Directions Complete the payroll cycle using the template provided in Blackboard Follow the steps outlined below to ensure you complete all required parts of the process When completing this activity, do not use dollar signs $s in your template as this is an internal document, so not using $s saves time and makes the payroll register easier to read Also, and very important, you are working with money Your numbers need to be exact and rounded to the nearest cent All of your figures should have 2 decimal places Step 1 Payroll Register Wages and FICA Taxes Using the payroll register provided for Olney Company, complete the following step for the payroll period These are part of your responsibilities as the Payroll Accountant for the company Enter each employees time card number and name in the appropriate columns Record the regular hours and the overtime hours worked for each employee, using the time clerks report as your reference Complete the regular earnings columns (rate per hour and amount) and the overtime earnings columns (rate per hour and amount) for each hourly employee For salaried employees complete the regular earnings column and show the hourly overtime rate and earnings only if overtime was worked Record the total earnings for each employee by adding the regular earnings and overtime earnings Now, as part of your continued duties, you will now determine the amount of FICA taxes to be withheld from each employees pay for the pay period ending January 8 th , 20xx In the taxable earnings columns, record the amount of each employees weekly earnings that is subject to FICA taxes Step 2 Payroll Register FIT, SIT, and CITP taxes Using the information recorded calculated above, compute the taxes for each employee and record in the appropriate column Calculate the amount of income tax to withhold for each employee as part of your payroll duties These are as follows In the appropriate columns of your payroll register, record the marital status and number of withholding allowances claimed for each employee, using the information provided Record the payroll deductions for the SIMPLE plan that the employer has established for participating employees All of the employees are participating, and their weekly contributions are listed in the Excel template The tax deferral on these deductions applies only to the federal income tax Record the amount of federal income taxes using the wage bracket method (provided in the back of your textbook) Record the state income taxes on the gross weekly earnings for each employee The rate is 3 07 for the state of Pennsylvania Record the local income taxes on the gross weekly earnings of each employee The rate is 1 0 for the Chalfont Boro residents Step 3 Payroll Register SUTA and FUTA taxes Now, as part of your continued Payroll Accountant duties, you will now compute the employers liability for unemployment taxes (FUTA and SUTA) for the pay of January 14 th These computations will be used at the end of the project to complete the payroll journal entries, as required in your position To compute the employers liability for unemployment taxes, please proceed as follows Enter each employees gross earnings in the taxable earnings for FUTA and SUTA Total the taxable earnings FUTA and SUTA columns At the bottom of the payroll register, compute the Net FUTA tax Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling therefore, each employees gross earnings is subject to the FUTA tax For SUTA tax, since Olney is a new employer, Pennsylvania has assigned the company a contribution rate of 3 689 on the first $10,000 of each employees earnings Employees pay 0 06 on total gross pay Step 4 Journal Entries In this last calculations phase of the payroll for the period, you will need to record the amounts withheld for group and health insurance and calculate the net pay for the each employee In the appropriate column of the payroll register, record the amount to be withheld for group life insurance Each employee contributes 85 cents each week toward the cost of group insurance coverage, with the exception of Palmetto and Olney, who are not yet eligible for coverage under the company plan Record the amount to be withheld for health insurance Each employee contributes $1 65 each week toward the cost of health insurance Record the net pay for each employee The net pay for each employee is obtained by subtracting the total amount of all deductions from the total earnings Each worker is to be paid by check Assign check numbers commencing with No 313 Foot all money columns of the payroll register, and provide the accuracy of the column totals Prepare journal entries as of January 12 th to record the payroll and the payroll taxes for the week ending January 8 Credit Salaries Payable for the total net pay Use the following tax rates and bases employers FICA OASDI, 6 2 on the first $137,700 employers FICA HI, 1 45 on total earnings FUTA, 0 6 on the first $7,000 and SUTA 3 6890 on the first $10,000 Prepare the journal entry to record the payment of the payroll on January 14 th when the paychecks are distributed to all workers FOR PERIOD ENDING January 8, 20 MARITAL STATUS NO OF W H ALLOW REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS HOURS WORKED RATE PER HOUR HOURS WORKED RATE PER HOUR TOTAL FICA GROUP HEALTH CHECK EMPLOYEE AMOUNT AMOUNT EARNINGS OASDI HI FIT SIT SUTA CIT SIMPLE INSURANCE INSURANCE NO AMOUNT OASDI HI FUTA SUTA Wilson, William A S N A 48 $ 19 25 Utley, Harry T MFJ N A 37 5 $ 17 80 Fay, Gretchen R MFJ N A 41 25 Hardy, Barbara T MFJ N A 44 Kipley, Carson C MFJ N A 40 Totals Time Clerk's Report No 1 For Period Ending January 8th, 20xx No Employee M T W Th F S Time Worked Time Lost 12 Wilson, William A 8 8 8 8 8 8 48 13 Utley, Harry T 8 5 5 8 8 8 37 5 2 5 Tardy 31 Fay, Gretchen R 8 8 8 8 8 1 25 41 25 51 Hardy, Barbara T 8 8 8 8 8 4 44 99 Kipley, Carson C 8 8 8 8 8 40 Marital Status No of allowances Simple Deductions Time Card No Employee Name Wage or salary 12 William A Wilson $19 25 per hour S N A 50 13 Harry T Utley 17 80 per hour MFJ N A 40 31 Gretchen R Fay 800 00 per week MFJ N A 40 51 Barbara T Hardy 4,500 00 per month MFJ N A 30 99 Carson C Kipley 78,000 00 per year MFJ N A 80

