NOTE! Templates needed to complete these exercises, including one containing year-to-date payroll data, are included in the Student Exercise Files download for this course. Ampersand, Inc., is a small business that operates in Somerset, VT. The company is located at 732 Appalachian Way, Somerset, VT 05363. Its federal Employer Identification Number is 44-4444444, and its president, who signs all tax forms, is Stacey Jones (telephone #802-555-3917). The company does not wish to name a third- party designee on forms. During 2020 four individuals are employed by Ampersand, Inc. These employees are as follows: Social Security # 222-22-2222 Federal W/H Allowances Address State W/H Marital Allowances Status 1 Single 1 Name Maggie Hough William Finnegan Stacey Jones 999-99-9999 N 2 Married 13 Spruce Street Somerset, VT 05363 7 Smith Boulevard Somerset, VT 05363 8110 Browning Place Somerset, VT 05363 101 Park Court Somerset, VT 05363 555-55-5555 2 2 1 Single 888-88-8888 N/A N/A Married Francine Stewart 244 Payroll Accounting Chapter 7. comprehensive Projects--Paper-Based Versions Note that Francine Stewart was hired in September, and her first day of work was Monday, September 21. On her W-4 Form Francine left sections 2 through 4 blank. Francine files as married filing jointly on her tax return. Additionally, due to an economic downturn, Maggie Hough was laid off in late November, with her last day of work on Friday, November 20. All employees of Ampersand, Inc, work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours), receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Sunday for the most recent week (which runs from Monday through Sunday, although employees never work on weekends). The SUTA tax rate applicable to Ampersand, Inc., is 2.5%, while the SUTA wage base in Vermont is $16,100 Earnings and voluntary deduction information for each of the four employees is as follows: Regular Wage Rate Annual Salary Weekly 401(k) Deduction 5% of gross pay 4% of gross pay Weekly Charitable Contribution S10 $14/hour Name Maggle Hough William Finnegan Stacey Jones Francine Stewart N/A $18/hour N/A 55 N/A $262,000.44 N/A 515 N/A 594,000.40 2% of gross pay N/A The first three quarters of the year have passed, and all payroll-related activity has been properly accounted for as of 9/30/2020, Quarterly payroll data for each of the four employees is as follows: Maggie Hough Gross Federal State Social Medicare 401(k) Charitable Quarter Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter $7,280 $533 $345.80 $451.36 $105.56 5364 S130 2nd quarter $7,280 $533 5345,80 $451.36 $105.56 $364 5130 3rd quarter $7,280 $533 $345.80 $451.36 $105,56 $364 $130 William Finnegan Gross Federal State Social Medicare 401(k) Charitable Quarter Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 59,360 1st quarter $390 $449.28 $580.32 $135.72 $65 5374.40 $390 2nd quarter 89,360 $449.28 $580.32 $135.72 $65 $374.40 3rd quarter 59,360 $449.28 $390 $580.32 $65 $135.72 $374.40 Stacey Jones Gross Federal Quarter Earnings Income Tax 1st quarter $65,500.11 $15,535.91 2nd quarter $65,500.11 15,535.91 3rd quarter $65,500.11 $15,535.91 State Social Medicare 401(k) Charitable Income Tax Security Tax Tax Deduction Cont. $3,274.96 $4,061.07 5949.78 SO $195 $3,274.96 $4,061.07 $949.78 SO $195 $3,274.96 $415.26 5949.78 SO 3195 Francine Stewart Federal Income Tax State Social Medicare 401(k) Charitable Income Tax Security Tax Tax Deduction Cont. SO SO $0 $0 SO SO Gross Quarter Earnings 1st quarter 50 2nd quarter 50 3rd quarter S1,807.70 SO SO SO SO SO SO $147.75 $88.58 $112.08 $26.21 $36.15 SO 8 Note that all tax payments and filings are made on the due date. Based on the data provided here, you will complete the following: 1. Establish an employee earnings record for each of the company's four employees. Complete the top portion of each record 2. Establish and complete the payroll register for each weekly pay period in the fourth quarter. When calculating federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. For simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (which is the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated using the applicable state's withholding tables. Payroll checks are remitted to the employees in the same order (Hough, Finnegan, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in October is check #4711 Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two employees who are compensated via an hourly wage: NOTE! Templates needed to complete these exercises, including one containing year-to-date payroll data, are included in the Student Exercise Files download for this course. Ampersand, Inc., is