help! payroll project for glo-brite paint company for 2020

7-6 CHAPTER 7. Paytoll Project Payroll Accounting PROJECT AUDIT TEST At the start of each pay period remove the Project Audit Test beginning on page 7-67. Answer the questions as you complete each pay period. Union Dues Both workers in the plant (Bonno and Ryan) are union members. Undet si check-off system, S8 is deducted each payday from the plant workers' caming for union dues, assessments, and initiation fees. A notation to this effect base made on each plant worker's earnings record. On or before the tenth of cus month, the amounts withheld during the preceding month are turned over tu treasurer of the union. Distribution of Labor Costs Figure 7.5 shows how the salaries and wages are to be charged to the labor ce accounts. Start of Payroll Project PROJECT AUDIT TEST Net Paid $12,315.64 October 9, 20- No. 1 The first payroll in October covered the two workweeks that ended September 26 and October 3. This payroll transaction has been more for you in the payroll register, the employees' earnings records, the eral journal, and the general ledger. By reviewing the calculations de wages and deductions in the payroll register and the posting of the unde mation to the employees' earnings records, you can see the procedure be followed each payday. Wages and salaries are paid by issuing special payroll checks. When the bank ce which they are drawn receives such checks, they will be charged against the per roll cash account Observe the following rules in computing earnings each pay period 1. Do not make any deduction from an employee's camins if the employee minutes is rounded to the nearest quarter hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a tion to that effect on the Time Clerk Report FIGURE 7.5 Glo-Brite Labor Cost Accounts Personal Loronto Be Charged Tie Clark Or Salati Lain Saw Sewa 2. In completing the time record colis of the payroll register for all work ers, you should place an in the day column for each full day worked 3. In the case of an employee who begins work during a pay period, compute Payroll Accounting 2020 CHAPTER (refer to page PR. 2 at the end of the book it an employee works less than a full day, show the actual bours for which the employee will be paid. the earnings by paying the employees their weekly rate for any full week worked. For any partial week, compute the arsip for that week by week- tiplying the hours worked by the hourly rate of pay. 4. If time lost is to be deducted from a salaried employee's pay, the employ ee's pay must be determined by multiplying the actual hours worked for that weck by the hourly rate. If hours are missed but no pay is deducted include those hours in the Time Record columns on the payrollregister The following schedule shows the weekly and hourly wage rates of the salaried employees $28.13 Employee Ferguson, lames Ford, Catherine Mann Dewey W. O'Neill, Joseph Russell Virginia Sokowski, Thomas was, Ruth "O'Neil is paid on a biweekly basis Weekly Rate 51,125.00 610.00 $35.00 2007 600.00 1.025.00 61154 16.83 2885 15.00 25.59 5. Plant workers (Borno and Ryan), other than supervisors, are employed on an hourly basis. Compute the wages by multiplying the number of hours worked during the pay period by the employee's hourly rate. 6. The information needed and the sequence of steps that are completed for the payroll are presented in the following discussion. Time Clerk's Report No. 38 For the Week Ending September 26, 20- 88 Time Record Time Time Employee S M T W T F S Worlied Last Bonno. A V... 8 8 8 8 8 40 hrs. Ford, C. L. 8 8 8 40 hrs. Russell, V.A. 8 88 88 40 bis 8 8 8 Ryan, N. A 8 8 40 h Student 8 8 8 8 4 36 hes D 8 8 8 8 Williams, R. V... 32 hrs 8 hrs. Time lost because of personal businews charged to personal use to deduction for the time to D-los full day Payroll Accounting Time C's Report 3 For the Week Ending October 3.20 Time Record 1 Time S M F Employee Honno, AV Fond. CL Rosell, VA Ryan, N. A. Seuden * # #1 40 h sh 40 h Wh 40 h 8 M The time clerk prepared Time Clerks Report No. 38 and 39 from the time cards used by the employees for these workweek. In as much as the president, elle manager sales representatives, and supervisors do not ring in and out on the time dock, their records are not included in the time cerks report, but their aries must be included in the payroll. The following schedule shows the hourly wage rates of the three hourly employees used in preparing the payroll register for the payday on October 9, Employee Hourly Rate 517.60 18.00 14.00 PAY POINTS Tax calculations are to be taken to three decimal places and then founded to two places Bon, Anthony Normani Shades The entry required for each employee is recorded in the payroll register. The names of all employees are listed in alphabetical order, including yours as "Stu. dent." The fold-out payroll register forms needed to complete this project are bound at the back of the book (pages PR-2, PR-3, and PR-4). No deduction has been made for the time lost by Williams. Thus, the total num ber of hours (80) for which payment was made is recorded in the Regular Earn ings Hours column of the payroll register. However, a notation of the time lost (D) was made in the Time Record column. When posting to Williams's earnings record, 80 hours is recorded in the Regular Earnings Hours column (no deduc- tion for the time lost) In computing the federal income taxes to be withheld, the wage bracket tables in Tax Table at the back of the book were used (pages T-5 to T-14). Fach payday, 58 was deducted from the earnings of the two plant workers for union des Bevo and Ryan Payroll cheelerombers were assigned beginning with check no. 672. In the LS Cos Distribution columns at the extreme right of the payroll re ister. chemployee's gross earnings were recorded in the column that identifie the depths in which the eraployee regularly works. The totals of the Labo Cost Distribution columns provide the amounts to be charged to the appropriat salary and wage expense accounts and aid department managers and supervisor in comparing the actual labor costs with the budgeted amounts. PAY POINTS Use tax tables for biweekly payroll period Once the net pay of each employee was computed, all the amount columns in payroll register were footed, proved, and ruled. An entry was made in the journal (page 7-24) transferring from the regu cash account to the payroll cash account the amount of the check issued to P roll to cover the net amount of the payroll; next, the entry was postal Information from the payroll es was posted to the employees' earning Note that when posting the deductions for each employee column has been provided in the earnings record for recording each deduction for FICA QASDE and HI, FIT.SIT, SUTA, and CIT. All other deductions for each employee are 10 he totaled and recorded as one amount in the Other Deductes com Subd iary ledgers are maintained for Group Insurance Premium Collected and Um Payroll Accounting 2020 7-9 records (see pages 7-42 to 746). CHAMLET subsidiary ledgers Dues Withheld. Thus, any question about the amounts withheld from an emplor In this project, your work will not involve any recording in