For this extra credit assignment, you will complete the major forms that you learned about in the rst three weeks of class-~Forms 941, W-3, W-2. 940 and an Annual Reconciliation worksheet-- for a company with six employees. I The instruction sheet is included in the documents below. I Use the forms below to complete this assignment. Unfortunately, the IRS does not provide Forms W-Z and W-3 in pdf llable form. You only have to complete Form W2 (any copy) for each employee. (These are 2018 forms but the forms have not changed except that the 2020 forms now have a note in the instructions related to the COVID-19 tax credit). I All forms have an assigned points value and you can complete all or some of the forms, but you must submit all Forms 941 (all 4 quarters), W-Z, and W-3 in order to get credit for completing the Annual Reconciliation worksheet I Each form must be completed correctly to receive full points for that form I You can enter text into the PDF forms and submit the PDFS (preferred) or you can print out the forms, complete them legibly and scan them for submission (can also be submitted by picture. but again, must be legible) I Submit all forms together, double-check that the form you are submitting is complete because I always get some blank forms each class, and save a copy of your work just in case I don't get it or there is something wrong with the copy I receive. - There are no other extra credit opportunities for the remainder of class and no time extensions will be granted on this assignment. It takes time to complete forms accurately so you'll want to get started earlyl instructions Extra Credit Assigmm i f941--2018.pdif i f9415b~20174 i fw2--2018.pd_f i fw3--2018.[ i Annual Reconciliation Worksheetxlsx i f940 2018.p i] f94053772018.pd_f i ' Previous Next > Page of 6 - ZOOM + Press esc | to exit full screen BUS 132 EXTRA CREDIT Completing Forms 941, 941 Schedule B, W-2, W-3, 940, 940 Schedule A and Annual Reconciliation Points available for completing all forms correctly: 40 Using the information below: 1) Complete Forms 941 and Schedule B - Up to 16 total points can be earned if you correctly complete the forms for all 4 quarters (2 points for each completed form) 2) Complete a Form W-2 for all 6 employees - 12 points (2 points each) 3) Complete Form W-3 - 3 points 4) Complete Annual Reconciliation Worksheet (You must complete Forms 941, W-2, and W-3 first in order to get points for this form) - 3 points 5) Complete Form 940 and Schedule A - 6 points (3 points each) The following information is taken from the 2018 payroll of Blue Sky Travel Agency. The company is owned by Gilbert Rosa who signs the company's tax returns. The company had the same six employees for the entire year, is a semi-weekly depositor, and paydays are on the 15th and last day of each month. In addition to regular wages, the company paid its employees bonuses for generating new business on the 5th of the 2nd month following the end of a quarter and employees received a discretionary bonus on Christmas Eve. Company: Blue Sky Travel Agency Address: 3989B Crescent Avenue, Miami, FL 33127 EIN: 54-1234567 INFORMATION FOR FORM 941 1st Quarter Wages, tips, and other compensation: 57,450.00 Social security wages: 60,225.00 Medicare wages: 60,225.00 Federal income tax withheld: 9,020.00 January 15 tax liability: 2,681.61 January 31 tax liability: 2,681.61 February 5 tax liability: 2,144.75 February 15 tax liability: 2,681.61 Page 1 of 6Page 2 > of 6 - ZOOM + 1st Quarter February 28 tax liability: 2,681.61 March 15 tax liability: 2,681.61 March 30 tax liability: 2,681.61 2nd Quarter Wages, tips, and other compensation: 56,950.00 Social security wages: 59,725.00 Medicare wages: 59,725.00 Federal income tax withheld: 8,910.00 April 13 tax liability: 2,681.61 April 30 tax liability: 2,681.61 May 4 tax liability: 1,958.25 May 15 tax liability: 2,681.61 May 31 tax liability: 2,681.61 June 15 tax liability: 2,681.61 June 29 tax liability: 2,681.61 3rd Quarter Wages, tips, and other compensation: 58,950.00 Social security wages: $1,725.00 Medicare wages: 61,725.00 Federal income tax withheld: 9,350.00 July 13 tax liability: 2,681.61 July 31 tax liability: 2,681.61 August 3 tax liability: 2,704.25 August 15 tax liability: 2,681.61 August 31 tax liability: 2,681.61 September 14 tax liability: 2,681.61 Page 2 of 6Page 3 > of 6 - ZOOM + 3rd Quarter September 28 tax liability: 2,681.61 In the 4th