During the first full week of 20--, 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 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.04.13A.PART2) 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 00-0-1066 Pennsylvania state identification number: Federal identification number: Philadelphia identification number: Telephone number: (215) 555-0017 Fax number: (215) 555-0010 00-0000972 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 Kelly B. Roach's completed Form W-2 below. Kelly B. Roach Single Social 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 1,439.36 State unemployment tax withheld*** 22.36 Ralph I. Volpe Married filing jointly Social security tax withheld 2.530.84 56 Andrews Court, Apt. 7 Medicare tax withheld 591.76 $785 per week SS#: 000-00-8804 Philadelphia, PA 19103-3356 State income tax withheld 1,253.20 Dependent care payment: $950 Local income tax withheld 1,580.28 24.44 $70/week-401(k) Single State unemployment tax withheld** Social security tax withheld Randi A. Myer 2,853.24 770 Camac Street $885 per week Medicare tax with held 667.16 Philadelphia, PA 19101-3770 SS#: 000-00-3316 1,412.84 State income tax withheld Local income tax withheld Union dues withheld: $102 1,781.52 State unemployment tax withheld** 27.56 Kenneth T. Ford Married filing jointly Social security tax withheld 4,368.69 338 North Side Avenue $1,350 per week Medicare tax withheld 1,021.97 Philadelphia, PA 19130-6638 SS#: 000-00-6839 State income tax withheld 2,155.40 Cost of group-term life insurance Local income tax withheld 2,717.52 State unemployment tax withheld** 42.12 Chrissy C. Carman Married filing jointly Social security tax withheld 2,643.68 4900 Gladwynne Terrace $820 per week Medicare tax withheld 618.28 Philadelphia, PA 19127-0049 SS#: 000-00-5771 State income tax withheld 1,308.84 Union dues withheld: $102 Local income tax withheld 1,650.48 State unemployment tax withheld** 25.48 Hal B. Zuber 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 exceeding $50,000: $262.75* State unemployment tax withheld** 24.44 $100/week-401(k) (job-required): $675 $50/week-401(k) 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. Round your calculations and final answers to the nearest cent. You must enter in the hyphens in the social security numbers, employer identification number, etc. 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. a Employee's social security number For Official Use Only 22222 Void OMB No. 1545-0008 000-00-4310 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 $34,580.00 3 Social security wages $2,444.00** 4 Social security tax withheld c Employer's name, address, and ZIP code $37,180.00 5 Medicare wages and tips $2,305.16 6 Medicare tax withheld $37,180.00 Quigley Corporation 4800 River Road Philadelphia, PA 19113-5548 $539.24 8 Allocated tips 7 Social security tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Kelly B. Roach $2,600.00 13 Retirement plan Code D 12b 54 Gradison Place Code 14 Other 12c Philadelphia, PA 19113-4054 Code PA SUI 22.36 12d f Employee's address and ZIP code Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $37,180.00 $1,141.40 $37,180.00 $1,439.36 Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D *[Weekly salary $715 - 401(k) contribution $50] x 52 weeks **Federal income tax withheld $47.00 52 weeks a Employee's social security number For Official Use Only 22222 Void 000-00-8804 OMB No. 1545-0008 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 $ 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 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Code 13 56 Andrews Court, Apt. 7 12b Code Philadelphia, PA 19103-3356 14 Other 12c Code f Employee's address and ZIP code 12d Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $ $ Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service. a Employee's social security number For Official Use Only 22222 Voida OMB No. 1545-0008 000-00-3316 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 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 4800 River Road Philadelphia, PA 19113-5548 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Randi A. Myer Code $ 13 12b 770 Camac Street Code $ 14 Other 12c Philadelphia, PA 19101-3770 Code $ 12d f Employee's address and ZIP code Code $ 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $ $ Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service. a Employee's social security number For Official Use Only 22222 Void 000-00-6839 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 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 7 Social security tips 8 Allocated tips $ 10 Dependent care benefits d Control number 9 e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Kenneth T. Ford Code $ 13 12b Code 338 North Side Avenue Philadelphia, PA 19130-6638 14 Other 12c f Employee's address and ZIP code Code $ 12d Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name During the first full week of 20--, 