Continuing Payroll Problem, 4B: Chapter 4

This problem continues the process of preparing the Olney Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee and using this data, FICA withholding and employer FICA liability was computed. This information is shown in the Employee Payroll Register.

Requirement:

1. Refer to the SIMPLE Plan Contributions table and enter each employee's SIMPLE plan deduction.
2. Determine and record the federal income taxes for each employee.
3. Determine and record the state income taxes for each employee.
4. Determine and record the city income taxes for the Newtown Township residents.
5. Total each input column.

SIMPLE Plan Contributions

A SIMPLE IRA is a retirement plan that may be established by employers, including self-employed individuals (sole proprietorships and partnerships). The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.^a

OLNEY COMPANY, INC. SIMPLE Plan Contributions
Name	SIMPLE Deductions
Mangino, R.	$20
Flores, I.	50
Palmetto, C.	40
Waters, R.	60
Kroll, C.	20
Ruppert, C.	40
Scott, W.	50
Wickman, S.	50
Foley, L.	30
Olney, M.	80

Employee Data

Below lists each employee's assigned Time Card No., Marital Status, and Allowances. This information is necessary when determining the amount of tax to withhold.

Time Card No.	Employee Name	Marital Status	No. of Allowances
11	Rob A. Mangino	S	1
12	Inga C. Flores	S	0
13	Carson S. Palmetto	M	2
21	Randy F. Waters	M	3
22	Cathy T. Kroll	S	2
31	Carmen V. Ruppert	M	3
32	William M. Scott	M	4
33	Sarah A. Wickman	S	1
51	Lucas T. Foley	M	5
99	Marshal W. Olney	M	7

Payroll Register

For this task, each employee's federal, state, and local taxes to be withheld will be determined. When determining the federal taxes to be withheld, remember that there are some deductions that are allowed "pretax". These deductions reduce the gross earnings upon which the federal tax to be withheld is determined.

Complete the steps outlined below.

1. Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.
2. Determine and record the federal income taxes for each employee.
   1. Refer to each employee's marital status and number of allowances Click the link below to view the Wage-Bracket Method tables
3. Determine and record the state income taxes for each employee using the State of Pennsylvania's rate of 3.07%.
4. Determine and record the local income taxes for the Newtown Township residents at the rate of 1.0%.
5. Total each input column.

Note: Round your final answers to the cent.

Click here to access the Wage-Bracket Method Tables.

OLNEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS									NET PAY
Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	Grp. Ins.	Health Ins.	Ck. No.	Amount
Mangino, R.	$740.00	$45.88	$10.73	$fill in the blank 0ce6fc06e032002_1	$fill in the blank 0ce6fc06e032002_2		$fill in the blank 0ce6fc06e032002_3	$fill in the blank 0ce6fc06e032002_4
Flores, I.	1,058.80	65.65	15.35	fill in the blank 0ce6fc06e032002_5	fill in the blank 0ce6fc06e032002_6		fill in the blank 0ce6fc06e032002_7	fill in the blank 0ce6fc06e032002_8
Palmetto, C.	685.30	42.49	9.94	fill in the blank 0ce6fc06e032002_9	fill in the blank 0ce6fc06e032002_10		fill in the blank 0ce6fc06e032002_11	fill in the blank 0ce6fc06e032002_12
Waters, R.	1,045.35	64.81	15.16	fill in the blank 0ce6fc06e032002_13	fill in the blank 0ce6fc06e032002_14		fill in the blank 0ce6fc06e032002_15	fill in the blank 0ce6fc06e032002_16
Kroll, C.	952.00	59.02	13.80	fill in the blank 0ce6fc06e032002_17	fill in the blank 0ce6fc06e032002_18		fill in the blank 0ce6fc06e032002_19	fill in the blank 0ce6fc06e032002_20
Ruppert, C.	837.50	51.93	12.14	fill in the blank 0ce6fc06e032002_21	fill in the blank 0ce6fc06e032002_22		fill in the blank 0ce6fc06e032002_23	fill in the blank 0ce6fc06e032002_24
Scott, W.	780.00	48.36	11.31	fill in the blank 0ce6fc06e032002_25	fill in the blank 0ce6fc06e032002_26		fill in the blank 0ce6fc06e032002_27	fill in the blank 0ce6fc06e032002_28
Wickman, S.	807.69	50.08	11.71	fill in the blank 0ce6fc06e032002_29	fill in the blank 0ce6fc06e032002_30		fill in the blank 0ce6fc06e032002_31	fill in the blank 0ce6fc06e032002_32
Foley, L.	1,233.16	76.46	17.88	fill in the blank 0ce6fc06e032002_33	fill in the blank 0ce6fc06e032002_34		fill in the blank 0ce6fc06e032002_35	fill in the blank 0ce6fc06e032002_36
Olney, M.	1,500.00	93.00	21.75	fill in the blank 0ce6fc06e032002_37	fill in the blank 0ce6fc06e032002_38		fill in the blank 0ce6fc06e032002_39	fill in the blank 0ce6fc06e032002_40
Totals		$597.68	$139.77	$fill in the blank 0ce6fc06e032002_41	$fill in the blank 0ce6fc06e032002_42		$fill in the blank 0ce6fc06e032002_43	$fill in the blank 0ce6fc06e032002_44			----