or reference to that The proper journal entry recorded salaries, wages, taxes, and the met aan of cash paid from the totals of the payroll register. The jesurnal entry to record chur payroll for the first pay in the fourth quarter appears below and in the general journal (page 7-24) 2.10.09 1861 1.000 Administrative Salaries Office Sales Sales Salines antages RICA Tees Payable BASIN FKA Twes Payable Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable Union Dues Payable 2.4.14 159.00 41495 5.35 M 14.00 12.315 Payroll Cash The amounts charged the salary and wage expense accounts were obtained from the totals of the Labor Cost Distribution columns in the payroll register. The sal aries and wages were charged as follows: Administrative Salaries Joseph T O'Neill (Tresident) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Carlo Student (Accounting Trainee) Ruth Williams (Programmer) Sales Salaries James C. Ferguson (Sales Manager) Dewey Wa Mann (Sales Representative Plant Wages Anthony V Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas J. Sokowski (Supervisor) Payroll Accounting and 7.10 FICAT Para OAS and FICA Takes Payable HI were credited 595513 and 24.14, respect the amount deducted from employees Employees FIT Payable, Employees SIT Payable, Employees SUTA Payable, Employees CIT Payable, and Union Des Payable were credited for the to amount withheld for each kind of deduction from employees wage. In que Mayroll transactions, Group Insurance Premium Collected will be creded for the amounts withheld from comployees was for this type of deduction. Finally, Pay The payroll taxes for the pay were then recorded in the wall roll Cash was credited for the sum of the net amounts pantall employees 7-24) is follows: LRT 417 16 RICA Payable FKA Tuttes SUTA Poble Employee Payroll Taxes was debited for the sum of the employer FICA, FUTA, and SUTA takes. The taxable carming ed in computing each of these payroll taxes wer! obtained from the appropriate column totals of the payroll register. Note tu only part of Ford's wages are taxable (S700 out of 51.220 gross pay for FUTA (57.000 limit). The computation of the debit to Payroll Taxes was 62315.45671 55834 FRA OASE RICAN 1515.456.77 1112 FUTA 53.418.00 22.91 SUTA: 1620 of 4.272.00 16.25 Total Prades 513111 FICA Taxes PayableOASDI was credited for $958.32, the amount of the li bility for the employer's portion of the tax. FICA Taxes Payable-HI was cred ited for S224.12, the amount of the liability for the employer's share of this tax. FUTA Taxes Payable was credited for the amount of the tax on the employer for federal unemployment purposes ($22.91), SUTA Taxes Payable-Employer was credited for $176.26, which is the amount of the contribution required of the employer under the state unemployment compensation law. The journal entries were posted to the proper ledger accounts (pages 7-33 to 7-40). October 15 This is the day on which the deposits of FICA and FIT taxes and the city of Phil adelphia income taxes for the September payrolls are due. However, in order to concentrate on the fourth-quarter payrolls, we will assume that the deposits for the third quarter and the appropriate entries were already completed. October 20 No.2 On this date, Glo-Brite Paint Company must deposit the Pennsylvania state income taxes withheld from the October 9 payroll. The deposit rule states that if the employer expects the aggregate amount withheld each quarter to be $1,000 or more, the employer must pay the withheld tax semimonthly The tax must be remitted within three banking days after the close of the semimonthly periods ending on the 15th and the last day of the month. Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper forms (replaced by telefile or online filing). The information needed to telefile is listed on 74.55 semimonthly period of October. The company Pensylvania employer page 7-50--complete the information worksheet needed for the first account number is 000-0-3300, EIN is 00-0000660, its filing pass Payroll Accounting 2020 7-11 word is GBPCOM, and its telephone number is (215) 555-9559 LO 1 PROJECT AUDIT TEST October 23 No.3 Prepare the payroll for the last pay period of October from Time Clerk Report Nos. 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register In as much as only a portion of the payroll register beet was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first blank ruled line Ending October 17, 20-- On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolis, continue to conserve space by recording two payrolls on each separate payroll register sheet. The workers in the plant (Borno and Ryam) are paid time and a half for any hours worked over eight each workday and for work on Saturday and are paid tice the regular hourly rate for work on Sundays or holidays With this pay period, the cumulative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's earnings record 10 see the amount of cumulative earnings. Net Paid 512.376.89 PAY POINTS en though they are not on the time den report emberto pay the presidentes manager pretatives and superoni Time Clerk's Report No. 40 For the Week Ending October 10, 20 LO2 Maintain covering Time Record Time Employee Time S M T W T FS Worked Lost Bonno, A. V. ... 8 8 8 8 8 1 44-es Ford, C.L 4 B 8 8 3 36 lins 4hrs Russell, VA 8 8 8 B 40 hrs 8 8 8 Ryan, N. A 5 8 40 hrs. Student 8 8 8 8 4 36 hrs 8 5 8 Williams, R. V. B 40 hrs "Time out on account of death of the charged panemal pole dan for time lose Time Clerk's Report No. 41 For the Week Ending October 17, 20 Time Worked Time Lou Employee S 5 Time Record WTF 8 8 8 8 8 8 88 8 5 8 8 8 8 8 88 8 8 8 4 8 8 8 88 Bonno, A. V. Ford, C.L. Russell, VA Ryan. NA Student Williams, RV 00 00 00 00 8 40 hrs. 40 hrs. 40 h. 48 hrs 36 hrs. 40 hrs. Payroll Accounting as LO 3 pod Make the entry transfer from cash to Payroll Cash the name Post the required information from the payroll register to each Record in the journal the salaries, Wix, taxes withheld, group ice premium collected union due withheld and net amount paid The entry required to record the October 21 payroll in the same as that to record the October pyroll, except it is necessary to record the hty for the amount withheld from the employees was to pay the part of the group insurance premium. The amount withheld should be Record in the joumal the employer's payroll taxes and the liabilities 7-12 of the total payroll, and post employee earning record. and post to the proper les per accounts. recorded as a credit to Group Insurance Premium Collected PAY POINTS The employees Penia Sur Unemployment SUAI.Calculated 0.000 on the total wages of each employee There's notable wage to the moyees portion of the PAY POINTS Be sure to dedu o premium for each $1,000 of group Insurance carried by each employee fast payday of each month created post to the appropriate ledger accounts. November 4 no curul entry V No 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet No.5 Virginia Russell complered a new Form W.4. changing the number of withholding allowances to 2. Change Russell earnings record ther mat ital status has not changed). No. 6 Thomas). Sokowiskt completed a new Form W-4, showing that his mar