Figure 3.8 Karen Kluster opened Lube and Wash on January 2, 20- The business is subject to FICA taxes. At the end of the first quarter of 20, Kluster, as president of the company, must file Form 941, Employer's Quarterly Federal Tax Return. Employer's address: 234 OAK, AUSTIN, TX 78711-0234 Employer's ID number Phone number: Date filed: 00-0005874 (512) 555-1111 April 30, 20 Each employee is paid semimonthly on the 15th and last day of each month. Shown below is the payroll information for the first quarter of 20 All pay periods were the same. PAYROLL INFORMATION FOR JANUARY-MARCH Federal Quarterly OASDI Employee Paul Purson 000-00-7233 $4,640.00 SSN Wage Tex $287.68 HI Tax Income Total Deductions Net Pay 567.28 $370.00 Matt Dirkson Joan Howard 000-00-6451 8,190.00 7.78 118.76 000-00-3668 8,540.00 529.48 123.83 054.00 $724.96 $3,915,04 1.500.54 6,609.46 1,076.00 1,729.31 6:810.69 Dorrie Smith 000-00-6527) 10,190.00 631.78 147.76 1,140.00 1,920.54 0,261.46 Totals $31,500.00 $1,956.72 $457.63 $3,549.00 $5.963.35 $25,596.65) Employer's FICA taxes $1,956.72 5457.62 for the quarter OASDI The total tases per payday are: Employees FICA Tax-OASDI Employer's FICA Tax-OASDI $326.12 326.12 The total taxes per payday are: Employees' FICA Tax-OASDI Employer's FICA Tax-OASDI Employees' FICA Tax-HE Employer's FICA Tax-HI Employees FIT Total $326.12 326.12 76.27 76.27 501.50 $1,396.28 x 6 deposits $8,377.68 for the quarter None of the employees reported tips during the quarter Using Form 941 below, prepare the return on the basis of the information shown above. Note: Lines Sa and Sc of Form 941, tax on total taxable wages, are computed by multiplying by the combined tax rate for both employer and employee. Small differences due to rounding may occur between this total and the total taxes withheld from employees each pay period and the amount of the employer's taxes calculated each pay period. This difference is reported on line 7 as a deduction or an addition as "Fractions of Cents. Use minus sign to indicate a deduction. If line 7 is zero, for grading purposes only, enter a zero. Assume that company deposits taxes on monthly basis. Hint: Line 7 instructions. Fill in Form 941 through line 6, and then fill in Part 2, line 16 or Schedule B. Take that information and St in line 10. Lines 6 and 10 must equal. If the amounts are not the same, correct by entering amount to make equal on Ene 7. Line 7 differences are caused by how calculations are made on Form 941 and the amounts withheld from employee's earning plus the employer's payroll tax amounts each pay Tam 941 for 20--: Employer's QUARTERLY Federal Tax Return Department of the Treasury-Internal Revenue Servi CPB No 1545-0029 (3030) Employer identification number (EIN) D 0 Name (not your trade name) KAREN KLUSTER Trade name of any) LUBE AND WASH Address 234 OAK Humber 7 4 Report for this Quarter of 20- (Select one.) Suter under Go to www.irs.ge/Farmo for instructions and the latest information eBook Show Me How Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: Answer these questions for this quarter. Number of employees who received wages, tips, or other compensation for the pay period including: June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 2 Wages, tips, and other compensation.. 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Column 1 Column 2 Taxable social security wages. 5a x 0.124= (i) Qualified sick leave wages. Sa 5a (ii) Qualified family leave wages 5b 95 Taxable social security tips... x 0.062 x 0.062= x 0.124 Taxable Medicare wages & tips. Sc I x 0.029- 5d Taxable wages & tips subject to x 0.009 Additional Medicare Tax withholding Se Total social security and Medicare taxes. Add Column 2 from lines 5a, Sa(1), 5a(), Sb, Sc, and 5d. 5f Section 3121(q) Notice and Demand Tax due on unreported tips (see instructions). 6 Total taxes before adjustments. Add lines 3, 5e, and 5f 7 Current quarter's adjustment for fractions of cents 8 Current quarter's adjustment for sick pay 9 Current quarter's adjustments for tips and group-term life insurance Se 5f 6 7 B 9 1 2 3 Check and go to line 6. eBook Show Me How Part 1: Answer these questions for this quarter. (continued) 11d Total nonrefundable credits. Add lines 11a, 11b, and 11c... 12 Total taxes after adjustments and nonrefundable credits. Subtract line 11d from line 10 13a Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter 13b Deferred amount of the employer share of social security tax. 13c Refundable portion of credit for qualified sick and family leave wages from Worksheet 1 13d Refundable portion of employee retention credit from Worksheet 1 13e Total deposits, deferrals, and refundable credits. Add lines 13a, 136, 13c, and 13d 13f Total advances received from filing Form(s) 7200 for the quarter. 139 Total deposits, deferrals, and refundable credits less advances. Subtract line 13f from line 13e. 14 Balance due. If line 12 is more than line 13g, enter the difference and see instructions 15 Overpayment. If line 13g is more than line 12, enter the difference Part 2: Tell us about your deposit schedule and tax liability for this quarter. 11d 12 13a 13b 13c 13d 13e 13f 13g 14 Check one: Apply to next return. Send a refund. If you're unsure about whether you're a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15. 16 Check one: a. Line 12 on this return is less than $2,500 or line 12 on the return for the prior quarter was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If line 12 for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you're a monthly schedule depositor, complete the deposit schedule below; if you're a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3. b. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability: Month 1 Month 2