Multi Part Question -
Question Part 1:
Part 2:
Part 3:
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 four Forms W-2 reproduced below. On the second half of the problem (PR.04.13B.Part2) you will complete the other two W-2s and the W-3. The form is to be signed by the president, Frank Kent, and is prepared by Vince Roper. Company Information: Pennsylvania state identification number: 00-0-1066 Address: 4800 River Road Philadelphia, PA 19113-5548 Telephone number: (215) 555-0017 Fax number: (215) 555-0010 Federal identification number: 00-0000972 Philadelphia identification number: 0001895 Income Tax Information: The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage-bracket table and multiply the answer by 52. The other taxes withheld are shown below. Employee Data Payroll Data Annual Taxes Withheld See example of Randy A. Kellison's completed Form W-2 below. . Randy A. Kellison Single Social security tax withheld $2,305.16 54 Gradison Place $715 per week Medicare tax withheld 539.24 Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld 1,141.40 Deduction for 401(k) plan: $50/week Local income tax withheld 1,439.96 State unemployment tax withheld** 22.36 Vince T. Roper Married filing jointly Social Security tax withheld 3,175.64 56 Andrews Court, Apt. 7 $985 per week Medicare tax withheld 742.56 Philadelphia, PA 19103-3356 SS#: 000-00-8804 State income tax withheld 1,572.48 Dependent care payment: $950 Local income tax withheld 1,982.76 $70/week--401(k) State unemployment tax withheld** 30.68 Murray T. Rodson Single Social security tax withheld 2,466.36 770 Camac Street $765 per week Medicare tax withheld 576.68 Philadelphia, PA 19101-3770 SS#: 000-00-3316 State income tax withheld 1,221.48 Union dues withheld: $102 Local income tax withheld 1,539.72 State unemployment tax withheld** 23.92 Frank A. Kent Married filing jointly 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 3,774,68 exceeding $50,000: $262.75 State unemployment tax withheld** 58.76 $100/week-401(k) Carlie C. Christian Married filing jointly 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 1,570.40 State unemployment tax withheld** 24.44 Zana W. Amelia Single 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 1,590.16 Cob-required): $675 State unemployment tax withheld** 24.44 $50/week--401(k) *The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. 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.B). "State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14. If an amount box does not require an entry, leave it blank. As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICA rates have been used. Click here to access the Wage-Bracket Method Tables Hint: Group-term life insurance premiums are includable in Boxes 1, 3 and 5. a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 4310 | Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 $34,580.00* $2,444.00 4 Social security tax withheld 3 Social security wages c Employer's name, address, and ZIP code $37,180.00 5 Medicare wages and tips $2,305.16 6 Medicare tax withheld $37,180.00 Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 $539.24 8 Allocated tips 7 Social security tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name Sull. 11 Nonqualified plans 12a See instructions for box 12 Randy A. Kellison 13 Retirement plan Code D $2,600.00 12b Code 54 Gradison Place 14 Other 12c -24 Code Philadelphia, PA 19113-4054 PA SUI 22.36 12d f Employee's address and ZIP code Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 $37,180.00 $1,141.40 $37,180.00 $1,439.96 Phila. Form W-2 Wage and Tax Statement 20- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 101340 *[Weekly salary $715.00 - 401(k) contribution $50.00] x 52 weeks **Federal income tax withheld $47.00 x 52 weeks a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 5804 Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 3 Social security wages 4 Social Security tax withheld c Employer's name, address, and ZIP code 5 Medicare wages and tips 6 Medicare tax withheld Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initialast name Sufr. 11 Nonqualified plans 12a See instructions for box 12 Vince T. Roper Code 13 12b 56 Andrews Court, Apt. 7 14 Other Code 12c Philadelphia, PA 19103-3356 Code f Employee's address and ZIP code 12d Code 15 State Employer's state ID number 16 State Wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 Phila. Form W-2 Wage and Tax Statement 20-- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 3316 a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 3316 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 3 Social security wages 4 Social security tax withheld c Employer's name, address, and ZIP code 5 Medicare wages and tips 6 Medicare tax withheld Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 7 Social security tips 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and initialast name Sult. 11 Nonqualified plans 12a See instructions for box 12 Murray T. Rodson Code 13 12b 770 Camac Street 14 Other Code 12c Philadelphia, PA 19101-3770 Code 12d f Employee's address and ZIP code Code 15 State Employer's state ID number 16 State Wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 Phila. Form W-2 Wage and Tax Statement 20- Copy A For Social Security Administration - Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Intemal Revenue Service a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 15839 a Employee's social Security number For Official Use Only 22222 Void 000-00- OMB No. 1545-0008 5839 b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 00-0000972 3 Social security wages 4 Social Security tax withheld c Employer's name, address, and ZIP code 5 Medicare wages and tips 6 Medicare tax withheld Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 7 Social security tips Allocated tips d Control number 10 Dependent care benefits e Employee's first name and initial Last name Sufl. 11 Nonqualified plans 12a See instructions for box 12 Frank A. Kent Code 13 12b Code 14 Other 338 North Side Avenue Philadelphia, PA 19130-6638 12c Code f Employee's address and ZIP code 12d Code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name PA 00-0-1066 Phila. 20-- Form W-2 Wage and Tax Statement Copy A For Social Security Administration Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Department of the Treasury-Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 10134D Source: Internal Revenue Service