ital status changed to single and that the number of withholding allow. ances remains at 2. Change Sokowski's earnings record accordingly, No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PROJECT AUDIT TEST Net Paid 512,180.03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Lost Time Clerk's Report No. 42 for the Week Ending October 24, 20- Time Record Time Employee SMT F S Worked Bonno, AV 8 8 8 8 8 40 hrs. Ford, C.L... 8 8 8 8 8 40 hrs. Russel. A 8 8 8 8 6 38 hrs. Ryan, N.A. 8 8 8 8 8 40 hrs. Student 8 8 8 8 4 Williams, R. V. 8 8 8 7 8 39 hrs. Time to comunt of family function dela 2 bopy Time lod bome of this dedalhou pas. 2 h 36 hes. 1 ht Gay 7- Time Clock's Report No. 43 For the Week Ending October 31, 20- Employee S Time Wodud Time F S Los Bonno, A. V. Ford, C.L. Russell, V. A Ryan. N. A... Student... Williams, R. V. Time Record MT WT 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 40 h 0 hrs 40 hrs. 40 hrs 36 hes 40 hrs 8 PAY POINTS Make changes in November 6 py Refer to Not 5.6 and 7 No. 9 Prepare the payroll for the first pay period in November from Time Clerk Report Nos. 42 and 43 and record the paychecks issued to all employers. Record this payroll at the top of the second payroll register sheet. Note: Virginia Russell worked only 38 hours in the week ending Octo ber 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate). Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate). Also, record the employer's payroll taxes. November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours, and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is 856.24. PROJECT AUDIT TEN Net Paid 5 1.494.06 PAY POINTS Record a separate payroll register (on one line to show Williams's total earnings, deductions, and net pay. The two weeks dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay (52.079.32) of Williams. The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the carnings record, make a notation of wil. liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record wil. liams's final pay and the employer's payroll taxes. Post to the ledger Use the blank Form W-2 on page 7-89. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2. Prepare a Wage and Tax Statement. FormW 2 to be given to Williams Eccounts. Nel Elly deche amount of FICA taxes and federal in for the pros and complete the Federal Deposit Informa Worksheet (749). Since the company is subject to the chy sest rule, the depuis due on the 1st of the following month. See the utenplained on pabes 3-17 to 1-19. November 15 So therefore, the depuis to be made on the next business day. Ne 12 Since GloBite Paint Company withholds the city of Philadelphes in so dep the taxes with the Department of Reven The depour rule that affect Glo-Brite Paint Company states that the withheld taxes are between $150 and 516,000 per month, the company Pre the journal entry to record the deposit of the taxes, and posts November 16 the appropriate ledger accounts must deposir the tax monthly by the 15th of the following month. The Prepare the journal entry to record the deposit of the taxes, And Dont Complete the Philadelphia Employer Return of Tax Withheld Payroll Accounting 2013 7.14 LO 4 Comedy PAY POINTS withheld taxes for the October payroll were $1.212.21. o ano deport for to the appropriate ledger accounts. nga signatures Nene pon (Monthly Wake Tax), which appears on page 7-51. November 17 No. 13 Prepare an employee' earnings record for Beth Anne Woods, a employee who began work today, Tuesday Woods is single and claim one withholding allowance. She is employed as a programmer at a monthly salary of $2,600. Address, $102 Franklin Court, Philadelphia, PA 19305 0915. Telephone, 555-1128. Social Security No. 000.00-1587. She is el sible for group insurance coverage of $47.000 immediately, although het first deduction for group insurance will not be made until December 18 Department: Office Weekly rate: $600.00 Hourly rate: $15.00 November 18 No. 14 Deposit with the state of Pennsylvania the amount of state income taxa withheld from the November 6 and 13 (Ruth Williams) payrolls and complete the information worksheet. November 20 PROJECT AUDIT TEST Net Paid 59,425.15 No. 15 With this pay, the company has decided to offer employees a Savings Incentive Match Plan for Employees (SIMPLE Retirement Plan). Most of the employees opted to wait until the start of the following year to participate. However, the following employees have decided to take part in the plan for the remaining pay periods of the year. James Ferguson 5S contribution per pay period Dewey Mann: 5250 contribution pet pay period Joseph O'Neill 5700 contrbution per pay period Norman Ryan 5200 coibution per pay period The contributions are to be deducted from the participating employee pay and are excluded from the employee's income for federal income ta purposes. The other payroll taxes still apply. On the payroll registers 20 the earnings record, use the blank column under "Deductions for the contributions. Use the term "SIMPLE" as the new heading for this dedu tion column (on the payroll register and employee's earnings recon Use the account in the general ledger for SIMPLE Contributions Payroll Accounting 2020 7-15 Payable-account no. 29. The company must match these contributions dollar for dollar, up to 3 percent of the employee's compensation. These payments will be pro cessed through the Accounts Payable Department Prepare the payroll for the last pay period of November from To Clerk's Report Nos. 44 and 45, and record the paychecks issued to all employees. Also, record the employer's payroll taxes Time Clerk's Report No. 44 For the Week Ending November 7.20 PAY POINTS Flotter deduct the premims on the incercach employee Time Lost S Employee Time Record S M T WT F Bonno, AV 8 Ford, CL 8 8 8 8 Russell, V. A 8 8 8 8 8 6 8 Ryan, NA 8 8 8 8 8 Student 8 8 8 8 4 Williams, R. V... 6 8 7 7 6 "Time out for penal deduct2b The loot because of tandinho Time Worked 40 hrs 40 hrs 38 hrs 40 hrs 36 hrs 34 hes 2hrs. 6hn. Time Clerk's Report No. 45 For the Week Ending November 14, 20- Time Record Time Time Employee S M T WT F S Worked Lost Bonno, A. V 8 8 8 24 hrs Ford, C.L 8 8 8 8 8 40 hrs. Russell. V. A 8 8 8 8 8 40 hrs Ryan. N. A 8 8 8 8 8 40 hrs Student 8 8 8 8 4 36h D Williams, R. V. D 8 6 8 22 hr. 18 h Time ion because of cardines deduce 2 bours pay Uhermandades 16 hutumpen No. 16 Salary increases of $30 per week, effective for the he works covered in the December 4 payroll, are given to Catherine L. Ford and Virginia A. Russell. The group insurance coverage for Ford will be increased to $50,000; for Russell, it will be increased to $49.000 Update the employ. ces' earnings records accordingly. The new wage rates are listed below, PAY POINTS The new wage rates are effective for the December payroll Employee Ford, Catherine Russell Virginia Weekly Rate 40.00 630.00 Hourly Rate 516.00 15.95 Payroll Accounting 102, N19 Prepan playing record for Young the pre Idennephew, who work today. Young is single and can the city where the home otheis located. He beginning salary is $2,750 withholding aliwarce. He is training as a held sales representatives Post Add9 16 Holines