Question
Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise , calculate hourly rates and overtime rates as follows: 1.
Note:In this chapter and in all succeeding work throughout the course,unless instructed otherwise, calculate hourly rates and overtime rates as follows:
| 1. | Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate). |
| 2. | If the third decimal place is 5 or more, round to the next higher cent. |
| 3. | If the third decimal place is less than 5, simply drop the third decimal place. |
| Examples: | Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81 |
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
During the first full week of 2017, the Payroll Department of Omni Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 6. 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 2016. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of the six Forms W-2 reproduced below. 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 |
| 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 | |
| Randy A. Kellison 54 Gradison Place Philadelphia, PA 19113-4054 | Single, 2 allowances $715 per week SS#: 000-00-4310 Deduction for 401 (k) plan: $50/week | 2,305.16 539.24 1,141.40 1,457.56 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
| Vince T. Roper 56 Andrews Court, Apt. 7 Philadelphia, PA 19103-3356 | Married, 3 allowances $985 per week SS#: 000-00-8804 Dependent care payment: $950 $70/week401(k) | 3,175.64 742.56 1,572.48 2,007.72 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
| Murray T. Rodson 770 Camac Street Philadelphia, PA 19101-3770 | Single, 0 allowances $765 per week SS#: 000-00-3316 Union dues withheld: $102 | 2,466.36 576.68 1,221.48 1,559.48 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
| Frank A. Kent 338 North Side Avenue Philadelphia, PA 19130-6638 | Married, 6 allowances $1,875 per week SS#: 000-00-6839 Cost of group-term life insurance exceeding $50,000: $262.75 No income tax withheld on insurance cost, but FICA taxes are withheld.* $100/week401(k) | 6,061.29 1,417.69 2,993.12 3,822.00 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
| Carlie C. Christian 4900 Gladwynne Terrace Philadelphia, PA 19127-0049 | Married, 5 allowances $780 per week SS#: 000-00-5771 Union dues withheld: $102 | 2,514.72 588.12 1,245.40 1,5 90.16 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
| Zana W. Amelia 480-A Hopkinson Tower Philadelphia, PA 19101-3301 | Single, 1 allowance $790 per week SS#: 000-00-8703 Educational assistance payments (job- required): $675 $50/week401(k) | 2,546.96 595.92 1,261.00 1,610.44 | Social security tax withheld Medicare tax withheld State income tax withheld Local income tax withheld |
*Must use percentage method to calculate federal income tax.
If an amount box does not require an entry, leave it blank. Round your computations and final answers to the nearest cent. Note: You must enter in the hyphens in the social security numbers, employer identification number, etc.
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.
Hint: group term life insurance premiums are includable in Boxes 1, 3 and 5.
| 22222 | Void | aEmployee's social security number | For Official Use Only OMB No. 1545-0008 | |
| bEmployer identification number (EIN) | 1Wages, tips, other compensation $ | 2Federal income tax withheld $ | ||
| cEmployer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3Social security wages $ | 4Social security tax withheld $ | ||
| 5Medicare wages and tips $ | 6Medicare tax withheld $ | |||
| 7Social security tips $ | 8Allocated tips $ | |||
| dControl number | 9 | 10Dependent care benefits $ | ||
| eEmployee's first name and initial Randy A. | Last name Kellison | Suff. | 11Nonqualified plans | 12aSee instructions for box 12 |
| fEmployee's address and ZIP code 54 Gradison Place Philadelphia, PA 19113-4054 | ||||
| 13 | CodeD | $ | ||
| 12b | ||||
| 14Other | Code | $ | ||
| 12c | ||||
| Code | $ | |||
| 12d | ||||
| Code | $ |
| 15State | Employer's state ID number | 16State wages, tips, etc. $ | 17State income tax $ | 18Local wages, tips, etc. $ | 19Local income tax $ | 20Locality name |
| FormW-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
| 22222 | Void | aEmployee's social security number | For Official Use Only OMB No. 1545-0008 | |
| bEmployer identification number (EIN) | 1Wages, tips, other compensation $ | 2Federal income tax withheld $ | ||
| cEmployer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3Social security wages $ | 4Social security tax withheld $ | ||
| 5Medicare wages and tips $ | 6Medicare tax withheld $ | |||
| 7Social security tips $ | 8Allocated tips $ | |||
| dControl number | 9 | 10Dependent care benefits $ | ||
| eEmployee's first name and initial Vince T. | Last name Roper | Suff. | 11Nonqualified plans | 12aSee instructions for box 12 |
| fEmployee's address and ZIP code 56 Andrews Court, Apt. 7 Philadelphia, PA 19103-3356 | ||||
| 13 | CodeD | $ | ||
| 12b | ||||
| 14Other | Code | $ | ||
| 12c | ||||
| Code | $ | |||
| 12d | ||||
| Code | $ |
| 15State | Employer's state ID number | 16State wages, tips, etc. $ | 17State income tax $ | 18Local wages, tips, etc. $ | 19Local income tax $ | 20Locality name |
| FormW-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
| 22222 | Void | aEmployee's social security number | For Official Use Only OMB No. 1545-0008 | |
| bEmployer identification number (EIN) | 1Wages, tips, other compensation $ | 2Federal income tax withheld $ | ||
| cEmployer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3Social security wages $ | 4Social security tax withheld $ | ||
| 5Medicare wages and tips $ | 6Medicare tax withheld $ | |||
| 7Social security tips $ | 8Allocated tips $ | |||
| dControl number | 9 | 10Dependent care benefits $ | ||
| eEmployee's first name and initial Murray T. | Last name Rodson | Suff. | 11Nonqualified plans | 12aSee instructions for box 12 |
| fEmployee's address and ZIP code 770 Camac Street Philadelphia, PA 19101-3770 | ||||
| 13 | Code | $ | ||
| 12b | ||||
| 14Other | Code | $ | ||
| 12c | ||||
| Code | $ | |||
| 12d | ||||
| Code | $ |
| 15State | Employer's state ID number | 16State wages, tips, etc. $ | 17State income tax $ | 18Local wages, tips, etc. $ | 19Local income tax $ | 20Locality name |
| FormW-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
| 22222 | Void | aEmployee's social security number | For Official Use Only OMB No. 1545-0008 | |
| bEmployer identification number (EIN) | 1Wages, tips, other compensation $ | 2Federal income tax withheld $ | ||
| cEmployer's name, address, and ZIP code Omni Corporation 4800 River Road Philadelphia, PA 19113-5548 | 3Social security wages $ | 4Social security tax withheld $ | ||
| 5Medicare wages and tips $ | 6Medicare tax withheld $ | |||
| 7Social security tips $ | 8Allocated tips $ | |||
| dControl number | 9 | 10Dependent care benefits $ | ||
| eEmployee's first name and initial Frank A. | Last name Kent | Suff. | 11Nonqualified plans | 12aSee instructions for box 12 |
| fEmployee's address and ZIP code 338 North Side Avenue Philadelphia, PA 19130-6638 | ||||
| 13 | CodeC | $ | ||
| 12b | ||||
| 14Other | CodeD | $ | ||
| 12c | ||||
| Code | $ | |||
| 12d | ||||
| Code | $ |
| 15State | Employer's state ID number | 16State wages, tips, etc. $ | 17State income tax $ | 18Local wages, tips, etc. $ | 19Local income tax $ | 20Locality name |
| FormW-2 Wage and Tax Statement | 20-- | Department of the TreasuryInternal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. |
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
