Deposit rules and Figure 3.10

Example 3-2

Wallington Company has 100 employees, each earning $525.25 a week.

OASDI
Amount of OASDI tax withheld from each employee's paycheck each week:		$32.57		(6.2% $525.25)
Total tax withheld from the 100 employees' wages:		$3,257.00		($32.57 100)
Tax on employer:		$3,256.55		[6.2% ($525.25 100)]
HI
Amount of HI tax withheld from each employee's paycheck each week:		$7.62		(1.45% $525.25)
Total tax withheld from the 100 employees' wages is:		$762.00		($7.62 100)
Tax on employer:		$761.61		[1.45% ($525.25 100)]

The taxable wages and withheld taxes for Hamilton Company (EIN 00-0001462), semiweekly depositor, for the first quarter of 2018 follow. Hint: To calculate liability for each date, multiply gross wages by FICA rate [to get employer's share of FICA]. Then add employee's withholding OASDI, HI and FIT.

Semimonthly Paydays	Gross and Taxable Wages			FICA Withheld OASDI			FICA Withheld HI			Federal Income Tax Withheld
1/12		$34,200			$2,120.40			$495.90			$4,180.00
1/31		32,900			2,039.80			477.05			4,090.00
2/15		31,750			1,968.50			460.38			3,996.00
2/28		28,970			1,796.14			420.07			3,797.00
3/15		28,800			1,785.60			417.60			3,790.00
3/30		29,400			1,822.80			426.30			3,999.00
		$186,020			$11,533.24			$2,697.30			$23,852.00

a. Complete Schedule B of Form 941 on page 3-65 for the first quarter for Harry Conway, the owner of Hamilton Company. If a box does not require an amount, leave it blank. Round your answers to the nearest cent.

Schedule B (Form 941):

Report of Tax Liability for Semiweekly Schedule Depositors

(Rev. January 2017)

Department of the Treasury Internal Revenue Service

Employer identification number (EIN)

Name (not your trade name)

Calendar year

OMB No. 1545-0029

Report for this Quarter... (Select one.)

Use this schedule to show your TAX LIABILITY for the quarter; don't use it to show your deposits. When you file this form with Form 941 or Form 941-SS, don't change your tax liability by adjustments reported on any Forms 941-X or 944-X. You must fill out this form and attach it to Form 941 or Form 941-SS if you're a semiweekly schedule depositor or became one because your accumulated tax liability on any day was $100,000 or more. Write your daily tax liability on the numbered space that corresponds to the date wages were paid. See Section 11 in Pub. 15 for details.

Month 1
1		9		17		25		Tax liability for Month 1
2		10		18		26
3		11		19		27
4		12		20		28
5		13		21		29
6		14		22		30
7		15		23		31
8		16		24
Month 2
1		9		17		25		Tax liability for Month 2
2		10		18		26
3		11		19		27
4		12		20		28
5		13		21		29
6		14		22		30
7		15		23		31
8		16		24
Month 3
1		9		17		25		Tax liability for Month 3
2		10		18		26
3		11		19		27
4		12		20		28
5		13		21		29
6		14		22		30
7		15		23		31
8		16		24
Fill in your total liability for the quarter (Month 1 + Month 2 + Month 3)								Total liability for the quarter
Total must equal line 12 on Form 941 or Form 941-SS.

For Paperwork Reduction Act Notice, see separate instructions. IRS.gov/form941

Cat. No. 11967Q

Schedule B (Form 941) (Rev. 1-2017) Source: Internal Revenue Service

b. List the due dates of each deposit in the first quarter.

Paydays	Deposit Due Dates
January 12
January 31
February 15
February 28
March 15
March 30