Drive, Philadelphia, PA 19107-6109 Telephone, 58.20 Social Sony No. 000-00-6057. Young is calle No. 18 Deposit with the state of Pennsylvania the amount of state metas withheld from the November 20 payroll General Ledger balance in November 30 for group ince coverage of 549.000 Department Sale Weekly rates $6 30.00 Hourly rate: $15.75 December 3 Account No 25 and complete the information worksheet PROJECT AUDIT TEST Net Paid 51097092 December 4 No. 19 Prepare the payroll for the first biweekly pay period of December from Time Clerk Report No. 46 and 47. and record the paychecked to all employees. Record this payroll at the top of the third payroll register sheet. Note: Thursday, November 26. is a paid holiday for all workers. Also, record the employer's payroll taxes. Tine Worked Time Lon Time Clerk's Report No. 46 For the Week Ending November 21, 20 Time Record Employee M WT FS Bonno, AV 8 8 8 8 Ford, CL 8 B B 8 Russell, VA 8 8 8 8 Hyan, NA 8 3 48 Student 8 8 8 4 18 Woods, BA 8 8 8 B "Time obdelabah pay, 40 hrs 40 hrs 40 hrs. 36 hits 36 hrs 32 hrs. 4h Time Clerk's Report No. 47 For the Week Ending November 28, 20.- Time Record Time Employee 5 WT F S Worked Bonn, A. V 8 8 8 48 hrs Ford, C.L. 40 hts. Ranel VA... 8 8 8 40 h Ryan, N.A. 9 10 8 Student 43 hrs. 8 8 8 4 Woods B 36 h. 8 40 hrs Dowble Lost PAID HOLIDAY DOC No. 20 Antony V, Pom reports the thirts fan and completes an amended Form W 4. Showing is total withholding allowances to be five. Change his earnings record accordingly effective with the December 18 p. No. 21 Both Anthony Bonno and Norman Ryan have been notified that their union dues will increase to 59 pay, starting with the last pay period of the year. Reflect the increases in the December 18 pure and show the Payroll Accounting 2020 OP 7-17 changes on their camnings records PAY POINTS This way to wthholding, CI December 9 No. 22 Pay the treasurer of the union the amount of union dues withheld during the month of November, December 11 No. 23 The Payroll Department was informed that Virginia A. Russell died.com automobile accident on her way home from work Thursday, December 18 December 14 No. 24 Make a separate entry on one line) in the payroll register to record the issuance of a check payable to the Estate of Virginia A. Russell. This check covers Russell's work for the weeks ending December 5 and 12 (51,134.00) plus her accrued vacation pay (1,260,00). Do not show the vacation hours in the Time Record columns on the payroll register, but include them in the Total Farnings column. Russell's final biweekly pay for time worked and the vacation pay are subject to FICA, FUTA, and SUTA (employer and employee) taxes. Since Russell's cumulative earnings have surpassed the taxable earnings figures established by FUTA and SUTA, there will not be any unemployment tax on the employer. The deduction for group insurance premiums is $14.70 Make a notation of Russell's death in the payroll register and on her PROTECT AUDIT TENT PAY POINTS Prepare a Wage and Tax Statement. Form W2, which will be given to the sector the state along with the fin Check earnings record. Prepare journal entries to transfer the net pay and to record Russell's final pay and the employee's payroll taxes. Post to the ledger accounts Include the final gross pay (52,394.00) in Boxes 3 and 5, but not in Boxes 1, 16, and 18. Use the blank Form W-2 on page 7-59. In addition, the last wage payment and vacation pay must be reported on Form 1099-MISC. A Form 1096 must also be completed. These forms will be completed in February before their due date. (See Transaction Nos. 41 and 42 on page 7-66.) December 15 No. 25 Electronically deposit the amount of FICA taxes and federal income taxes for the November payrolls and complete the Federal Deposit Infor: mation Worksheet. No. 26 Deposit with the city of Philadelphia the amount of city income taxes withheld from the November payroll December 18 No, 27 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the December 4 payroll and complete the information worksheet. Puppelle Ne Girine hath pay that the charger low the month of December the policy Rul Pere the entry for the check made payable to the View them that was withheld hoef Ni pare doveteams record for Richard Lloyd who wa mpendaye ederk to take the place of vacan death Virgin A. Russt weekHis beginning salary is $2,600 month Address, 00 South Clark Street, Philadelphia, PA 191954247 Telephone, 555210, Social Security No. 000-00-1502. Zima married and can withholding allowance Zimnice pince prems will be made until the last payday la roup insurance coverage ot 547,000, although no deduction No. 30 Prepare the payroll for the latter pay of December from Time Clerk Report Nos. 48 49 and record the paychecks issued to all employees total withholding allowance to fout Previously, he had claimed te Effective with this puly, 'Neill completed a new Farm -. chann allowances than he had been on his tax return. Change hinta her December 14 pay Depanen Office We a 5600.00 Heily rate 515.00 Also, record the employer payroll taxe PROJECT AUDIT TEST d552053 PAY POINTS Remember to deduct the premiums on the group rance for each employee inges record accordingly. In this pay, the president of the company, Joseph O'Neill, is paid ho anomal bonus. This does not affect O'Neill insurance coverage, which is based on regular pay. This year, his bonus is 585.000. For withholdin to his gross pay, and the pregate amount is taxed. For this pay, O'Neill has increased his SIMPLE deduction to $4,000. To determine the federal income tax, use the Table of Allowance Values along with Tax Table A (pages T-2 to T4. In calculating the tax, do not found the aggregate to the nearest earning dollar. In this pay, O'Neill has reached the OASID ceiling. To calculate O'Neill's OASDI tax, multiply the OASDI ceiling of $132,900 by 6.2 percent and then subtract the year-to-date OASLI taxes withheld up to this pay. (Use O'Neill's Employee Earnings Record to view his year to date OASDI tax withheld). Note the posting them for the peoployees camins rundt med Time Lost Time Clerk's Report No. 48 For the Week Ending December 5, 20... Time Record Time Employee S MT WT F S Worked Bonno, AV. 5 8 8 8 8 8 44 hrs. Ford, CL 8 8 8 8 8 40 hrs. Randl, V. 8 8 8 8 40 hrs. Ryan, NA 8 9 9 9 9 44 hrs. Sudent 8 8 7 8 4 Woods, B.A. 35 hrs. 8 8 8 8 8 Young PW 40 hrs. 8 8 8 8 40 hrs. Time became an elect 1 hour pay 1 ht" given to illustrate different types of transactions arising in connection with the 7.19 for the Welding water 12.20 Clarks Report the 49 Employee Time ced 5 MTWT Bonno, AV Fond. C. Ruu. V A HD Ryan, NA 109 Woods, B. A Young. W 5 Time Time Low Sendent he 4 ch 3 h 40 h 40 Note: This completes the project inofar as reciding the payroll tions for the last quarter is concerned. The following additional transactions accounting for payrolls and payroll taxes. Record these transactions in the nal, but do not post to the lediger. End-of-Year Activities ON THE JOB 4 2 3 10 1 4 1111 5112310 January 6 No. 31 Deposit with the state of Pennsylvania the amount of state income taxe withheld from the December 18 payroll and complete the information worksheet. January 8 No. 32 Pay the treasurer of the union the amount of union dues withheld during the month of December January 15 No. 33 Electronically deposit the amount of FICA taxes and federal income taxes for the December payrolls, and complete the Federal Deposit Info mation Worksheet. No. 34 Deposit with the city of Philadelphia the amount of city income taxes withheld from the December payrolls February 1 No. 35 Prepare Form 941, Employer's Quarterly Federal Tax Return, with respect to wages paid during the last calendar quartet. Papes 7-54 and 7-55 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 LO 5 the company, Joseph T: O'Neill. 