October 15

This is the day on which the deposits of FICA and FIT taxes and the city of Philadelphia income taxes for the September payrolls are due. However, in order to concentrate on the fourth-quarter payrolls, we will assume that the deposits for the third quarter and the appropriate entries were already completed.

October 20

No. 2 On this date, Glo-Brite Paint Company must deposit the Pennsylvania state income taxes withheld from the October 9 payroll.

The deposit rule states that if the employer expects the aggregate amount withheld each quarter to be $1,000 or more, the employer must pay the withheld tax semimonthly.

The tax must be remitted within three banking days after teh close of the semimonthly periods ending on the 15th and the last day of the month.

1. Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts.

2. Pennsylvania has eliminated the filing of paper forms (replaced by telefile or online filing). The information needed to telefile is listed on page 7-51- complete the information worksheet needed for the first semimonthly period of October. The company's Pennsylvania employer account nuumber is 000-0-3300, its EIN is 00-0000660, its filing password is GBPCOM, and its telephone number is (215) 555-9559.

October 23

No.3 Prepare the payroll for the last pay period of October from Time Clerk's Report Nos. 40 and 41

The proper procedure in recording the payroll follows:

1. Complete the payroll register.

In as much as only a portion of the payroll register sheet was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first blank ruled line after the October 9 payroll, insert "Payday October 23- For Period Ending October 17, 20--." On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolls, continue to conserve space by recording two payrolls on eac hseparate payroll register sheet.

The workers in the plant (Bonno and Ryan) are paid time and a half for any hours worked over eight each workday and for work on Saturdays and are paid twice the regular hourly rate for work on Sundays or Holidays.

With this pay period, the cumulative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's earnings record to see the amount of cumulative earnings.

Time Clerk's Report No.40

For the Week Ending October 10, 20--

Employee Time Recorded Time Worked Time Lost

S M T W T F S

Bonno, A.V..... 8 8 8 8 8 4 44 hrs. .....

Ford, C.L........ 4 8 8 8 8 36 hrs. 4 hrs.*

Russell, V.A...... 8 8 8 8 8 40 hrs. .........

Ryan, N. A....... 8 8 8 8 8 40 hrs. .........

Student........ 8 8 8 8 4 36 hrs. ......

Williams, R.V...... 8 8 8 8 8 40 hrs. ......

*Time lost on account of death of relative; charged against annual personal leave; no deduction for time lost.

Time Clerk's Report No. 41

For the Week Ending October 17, 20--

Employee Time Record Time Worked

S M T W T F S

Bonno, A.V.... 8 8 8 8 8 40 hrs.

Ford, C.L...... 8 8 8 8 8 40 hrs.

Russell, V.A....... 8 8 8 8 8 40 hrs.

Ryan, N.A...... 8 8 8 8 8 8 48 hrs.

Student......... 8 8 8 8 4 36 hrs.

Williams, R.V..... 8 8 8 8 8 40 hrs.

2. Make the entry transferring from Cash to Payroll Cash the net amount of the total payroll, and post.

3. Post the required information from the payroll register to each employee's earnings record.

4. Record in the journal the salaries, wages, taxes withheld, group insurance premiums collected, union dues withheld, and net amount paid, and post to the proper ledger accounts.

The entry required to record the October 23 payroll is the same as that to record the October 9 payroll, except it is necessary to record the liability for the amount withheld form the employees' wages to pay their part of the group insurance premium. The amount withheld should be recorded as a credit to Group Insurance Premiums Collected.

5. Record in the journal the employer's payroll taxes and the liabilities created; post to the appropriate ledger accounts.