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226 Payroll Accounting chagter 7. Comprenensive One-Month Project needed to complete these exercises are included in the Ssudent Exercise Files downioa NOTE! Templates for this course. Elipses Corp is a small business that operates in Herndon, VA. The Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its all tax forms, is John Parker (telephone #571-5550073). The company located at 10 Period Lane, does not wish to name a thied-party designee on forms Duing 2018 four individuals are employed by Ellipses Corp. These employees are as follows Social security # Federal WH State W/H Marital Name Address Munter Cranston 85 Southern Road Herndon, VA 20170 77-77-7777 4 Alison Harrison 203A Pine Court Married Herndon, VA 20170 John Parker 444-44-4444 212 Tradition Lane Herndon, VA 20170 333-33-33332 Pierre Sternberg 41 Seward Boulevard | Married Herndon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work was Monday, November 26 Additionally, due to an economic downturn, Allison Harrison was laid off in mid-December, with her last day of work on Friday, December 14. All employees of Ellipses Corp. work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours), receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Friday for the current week (which runs from Saturday through Friday, although employees never work on weekends). The SUTA tax rate applicable to Elipses Corp. is 3.1%, while the SUTA wage base in Virginia is $8,000. Earnings and voluntary deduction information for each of the four employees is as follows Regular Wage Rate Salary Annual Weekly 401(k) Weekly Charitable Contribution Name Hunter Cranston $15/hour Allison Harrison $23/hour Deduction 6% of gross pay % of gross pay N/A N/A $203,000.20 N/A $112,000.20|1% of gross pay |$5 John Parker N/A S20 Pierre Sternberg N/A | N/A One-Month Project 227 f tbe year ae passed, and all payrol related activity has been properly accounted for as of the e that no paychecks were distributed on 1/1/2018 (as these checks were written and l 017 instead), resulting in the distribution of checks on 13 pay dates during the first 12/31 12har each of the four employees for the first three quarters of the year, as well as for the October and Nowenber, is as follows State Social Medicare 4010k) Charitable Income Tax Income Tax Security Tax Tax Earnings Deduction Cont. $366 60 $366.60 $366.60 $112.80 $14 $483.60 $113.10 $468 $483 60 $483.60 $148.80 $186 113.10 $468 113.10 $468 $34.80 $144 $43.50 $180 565 565 $20 $25 572 $90 State Earnings ticome Tax Income Tax Security Tax Tax Social Medicare 401(k) Charitable Deduction Cont. quater S$11,960 $429 quaer $11,960 $429 dquaer$11,960 $429 r 3,680 $132 vember 54,600 $165 $568.10 5568.10 $568.10 $174.80 $218.50 $741.52 5741.52 $741.52 $228.16 $285.20 $17342 $598 $173.42 $598 $173.42 $598 53.36 $18 566.70 $230 565 565 565 $20 hn Parker Medicare 401(k) Gross Federal Earnings Income Tax Income Tax Security Tax Tax $$0,750.05 $11,035.18 $2,537.47 Deduction Cont $260 $260 $260 $80 $100 $3,146.52 $735.93 S0 11,035.18 $2,537.47 $3,146 52 $735.93 S0 226.44S0 $283.05$0 anter $50,750.05 $50,7s0.os $ 11,035.18 $2,537 47 $1,667.76 15,615.40 $3,395.44 $780.76 S0 $19,519.25 $4,244.30 $975.950 228 Payroll Accounting Chapter 7 Comprerensve Pierre Sternberg Gross Earnings income Tax Income Tax security Tax Tax Federal State Medicare 401(k) 1st quarter so 2nd quarter $O 3rd quarter October So so so so 5106.62 50 so $31.23 So so November $2.153.35 $228.94$106 62 $133.54 521.54 Note that all tax payments and filings are made on the due date. Based on the data provided here, you w complete the following 1. Establish an employee earnings record for each of the company's four employees. Complete the top port of each record 2. Establish and complete the payroll register for each weekly pay period during December. When federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. Note that as of December 8, Hunter Cranston requests that his federa withholding allowances increase from two to three (Ellipses Corp. makes this change). Additionally fon simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (whichis the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated one app the applicable state's withholding tables. Payroll hecks are remitted to the employesin the satme arder and are written from a bank account that is (Cranston, Harrison, Parker, Sternberg) each pay solely for these payments. The first payroll check written in December is check #762. Thre ble contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two compensated via an hourly wage. Weekly Hours Worked Weekly Start Date Hunter Cranston December 1 December 8 December 15 meand I Somerse Allison Harrison 37 41 r designe 40 38 43.5 December 22 WARNING! The above dates are weekly start dates. Refer to a calendar to determine the weeky end dates and associated pay dates. Keep in mind that tax liability and payment amounts are determined based on the weekly pay dates 3. Complete the employee earnings records for December for each of the four employees. Divide the deductions from the payrll egister appropriately across the associated columns within the empiye records. If directed to do so by your instructor, record the necessary journal