20 Payroll Racing No 36. Complete Form 9.20. Employer Federal memperyment (FUTAIT Ring the blank forms reproduced 56 and 7.57. Nu complete the Federal Deposit Information Worksheet, in the Ward Total was for the hunt three quarter was 5142,224 57. FUTA WASHINGTON UPDATE ON DECEMBER 22, 2017 RESIDENT TRUMPSONED DIETA CUTS AND CRACK OCIAL WONTOON EFFECT ON ACARY 2014 AND WILL REMAIN IN EFECT UNTES THE CARA MENDED THE 2010 TAXPATES TO 104122 Na HTCIA HAS CUMINATED THE PERSONAL EXEMPTION CAMED BY TOWERS FOR THEMSELVES THEIR SPOUSE AND DEPENDENTS TAXTABLES ISSUED BY THE FOR USEIN 2019 CURRENTLY STILL INCLUDE WITHHOLDING ALLOWANCES IN 2019 PENNSYLVANIA WAS NOT A CREDIT REDUCTION STATE PLEASE SEES WE CO TO PRESSON PAGE AND CURTON AS WE GO TO PRESS REGARDING CURRENT LEGOLATON form reproduced on page 7-49 able wages for the first three quarters was $65.490,00 FUTA tax liability by quarter: Ist quare-$204.53 2nd quarter-510525 Jed quarter--583.16 The first FUTA deposit is now due. c. Journaline the entry to moord the electronic deposit for the FUTA tay liability No. 37 Prepare Form UC-2. Employer Report for Unemployment Compen sation-Fourth Quarter, using the blank form reproduced on page 7-58 In Pennsylvania, a credit week is any calendar weck during the quarter in which the employee camed 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 pay roll registers, and the employees carnings records. Joumalize 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 employce, using the blank statements reproduced on pages 7-60 to 7-64 Use cach employee's 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. In addition to union dues withheld, include the Pennsylvania State Unemployment Tax (SUTA) withheld in Box 14. No. 39 Complete Form W-3, Transmittal of Wage and Tax Statements, using the blank form reproduced on page 7-65. 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 on page 7-65. 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: 534.088.75 51,046.52 Ind 545.535.62 $1,397.94 3 562.600.20 51.327.33 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 3. Page 7.66 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 on such am No. 42 Complete Form 1096, Anal Summary and Transmittal of U.S. Infor No. 43 Pennsylvania's Quarterly Reconciliation of Income Tax Withheld is filed electronically. The information worksheet to be completed son page 7-52. The telephone number of the company is (215) 555.9559. No. 44 Prepare the Annual Reconciliation of Employer Wage Tax for Philadel phia, using the blank form on page 7-53. For lines 1, 3, and 4, BOSS sell ($2,394.00) on December 14. This amount should agree with Form mation Returns, using the blank form on page 7-66. Use the information Payroll Accounting 2020 CHAPTER on Form 1099-MISC to complete this form. W-3 Box 18, local wages.) Tax paid during the first three quarters was $5,519.60. For reporting purposes, there were 10 Philadelphia residents for whom wage tax was remitted for the pay period ending March 12,20- the accrued salaries and wastes until the workers are actually paid. There Payroll Accounting 2016 7.33 RECORDING END-OF PERIOD PAYROLL ADJUSTMENTS 1. On the financial state prepared at the end of its first year of operation the company show an accurate picture of all expenses and all as cum The Last day of the year w December 18. However, the and 26 and the four day December the web to the employees that day did not include the weekendine vided for use in journaling the win the bottom of this in will be reflected in the langa o Two mapa Prepare the adjusting entry of Decembetto and the and Wates that have accrued but in of the end of that When calculating the amount of the ornal for each hub worke, each employee worked eight hours on each day during the period with Each of the labor cost account should be debited for the approp LO 6 Mukesho for the them only 10 days period December 28 through December 3 For each salaried worker overtime student works a 36 hour week dient worked 3 houn bor accrual will amount to loof the workers biweekly curnings, tacept the amount of the accrual, and Salaries and Wages Payable should be cele the company follows the practice of nor accruing payroll taxes. 2. Also, prepare the adjusting entry of December 31 to record the accrunt vacation pay as of the end of the year. Record the expeme in vacation benefits expense account, and credit the appropriateliability account, Use the journal paper provided below As of December 31, the vacation time earned but not used by tach employee is listed here. 80 hours Ferguson three weeks Ford... Two weeks Mann one week O'Neill four weeks Ryan... 80 hours Sokowski two weeks Student 72 hours Woods. Bonn Young Zimmerman TODE none none JOURNAL DATE Page DESCRIPTION POST CREDIT 7-6 CHAPTER 7. Paytoll Project Payroll Accounting PROJECT AUDIT TEST At the start of each pay period remove the Project Audit Test beginning on page 7-67. Answer the questions as you complete each pay period. Union Dues Both workers in the plant (Bonno and Ryan) are union members. Undet si check-off system, S8 is deducted each payday from the plant workers' caming for union dues, assessments, and initiation fees. A notation to this effect base made on each plant worker's earnings record. On or before the tenth of cus month, the amounts withheld during the preceding month are turned over tu treasurer of the union. Distribution of Labor Costs Figure 7.5 shows how the salaries and wages are to be charged to the labor ce accounts. Start of Payroll Project PROJECT AUDIT TEST Net Paid $12,315.64 October 9, 20- No. 1 The first payroll in October covered the two workweeks that ended September 26 and October 3. This payroll transaction has been more for you in the payroll register, the employees' earnings records, the eral journal, and the general ledger. By reviewing the calculations de wages and deductions in the payroll register and the posting of the unde mation to the employees' earnings records, you can see the procedure be followed each payday. Wages and salaries are paid by issuing special payroll checks. When the bank ce which they are drawn receives such checks, they will be charged against the per roll cash account Observe the following rules in computing earnings each pay period 1. Do not make any deduction from an employee's camins if the employee minutes is rounded to the nearest quarter hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a tion to that effect on the Time Clerk Report FIGURE 7.5 Glo-Brite Labor Cost Accounts Personal Loronto Be Charged Tie Clark Or Salati Lain Saw Sewa 2. In