I need help on how this info would be calculated and then filled out on a W2 and W3 form.
4-13B.
LO 3, 4 See Figure 4.8 on page 4-23, Figure 4.11 on page 4-28
During the first full week of 20--, the Payroll Department of Omni Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 10. In this problem, you will complete six of the forms in order to gain some experience in recording the different kinds of information required.
Assume each employee earned the same weekly salary for each of the 52 paydays in 20--, the previous year. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of the six Forms W-2 reproduced on the following pages. Also complete Form W-3. The form is to be signed by the president, Frank Kent, and is prepared by Vince Roper.
Company Information:
| Address: | 4800 River Road | | |
| | Philadelphia, PA 19113-5548 | Pennsylvania state identification number: | 00-0-1066 |
| Telephone number: (215) 555-0017 | Federal identification number: | 00-0000972 |
| Fax number: (215) 555-0010 | Philadelphia identification number: | 0001895 |
Employee Data Payroll Data Annual Taxes Withheld See example of Randy A. Kellison's completed Form W-2 on next page. Randy A. Kellison Single, 2 allowances Social security tax withheld 54 Gradison Place $715 per week Medicare tax withheld Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld Deduction for 401(k) plan: Local income tax withheld $50/week State unemployment tax withheld*** Vince T. Roper Married, 3 allowances Social security tax withheld 56 Andrews Court, Apt. 7 $985 per week Medicare tax withheld Philadelphia, PA 19103-3356 SS#: 000-00-8804 State income tax withheld Dependent care payment: $950 Local income tax withheld $70/week--401(k) State unemployment tax withheld*** Murray T. Rodson Single, 0 allowances Social security tax withheld 770 Camac Street $765 per week Medicare tax withheld Philadelphia, PA 19101-3770 SS#: 000-00-3316 State income tax withheld Union dues withheld: $102 Local income tax withheld State unemployment tax withheld*** 2,305.16 539.24 1,141.40 1,443.00 22.36 3,175.64 742.56 1,572.48 1,987.96 30.68 2,466.36 576.68 1,221.48 1,543.88 23.92 Frank A. Kent Married, 6 allowances Social security tax withheld 6,061.29 338 North Side Avenue $1,875 per week Medicare tax withheld 1,417.69 Philadelphia, PA 19130-6638 SS#: 000-00-6839 State income tax withheld 2,993.12 Cost of group-term life insurance Local income tax withheld 3,784.04 exceeding $50,000: $262.75** State unemployment tax withheld*** 58.76 $100/week-401(k) Carlic C. Christian Married, 5 allowances Social security tax withheld 2,514.72 4900 Gladwynne Terrace $780 per week Medicare tax withheld 588.12 Philadelphia, PA 19127-0049 SS#: 000-00-5771 State income tax withheld 1,245.40 Union dues withheld: $102 Local income tax withheld 1,574.04 State unemployment tax withheld** 24.44 Zana W. Amelia Single, 1 allowance Social security tax withheld 2,546.96 480-A Hopkinson Tower $790 per week Medicare tax withheld 595.92 Philadelphia, PA 19101-3301 SS#: 000-00-8703 State income tax withheld 1,261.00 Educational assistance payments Local income tax withheld 1,594.32 (job-required): 5675 State unemployment tax withheld 24.44 $50/week-401(k) *Must use percentage method to calculate federal income tax. **The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medi- care. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (see Figure 4.8). *** State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14. Employee Data Payroll Data Annual Taxes Withheld See example of Randy A. Kellison's completed Form W-2 on next page. Randy A. Kellison Single, 2 allowances Social security tax withheld 54 Gradison Place $715 per week Medicare tax withheld Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld Deduction for 401(k) plan: Local income tax withheld $50/week State unemployment tax withheld*** Vince T. Roper Married, 3 allowances Social security tax withheld 56 Andrews Court, Apt. 7 $985 per week Medicare tax withheld Philadelphia, PA 19103-3356 SS#: 000-00-8804 State income tax withheld Dependent care payment: $950 Local income tax withheld $70/week--401(k) State unemployment tax withheld*** Murray T. Rodson Single, 0 allowances Social security tax withheld 770 Camac Street $765 per week Medicare tax withheld Philadelphia, PA 19101-3770 SS#: 000-00-3316 State income tax withheld Union dues withheld: $102 Local income tax withheld State unemployment tax withheld*** 2,305.16 539.24 1,141.40 1,443.00 22.36 3,175.64 742.56 1,572.48 1,987.96 30.68 2,466.36 576.68 1,221.48 1,543.88 23.92 Frank A. Kent Married, 6 allowances Social security tax withheld 6,061.29 338 North Side Avenue $1,875 per week Medicare tax withheld 1,417.69 Philadelphia, PA 19130-6638 SS#: 000-00-6839 State income tax withheld 2,993.12 Cost of group-term life insurance Local income tax withheld 3,784.04 exceeding $50,000: $262.75** State unemployment tax withheld*** 58.76 $100/week-401(k) Carlic C. Christian Married, 5 allowances Social security tax withheld 2,514.72 4900 Gladwynne Terrace $780 per week Medicare tax withheld 588.12 Philadelphia, PA 19127-0049 SS#: 000-00-5771 State income tax withheld 1,245.40 Union dues withheld: $102 Local income tax withheld 1,574.04 State unemployment tax withheld** 24.44 Zana W. Amelia Single, 1 allowance Social security tax withheld 2,546.96 480-A Hopkinson Tower $790 per week Medicare tax withheld 595.92 Philadelphia, PA 19101-3301 SS#: 000-00-8703 State income tax withheld 1,261.00 Educational assistance payments Local income tax withheld 1,594.32 (job-required): 5675 State unemployment tax withheld 24.44 $50/week-401(k) *Must use percentage method to calculate federal income tax. **The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medi- care. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (see Figure 4.8). *** State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14
