.16 54 Gradison Place $715 per week Medicare tax withheld 539.24 Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld 1,141.40 Deduction for 401(k) plan: $50/week Local income tax withheld 1,446.64 22.36 Ralph I. Volpe 2,530.84 56 Andrews Court, Apt. 7 591.76 Philadelphia, PA 19103-3356 1,253.20 1,588.08 Married, 1 allowance $785 per week SS#: 000-00-8804 Dependent care payment: $950 $70/week-401(k) Single, 0 allowances $885 per week SS#: 000-00-3316 Union dues withheld: $102 24.44 2,853.24 Randi A. Myer 770 Camac Street Philadelphia, PA 19101 667.16 State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld State unemployment tax withheld** 1,412.84 1,790.36 27.56 4,368.69 Kenneth T. Ford 338 North Side Avenue Philadelphia, PA 19130-6638 1,021.97 2,155.40 2,731.04 Married, 7 allowances $1,350 per week SS#: 000-00-6839 Cost of group-term life insurance exceeding $50,000: $262.75* $100/week-401(k) Married, 3 allowances $820 per week SS#: 000-00-5771 42.12 2,643.68 Chrissy C. Carman 4900 Gladwynne Terrace Philadelphia, PA 19127-0049 Social security tax withheld Medicare tax withheld State income tax withheld 618.28 1,308.84 1,658.80 25.48 Hal B. Zuber 2,546.96 Union dues withheld: $102 Local income tax withheld State unemployment tax withheld** Single, 1 allowance Social security tax withheld $790 per week Medicare tax withheld SS#: 000-00-8703 State income tax withheld Educational assistance payments Local income tax withheld (job-required): $675 $50/week-401(k) State unemployment tax withheld** 480-A Hopkinson Tower Philadelphia, PA 19101-3301 595.92 1,261.00 1,598.48 24.44 The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (See Figure 4.7). State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14. If an amount box does not require an entry, leave it blank. Round your calculations and final answers to the nearest cent. Note: You must enter in the hyphens in the social security numbers, employer identification number, etc. Click here to access the Wage-Bracket Method Tables. a Employee's social security number For Official Use Only 22222 Void OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 3 Social security wages 4 Social security tax withheld c Employer's name, address, and ZIP code 5 Medicare wages and tips 6 Medicare tax withheld Quigley Corporation 4800 River Road Philadelphia, PA 19113-5548 $ 8 Allocated tips 7 Social security tips d Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Chrissy C. Carman Code 13 12b 4900 Gladwynne Terrace 14 Other Code $ 12c Philadelphia, PA 19127-0049 Code $ 12d f Employee's address and ZIP code Code $ 15 State Employer's state ID number 19 Local income tax 20 Locality name 16 State wages, tips, etc. $ 17 State income tax $ 18 Local wages, tips, etc. $ Form W-2 Wage and Tax Statement 20-- Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. For Official Use Only 33333 a Control number OMB No. 1545-0008 b kind of Payer Kind of Employer Third party sick pay c Total number of forms W-2 1 Wages, tips, other compensation 2 Federal income tax withheld d Establishment number e Employer identification number (EIN) 3 Social security wages 4 Social security tax withheld $ 6 Medicare tax withheld f Employer's name 5 Medicare wages and tips Quigley Corporation $ 7 Social security tips 8 Allocated tips 4800 River Road 10 Dependent care benefits 9 Philadelphia, PA 19113-5548 $ 12a Deferred compensation 11 Nonqualified plans g Employer's address and ZIP code 13 For third-party sick pay use only 12b h Other EIN used this year 15 State Employer's state ID number 14 Income tax withheld by payer of third-party sick pay 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax $ Employer's contact person Employer's telephone number For Official Use Only Employer's fax number Employer's email address NA Under penalties of perjury, I declare that I have examined this return and accompanying documents and, to the best of my knowledge and belief, they are true, correct, and complete. Signature Title Date Form W-3 Transmittal of Wage and Tax Statements 20-- Department of the Treasury Source: Internal Revenue Service