completing the time record colis of the payroll register for all work ers, you should place an in the day column for each full day worked 3. In the case of an employee who begins work during a pay period, compute Payroll Accounting 2020 CHAPTER (refer to page PR. 2 at the end of the book it an employee works less than a full day, show the actual bours for which the employee will be paid. the earnings by paying the employees their weekly rate for any full week worked. For any partial week, compute the arsip for that week by week- tiplying the hours worked by the hourly rate of pay. 4. If time lost is to be deducted from a salaried employee's pay, the employ ee's pay must be determined by multiplying the actual hours worked for that weck by the hourly rate. If hours are missed but no pay is deducted include those hours in the Time Record columns on the payrollregister The following schedule shows the weekly and hourly wage rates of the salaried employees $28.13 Employee Ferguson, lames Ford, Catherine Mann Dewey W. O'Neill, Joseph Russell Virginia Sokowski, Thomas was, Ruth "O'Neil is paid on a biweekly basis Weekly Rate 51,125.00 610.00 $35.00 2007 600.00 1.025.00 61154 16.83 2885 15.00 25.59 5. Plant workers (Borno and Ryan), other than supervisors, are employed on an hourly basis. Compute the wages by multiplying the number of hours worked during the pay period by the employee's hourly rate. 6. The information needed and the sequence of steps that are completed for the payroll are presented in the following discussion. Time Clerk's Report No. 38 For the Week Ending September 26, 20- 88 Time Record Time Time Employee S M T W T F S Worlied Last Bonno. A V... 8 8 8 8 8 40 hrs. Ford, C. L. 8 8 8 40 hrs. Russell, V.A. 8 88 88 40 bis 8 8 8 Ryan, N. A 8 8 40 h Student 8 8 8 8 4 36 hes D 8 8 8 8 Williams, R. V... 32 hrs 8 hrs. Time lost because of personal businews charged to personal use to deduction for the time to D-los full day Payroll Accounting Time C's Report 3 For the Week Ending October 3.20 Time Record 1 Time S M F Employee Honno, AV Fond. CL Rosell, VA Ryan, N. A. Seuden * # #1 40 h sh 40 h Wh 40 h 8 M The time clerk prepared Time Clerks Report No. 38 and 39 from the time cards used by the employees for these workweek. In as much as the president, elle manager sales representatives, and supervisors do not ring in and out on the time dock, their records are not included in the time cerks report, but their aries must be included in the payroll. The following schedule shows the hourly wage rates of the three hourly employees used in preparing the payroll register for the payday on October 9, Employee Hourly Rate 517.60 18.00 14.00 PAY POINTS Tax calculations are to be taken to three decimal places and then founded to two places Bon, Anthony Normani Shades The entry required for each employee is recorded in the payroll register. The names of all employees are listed in alphabetical order, including yours as "Stu. dent." The fold-out payroll register forms needed to complete this project are bound at the back of the book (pages PR-2, PR-3, and PR-4). No deduction has been made for the time lost by Williams. Thus, the total num ber of hours (80) for which payment was made is recorded in the Regular Earn ings Hours column of the payroll register. However, a notation of the time lost (D) was made in the Time Record column. When posting to Williams's earnings record, 80 hours is recorded in the Regular Earnings Hours column (no deduc- tion for the time lost) In computing the federal income taxes to be withheld, the wage bracket tables in Tax Table at the back of the book were used (pages T-5 to T-14). Fach payday, 58 was deducted from the earnings of the two plant workers for union des Bevo and Ryan Payroll cheelerombers were assigned beginning with check no. 672. In the LS Cos Distribution columns at the extreme right of the payroll re ister. chemployee's gross earnings were recorded in the column that identifie the depths in which the eraployee regularly works. The totals of the Labo Cost Distribution columns provide the amounts to be charged to the appropriat salary and wage expense accounts and aid department managers and supervisor in comparing the actual labor costs with the budgeted amounts. PAY POINTS Use tax tables for biweekly payroll period Once the net pay of each employee was computed, all the amount columns in payroll register were footed, proved, and ruled. An entry was made in the journal (page 7-24) transferring from the regu cash account to the payroll cash account the amount of the check issued to P roll to cover the net amount of the payroll; next, the entry was postal Information from the payroll es was posted to the employees' earning Note that when posting the deductions for each employee column has been provided in the earnings record for recording each deduction for FICA QASDE and HI, FIT.SIT, SUTA, and CIT. All other deductions for each employee are 10 he totaled and recorded as one amount in the Other Deductes com Subd iary ledgers are maintained for Group Insurance Premium Collected and Um Payroll Accounting 2020 7-9 records (see pages 7-42 to 746). CHAMLET subsidiary ledgers Dues Withheld. Thus, any question about the amounts withheld from an emplor In this project, your work will not involve any recording in or reference to that The proper journal entry recorded salaries, wages, taxes, and the met aan of cash paid from the totals of the payroll register. The jesurnal entry to record chur payroll for the first pay in the fourth quarter appears below and in the general journal (page 7-24) 2.10.09 1861 1.000 Administrative Salaries Office Sales Sales Salines antages RICA Tees Payable BASIN FKA Twes Payable Employees FIT Payable Employees SIT Payable Employees SUTA Payable Employees CIT Payable Union Dues Payable 2.4.14 159.00 41495 5.35 M 14.00 12.315 Payroll Cash The amounts charged the salary and wage expense accounts were obtained from the totals of the Labor Cost Distribution columns in the payroll register. The sal aries and wages were charged as follows: Administrative Salaries Joseph T O'Neill (Tresident) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Carlo Student (Accounting Trainee) Ruth Williams (Programmer) Sales Salaries James C. Ferguson (Sales Manager) Dewey Wa Mann (Sales Representative Plant Wages Anthony V Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas J. Sokowski (Supervisor) Payroll Accounting and 7.10 FICAT Para OAS and FICA Takes Payable HI were credited 595513 and 24.14, respect the amount deducted from employees Employees FIT Payable, Employees SIT Payable, Employees SUTA Payable, Employees CIT Payable, and Union Des Payable were credited for the to amount withheld for each kind of deduction from employees wage. In que Mayroll transactions, Group Insurance Premium Collected will be creded for the amounts withheld from comployees was for this type of deduction. Finally, Pay The payroll taxes for the pay were then recorded in the wall roll Cash was credited for the sum of the net amounts pantall employees 7-24) is follows: LRT 417 16 RICA Payable FKA Tuttes SUTA Poble Employee Payroll Taxes was debited for the sum of the employer