February 1 No 35 LO 5 Prepare Form 941, Employers Quarterly Federal Tax Return , with respect to wages paid during the last calendar quarter Pages 7 55 and 7 56 contain a blank Form 941 The information needed in preparing the return should be obtained from the ledger accounts, payroll registers, employees earnings records, and Federal Tax Deposit forms Form 941 and all forms that follow are to be signed by the president of the company, Joseph T ONeill Washington Update EMPLOYERS IN CREDIT REDUCTION STATES MUST CALCULATE A CREDIT REDUCTION AS AN ADJUSTMENT TO THEIR FUTA TAX ON THEIR FORM 940 EMPLOYERS ANNUAL FEDERAL UNEMPLOYMENT (FUTA) TAX RETURN CREDIT REDUCTION STATES ARE STATES THAT DID NOT REPAY THE MONEY THEY BORROWED FROM THE FEDERAL GOVERNMENT TO PAY UNEMPLOYMENT BENEFITS EMPLOYERS IN THESE STATES MUST USE SCHEDULE A (FORM 940) TO COMPUTE THE CREDIT REDUCTION IN 2017 PENNSYLVANIA WAS NOT A CREDIT REDUCTION STATE PLEASE SEE AS WE GO TO PRESS REGARDING CURRENT LEGISLATION No 36 1 Complete Form 940, Employers Federal Unemployment (FUTA) Tax Return , using the blank forms reproduced Also, complete the Federal Deposit Information Worksheet, using the blank form reproduced on page 7 50 Total wages for the first three quarters was $142,224 57 FUTA taxable wages for the first three quarters was $65,490 00 FUTA tax liability by quarter 1st quarter$204 53 2nd quarter$105 25 3rd quarter$83 16 The first FUTA deposit is now due Journalize the entry to record the electronic deposit for the FUTA tax liability No 37 1 Prepare Form UC 2, Employers Report for Unemployment CompensationFourth Quarter , using the blank form reproduced In Pennsylvania, a credit week is any calendar week during the quarter in which the employee earned at least $50 (without regard to when paid) The maximum number of credit weeks in a quarter is 13 The telephone number of the company is (215) 555 9559 All other information needed in preparing the form can be obtained from the ledger accounts, the payroll registers, and the employees earnings records 2 Journalize the entry to record the payment of the taxes for the fourth quarter No 38 Complete Form W 2, Wage and Tax Statement , for each current employee, using the blank statements reproduced Use each employees earnings record to obtain the information needed to complete the forms The two plant workers (Bonno and Ryan) have had $121 00 in union dues withheld during the year No 39 Complete Form W 3, Transmittal of Wage and Tax Statements , using the blank form reproduced Use the information on all Forms W 2 to complete this form No 40 Complete Pennsylvania Form REV 1667, W 2 Transmittal , using the blank form reproduced Use the information on Forms W 2 to complete this report The wages paid and the Pennsylvania tax withheld for the first three quarters are 1st $34,088 75 $1,046 52 2nd $45,535 62 $1,397 94 3rd $62,600 20 $1,921 83 No 41 Complete Form 1099 MISC, Miscellaneous Income , for the payment to the estate of Virginia A Russell The full amount of the December 14 payment must be reported in Box 3 Page 7 67 contains a blank form Note These wages are to be reported as other income in Box 3 so that the IRS will not seek self employment tax on such amounts No 42 Complete Form 1096, Annual Summary and Transmittal of U S Information Returns , using the blank Use the information on Form 1099 MISC to complete this form No 43 Pennsylvanias Quarterly Reconciliation of Income Tax Withheld is filed electronically The information worksheet to be completed The telephone number of the company is (215) 555 9559 No 44 Prepare the Annual Reconciliation of Employer Wage Tax for Philadelphia, using the blank For lines 1, 3, and 4, use gross wages and salaries per general ledger less exempt wages paid to Russell ($2,394 00) on December 14 (This amount should agree with Form W 3 Box 18, local wages ) Tax paid during the first three quarters was $5,575 21 For reporting purposes, there were 10 Philadelphia residents for whom wage tax was remitted for the pay period ending March 12, 20

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February 1 No. 35 LO 5 Prepare Form 941, Employers Quarterly Federal Tax Return , with respect to wages paid during the last calendar quarter.

