I need help understanding how to use the percentage method and the wage bracket method on assignment 4-3A

Assignment: Practice Chapter 4 (Not Graded) 1. eBook Problem 4-1A (Algorithmic) Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed otherwise, click here to calculate hourly rate and overtime rates. Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $158.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($499.00), and the employer withholds the appropriate taxes for the tips from this first pay in March. Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, married, 2 allowances), social security taxes, and state income tax (2%). Round your answers to the nearest cent and use the rounded answers in subsequent computations. Click here to access the Wage-Bracket Method Tables. Gross pay $ _________________ Federal income tax _________________ Social security taxes - OASDI _________________ Social security taxes - HI _________________ _________________ Net pay sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m State income tax $ 2. eBook _________________ Problem 4-2A (Algorithmic) Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed otherwise, click here to calculate hourly rate and overtime rates. Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee. Round your calculations and final answers to the nearest cent. If an amount is zero, enter "0". Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. No. of Employee Employee Marital Withholding Gross Wage Amount to Be No. Name Status Allowances or Salary Withheld 1 Amoroso, A. M 4 $1,530 weekly $ _________________ 2 Finley, R. S 0 1,165 biweekly 3 4 Th _________________ Gluck, E. Quinn, S. S M 5 8,980 quarterly _________________ 8 1,015 semimonthly _________________ 5 Treave, Y. M 3 2,120 monthly _________________ 3. eBook Problem 4-3A (Algorithmic) Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. https://www.coursehero.com/file/12068265/Practice-chapter-4/ Unless instructed otherwise, click here to calculate hourly rate and overtime rates. Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. Click here to access the Wage-Bracket Method Tables. Amount to Be Withheld No.of Marital Withholding Employee Status S Gross Wage 2 Corn, A. Percentage Wage-Bracket or Salary Allowances Method Method $ 663 weekly $ $ _________________ _________________ S 1 1,952 weekly _________________ Felps, S. M 6 1,789 biweekly _________________ _________________ Carson, W. M 4 2,464 semimonthly _________________ _________________ Helm, M. M 9 4. eBook Problem 4-5A NA sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m Fogge, P. 5,401 monthly _________________ _________________ Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed otherwise, click here to calculate hourly rate and overtime rates. The names of the employees of Hogan Thrift Shop are listed on the following payroll register. Employees are paid weekly. The marital status and the number of allowances claimed are shown on the payroll register, along with each employee's weekly salary, which has remained the same all year. Complete the payroll register for the payroll period ending December 18, the 51st weekly payday. The state income tax rate is 2% of total earnings, the city income tax rate is 1.5% of the total gross earnings, and the wage-bracket method is used for federal income taxes. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Use rounded answers in subsequent computations. Click here to access the Table of Allowance Values. Click here to access the Wage-Bracket Method Tables. Click here to access the Percentage Method Tables for earnings beyond wage-bracket range. Hogan Thrift Shop Th Payroll Register Deductions Marital No. of W/H Employee Total Status Allowances Earnings Name John, Matthew M 3 (a) FICA OASDI $2,300.00 (b) $ $ (c) (d) (e) FIT HI SIT CIT Net Pay $ $ $ $ _________________ _________________ _________________ _________________ _________________ _________________ Smith, Jennifer S 1 275.00 _________________ _________________ _________________ _________________ _________________ _________________ Bullen, Catherine M 0 250.00 _________________ _________________ _________________ _________________ _________________ _________________ Matthews, Mary S 3 320.25 _________________ _________________ _________________ _________________ _________________ _________________ https://www.coursehero.com/file/12068265/Practice-chapter-4/ Hadt, Bonnie S 1 450.00 _________________ _________________ _________________ _________________ _________________ _________________ Camp, Sean S 2 560.50 _________________ _________________ _________________ _________________ _________________ _________________ Wilson, Helen S 1 475.50 _________________ _________________ _________________ _________________ _________________ _________________ Gleason, Josie M 3 890.00 _________________ _________________ _________________ _________________ _________________ _________________ Totals $5,521.25 $ $ $ $ $ $ _________________ _________________ _________________ _________________ _________________ _________________ Compute the employer's FICA taxes for the pay period ending December 18. OASDI Taxes HI Taxes OASDI taxable $ _________________ earnings HI taxable $ _________________ $ _________________ earnings $ 5. eBook _________________ HI taxes sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m OASDI taxes Problem 4-12A (Algorithmic) Note: For this edition, the 2014 federal income tax tables, FICA rates, OASDI rate of 6.2% on wages up to $117,000 and the employee and employer HI rate of 1.45% on all wages was used. Unless instructed otherwise, click here to calculate hourly rate and overtime rates. During the fourth quarter of 2014, there were seven biweekly paydays on Friday (October 3, 17, 31; November 14, 28; December 12, 26) for Quality Repairs. Using the forms supplied below, complete the following forms for the fourth quarter. If an amount or input box does not require an entry, leave it blank or enter "0". If required, round your calculations and final answers to the nearest cent. Quarterly Payroll Data Total Earnings 5 Employees OASDI $18,675.00 $1,157.85 Employer's OASDI Employer's HI HI FIT SIT $270.79 $1,867.50 $1,307.25 $1,157.85 270.79 674.97 Th Federal deposit liability each pay https://www.coursehero.com/file/12068265/Practice-chapter-4/ a. Complete the Federal Deposit Information Worksheets reflecting electronic deposits (monthly depositor). The employer's phone number is (501) 555-7331. Federal deposit liability each pay, $674.97. FEDERAL DEPOSIT INFORMATION WORKSHEET Employer Identification Number 00-0004701 Name Month Tax Year Ends 12 Amount of Deposit Type of Tax (Form) _________________ Address _________________ Tax Period 10 SUMMIT SQUARE City, State, ZIP QUALITY REPAIRS _________________ CITY, STATE 00000-0000 To be deposited on or before _________________ Phone Number (501) 555-7331 . FEDERAL DEPOSIT INFORMATION WORKSHEET Employer Identification Number 00-0004701 Name Month Tax Year Ends 12 Amount of Deposit _________________ Tax Period _________________ Type of Tax (Form) _________________ 10 SUMMIT SQUARE City, State, ZIP CITY, STATE 00000-0000 To be deposited on or before Phone Number (501) 555-7331 sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m Address QUALITY REPAIRS _________________ . FEDERAL DEPOSIT INFORMATION WORKSHEET Employer Identification Number 00-0004701 Type of Tax (Form) Name 12 Month Tax Year Ends Amount of Deposit _________________ Tax Period _________________ _________________ Address 10 SUMMIT SQUARE City, State, ZIP QUALITY REPAIRS Phone Number (501) 555-7331 CITY, STATE 00000-0000 To be deposited on or before _________________ . b. Employer's Quarterly Federal Tax Return, Form 941. The form is signed by you as president. 941 for 20--: Form (Rev. January 2014) Employer's QUARTERLY Federal Tax Return OMB No. 1545-0029 Department of the Treasury Internal Revenue Service Employer identification number (EIN) 0 0 - 0 0 0 4 7 0 1 Report for this Quarter of 20-(Select one.) Name (not your trade name) _________________ Instructions and prior year forms are Trade name (if any) QUALITY REPAIRS available at www.irs.gov/form941. 10 SUMMIT SQUARE Th Address Number CITY City Street Foreign country name Suite or room number ST 00000-0000 State ZIP code Foreign province/county Foreign postal code Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: 1 Answer these questions for this quarter. Number of employees who received wages, tips, or other compensation for the pay period including: 1 _________________ _________________ Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 2 Wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Federal income tax withheld from wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Column 1 https://www.coursehero.com/file/12068265/Practice-chapter-4/ Column 2 _________________ Check and go to line 6. 5a Taxable social security wages . . . . . _________________ x .124 = _________________ 5b Taxable social security tips . . . . . . . . _________________ x .124 = _________________ 5c Taxable Medicare wages & tips . . . . . _________________ x .029 = _________________ 5d Taxable wages & tips subject to _________________ x .009 = _________________ Additional Medicare Tax withholding 5e Add Column 2 from lines 5a, 5b, 5c, and 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5e _________________ 5f Section 3121(q) Notice and DemandTax due on unreported tips (see instructions) . . . . . . . . . . . . . . . 