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

Directions : Complete the payroll cycle using the template provided in Blackboard. Follow the steps outlined below to ensure you complete all required parts of

Directions: Complete the payroll cycle using the template provided in Blackboard. Follow the steps outlined below to ensure you complete all required parts of the process.

When completing this activity, do not use dollar signs $s in your template as this is an internal document, so not using $s saves time and makes the payroll register easier to read. Also, and very important, you are working with money. Your numbers need to be exact and rounded to the nearest cent. All of your figures should have 2 decimal places.

Step #1: Payroll Register Wages and FICA Taxes

Using the payroll register provided for Olney Company, complete the following step for the payroll period. These are part of your responsibilities as the Payroll Accountant for the company:

Enter each employees time card number and name in the appropriate columns. Record the regular hours and the overtime hours worked for each employee, using the time clerks report as your reference.
Complete the regular earnings columns (rate per hour and amount) and the overtime earnings columns (rate per hour and amount) for each hourly employee. For salaried employees complete the regular earnings column and show the hourly overtime rate and earnings only if overtime was worked.
Record the total earnings for each employee by adding the regular earnings and overtime earnings.

Now, as part of your continued duties, you will now determine the amount of FICA taxes to be withheld from each employees pay for the pay period ending January 8^th, 20xx.

In the taxable earnings columns, record the amount of each employees weekly earnings that is subject to FICA taxes.

Step #2: Payroll Register FIT, SIT, and CITP taxes

Using the information recorded/calculated above, compute the taxes for each employee and record in the appropriate column.
Calculate the amount of income tax to withhold for each employee as part of your payroll duties. These are as follows:
In the appropriate columns of your payroll register, record the marital status and number of withholding allowances claimed for each employee, using the information provided.
Record the payroll deductions for the SIMPLE plan that the employer has established for participating employees. All of the employees are participating, and their weekly contributions are listed in the Excel template. The tax deferral on these deductions applies only to the federal income tax.
Record the amount of federal income taxes using the wage-bracket method (provided in the back of your textbook). Record the state income taxes on the gross weekly earnings for each employee. The rate is 3.07% for the state of Pennsylvania. Record the local income taxes on the gross weekly earnings of each employee. The rate is 1.0% for the Chalfont Boro residents.