quarter, Gilbert Rosa, the owner of Blue Sky Travel Agency who signs the Form 941 will be away from the business for 2 months. He decides to name employee Teresa Ibarra-Luna as the designee to speak to the IRS in the event there is a problem with the 3rd quarter return. Her phone number is (786) 305-6767 and the PIN is the last five digits of the company's EIN. 4th Quarter Wages, tips, and other compensation: 60,200.00 Social security wages: 62,975.00 Medicare wages: 62,975.00 Federal income tax withheld: 9,590.00 October 15 tax liability: 2,681.61 October 31 tax liability: 2,681.61 November 5 tax liability: 1,958.25 November 15 tax liability: 2,681.61 November 30 tax liability: 2,681.61 December 14 tax liability: 2,681.61 December 24 tax liability: 1,177.25 December 31 tax liability: 2,681.61 INFORMATION FOR FORM W-2 Employee #1 Name: Emilia Bond Address: 3639 Beachfront Drive, Apt. 25, Miami Beach, FL 33139 SSN 234-56-7890 Wages, tips, etc.: 40,600.00 Federal income tax withheld: 6,265.00 Social security wages: 43,000.00 Page 3 of 6Page 4 > of 6 - ZOOM + Employee #1 Social security tax withheld: ,666.00 Medicare wages: 43,000.00 Medicare tax withheld: 623.50 401(k) plan elective deferral: 2,400.00 401(k) plan elective Roth deferral: 2,400.00 Employee #2 Name: Ryland Franks Address: 8647 Coral Way, Miami, FL 33130 SN 345-67-8901 Wages, tips, etc.: 45,300.00 Federal income tax withheld: ,110.00 Social security wages 46,500.00 Social security tax withheld: 2,883.00 Medicare wages: 46,500.00 Medicare tax withheld: 674.25 401(k) plan elective deferral: 1,200.00 Employee #3 Name Teresa Ibarra-Luna Address: 343 West 30th Street, Miami, FL 33130 SSN 567-89-0123 Wages, tips, etc.: 57,200.00 Federal income tax withheld: 9,280.00 Social security wages: $3,200.00 Social security tax withheld: 3,918.40 Medicare wages: 63,200.00 Medicare tax withheld: 916.40 Page 4 of 6Baddie Addie's AirPods Nearby Connect Employee #3 401 (k) plan elective deferral: 6,000.00 Dependent care pre-tax ,800.00 contribution: Employee #4 Name: Reed Jenkins Address: 9848 Lincoln Avenue, Hialeah, FL 33002 SN 678-90-1234 Wages, tips, etc.: 24,750.00 Federal income tax withheld: 3,765.00 Social security wages: 24,750.00 Social security tax withheld: 1,534.50 Medicare wages: 24,750.00 Medicare tax withheld: 358.88 401(k) plan elective Roth deferral: 600.00 Employee #5 Name: Stephen B. Marquez Address: 1118 Main Ave, Miami Lakes, FL 33014 SN 789-01-2345 Wages, tips, etc.: 31,200.00 Federal income tax withheld: ,890.00 Social security wages: 31,200.00 Social security tax withheld: 1,934.40 Medicare wages: 31,200.00 Medicare tax withheld: 452.40 Dependent care pre-tax 1,800.00 contribution: Page 5 of 6Baddie Addie's AirPods Nearby Connect Employee #6 Name: Daniela Souza Address: Route 2 Box 1970, St. Thomas, VI 00802 SSN 890-12-3456 Wages, tips, etc.: 34,500.00 Federal income tax withheld: 5,560.00 Social security wages: 36,000.00 Social security tax withheld: 2,232.00 Medicare wages: 36,000.00 Medicare tax withheld: 522.0 401(k) plan elective deferral: ,500.00 Dependent care pre-tax 1,500.00 contribution: INFORMATION FOR FORM 940 Total Payments to Employees (all FUTA taxable) U Q1 Q2 Q3 Q4 YTD State Emilia Bond FL 11,500.00 10,000.00 10,500.00 11,000.00 13,000.00 Ryland Franks FL 11,000.00 12,000.00 11,500.00 12,000.00 46,500.00 Teresa Ibarra-Luna FL 16,000.00 16,000.00 16,000.00 17,000.00 65,000.00 Reed Jenkins FL 6,000.00 5,250.00 6, 125.00 6,375.00 24,750.00 Stephen B. 8,000.00 8,250.00 8, 125.00 8,625.00 33,000.00 Marquez Daniela Souza VI 9,000.00 8,500.00 8,750.00 9,250.00 35,500.00 The employer deposited all state UI taxes on time and did not make any FUTA deposits during the year. Page 6 of 6Page of 4 - ZOOM + 950217 Name (not your trade name) Employer identification number (EIN) Part 2: Tell us about your deposit schedule and tax liability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15 16 Check one: 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 quart urrent 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 are a monthly schedule Part 3. depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941). Go to 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 Month 3 Total liability for quarter Total must equal line 12. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. 