Note In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes Employee and Employer OASDI 6 20 $118,500 $7,347 Employee and Employer HI 1 45 No limit No maximum Self employed OASDI 12 4 $118,500 $14,694 Self employed HI 2 9 No limit No maximum 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 Employee HI Plus an additional 0 9 on wages over $200,000 Also applicable to self employed Figure 3 8 During the third calendar quarter of 20 , Bayview Inn, owned by Diane R Peters, employed the persons listed below Also given are the employees' salaries or wages and the amount of tips reported to the owner The tips were reported by the 10th of each month The federal income tax and FICA tax to be withheld from the tips were estimated by the owner and withheld equally over the 13 weekly pay periods The employer's portion of FICA tax on the tips was estimated as the same amount Salary or Quarters Quarters Quarters Quarters Quarters Employee Wage Wages Tips OASDI HI FIT Grant Frazier $58,240 year $14,560 00 $902 72 $211 12 $850 00 Joseph LaVange 20,800 year 5,200 00 322 40 75 40 549 00 Susanne Ayers 265 week 3,445 00 $2,258 70 353 63 82 70 529 00 Howard Cohen 210 week 2,730 00 2,411 30 318 76 74 55 611 00 Lee Soong 240 week 3,120 00 2,662 50 358 52 83 85 651 00 Mary Yee 245 week 3,185 00 2,690 30 364 27 85 19 662 00 Helen Woods 335 week 4355 00 270 01 63 15 430 00 Koo Shin 340 week 4,420 00 274 04 64 09 539 00 Aaron Abalis 385 week 5,005 00 310 31 72 57 691 00 David Harad 185 week 2,405 00 149 11 34 87 235 00 $48,425 00 $10,022 80 $3,623 77 $847 49 $5,747 00 Employees are paid weekly on Friday The following paydays occurred during this quarter July August September 5 weekly paydays 4 weekly paydays 4 weekly paydays Taxes withheld for the 13 paydays in the third quarter follow Employees Weekly Weekly Federal Income Tax FICA Taxes Withheld on Wages FICA Taxes on Tips OASDI HI OASDI HI $442 08 per week Employees $230 95 $54 01 Employees $47 80 $11 18 Employers 230 95 54 01 Employers 47 80 11 18 Note Lines 5a and 5c of Form 941, tax on total taxable wages, are computed by multiplying by the combined tax rate for both employer and employee Small differences due to rounding may occur between this total and the total taxes withheld from employees each pay period and the amount of the employer's taxes calculated each pay period This difference is reported on line 7 as a deduction or an addition as Fractions of Cents Use a minus sign to indicate a deduction Assume that company deposits taxes on monthly basis Form 941 for 20 (Rev January 2016) Employer's QUARTERLY Federal Tax Return Department of the Treasury Internal Revenue Service OMB No 1545 0029 Employer identification number (EIN) 0 0 0 0 0 3 6 0 7 Name (not your trade name) DIANE R PETERS Trade name (if any) BAYVIEW INN Address 404 UNION AVE Number Street Suite or room number MEMPHIS TN 38112 City State ZIP code Foreign country name Foreign province county Foreign postal code Report for this Quarter of 20 (Select one ) Instructions and prior year forms are available at www irs gov form941 Read the separate instructions before you complete Form 941 Type or print within the boxes Part 1 Answer these questions for this quarter 1 Number of employees who received wages, tips, or other compensation for the pay period including Mar 12 (Quarter 1), June 12 (Quarter 2), Sept 12 (Quarter 3), or Dec 12 (Quarter 4) 1 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 Check and go to line 6 Column 1 Column 2 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 Additional Medicare Tax withholding x 009 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 applied from Form 941 X, 941 X (PR), 944 X, or 944 X (SP) filed in the current quarter 11 12 Balance due If line 10 is more than line 11, enter the difference and see instructions 12 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 Next For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher Cat No 17001Z Form 941 (Rev 1 2016) Name (not your trade name) Employer identification number (EIN) DIANE R PETERS 00 0003607 Part 2 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 section 11 of Pub 15 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 Total must equal line 10 c 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 Tell us about your business If a question does NOT apply to your business, leave it blank 15 If your business has closed or you stopped paying wages Check here, 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 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 Sign your name here Print your name here Print your title here Date 10 31 Best daytime phone 901 555 7959 Paid Preparer Use Only Check if you are self employed Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self employed) EIN Address Phone City State ZIP code Page 2 Form 941 (Rev 1 2016) Source Internal Revenue Service

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Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes. Employee and

Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, use the following rates, ceiling, and maximum taxes.