February 1

No. 35

LO 5

Prepare Form 941, Employers Quarterly Federal Tax Return, with respect to wages paid during the last calendar quarter. Pages 7-55 and 7-56 contain a blank Form 941. The information needed in preparing the return should be obtained from the ledger accounts, payroll registers, employees earnings records, and Federal Tax Deposit forms.

Form 941 and all forms that follow are to be signed by the president of the company, Joseph T. ONeill.

Washington Update

EMPLOYERS IN CREDIT REDUCTION STATES MUST CALCULATE A CREDIT REDUCTION AS AN ADJUSTMENT TO THEIR FUTA TAX ON THEIR FORM 940 EMPLOYERS ANNUAL FEDERAL UNEMPLOYMENT (FUTA) TAX RETURN. CREDIT REDUCTION STATES ARE STATES THAT DID NOT REPAY THE MONEY THEY BORROWED FROM THE FEDERAL GOVERNMENT TO PAY UNEMPLOYMENT BENEFITS. EMPLOYERS IN THESE STATES MUST USE SCHEDULE A (FORM 940) TO COMPUTE THE CREDIT REDUCTION. IN 2017 PENNSYLVANIA WAS NOT A CREDIT REDUCTION STATE. PLEASE SEE AS WE GO TO PRESS REGARDING CURRENT LEGISLATION.

No. 36
1 Complete Form 940, Employers Federal Unemployment (FUTA) Tax Return, using the blank forms reproduced. Also, complete the Federal Deposit Information Worksheet, using the blank form reproduced on page 7-50.
1. Total wages for the first three quarters was $142,224.57. FUTA taxable wages for the first three quarters was $65,490.00.
2. FUTA tax liability by quarter:
  
  1st quarter$204.53
  
  2nd quarter$105.25
  
  3rd quarter$83.16
  
  The first FUTA deposit is now due.
3. Journalize the entry to record the electronic deposit for the FUTA tax liability.
No. 37
1 Prepare Form UC-2, Employers Report for Unemployment CompensationFourth Quarter, using the blank form reproduced. In Pennsylvania, a credit week is any calendar week during the quarter in which the employee earned at least $50 (without regard to when paid). The maximum number of credit weeks in a quarter is 13. The telephone number of the company is (215) 555-9559. All other information needed in preparing the form can be obtained from the ledger accounts, the payroll registers, and the employees earnings records.

2 Journalize the entry to record the payment of the taxes for the fourth quarter.
No. 38
Complete Form W-2, Wage and Tax Statement, for each current employee, using the blank statements reproduced. Use each employees earnings record to obtain the information needed to complete the forms. The two plant workers (Bonno and Ryan) have had $121.00 in union dues withheld during the year.
No. 39
Complete Form W-3, Transmittal of Wage and Tax Statements, using the blank form reproduced. Use the information on all Forms W-2 to complete this form.
No. 40
Complete Pennsylvania Form REV-1667, W-2 Transmittal, using the blank form reproduced. Use the information on Forms W-2 to complete this report. The wages paid and the Pennsylvania tax withheld for the first three quarters are:

1st $34,088.75 $1,046.52

2nd $45,535.62 $1,397.94

3rd $62,600.20 $1,921.83
No. 41
Complete Form 1099-MISC, Miscellaneous Income, for the payment to the estate of Virginia A. Russell. The full amount of the December 14 payment must be reported in Box 3. Page 7-67 contains a blank form.

Note: These wages are to be reported as other income in Box 3 so that the IRS will not seek self-employment tax on such amounts.
No. 42
Complete Form 1096, Annual Summary and Transmittal of U.S. Information Returns, using the blank. Use the information on Form 1099-MISC to complete this form.
No. 43
Pennsylvanias Quarterly Reconciliation of Income Tax Withheld is filed electronically. The information worksheet to be completed. The telephone number of the company is (215) 555-9559.
No. 44
Prepare the Annual Reconciliation of Employer Wage Tax for Philadelphia, using the blank. For lines 1, 3, and 4, use gross wages and salaries per general ledger less exempt wages paid to Russell ($2,394.00) on December 14. (This amount should agree with Form W-3 Box 18, local wages.) Tax paid during the first three quarters was $5,575.21. For reporting purposes, there were 10 Philadelphia residents for whom wage tax was remitted for the pay period ending March 12, 20--.