17 If your business has closed or you stopped paying wages Check here, and enter the final date you paid wages 18 If you are a seasonal employer and you don't have to file a return for every quarter of the year Check here. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions or details. Yes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS. No. Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your X Sign your name here name here Print your title here Date 1 1 Best daytime phone Paid Preparer Use Only Check if you are self-employed . . . Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self-employed) FIN Address Phone City State ZIP code Page 2 Form 941 (Rev. 1-2018)Page of 4 - ZOOM + Form 941 (Rev. 1-2018) Privacy Act and Paperwork Reduction Act Notice. Justice for civil and criminal litigation, and to cities, We ask for the information on Form 941 to carry out the states, the District of Columbia, and U.S. commonwealths Internal Revenue laws of the United States. We need it to and possessions for use in administering their tax laws. figure and collect the right amount of tax. Subtitle C We may also disclose this information to other countries Employment Taxes, of the Internal Revenue Code under a tax treaty, to federal and state agencies to imposes employment taxes on wages and provides for enforce federal nontax criminal laws, or to federal law income tax withholding. Form 941 is used to determine enforcement and intelligence agencies to combat the amount of taxes that you owe. Section 6011 requires terrorism. you to provide the requested information if the tax is The time needed to complete and file Form 941 will applicable to you. Section 6109 requires you to provide your identification number. If you fail to provide this vary depending on individual circumstances. The estimated average time is: information in a timely manner, or provide false or fraudulent information, you may be subject to penalties. Recordkeeping . . . . 13 hr., 52 min. You're not required to provide the information Learning about the law or the form 47 min. requested on a form that is subject to the Paperwork Preparing, copying, assembling, and Reduction Act unless the form displays a valid OMB sending the form to the IRS 1 hr., 3 min. control number. Books and records relating to a form or its instructions must be retained as long as their contents If you have comments concerning the accuracy of may become material in the administration of any Internal these time estimates or suggestions for making Form 941 Revenue law. simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/FormComments. Or Generally, tax returns and return information are you can send your comments to Internal Revenue confidential, as required by section 6103. However, Service, Tax Forms and Publications Division, 1111 section 6103 allows or requires the IRS to disclose or Constitution Ave. NW, IR-6526, Washington, DC 20224. give the information shown on your tax return to others Don't send Form 941 to this address. Instead, see Where as described in the Code. For example, we may Should You File? in the Instructions for Form 941. disclose your tax information to the Department of- ZOOM + Press esc | to exit full screen Schedule B (Form 941): 960311 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.. (EIN) Employer identification number- (Check one.) 1: January, February, March Name (not your trade name) 2: April, May, June Calendar year 0OOO (Also check quarter) 3: July, August, September 4: October, November, December Use this schedule to show your TAX LABEL your TAX LIABILITY for the quarter; don't use our deposits. When you file this form with Form 941 or Form 941 or Form 941-Ss if you're a semiweekly schedule de -X. You must fill out this form and attach it to ause your accumulated tax liability on any day wa $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 Tax liability for Month 1 Month 2 Tax liability for Month 2 Tax liability for Month 3 Total liability for the quarter Fill in your total liability for the quarter (Month 1 + Month 2 + Month 3) Total must equal line 12 on Form 941 or Form 941-SS. For Paperwork Reduction Act Notice, see separate instructions. IRS.gov/form941 Cat. No. 11967Q Schedule B (Form 941) (Rev. 1-2017)Page 1 > of 11 - ZOOM + Press esc | to exit full screen Attention: You may file Forms W-2 and W-3 electronically on the SSA's Employer W-2 Filing Instructions and Information web page, which is also accessible at www.socialsecurity.gov/employer. You can create fill-in versions