Step #3: Payroll Register SUTA and FUTA taxes

Now, as part of your continued Payroll Accountant duties, you will now compute the employers liability for unemployment taxes (FUTA and SUTA) for the pay of January 14^th. These computations will be used at the end of the project to complete the payroll journal entries, as required in your position. To compute the employers liability for unemployment taxes, please proceed as follows:
Enter each employees gross earnings in the taxable earnings for FUTA and SUTA.
Total the taxable earnings FUTA and SUTA columns.
At the bottom of the payroll register, compute the Net FUTA tax. Since this is the first pay period of the year, none of the employees are near the $7,000 ceiling; therefore, each employees gross earnings is subject to the FUTA tax.
For SUTA tax, since Olney is a new employer, Pennsylvania has assigned the company a contribution rate of 3.689% on the first $10,000 of each employees earnings. Employees pay 0.06% on total gross pay.

Step #4: Journal Entries

In this last calculations phase of the payroll for the period, you will need to record the amounts withheld for group and health insurance and calculate the net pay for the each employee.

In the appropriate column of the payroll register, record the amount to be withheld for group life insurance. Each employee contributes 85 cents each week toward the cost of group insurance coverage, with the exception of Palmetto and Olney, who are not yet eligible for coverage under the company plan.
Record the amount to be withheld for health insurance. Each employee contributes $1.65 each week toward the cost of health insurance.
Record the net pay for each employee. The net pay for each employee is obtained by subtracting the total amount of all deductions from the total earnings.
Each worker is to be paid by check. Assign check numbers commencing with No. 313.
Foot all money columns of the payroll register, and provide the accuracy of the column totals.
Prepare journal entries as of January 12^th to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay. Use the following tax rates and bases: employers FICA- OASDI, 6.2% on the first $137,700; employers FICA HI, 1.45% on total earnings; FUTA, 0.6% on the first $7,000; and SUTA 3.6890% on the first $10,000.
Prepare the journal entry to record the payment of the payroll on January 14^th when the paychecks are distributed to all workers.

FOR PERIOD ENDING

January 8, 20 - -

MARITAL STATUS

NO. OF W/H ALLOW.

REGULAR EARNINGS

OVERTIME EARNINGS

DEDUCTIONS

NET PAY

TAXABLE EARNINGS

HOURS WORKED

RATE PER HOUR

HOURS WORKED

RATE PER HOUR

TOTAL

FICA

GROUP

HEALTH

CHECK

EMPLOYEE

AMOUNT

EARNINGS

OASDI

FIT

SIT

SUTA

CIT

SIMPLE

INSURANCE

NO.

AMOUNT

OASDI

FUTA

SUTA

Wilson, William A.

N/A

$ 19.25

Utley, Harry T.

MFJ

N/A

37.5

$ 17.80

Fay, Gretchen R.

MFJ

N/A

41.25

Hardy, Barbara T.

MFJ

N/A

Kipley, Carson C.

MFJ

N/A

Totals

Time Clerk's Report No. 1 - For Period Ending January 8th, 20xx
No.	Employee	M	T	W	Th	F	S	Time Worked	Time Lost
12	Wilson, William A.	8	8	8	8	8	8	48
13	Utley, Harry T.	8	5.5	8	8	8	-	37.5	2.5 Tardy
31	Fay, Gretchen R.	8	8	8	8	8	1.25	41.25
51	Hardy, Barbara T.	8	8	8	8	8	4	44
99	Kipley, Carson C.	8	8	8	8	8	-	40

				Marital Status	No. of allowances	Simple Deductions
Time Card No.	Employee Name	Wage or salary		Marital Status	No. of allowances	Simple Deductions
12	William A. Wilson	$19.25	per hour	S	N/A	50
13	Harry T. Utley	17.80	per hour	MFJ	N/A	40
31	Gretchen R. Fay	800.00	per week	MFJ	N/A	40
51	Barbara T. Hardy	4,500.00	per month	MFJ	N/A	30
99	Carson C. Kipley	78,000.00	per year	MFJ	N/A	80