Example 3-2 Wallington Company has 100 employees, each earning $525.25 a week. OASDI Amount of OASDI tax withheld from each employee's paycheck each week: $32.57 (6.2% $525.25) Total tax withheld from the 100 employees' wages: $3,257.00 ($32.57 x 100) Tax on employer: $3,256.55 [6.2% ~ ($525.25 100)] HI $7.62 (1.45% ~ $525.25) Amount of HI tax withheld from each employee's paycheck each week: Total tax withheld from the 100 employees' wages is: $762.00 ($7.62 x 100) Tax on employer: $761.61 [1.45% ~ ($525.25 x 100)] Example 3-6 1. On Friday, May 24, 20--, Rogers, Ltd., a semiweekly depositor, pays wages and accumulates employment taxes. Rogers makes a deposit on Wednesday, May 29, in the amount of $4,000. Later it was determined that Rogers was actually required to deposit $4,080 by Wednesday. Rogers has a shortfall of $80. The shortfall is less than the greater of $100 or 2 percent of the amount required to be deposited. Therefore, Rogers satisfies the safe harbor rule so long as the $80 shortfall is deposited by Wednesday, June 19. 2. On Friday, October 4, 20--, Vargan Company, a semiweekly depositor, pays wages and accumulates employment taxes. Vargan makes a deposit of $30,000 but later finds that the amount of the deposit should have been $32,000. The $2,000 shortfall ($32,000 - $30,000) exceeds the greater of $100 or 2 percent of the amount required to be deposited (2% $32,000 = $640). Thus, the safe harbor rule was not met. As a result, Vargan is subject to a failure-to-deposit penalty, as described later in this chapter. The taxable wages and withheld taxes for Stafford Company (EIN 00-0001462), semiweekly depositor, for the first quarter of 20-- follow. Semimonthly Paydays Gross and Taxable Wages FICA Withheld FICA Withheld Federal Income OASDI HI Tax Withheld 1/15 $24,500 $1,519.00 $355.25 $3,186.00 1/31 24,100 1,494.20 349.45 3,081.00 2/15 25,220 1,563.64 365.69 3,407.00 2/28 25,580 1,585.96 370.91 3,505.00 3/15 25,000 1,550.00 362.50 3,387.00 3/29 25,100 1,556.20 363.95 3,692.00 $149,500 $9,269.00 $2,167.75 $20,258.00 a. Complete Schedule B of Form 941 below for the first quarter for Steve Hazelton, the owner of Stafford Company. If a box does not require an amount, leave it blank. Round your answers to the nearest cent. a. Complete Schedule B of Form 941 below for the first quarter for Steve Hazelton, the owner of Stafford Company. If a box does not require an amount, leave it blank. Round your answers to the nearest cent. Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors OMB No. 1545-0029 (Rev. January 2017) Department of the Treasury Internal Revenue Service Report for this Quarter... (Select one.) Employer identification number (EIN) 00 - 0001462 January, February, March Name (not your trade name) STEVE HAZELTON Calendar year 2017 X (Also check quarter) Use this schedule to show your TAX LIABILITY for the quarter; don't use it to show your deposits. When you file this form with Form 941 or Form 941-ss, don't change your tax liability by adjustments reported on any Forms 941-X or 944-X. You must fill out this form and attach it to Form 941 or Form 941-SS if you're a semiweekly schedule depositor or became one because your accumulated tax liability on any day was $100,000 or more. Write your daily tax liability on the numbered space that corresponds to the date wages were paid. See Section 11 in Pub. 15 for details. Month 1 1 9 17 25 Tax liability for Month 1 2. 10 18 26 3 11 27 4 12 20 28 5 13 21 29 6 14 22 30 7 15 23 31 8 16 24 Month 2 1 9 17 25 Tax liability for Month 2 2 10 18 26 11 19 27 12 20 28 M + in 13 21 29 14 22 30 15 23 31 8 16 24 Month 3 1 9 17 25 Tax liability for Month 3 2 10 18 26 3 11 19 27 4 12 20 28 5 13 21 29 6 14 22 30 7 15 23 31 8 16 24 Fill in your total liability for the quarter (Month 1 + Month 2 + Month 3) Total liability for the quarter Total must equal line 12 on Form 941 or Form 941-ss. IRS.gov/form941 Cat. No. 11967Q For Paperwork Reduction Act Notice, see separate instructions. Schedule B (Form 941) (Rev. 1-2017) Source: Internal Revenue Service b. Using the calendar below, list the due dates of each deposit in the first quarter. January February Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 March April Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 Paydays Deposit Due Dates January 15 January 31 February 15 February 28 March 15 March 29 