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 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.04.13A.PART2) 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 00-0-1066 Pennsylvania state identification number: Federal identification number: Philadelphia identification number: Telephone number: (215) 555-0017 Fax number: (215) 555-0010 00-0000972 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 Kelly B. Roach's completed Form W-2 below. Kelly B. Roach Single Social 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 1,439.36 State unemployment tax withheld*** 22.36 Ralph I. Volpe Married filing jointly Social security tax withheld 2.530.84 56 Andrews Court, Apt. 7 Medicare tax withheld 591.76 $785 per week SS#: 000-00-8804 Philadelphia, PA 19103-3356 State income tax withheld 1,253.20 Dependent care payment: $950 Local income tax withheld 1,580.28 24.44 $70/week-401(k) Single State unemployment tax withheld** Social security tax withheld Randi A. Myer 2,853.24 770 Camac Street $885 per week Medicare tax with held 667.16 Philadelphia, PA 19101-3770 SS#: 000-00-3316 1,412.84 State income tax withheld Local income tax withheld Union dues withheld: $102 1,781.52 State unemployment tax withheld** 27.56 Kenneth T. Ford Married filing jointly Social security tax withheld 4,368.69 338 North Side Avenue $1,350 per week Medicare tax withheld 1,021.97 Philadelphia, PA 19130-6638 SS#: 000-00-6839 State income tax withheld 2,155.40 Cost of group-term life insurance Local income tax withheld 2,717.52 State unemployment tax withheld** 42.12 Chrissy C. Carman Married filing jointly Social security tax withheld 2,643.68 4900 Gladwynne Terrace $820 per week Medicare tax withheld 618.28 Philadelphia, PA 19127-0049 SS#: 000-00-5771 State income tax withheld 1,308.84 Union dues withheld: $102 Local income tax withheld 1,650.48 State unemployment tax withheld** 25.48 Hal B. Zuber 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 exceeding $50,000: $262.75* State unemployment tax withheld** 24.44 $100/week-401(k) (job-required): $675 $50/week-401(k) 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. Round your calculations and final answers to the nearest cent. You must enter in the hyphens in the social security numbers, employer identification number, etc. 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. a Employee's social security number For Official Use Only 22222 Void OMB No. 1545-0008 000-00-4310 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 $34,580.00 3 Social security wages $2,444.00** 4 Social security tax withheld c Employer's name, address, and ZIP code $37,180.00 5 Medicare wages and tips $2,305.16 6 Medicare tax withheld $37,180.00 Quigley Corporation 4800 River Road Philadelphia, PA 19113-5548 $539.24 8 Allocated tips 7 Social security tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Kelly B. Roach $2,600.00 13 Retirement plan Code D 12b 54 Gradison Place Code 14 Other 12c Philadelphia, PA 19113-4054 Code PA SUI 22.36 12d f Employee's address and ZIP code Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $37,180.00 $1,141.40 $37,180.00 $1,439.36 Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D *[Weekly salary $715 - 401(k) contribution $50] x 52 weeks **Federal income tax withheld $47.00 52 weeks a Employee's social security number For Official Use Only 22222 Void 000-00-8804 OMB No. 1545-0008 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 $ 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 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Code 13 56 Andrews Court, Apt. 7 12b Code Philadelphia, PA 19103-3356 14 Other 12c Code f Employee's address and ZIP code 12d Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $ $ Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service. a Employee's social security number For Official Use Only 22222 Voida OMB No. 1545-0008 000-00-3316 1 Wages, tips, other compensation b Employer identification number (EIN) 2 Federal income tax withheld 00-0000972 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 4800 River Road Philadelphia, PA 19113-5548 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Randi A. Myer Code $ 13 12b 770 Camac Street Code $ 14 Other 12c Philadelphia, PA 19101-3770 Code $ 12d f Employee's address and ZIP code Code $ 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $ $ Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service. a Employee's social security number For Official Use Only 22222 Void 000-00-6839 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 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 7 Social security tips 8 Allocated tips $ 10 Dependent care benefits d Control number 9 e Employee's first name and initial Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 Kenneth T. Ford Code $ 13 12b Code 338 North Side Avenue Philadelphia, PA 19130-6638 14 Other 12c f Employee's address and ZIP code Code $ 12d Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name