entries for each pay pe 226 Payroll Accounting chagter 7. Comprenensive One-Month Project needed to complete these exercises are included in the Ssudent Exercise Files downioa NOTE! Templates for this course. Elipses Corp is a small business that operates in Herndon, VA. The Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its all tax forms, is John Parker (telephone #571-5550073). The company located at 10 Period Lane, does not wish to name a thied-party designee on forms Duing 2018 four individuals are employed by Ellipses Corp. These employees are as follows Social security # Federal WH State W/H Marital Name Address Munter Cranston 85 Southern Road Herndon, VA 20170 77-77-7777 4 Alison Harrison 203A Pine Court Married Herndon, VA 20170 John Parker 444-44-4444 212 Tradition Lane Herndon, VA 20170 333-33-33332 Pierre Sternberg 41 Seward Boulevard | Married Herndon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work was Monday, November 26 Additionally, due to an economic downturn, Allison Harrison was laid off in mid-December, with her last day of work on Friday, December 14. All employees of Ellipses Corp. work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours), receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Friday for the current week (which runs from Saturday through Friday, although employees never work on weekends). The SUTA tax rate applicable to Elipses Corp. is 3.1%, while the SUTA wage base in Virginia is $8,000. Earnings and voluntary deduction information for each of the four employees is as follows Regular Wage Rate Salary Annual Weekly 401(k) Weekly Charitable Contribution Name Hunter Cranston $15/hour Allison Harrison $23/hour Deduction 6% of gross pay % of gross pay N/A N/A $203,000.20 N/A $112,000.20|1% of gross pay |$5 John Parker N/A S20 Pierre Sternberg N/A | N/A One-Month Project 227 f tbe year ae passed, and all payrol related activity has been properly accounted for as of the e that no paychecks were distributed on 1/1/2018 (as these checks were written and l 017 instead), resulting in the distribution of checks on 13 pay dates during the first 12/31 12har each of the four employees for the first three quarters of the year, as well as for the October and Nowenber, is as follows State Social Medicare 4010k) Charitable Income Tax Income Tax Security Tax Tax Earnings Deduction Cont. $366 60 $366.60 $366.60 $112.80 $14 $483.60 $113.10 $468 $483 60 $483.60 $148.80 $186 113.10 $468 113.10 $468 $34.80 $144 $43.50 $180 565 565 $20 $25 572 $90 State Earnings ticome Tax Income Tax Security Tax Tax Social Medicare 401(k) Charitable Deduction Cont. quater S$11,960 $429 quaer $11,960 $429 dquaer$11,960 $429 r 3,680 $132 vember 54,600 $165 $568.10 5568.10 $568.10 $174.80 $218.50 $741.52 5741.52 $741.52 $228.16 $285.20 $17342 $598 $173.42 $598 $173.42 $598 53.36 $18 566.70 $230 565 565 565 $20 hn Parker Medicare 401(k) Gross Federal Earnings Income Tax Income Tax Security Tax Tax $$0,750.05 $11,035.18 $2,537.47 Deduction Cont $260 $260 $260 $80 $100 $3,146.52 $735.93 S0 11,035.18 $2,537.47 $3,146 52 $735.93 S0 226.44S0 $283.05$0 anter $50,750.05 $50,7s0.os $ 11,035.18 $2,537 47 $1,667.76 15,615.40 $3,395.44 $780.76 S0 $19,519.25 $4,244.30 $975.950 228 Payroll Accounting Chapter 7 Comprerensve Pierre Sternberg Gross Earnings income Tax Income Tax security Tax Tax Federal State Medicare 401(k) 1st quarter so 2nd quarter $O 3rd quarter October So so so so 5106.62 50 so $31.23 So so November $2.153.35 $228.94$106 62 $133.54 521.54 Note that all tax payments and filings are made on the due date. Based on the data provided here, you w complete the following 1. Establish an employee earnings record for each of the company's four employees. Complete the top port of each record 2. Establish and complete the payroll register for each weekly pay period during December. When federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. Note that as of December 8, Hunter Cranston requests that his federa withholding allowances increase from two to three (Ellipses Corp. makes this change). Additionally fon simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (whichis the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated one app the applicable state's withholding tables. Payroll hecks are remitted to the employesin the satme arder and are written from a bank account that is (Cranston, Harrison, Parker, Sternberg) each pay solely for these payments. The first payroll check written in December is check #762. Thre ble contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two compensated via an hourly wage. Weekly Hours Worked Weekly Start Date Hunter Cranston December 1 December 8 December 15 meand I Somerse Allison Harrison 37 41 r designe 40 38 43.5 December 22 WARNING! The above dates are weekly start dates. Refer to a calendar to determine the weeky end dates and associated pay dates. Keep in mind that tax liability and payment amounts are determined based on the weekly pay dates 3. Complete the employee earnings records for December for each of the four employees. Divide the deductions from the payrll egister appropriately across the associated columns within the empiye records. If directed to do so by your instructor, record the necessary journal entries for each pay pe