Example 3-2 Wallington Company has 100 employees, each earning $525.25 a week. OASDI Amount of OASDI tax withheld from each employee's paycheck each week: $32.57 (6.2% $525.25) Total tax withheld from the 100 employees' wages: $3,257.00 ($32.57 x 100) Tax on employer: $3,256.55 [6.2% ~ ($525.25 100)] HI $7.62 (1.45% ~ $525.25) Amount of HI tax withheld from each employee's paycheck each week: Total tax withheld from the 100 employees' wages is: $762.00 ($7.62 x 100) Tax on employer: $761.61 [1.45% ~ ($525.25 x 100)] Example 3-6 1. On Friday, May 24, 20--, Rogers, Ltd., a semiweekly depositor, pays wages and accumulates employment taxes. Rogers makes a deposit on Wednesday, May 29, in the amount of $4,000. Later it was determined that Rogers was actually required to deposit $4,080 by Wednesday. Rogers has a shortfall of $80. The shortfall is less than the greater of $100 or 2 percent of the amount required to be deposited. Therefore, Rogers satisfies the safe harbor rule so long as the $80 shortfall is deposited by Wednesday, June 19. 2. On Friday, October 4, 20--, Vargan Company, a semiweekly depositor, pays wages and accumulates employment taxes. Vargan makes a deposit of $30,000 but later finds that the amount of the deposit should have been $32,000. The $2,000 shortfall ($32,000 - $30,000) exceeds the greater of $100 or 2 percent of the amount required to be deposited (2% $32,000 = $640). Thus, the safe harbor rule was not met. As a result, Vargan is subject to a failure-to-deposit penalty, as described later in this chapter. The taxable wages and withheld taxes for Stafford Company (EIN 00-0001462), semiweekly depositor, for the first quarter of 20-- follow. Semimonthly Paydays Gross and Taxable Wages FICA Withheld FICA Withheld Federal Income OASDI HI Tax Withheld 1/15 $24,500 $1,519.00 $355.25 $3,186.00 1/31 24,100 1,494.20 349.45 3,081.00 2/15 25,220 1,563.64 365.69 3,407.00 2/28 25,580 1,585.96 370.91 3,505.00 3/15 25,000 1,550.00 362.50 3,387.00 3/29 25,100 1,556.20 363.95 3,692.00 $149,500 $9,269.00 $2,167.75 $20,258.00 a. Complete Schedule B of Form 941 below for the first quarter for Steve Hazelton, the owner of Stafford Company. If a box does not require an amount, leave it blank. Round your answers to the nearest cent. a. Complete Schedule B of Form 941 below for the first quarter for Steve Hazelton, the owner of Stafford Company. If a box does not require an amount, leave it blank. Round your answers to the nearest cent. Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors OMB No. 1545-0029 (Rev. January 2017) Department of the Treasury Internal Revenue Service Report for this Quarter... (Select one.) Employer identification number (EIN) 00 - 0001462 January, February, March Name (not your trade name) STEVE HAZELTON Calendar year 2017 X (Also check quarter) Use this schedule to show your TAX LIABILITY for the quarter; don't use it to show your deposits. When you file this form with Form 941 or Form 941-ss, don't change your tax liability by adjustments reported on any Forms 941-X or 944-X. You must fill out this form and attach it to Form 941 or Form 941-SS if you're a semiweekly schedule depositor or became one because your accumulated tax liability on any day was $100,000 or more. Write your daily tax liability on the numbered space that corresponds to the date wages were paid. See Section 11 in Pub. 15 for details. Month 1 1 9 17 25 Tax liability for Month 1 2. 10 18 26 3 11 27 4 12 20 28 5 13 21 29 6 14 22 30 7 15 23 31 8 16 24 Month 2 1 9 17 25 Tax liability for Month 2 2 10 18 26 11 19 27 12 20 28 M + in 13 21 29 14 22 30 15 23 31 8 16 24 Month 3 1 9 17 25 Tax liability for Month 3 2 10 18 26 3 11 19 27 4 12 20 28 5 13 21 29 6 14 22 30 7 15 23 31 8 16 24 Fill in your total liability for the quarter (Month 1 + Month 2 + Month 3) Total liability for the quarter Total must equal line 12 on Form 941 or Form 941-ss. IRS.gov/form941 Cat. No. 11967Q For Paperwork Reduction Act Notice, see separate instructions. Schedule B (Form 941) (Rev. 1-2017) Source: Internal Revenue Service b. Using the calendar below, list the due dates of each deposit in the first quarter. January February Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 March April Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 Paydays Deposit Due Dates January 15 January 31 February 15 February 28 March 15 March 29