a small business that operates in Somerset, VT. The company is located at 732 Appalachian Way, Somerset, VT 05363. Its federal Employer Identification Number is 44-4444444, and its president, who signs all tax forms, is Stacey Jones (telephone #802-555-3917). The company does not wish to name a third- party designee on forms. During 2020 four individuals are employed by Ampersand, Inc. These employees are as follows: Social Security # 222-22-2222 Federal W/H Allowances Address State W/H Marital Allowances Status 1 Single 1 Name Maggie Hough William Finnegan Stacey Jones 999-99-9999 N 2 Married 13 Spruce Street Somerset, VT 05363 7 Smith Boulevard Somerset, VT 05363 8110 Browning Place Somerset, VT 05363 101 Park Court Somerset, VT 05363 555-55-5555 2 2 1 Single 888-88-8888 N/A N/A Married Francine Stewart 244 Payroll Accounting Chapter 7. comprehensive Projects--Paper-Based Versions Note that Francine Stewart was hired in September, and her first day of work was Monday, September 21. On her W-4 Form Francine left sections 2 through 4 blank. Francine files as married filing jointly on her tax return. Additionally, due to an economic downturn, Maggie Hough was laid off in late November, with her last day of work on Friday, November 20. All employees of Ampersand, Inc, work a regular 40-hour workweek (thus all hours worked over 40 in a given week are overtime hours), receive overtime pay at a rate of 1.5 times the regular wage rate, and are paid weekly on Sunday for the most recent week (which runs from Monday through Sunday, although employees never work on weekends). The SUTA tax rate applicable to Ampersand, Inc., is 2.5%, while the SUTA wage base in Vermont is $16,100 Earnings and voluntary deduction information for each of the four employees is as follows: Regular Wage Rate Annual Salary Weekly 401(k) Deduction 5% of gross pay 4% of gross pay Weekly Charitable Contribution S10 $14/hour Name Maggle Hough William Finnegan Stacey Jones Francine Stewart N/A $18/hour N/A 55 N/A $262,000.44 N/A 515 N/A 594,000.40 2% of gross pay N/A The first three quarters of the year have passed, and all payroll-related activity has been properly accounted for as of 9/30/2020, Quarterly payroll data for each of the four employees is as follows: Maggie Hough Gross Federal State Social Medicare 401(k) Charitable Quarter Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 1st quarter $7,280 $533 $345.80 $451.36 $105.56 5364 S130 2nd quarter $7,280 $533 5345,80 $451.36 $105.56 $364 5130 3rd quarter $7,280 $533 $345.80 $451.36 $105,56 $364 $130 William Finnegan Gross Federal State Social Medicare 401(k) Charitable Quarter Earnings Income Tax Income Tax Security Tax Tax Deduction Cont. 59,360 1st quarter $390 $449.28 $580.32 $135.72 $65 5374.40 $390 2nd quarter 89,360 $449.28 $580.32 $135.72 $65 $374.40 3rd quarter 59,360 $449.28 $390 $580.32 $65 $135.72 $374.40 Stacey Jones Gross Federal Quarter Earnings Income Tax 1st quarter $65,500.11 $15,535.91 2nd quarter $65,500.11 15,535.91 3rd quarter $65,500.11 $15,535.91 State Social Medicare 401(k) Charitable Income Tax Security Tax Tax Deduction Cont. $3,274.96 $4,061.07 5949.78 SO $195 $3,274.96 $4,061.07 $949.78 SO $195 $3,274.96 $415.26 5949.78 SO 3195 Francine Stewart Federal Income Tax State Social Medicare 401(k) Charitable Income Tax Security Tax Tax Deduction Cont. SO SO $0 $0 SO SO Gross Quarter Earnings 1st quarter 50 2nd quarter 50 3rd quarter S1,807.70 SO SO SO SO SO SO $147.75 $88.58 $112.08 $26.21 $36.15 SO 8 Note that all tax payments and filings are made on the due date. Based on the data provided here, you will complete the following: 1. Establish an employee earnings record for each of the company's four employees. Complete the top portion of each record 2. Establish and complete the payroll register for each weekly pay period in the fourth quarter. When calculating federal income tax withholding, use the withholding tables where possible, and refer to the percentage method only when necessary. For simplicity, calculate the state income tax withholding as 5% of each employee's taxable pay (which is the same as taxable pay for FWT). Recall that state income tax withholding would ordinarily be calculated using the applicable state's withholding tables. Payroll checks are remitted to the employees in the same order (Hough, Finnegan, Jones, Stewart) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in October is check #4711 Note that all charitable contributions are deemed to be made on the final day of each pay period. The following information will be required for the completion of these records for the two employees who are compensated via an hourly wage