of Forms W-2 and W-3 for filing with SSA. You may also print out copies for filing with state or local governments, distribution to your employees, and for your records. Note: Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file Copy A downloaded from this website with the SSA; a penalty may be imposed for filing forms that can't be scanned. See the penalties section in the current General Instructions for Forms W-2 and W-3, available at www.irs.gov/w2, for more information. Please note that Copy B and other copies of this form, which appear in black, may be downloaded, filled in, and printed and used to satisfy the requirement to provide the information to the recipient. To order official IRS information returns such as Forms W-2 and W-3, which include a scannable Copy A for filing, go to IRS' Online Ordering for Information Returns and Employer Returns page, or visit www.irs.gov/orderforms and click on Employer and Information returns. We'll mail you the scannable forms and any other products you order. See IRS Publications 1141, 1167, and 1179 for more information about printing these tax forms.zoom + to exit full screen 941/w-z/w-3 Items 01 01 03 Q4 VTD w-s Totals Federal Wages Federal Income Tax Withheld - - | I Social Security Wages - - - | | Social Security Tax Withheld' - - | - - | - | | | | Medicare Wages . . . Medicare Tax Withheld' . . " I didn't specically provide the quarterly amounts withheld from employees in the instructions. In real life you should never do this, but for purposes of this exercise, you can get this number by dividing the amount in Column 2 of Form 941 in half since it includes both the EE and ER portion of tax. Page 2 > of 4 - ZOOM + 850212 Name (not your trade name) Employer identification number (EIN) Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6 16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank. 16a 1st quarter (January 1 - March 31) . 16a 16b 2nd quarter (April 1 - June 30) 16b 16c 3rd quarter (July 1 - September 30) 16c 16d 4th quarter (October 1 - December 31) 16d 17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 Total must equal line 12. Part 6: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Yes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS No Part 7: Sign here. You MUST complete both pages of this form and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of preparer (other than ased on all information of which prepare which preparer has any knowledge. Print your Sign your name here name here Print your title here Date Best daytime phone Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer' signature Date Firm's name (or yours if self-employed) EIN Address Phone City State ZIP code Page 2 Form 940 (2018)Page of2 - ZOOM + Schedule A (Form 940) for 2018: 860312 Multi-State Employer and Credit Reduction Information OMB No. 1545-0028 Department of the Treasury - Internal Revenue Service See the Employer identification number (EIN) 00-0800800 instructions on page 2. File this schedule with Name (not your trade name) Form 940. Place an "X" in the box of EVERY state in which you had to pay state unemployment tax this year. For each state with a credit reduction rate greater than zero, enter the FUTA taxable wages, multiply by the reduction rate, and enter the credit reduction amount. Don't include in the FUTA Taxable Wages box wages that were excluded from state unemployment tax (see the instructions for Step 2). If any states don't apply to you, leave them blank. Postal FUTA Reduction Credit Reduction Postal FUTA Reduction Credit Reduction Abbreviation Taxable Wages Rate bbreviation Taxable Wages Rate AK INC AL ND AR NE AZ NH CA NJ co NM CT NV DC NY OH 000800080800DO MN MO MS MT Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total here and on Form 940, line 11 For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 940. Cat. No. 16997C Schedule A (Form 940) 2018Page of 2 - ZOOM + Instructions for Schedule A (Form 940) for 2018: 860412 Multi-State Employer and Credit Reduction Information Specific Instructions: Completing Schedule A Step 1. Place an "X" in the box of every state (includi e (including the Note: Don't enter your state unemployment wages in the FUTA District of Columbia, Puerto Rico, and the U.S. Virgin Taxable Wages box. Islands) in which you had to pay state unemployment taxes this year, even if the state's credit reduction rate is zero. Then multiply the total