equired information
Appendix A Continuing Payroll Project: Wayland Custom Woodworking (3 Months, Part 1)
[The following information applies to the questions displayed below.]
Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to a month of payroll information for Wayland.Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Wayland's EIN is 91-7444533, and the Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis. Federal income tax should be computed using thepercentagemethod.
For Part 1 of this project, you will complete payroll for the entire fourth quarter (Q4) of 2018, which consists of the final six pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percenton the first $34,300. The state withholding rate is 4.95 percentfor all income levels and marital statuses, a table has been included to assist with calculations.
Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees. For nonexempt employees, such as Stevon Varden, Varden's salary is $42,000 and is a nonexempt employee, so the calculation will be $42,000/2,080, which would give you$20.19231per hour, and use this to compute the employee's gross pay based on the number of hours worked. When a nonexempt employee has worked overtime hours for a given pay period, take their regular hourly rate and multiply it by 1.5, round the result to 5 decimal places, and multiply the new rate by their number of overtime hours.
For exempt employees', such as Anthony Chinson, an hourly rate rounded to five decimal places should be determined using the same method shown above, but gross pay should be determined by taking the exempt employee's yearly salary and dividing it by 24, which is the number of payroll periods with a semimonthly frequency. For example, Chinson's salary is $24,000 and is a full time employee. Chinson's hourly rate is$11.53846(determined by taking $24,000/2,080), but as he is an exempt employee, the calculation for his gross pay will be $24,000/24, which would give you$1,000. For pay periods that include paid holidays, ensure to distribute an exempt employee's regular pay accordingly to holiday pay based on the number of hours that consist of the holidays for that period.
After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings.
Employees are paid for the following holidays occurring during the final quarter:
- Thanksgiving day and the day after, Thursday and Friday November 22-23.
- Christmas, which is a Tuesday. Employees receive holiday pay forMonday, December 24, and Tuesday, December 25.
For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage method tables inAppendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status). Both 401(k) and insurance are pretax for federal income tax and Utah income tax.
Federal Withholding Allowance (less 401(k), Section 125)$172.90 per allowance claimedFederal Unemployment Rate (employer only) (less Section 125)0.6% on the first $7,000 of wagesSemimonthly Federal Percentage Method Tax TableAppendix CPage 393 Table #3State Unemployment Rate (employer only) (less Section 125)2.6% on the first $34,300 of wagesState Withholding Rate (less 401(k), Section 125)See UtahSchedule 3, Table 1or use theExcel Version of Schedule 3
Employee Number Name and Address Payroll information 00-Chins Anthony Chinson Married, 1 Withholding allowance 530 Sylvann Avenue Exempt Logan, UT 84321 $24, 000/year + commission 435-555-1212 Start Date: 10/1/2018 Job title: Account Executive SSN: 511-22-3333 00-Wayla Mark Wayland Married, 5 withholding allowances 1570 Lovett Street Exempt Logan, UT 84321 $75 , 000/year 435-555-1110 Start Date: 10/1/2018 Job title: President/Owner SSN: 505-33-1775 01-Peppi Sylvia Peppinico Married, 7 withholding allowances 291 Antioch Road Exempt Logan, UT 84321 $43, 500/year 435-555-2244 Start Date: 10/1/2018 Job title: Craftsman SSN : 047-55-9951 01-Varde Stevon Varden Married, 2 withholding allowances 333 Justin Drive Nonexempt Logan, UT 84321 $42 , 000/year 435-555-9981 Start Date: 10/1/2018 Job title: Craftsman SSN: 022-66-1131 02-Hisso Leonard Hissop Single, 4 withholding allowances 531 5th Street Nonexempt Logan, UT 84321 $49 , 500/year 435-555-5858 Start Date: 10/1/2018 Job title: Purchasing/Shipping SSN: 311-22-6698 00-Succe Student Success Single, 1 withholding allowance 1650 South Street Nonexempt Logan, UT 84321 $36, 000/year 435-556-1211 Start Date: 10/1/2018 Job title: Accounting Clerk SSN : 555-55-5555The departments are as follows: Department 00: Sales and Administration Department 01: Factory workers Department 02: Delivery and Customer service You have been hired as of October1 as the new accounting clerk. Your employee number is OGSUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321. Your phone number is 4135-5551211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in THE-{2019, and your Social Security number is 555- 55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $35,000 per year. The balance sheet for WCW as of September 30, 2018. is as follows: Assets cash Supplies Office Equipment Inventory Vehicle Accumulated Depreciation, Vehicle Building Accumulated Depreciation, Building Land Total Assets 1. $1. 