Employee and Employer OASDI:	6.20%	$118,500	$7,347
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$118,500	$14,694
Self-employed HI:	2.9%	No limit	No maximum

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.
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Figure 3.8

During the third calendar quarter of 20--, Bayview Inn, owned by Diane R. Peters, employed the persons listed below. Also given are the employees' salaries or wages and the amount of tips reported to the owner. The tips were reported by the 10th of each month. The federal income tax and FICA tax to be withheld from the tips were estimated by the owner and withheld equally over the 13 weekly pay periods. The employer's portion of FICA tax on the tips was estimated as the same amount.

	Salary or	Quarters	Quarters	Quarters	Quarters	Quarters
Employee	Wage	Wages	Tips	OASDI	HI	FIT
Grant Frazier	$58,240/year	$14,560.00		$902.72	$211.12	$850.00
Joseph LaVange	20,800/year	5,200.00		322.40	75.40	549.00
Susanne Ayers	265/week	3,445.00	$2,258.70	353.63	82.70	529.00
Howard Cohen	210/week	2,730.00	2,411.30	318.76	74.55	611.00
Lee Soong	240/week	3,120.00	2,662.50	358.52	83.85	651.00
Mary Yee	245/week	3,185.00	2,690.30	364.27	85.19	662.00
Helen Woods	335/week	4355.00		270.01	63.15	430.00
Koo Shin	340/week	4,420.00		274.04	64.09	539.00
Aaron Abalis	385/week	5,005.00		310.31	72.57	691.00
David Harad	185/week	2,405.00		149.11	34.87	235.00
		$48,425.00	$10,022.80	$3,623.77	$847.49	$5,747.00

Employees are paid weekly on Friday. The following paydays occurred during this quarter:

July	August	September
5 weekly paydays	4 weekly paydays	4 weekly paydays

Taxes withheld for the 13 paydays in the third quarter follow:

Employees	Weekly			Weekly
Federal Income Tax	FICA Taxes Withheld on Wages			FICA Taxes on Tips
	OASDI		HI	OASDI		HI
$442.08 per week	Employees	$230.95	$54.01	Employees	$47.80	$11.18
	Employers	230.95	54.01	Employers	47.80	11.18

Note: Lines 5a and 5c of Form 941, tax on total taxable wages, are computed by multiplying by the combined tax rate for both employer and employee. Small differences due to rounding may occur between this total and the total taxes withheld from employees each pay period and the amount of the employer's taxes calculated each pay period. This difference is reported on line 7 as a deduction or an addition as "Fractions of Cents." Use a minus sign to indicate a deduction. Assume that company deposits taxes on monthly basis.

Form 941 for 20--: (Rev. January 2016)

Employer's QUARTERLY Federal Tax Return Department of the Treasury Internal Revenue Service

OMB No. 1545-0029

Employer identification number (EIN)

Name (not your trade name)

DIANE R. PETERS

Trade name (if any)

BAYVIEW INN

Address

404 UNION AVE.

Number

Street

Suite or room number

MEMPHIS

38112

City

State

ZIP code

Foreign country name

Foreign province/county

Foreign postal code

Report for this Quarter of 20-- (Select one.)

Instructions and prior year forms are available at www.irs.gov/form941.

Read the separate instructions before you complete Form 941. Type or print within the boxes.

Part 1:

Answer these questions for this quarter.

Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4)

Wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Federal income tax withheld from wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . .

If no wages, tips, and other compensation are subject to social security or Medicare tax

Check and go to line 6.

		Column 1		Column 2
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 Additional Medicare Tax withholding		x .009 =

Add Column 2 from lines 5a, 5b, 5c, and 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3121(q) Notice and DemandTax due on unreported tips (see instructions) . . . . . . . . . . . . . . .

Total taxes before adjustments. Add lines 3, 5e, and 5f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current quarter's adjustment for fractions of cents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current quarter's adjustment for sick pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current quarter's adjustments for tips and group-term life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total taxes after adjustments. Combine lines 6 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter . .

Balance due. If line 10 is more than line 11, enter the difference and see instructions . . . . . . . . . . . . . . . . . . . .

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.

Next

For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher.

Cat. No. 17001Z

Form 941 (Rev. 1-2016)

Name (not your trade name)	Employer identification number (EIN)
DIANE R. PETERS	00-0003607

Part 2:

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 section 11 of Pub. 15.

14 Check one:

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.

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		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:

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, and
enter the final date you paid wages	/ /	.

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.

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.

Sign your name here

Print your name here

Print your title here

Date

10/31/--

Best daytime phone

901-555-7959

Paid Preparer Use Only

Check if you are self-employed . . . .

Preparer's name

PTIN

Preparer's signature

Date

/ /

Firm's name (or yours if self-employed)

EIN

Address

Phone

City

State

ZIP code

Page 2

Form 941 (Rev. 1-2016) Source: Internal Revenue Service

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