FUTA taxable wages by the reduction rate. Note: Make sure that you have applied for a state reporting number for your business. If you don't have an unemployment Enter your total in the Credit Reduction box at the end of the account in a state in which you paid wages, contact the state unemployment agency to receive one. For a list of state Step 3. Total credit reduction unemployment agencies, visit the U.S. Department of Labor's website at https://oui.doleta.gov/unemploy/agencies.asp. To calculate the total credit reduction, add up all of the Credit Reduction boxes and enter the amount in the Total Credit The table below provides the two-letter postal abbreviations Reduction box. used on Schedule A. Then enter the total credit reduction on Form 940, line 11 Postal Abbreviation Postal State State Abbreviation Example 1 Alabama AL Montana You paid $20,000 in wages to each of three employees in State MT A. State A is subject to credit reduction at a rate of 0.003 (.3%). Alaska Nebraska NV Because you paid wages in a state that is subject to credit Arizona AZ Nevada reduction, you must complete Schedule A and file it with Arkansas AR New Hampshire NH California CA Form 940. New Jersey NJ Colorado co New Mexico NM Total payments to all employees in State A . . $60,000 Connecticu CT New York NY Payments exempt from FUTA tax Delaware NC (see the Instructions for Form 940) . District of Columbia DC North Carolina North Dakota ND Total payments made to each employee in excess of $7,000 (3 x ($20,000 - $7,000)) . $39,000 Florida Ohio OH OK Total FUTA taxable wages you paid in State A entered in Georgia Oklahoma OR the FUTA Taxable Wages box ($60,000 - $0 - $39,000) . . $21,00 Hawaii Oregon PA Credit reduction rate for State A 0.003 Idaho Pennsylvania Illinois Rhode Island Total credit reduction for State A ($21,000 x 0.003) $63 Indiana South Carolina SC lowa Don't include in the FUTA Taxable Wages box wages South Dakota SD TN in excess of the $7,000 wage base for each employee Kansas Tennessee Kentucky Texas TX subject to state unemployment insurance in the credit CAUTION reduction state. The credit reduction applies only Louisiana to FUTA taxable wages that were also subject to state Maine ME Utah UT Vermor VT unemployment tax. Maryland MD Virginia VA In this case, you would write $63.00 in the Total Credit Massachusetts MA Washington WA Reduction box and then enter that amount on Form 940, line 11. Michigan MI MN West Virginia WV Minnesota Wisconsin Example 2 Mississipp MS Wyoming WY Missouri MO PR You paid $48,000 ($4,000 a month) in wages to Mary Smith and Puerto Rico to payments were exempt from FUTA tax. Mary worked in State U.S. Virgin Islands B (not subject to credit reduction) in January and then Step 2. You're subject to credit reduction if you paid FUTA transferred to State C (subject to credit reduction) on February 1. Because you paid wages in more than one state, you must ble wages that were also subject to state complete Schedule A and file it with Form 940. unemployment taxes in any state listed that has a credit reduction rate greater than zero. The total payments in State B that aren't exempt from FUTA tax If you paid FUTA taxable wages that were also subject to state are $4,000. Since this payment to Mary doesn't exceed the unemployment taxes in any state that is subject to credit $7,000 FUTA wage base, the total FUTA taxable wages paid in reduction, find the line for each state. State B are $4,000. In the FUTA Taxable Wages box, enter the total FUTA taxable The total payments in State C that aren't exempt from FUTA tax are $44,000. However, $4,000 of FUTA taxable wages was paid wages that you paid in that state. (The FUTA wage base for al states is $7,000.) However, don't include in the FUTA Taxable In State B with respect to Mary. Therefore, the total FUTA Wages box wages that were excluded from state unemployment taxable wages with respect to Mary in State C are $3,000 tax. For example, if you paid $5,000 in FUTA taxable wages in a ($7,000 (FUTA wage base) - $4,000 (total FUTA taxable wages credit reduction state but $1,000 of those wages were excluded paid in State B)). Enter $3,000 in the FUTA Taxable Wages box, from state unemployment tax, report $4,000 in the FUTA multiply it by the Reduction Rate, and then enter the result in the axable Wages box for that state. Credit Reduction box. Attach Schedule A to Form 940 when you file your return Page 2