5f _________________ 6 Total taxes before adjustments. Add lines 3, 5e, and 5f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________ 7 Current quarter's adjustment for fractions of cents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _________________ 8 Current quarter's adjustment for sick pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 _________________ 9 Current quarter's adjustments for tips and group-term life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 _________________ 10 Total taxes after adjustments. Combine lines 6 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 _________________ 11 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments 11 _________________ 12 Balance due. If line 10 is more than line 11, enter the difference and see instructions . . . . . . . . . . . . . . . . . . . . 12 _________________ applied from Form 941-X, 941-X (PR), 944-X, 944-X (PR), or 944-X (SP) filed in the current quarter . . 13 Overpayment. If line 11 is more than line 10, enter the difference _________________ Check one: Apply to next return. Send a refund. You MUST complete both pages of Form 941 and SIGN it. Name (not your trade name) Cat. No. 17001Z Employer identification number (EIN) QUALITY REPAIRS Part 2: Form 941 (Rev. 1-2014) sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. 00-0004701 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 Pub. 15 (Circular E), section 11. 14 Check one: _________________ a. Line 10 on this return is less than $2,500 or line 10 on the return for the prior quarter was less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter. If line 10 for the prior quarter was less than $2,500 but line 10 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you are a monthly schedule depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3. b. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability: Month 1 _________________ Month 2 _________________ Month 3 _________________ Total liability for quarter c. _________________ Total must equal line 10. 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: 15 Tell us about your business. If a question does NOT apply to your business, leave it blank. If your business has closed or you stopped paying wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check here, Th and enter the final date you paid wages / / . 16 If you are a seasonal employer and you do not 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 for details. No Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS. 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 name here https://www.coursehero.com/file/12068265/Practice-chapter-4/ _________________ Print your _________________ title here Date 2/2/16 Best daytime phone Paid Preparer Use Only 501-555-7331 Check if you are self-employed . . . . Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self- EIN / / employed) Address Phone City ZIP code State Page 2 Form 941 (Rev. 1-2014) Source: Internal Revenue Service c. Employer's Report of State Income Tax Withheld for the quarter, due on or before February 2, 2016. sh is ar stu ed d vi y re aC s ou ou rc rs e eH w er as o. co m EMPLOYER'S REPORT OF STATE INCOME TAX WITHHELD IMPORTANT, PLEASE REFER NUMBER MONTH OF OR QUARTER ENDING 00-0-3301 TO THIS NUMBER IN ANY CORRESPONDENCE (DO NOT WRITE IN THIS SPACE) WITHHOLDING IDENTIFICATION DEC. 20-- 1. GROSS PAYROLL THIS $ _________________ PERIOD 2. STATE INCOME IF YOU ARE A SEASONAL EMPLOYER AND THIS IS YOUR FINAL REPORT FOR THIS SEASON, CHECK HERE AND SHOW THE NEXT MONTH IN WHICH YOU WILL PAY WAGES TAX WITHHELD $ _________________ QUALITY REPAIRS 10 SUMMIT SQUARE 3. ADJUSTMENT CITY, STATE 00000-0000 FOR PREVIOUS $ _________________ PERIOD(S). (ATTACH STATEMENT) 4. TOTAL ADJUSTED TAX $ _________________ (LINE 2 PLUS OR MINUS LINE 3) Th 5. PENALTY (35% IF NAME OR ADDRESS IS INCORRECT, PLEASE MAKE CORRECTIONS. OF LINE 4) THIS REPORT MUST BE RETURNED EVEN IF NO AMOUNT HAS BEEN WITHHELD 6. INTEREST $ _________________ $ _________________ 7. TOTAL AMOUNT Under penalties prescribed by law, I hereby affirm that to the best of my knowledge and belief this return, including any accompanying schedules and statements, is true and complete. If prepared by a person other than taxpayer, his affirmation is based on all information of which he has any knowledge. DUE AND $ _________________ PAYABLE MAIL THIS REPORT WITH CHECK OR MONEY SIGNATURE: STUDENT TITLE: President https://www.coursehero.com/file/12068265/Practice-chapter-4/ Powered by TCPDF (www.tcpdf.org) DATE: 2/2/16 ORDER PAYABLE TO THE DEPT. OF REVENUE ON OR BEFORE DUE DATE TO AVOID PENALTY