During the first full week of 20--, the Payroll Department of Omni 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 20--, the previous year. 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.04.13B.Part2) you will complete the other two W-2s and the W-3. The form is to be signed by the president, Frank Kent, and is prepared by Vince Roper.

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

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
See example of Randy A. Kellison's completed Form W-2 below.
Randy A. Kellison	Single	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	1,439.96
		State unemployment tax withheld**	22.36
Vince T. Roper	Married filing jointly	Social security tax withheld	3,175.64
56 Andrews Court, Apt. 7	$985 per week	Medicare tax withheld	742.56
Philadelphia, PA 19103-3356	SS#: 000-00-8804	State income tax withheld	1,572.48
	Dependent care payment: $950	Local income tax withheld	1,982.76
	$70/week401(k)	State unemployment tax withheld**	30.68
Murray T. Rodson	Single	Social security tax withheld	2,466.36
770 Camac Street	$765 per week	Medicare tax withheld	576.68
Philadelphia, PA 19101-3770	SS#: 000-00-3316	State income tax withheld	1,221.48
	Union dues withheld: $102	Local income tax withheld	1,539.72
		State unemployment tax withheld**	23.92
Frank A. Kent	Married filing jointly	Social security tax withheld	6,061.29
338 North Side Avenue	$1,875 per week	Medicare tax withheld	1,417.69
Philadelphia, PA 19130-6638	SS#: 000-00-6839	State income tax withheld	2,993.12
	Cost of group-term life insurance	Local income tax withheld	3,774.68
	exceeding $50,000: $262.75* $100/week401(k)	State unemployment tax withheld**	58.76
Carlie C. Christian	Married filing jointly	Social security tax withheld	2,514.72
4900 Gladwynne Terrace	$780 per week	Medicare tax withheld	588.12
Philadelphia, PA 19127-0049	SS#: 000-00-5771	State income tax withheld	1,245.40
	Union dues withheld: $102	Local income tax withheld	1,570.40
		State unemployment tax withheld**	24.44
Zana W. Amelia	Single	Social security tax withheld	2,546.96
480-A Hopkinson Tower	$790 per week	Medicare tax withheld	595.92
Philadelphia, PA 19101-3301	SS#: 000-00-8703	State income tax withheld	1,261.00
	Educational assistance payments	Local income tax withheld	1,590.16
	(job-required): $675 $50/week401(k)	State unemployment tax withheld**	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 4.8).

^**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.

As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used.

Click here to access the Wage-Bracket Method Tables.

Hint: Group-term life insurance premiums are includable in Boxes 1, 3 and 5.