FICA, FUTA, and SUTA takes. The taxable carming ed in computing each of these payroll taxes wer! obtained from the appropriate column totals of the payroll register. Note tu only part of Ford's wages are taxable (S700 out of 51.220 gross pay for FUTA (57.000 limit). The computation of the debit to Payroll Taxes was 62315.45671 55834 FRA OASE RICAN 1515.456.77 1112 FUTA 53.418.00 22.91 SUTA: 1620 of 4.272.00 16.25 Total Prades 513111 FICA Taxes PayableOASDI was credited for $958.32, the amount of the li bility for the employer's portion of the tax. FICA Taxes Payable-HI was cred ited for S224.12, the amount of the liability for the employer's share of this tax. FUTA Taxes Payable was credited for the amount of the tax on the employer for federal unemployment purposes ($22.91), SUTA Taxes Payable-Employer was credited for $176.26, which is the amount of the contribution required of the employer under the state unemployment compensation law. The journal entries were posted to the proper ledger accounts (pages 7-33 to 7-40). October 15 This is the day on which the deposits of FICA and FIT taxes and the city of Phil adelphia income taxes for the September payrolls are due. However, in order to concentrate on the fourth-quarter payrolls, we will assume that the deposits for the third quarter and the appropriate entries were already completed. October 20 No.2 On this date, Glo-Brite Paint Company must deposit the Pennsylvania state income taxes withheld from the October 9 payroll. The deposit rule states that if the employer expects the aggregate amount withheld each quarter to be $1,000 or more, the employer must pay the withheld tax semimonthly The tax must be remitted within three banking days after the close of the semimonthly periods ending on the 15th and the last day of the month. Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper forms (replaced by telefile or online filing). The information needed to telefile is listed on 74.55 semimonthly period of October. The company Pensylvania employer page 7-50--complete the information worksheet needed for the first account number is 000-0-3300, EIN is 00-0000660, its filing pass Payroll Accounting 2020 7-11 word is GBPCOM, and its telephone number is (215) 555-9559 LO 1 PROJECT AUDIT TEST October 23 No.3 Prepare the payroll for the last pay period of October from Time Clerk Report Nos. 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register In as much as only a portion of the payroll register beet was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first blank ruled line Ending October 17, 20-- On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolis, continue to conserve space by recording two payrolls on each separate payroll register sheet. The workers in the plant (Borno and Ryam) are paid time and a half for any hours worked over eight each workday and for work on Saturday and are paid tice the regular hourly rate for work on Sundays or holidays With this pay period, the cumulative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's earnings record 10 see the amount of cumulative earnings. Net Paid 512.376.89 PAY POINTS en though they are not on the time den report emberto pay the presidentes manager pretatives and superoni Time Clerk's Report No. 40 For the Week Ending October 10, 20 LO2 Maintain covering Time Record Time Employee Time S M T W T FS Worked Lost Bonno, A. V. ... 8 8 8 8 8 1 44-es Ford, C.L 4 B 8 8 3 36 lins 4hrs Russell, VA 8 8 8 B 40 hrs 8 8 8 Ryan, N. A 5 8 40 hrs. Student 8 8 8 8 4 36 hrs 8 5 8 Williams, R. V. B 40 hrs "Time out on account of death of the charged panemal pole dan for time lose Time Clerk's Report No. 41 For the Week Ending October 17, 20 Time Worked Time Lou Employee S 5 Time Record WTF 8 8 8 8 8 8 88 8 5 8 8 8 8 8 88 8 8 8 4 8 8 8 88 Bonno, A. V. Ford, C.L. Russell, VA Ryan. NA Student Williams, RV 00 00 00 00 8 40 hrs. 40 hrs. 40 h. 48 hrs 36 hrs. 40 hrs. Payroll Accounting as LO 3 pod Make the entry transfer from cash to Payroll Cash the name Post the required information from the payroll register to each Record in the journal the salaries, Wix, taxes withheld, group ice premium collected union due withheld and net amount paid The entry required to record the October 21 payroll in the same as that to record the October pyroll, except it is necessary to record the hty for the amount withheld from the employees was to pay the part of the group insurance premium. The amount withheld should be Record in the joumal the employer's payroll taxes and the liabilities 7-12 of the total payroll, and post employee earning record. and post to the proper les per accounts. recorded as a credit to Group Insurance Premium Collected PAY POINTS The employees Penia Sur Unemployment SUAI.Calculated 0.000 on the total wages of each employee There's notable wage to the moyees portion of the PAY POINTS Be sure to dedu o premium for each $1,000 of group Insurance carried by each employee fast payday of each month created post to the appropriate ledger accounts. November 4 no curul entry V No 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet No.5 Virginia Russell complered a new Form W.4. changing the number of withholding allowances to 2. Change Russell earnings record ther mat ital status has not changed). No. 6 Thomas). Sokowiskt completed a new Form W-4, showing that his mar ital status changed to single and that the number of withholding allow. ances remains at 2. Change Sokowski's earnings record accordingly, No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PROJECT AUDIT TEST Net Paid 512,180.03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Lost Time Clerk's Report No. 42 for the Week Ending October 24, 20- Time Record Time Employee SMT F S Worked Bonno, AV 8 8 8 8 8 40 hrs. Ford, C.L... 8 8 8 8 8 40 hrs. Russel. A 8 8 8 8 6 38 hrs. Ryan, N.A. 8 8 8 8 8 40 hrs. Student 8 8 8 8 4 Williams, R. V. 8 8 8 7 8 39 hrs. Time to comunt of family function dela 2 bopy Time lod bome of this dedalhou pas. 2 h 36 hes. 1 ht Gay 7- Time Clock's Report No. 43 For the Week Ending October 31, 20- Employee S Time Wodud Time F S Los Bonno, A. V. Ford, C.L. Russell, V. A Ryan. N. A... Student... Williams, R. V. Time Record MT WT 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 40 h 0 hrs 40 hrs. 40 hrs 36 hes 40 hrs 8 PAY POINTS Make changes in November 6 py Refer to Not 5.6 and 7 No. 9 Prepare the payroll for the first pay period in November from Time Clerk Report Nos. 42 and 43 and record the paychecks issued to all employers. Record this payroll at the top of the second payroll register sheet. Note: Virginia Russell worked only 38 hours in the week ending Octo ber 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate). Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate). Also, record the employer's payroll taxes. November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours, and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is 856.24. PROJECT AUDIT TEN Net Paid 5 1.494.06 PAY POINTS Record a separate payroll register (on one line to show Williams's total earnings, deductions, and net pay. The two weeks dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay (52.079.32) of Williams. The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the carnings record, make a notation of wil. liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record wil. liams's final pay and the employer's payroll taxes. Post to the ledger Use the blank Form W-2 on page 7-89. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2. Prepare a Wage and Tax Statement. FormW 2 to be given to Williams Eccounts. Nel Elly deche amount of FICA taxes and federal in for the pros and complete the Federal Deposit Informa Worksheet (749). Since the company is subject to the chy sest rule, the depuis due on the 1st of the following month. See the utenplained on pabes 3-17 to 1-19. November 15 So therefore, the depuis to be made on the next business day. Ne 12 Since GloBite Paint Company withholds the city of Philadelphes in so dep the taxes with the Department of Reven The depour rule that affect Glo-Brite Paint Company states that the withheld taxes are between $150 and 516,000 per month, the company Pre the journal entry to record the deposit of the taxes, and posts November 16 the appropriate ledger accounts must deposir the tax monthly by the 15th of the following month. The Prepare the journal entry to record the deposit of the taxes, And Dont Complete the Philadelphia Employer Return of Tax Withheld Payroll Accounting 2013 7.14 LO 4 Comedy PAY POINTS withheld taxes for the October payroll were $1.212.21. o ano deport for to the appropriate ledger accounts. nga signatures Nene pon (Monthly Wake Tax), which appears on page 7-51. November 17 No. 13 Prepare an employee' earnings record for Beth Anne Woods, a employee who began work today, Tuesday Woods is single and claim one withholding allowance. She is employed as a programmer at a monthly salary of $2,600. Address, $102 Franklin Court, Philadelphia, PA 19305 0915. Telephone, 555-1128. Social Security No. 000.00-1587. She is el sible for group insurance coverage of $47.000 immediately, although het first deduction for group insurance will not be made until December 18 Department: Office Weekly rate: $600.00 Hourly rate: $15.00 November 18 No. 14 Deposit with the state of Pennsylvania the amount of state income taxa withheld from the November 6 and 13 (Ruth Williams) payrolls and complete the information worksheet. November 20 PROJECT AUDIT TEST Net Paid 59,425.15 No. 15 With this pay, the company has decided to offer employees a Savings Incentive Match Plan for Employees (SIMPLE Retirement Plan). Most of the employees opted to wait until the start of the following year to participate. However, the following employees have decided to take part in the plan for the remaining pay periods of the year. James Ferguson 5S contribution per pay period Dewey Mann: 5250 contribution pet pay period Joseph O'Neill 5700 contrbution per pay period Norman Ryan 5200 coibution per pay period The contributions are to be deducted from the participating employee pay and are excluded from the employee's income for federal income ta purposes. The other payroll taxes still apply. On the payroll registers 20 the earnings record, use the blank column under "Deductions for the contributions. Use the term "SIMPLE" as the new heading for this dedu tion column (on the payroll register and employee's earnings recon Use the account in the general ledger for SIMPLE Contributions Payroll Accounting 2020 7-15 Payable-account no. 29. The company must match these contributions dollar for dollar, up to 3 percent of the employee's compensation. These payments will be pro cessed through the Accounts Payable Department Prepare the payroll for the last pay period of November from To Clerk's Report Nos. 44 and 45, and record the paychecks issued to all employees. Also, record the employer's payroll taxes Time Clerk's Report No. 44 For the Week Ending November 7.20 PAY POINTS Flotter deduct the premims on the incercach employee Time Lost S Employee Time Record S M T WT F Bonno, AV 8 Ford, CL 8 8 8 8 Russell, V. A 8 8 8 8 8 6 8 Ryan, NA 8 8 8 8 8 Student 8 8 8 8 4 Williams, R. V... 6 8 7 7 6 "Time out for penal deduct2b The loot because of tandinho Time Worked 40 hrs 40 hrs 38 hrs 40 hrs 36 hrs 34 hes 2hrs. 6hn. Time Clerk's Report No. 45 For the Week Ending November 14, 20- Time Record Time Time Employee S M T WT F S Worked Lost Bonno, A. V 8 8 8 24 hrs Ford, C.L 8 8 8 8 8 40 hrs. Russell. V. A 8 8 8 8 8 40 hrs Ryan. N. A 8 8 8 8 8 40 hrs Student 8 8 8 8 4 36h D Williams, R. V. D 8 6 8 22 hr. 18 h Time ion because of cardines deduce 2 bours pay Uhermandades 16 hutumpen No. 16 Salary increases of $30 per week, effective for the he works covered in the December 4 payroll, are given to Catherine L. Ford and Virginia A. Russell. The group insurance coverage for Ford will be increased to $50,000; for Russell, it will be increased to $49.000 Update the employ. ces' earnings records accordingly. The new wage rates are listed below, PAY POINTS The new wage rates are effective for the December payroll Employee Ford, Catherine Russell Virginia Weekly Rate 40.00 630.00 Hourly Rate 516.00 15.95 Payroll Accounting 102, N19 Prepan playing record for Young the pre Idennephew, who work today. Young is single and can the city where the home otheis located. He beginning salary is $2,750 withholding aliwarce. He is training as a held sales representatives Post Add9 16 Holines Drive, Philadelphia, PA 19107-6109 Telephone, 58.20 Social Sony No. 000-00-6057. Young is calle No. 18 Deposit with the state of Pennsylvania the amount of state metas withheld from the November 20 payroll General Ledger balance in November 30 for group ince coverage of 549.000 Department Sale Weekly rates $6 30.00 Hourly rate: $15.75 December 3 Account No 25 and complete the information worksheet PROJECT AUDIT TEST Net Paid 51097092 December 4 No. 19 Prepare the payroll for the first biweekly pay period of December from Time Clerk Report No. 46 and 47. and record the paychecked to all employees. Record this payroll at the top of the third payroll register sheet. Note: Thursday, November 26. is a paid holiday for all workers. Also, record the employer's payroll taxes. Tine Worked Time Lon Time Clerk's Report No. 46 For the Week Ending November 21, 20 Time Record Employee M WT FS Bonno, AV 8 8 8 8 Ford, CL 8 B B 8 Russell, VA 8 8 8 8 Hyan, NA 8 3 48 Student 8 8 8 4 18 Woods, BA 8 8 8 B "Time obdelabah pay, 40 hrs 40 hrs 40 hrs. 36 hits 36 hrs 32 hrs. 4h Time Clerk's Report No. 47 For the Week Ending November 28, 20.- Time Record Time Employee 5 WT F S Worked Bonn, A. V 8 8 8 48 hrs Ford, C.L. 40 hts. Ranel VA... 8 8 8 40 h Ryan, N.A. 9 10 8 Student 43 hrs. 8 8 8 4 Woods B 36 h. 8 40 hrs Dowble Lost PAID HOLIDAY DOC No. 20 Antony V, Pom reports the thirts fan and completes an amended Form W 4. Showing is total withholding allowances to be five. Change his earnings record accordingly effective with the December 18 p. No. 21 Both Anthony Bonno and Norman Ryan have been notified that their union dues will increase to 59 pay, starting with the last pay period of the year. Reflect the increases in the December 18 pure and show the Payroll Accounting 2020 OP 7-17 changes on their camnings records PAY POINTS This way to wthholding, CI December 9