502,240.00 Wayland Custom Woodworking Balance Sheet September 30, 2010 Liabilities 5 Equity 125,000.00 Accounts Payable 27,240.00 Salaries and Wages Payable E?,250.00 Federal Unemployment Tax Payable 123,000.00 Social Security Tax Payable 25,000.00 Medicare Tax Payable State Unemployment Tax Payable 164,000.00 Employee Federal Income Tax Payable Employee State Income Tax Payable 35,?50.00 401(k) Contributions Payable Employee Medical Premiums Payable Notes Payable Utilities Payable Total Liabilities Owners' Equity Retained Earnings Total Equity Total Liabilities and Equity $ 112,490.00 224,750.00 337,240.00 1,250,000.00 1,250,000.00 1,502,240.00 Voluntary deductions for each employee are as follows: Name Deduction Chinson Insurance: $50/paycheck 401 (k) : 34 of gross pay Wayland Insurance: $75/paycheck 401 (k) : 61 of gross pay Peppinico Insurance: $75/paycheck 401 (k) : $50 per paycheck Varden Insurance: $50/paycheck 401 (k) : 41 of gross pay Hissop Insurance: $75/paycheck 401 (k) : 31 of gross pay Student Insurance: $50/paycheck 401 (k) : 31 of gross pay For additional instructions on how to navigate and work through through Part 1 of this project, please download the student project guide here.Complete the payroll register for the October 15 pay period. (Round your answers to 2 decimal places.) Run Date 10/15/2018 Company Name: |Wayland Custom Woodworking P/R Date 10/20/2018 Taxable Taxable Name M/S # of No of Hourly Rate No of Regular Overtime No of Holiday W/H Hours Hours Commissions Gross Earnings 401(k) Insurance Wages for Wages for Hours Federal W/H FICA Anthony Chinson M 1 $ 11.53846 80.00 $ 50.00 $ (50.00) $ (50.00 Mark Wayland M 5 $ 36.05769 80.00 75.00 75.00) (75.00 Sylvia Peppinico M 7 $ 20.91346 80.00 75.00 (75.00 (75.00 Stevon Varden M 2 $ 20.19231 80.00 4.00 50.00 50.00 50.00 Leonard Hissop S 4 $ 23.79808 80.00 75.00 (75.00) (75.00 Student F Success S 1 $ 17.30769 80.00 3.00 50.00 50.00 50.00 Totals $ 0.00 $ 0.00 375.00 $ (375.00) $ (375.00 Taxable Taxable Name Gross Wages for Wages for Federal W/H Social Earning Security Tax Medicare W/H |State W/H Tax | Net Pay Check No. Federal W/H FICA Anthony Chinson $ (50.00) $ (50.00) 174556 Mark Wayland (75.00) (75.00) 174557 Sylvia Peppinico (75.00) (75.00) 174558 Stevon Varden (50.00 (50.00) 174559 Leonard Hissop (75.00) (75.00) 174560 Student F Success (50.00) (50.00) 174561 Totals $ 0.00 $ (375.00) $ (375.00) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00Run Date 10/31/2018 Company Name: |Wayland Custom Woodworking P/R Date 11/05/2018 # of No of Taxable M/S Hourly Rate No of Regular Taxable Name W/H Hours Overtime No of Holiday Commissions Gross Earnings 401(k) Insurance Wages for Wages for Hours Hours Federal W/H FICA Anthony Chinson M 1 $ 11.53846 $ 50.00 $ (50.00) $ 50.00) Mark Wayland M 5 $ 36.05769 75.00 75.00) (75.00) Sylvia Peppinico M 71 $ 20.91346 75.00 (75.00) 75.00 Stevon Varden M 2 $ 20.19231 50.00 (50.00) (50.00) Leonard Hissop S 4 $ 23.79807 75.00 75.00) 75.00 Student F Success S 1 $ 17.30769 50.00 (50.00) (50.00) Totals $ 0.00 $ 0.00 $ 375.00 $ (375.00) $ (375.00) Taxable Name Gross Taxable Wages for Wages for Federal W/H Social Medicare State W/H Earning Federal W/H FICA Security Tax W/H Tax Net Pay Check No. Anthony Chinson $ (50.00) $ (50.00) 174562 Mark Wayland (75.00 (75.00) 174563 Sylvia Peppinico (75.00 75.00) 174564 Stevon Varden (50.00) (50.00) 174565 Leonard Hissop (75.00) 75.00 174566 Student F Success 50.00 50.00 174567 Totals $ 0.00 $ (375.00) $ (375.00) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00Complete the payroll register for the November 15 pay period. (Round your answers to 2 decimal places.) Run Date 11/15/2018 Company Name: |Wayland Custom Woodworking P/R Date 11/21/2018 # of No of Regular No of Taxable Taxable Name M/S W/H Hourly Rate Hours Overtime No of Holiday Commissions Gross Hours Earnings 401(k) Insurance Wages for Wages for Hours Federal W/H FICA Anthony Chinson M 1 $ 11.53846 $ 50.00 $ (50.00) $ (50.01 Mark Wayland M 5 $ 36.05769 75.00 (75.00) 75.01 Sylvia Peppinico M 7 $ 20.91346 75.00 (75.00) (75.0 Stevon Varden M 2 $ 20.19231 50.00 (50.00 (50.0 Leonard Hissop S 4 $ 23.79807 75.00 (75.00) 75.0 Student F Success S 1 $ 17.30769 50.00 (50.00) (50.01 Totals $ 0.00 $ 0.00 $ 375.00 $ (375.00) $ (375.01 Name Gross Taxable Taxable Wages for Social Medicare State W/H Earning Wages for Federal W/H Federal W/H FICA Security Tax W/H Tax Net Pay Check No. Anthony Chinson $ (50.00) $ (50.00) 174568 Mark Wayland (75.00 (75.00) 174569 Sylvia Peppinico (75.00) 75.00) 174570 Stevon Varden (50.00) (50.00) 174571 Leonard Hissop (75.00) (75.00) 174572 Student F Success 50.00) (50.00) 174573 Totals $ 0.00 $ (375.00) $ (375.00) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
