Question
During the first full week of 2019, the Payroll Department of Omni Corporation is preparing the Forms W-2 for distribution to its employees along with
During the first full week of 2019, the Payroll Department of Omni Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 4. 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 2018. 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 -Part 2) 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 | |
Randy A. Kellison 54 Gradison Place Philadelphia, PA 19113-4054 | Single, 2 allowances $715 per week SS#: 000-00-4310 Deduction for 401(k) plan: $50/week | 2,305.16 539.24 1,141.40 1,450.28 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
Vince T. Roper 56 Andrews Court, Apt. 7 Philadelphia, PA 19103-3356 | Married, 3 allowances $985 per week SS#: 000-00-8804 Dependent care payment: $950 $70/week401(k) | 3,175.64 742.56 1,572.48 1,997.84 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
Murray T. Rodson 770 Camac Street Philadelphia, PA 19101-3770 | Single, 0 allowances $765 per week SS#: 000-00-3316 Union dues withheld: $102 | 2,466.36 576.68 1,221.48 1,551.68 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
Frank A. Kent 338 North Side Avenue Philadelphia, PA 19130-6638 | Married, 6 allowances $1,875 per week* SS#: 000-00-6839 Cost of group-term life insurance exceeding $50,000: $262.75** $100/week401(k) | 6,061.29 1,417.69 2,993.12 3,802.76 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
Carlie C. Christian 4900 Gladwynne Terrace Philadelphia, PA 19127-0049 | Married, 5 allowances $780 per week SS#: 000-00-5771 Union dues withheld: $102 | 2,514.72 588.12 1,245.40 1,581.84 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
Zana W. Amelia 480-A Hopkinson Tower Philadelphia, PA 19101-3301 | Single, 1 allowance $790 per week SS#: 000-00-8703 Educational assistance payments (job- required): $675 $50/week401(k) | 2,546.96 595.92 1,261.00 1,602.12 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
*Must use percentage method to calculate federal income tax.
**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 4.7).
If an amount box does not require an entry, leave it blank. Note: You must enter in the hyphens in the social security numbers, employer identification number, etc.
Click here to access the Table of Allowance Values.
Click here to access the Percentage Method Tables.
Click here to access the Wage-Bracket Method Tables.
Hint: group term life insurance premiums are includable in Boxes 1, 3 and 5.
22222 | Void | a Employee's social security number | For Official Use Only OMB No. 1545-0008 | ||||
b Employer identification number (EIN) | 1 Wages, tips, other compensation $ | 2 Federal income tax withheld $ | |||||
c Employer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3 Social security wages $ | 4 Social security tax withheld $ | |||||
5 Medicare wages and tips $ | 6 Medicare tax withheld $ | ||||||
7 Social security tips $ | 8 Allocated tips $ | ||||||
d Control number | 9 Verification code | 10 Dependent care benefits $ | |||||
e Employee's first name and initial Randy A. | Last name Kellison | Suff. | 11 Nonqualified plans | 12a See instructions for box 12 | |||
54 Gradison Place Philadelphia, PA 19113-4054 f Employee's address and ZIP code | |||||||
13 | Code | $ | |||||
12b | |||||||
14 Other | Code | $ | |||||
12c | |||||||
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 | |
Form W-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
22222 | Void | a Employee's social security number | For Official Use Only OMB No. 1545-0008 | ||||
b Employer identification number (EIN) | 1 Wages, tips, other compensation $ | 2 Federal income tax withheld $ | |||||
c Employer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3 Social security wages $ | 4 Social security tax withheld $ | |||||
5 Medicare wages and tips $ | 6 Medicare tax withheld $ | ||||||
7 Social security tips $ | 8 Allocated tips $ | ||||||
d Control number | 9 Verification code | 10 Dependent care benefits $ | |||||
e Employee's first name and initial Vince T. | Last name Roper | Suff. | 11 Nonqualified plans | 12a See instructions for box 12 | |||
56 Andrews Court, Apt. 7 Philadelphia, PA 19103-3356 f Employee's address and ZIP code | |||||||
13 | Code | $ | |||||
12b | |||||||
14 Other | Code | $ | |||||
12c | |||||||
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 | |
Form W-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
22222 | Void | a Employee's social security number | For Official Use Only OMB No. 1545-0008 | ||||
b Employer identification number (EIN) | 1 Wages, tips, other compensation $ | 2 Federal income tax withheld $ | |||||
c Employer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3 Social security wages $ | 4 Social security tax withheld $ | |||||
5 Medicare wages and tips $ | 6 Medicare tax withheld $ | ||||||
7 Social security tips $ | 8 Allocated tips $ | ||||||
d Control number | 9 Verification code | 10 Dependent care benefits $ | |||||
e Employee's first name and initial Murray T. | Last name Rodson | Suff. | 11 Nonqualified plans | 12a See instructions for box 12 | |||
770 Camac Street Philadelphia, PA 19101-3770 f Employee's address and ZIP code | |||||||
13 | Code | $ | |||||
12b | |||||||
14 Other | Code | $ | |||||
12c | |||||||
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 | |
Form W-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
22222 | Void | a Employee's social security number | For Official Use Only OMB No. 1545-0008 | ||||
b Employer identification number (EIN) | 1 Wages, tips, other compensation $ | 2 Federal income tax withheld $ | |||||
c Employer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3 Social security wages $ | 4 Social security tax withheld $ | |||||
5 Medicare wages and tips $ | 6 Medicare tax withheld $ | ||||||
7 Social security tips $ | 8 Allocated tips $ | ||||||
d Control number | 9 Verification code | 10 Dependent care benefits $ | |||||
e Employee's first name and initial Frank A. | Last name Kent | Suff. | 11 Nonqualified plans | 12a See instructions for box 12 | |||
338 North Side Avenue Philadelphia, PA 19130-6638 f Employee's address and ZIP code | |||||||
13 | Code | $ | |||||
12b | |||||||
14 Other | Code | $ | |||||
12c | |||||||
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 | |
Form W-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started