One-Month Project 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. Ellipses Corp. is a small business that operates in Herndon, VA. The company is located at 10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its president, who signs all tax forms, is John Parker (telephone #571-555-0073). The company does not wish to name a third-party designee on forms. During 2020 four individuals are employed by Ellipses Corp. These employees are as follows: Social Security # Federal W/H Allowances State W/H Marital Allowances Status Name Address Hunter Cranston 111-11-1111 2. 2 Married 85 Southern Road Herndon, VA 20170 Allison Harrison 777-77-7777 4 3 Married 203A Pine Court Herndon, VA 20170 John Parker 444-44-4444 1 1 212 Tradition Lane Herndon, VA 20170 Single Pierre Sternberg 333-33-3333 N/A N/A Married 41 Seward Boulevard Herndon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work was Monday, November 23. On his W-4 Form Pierre checked box 2c and left sections 3 and 4 blank. Pierre files as married filing jointly on his tax return. Additionally, due to an economic downturn, Allison Harrison was laid off in mid-December, with her last day of work on Friday, December 11. All employees of Ellipses Corp. 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 Friday for the current week (which runs from Saturday through Friday, although employees never work on weekends). The SUTA tax rate applicable to Ellipses Corp. is 3.1%, while the SUTA wage base in Virginia is $8,000. Earnings and voluntary deduction information for each of the four employees is as follows: Regular Wage Rate $15/hour Weekly Charitable Contribution $5 Name Hunter Cranston Allison Harrison John Parker Pierre Sternberg Annual Weekly 401(k) Salary Deduction N/A 6% of gross pay N/A 5% of gross pay $203,000.20 N/A $112,000.20 1% of gross pay $23/hour $5 N/A $20 N/A N/A The first 11 months of the year have passed, and all payroll-related activity has been properly accounted for as of 11/30/2020. Payroll data for each of the four employees for the first three quarters of the year, as well as for the months of October and November, is as follows: Hunter Cranston Period Gross Earnings Federal Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. 1st quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 2nd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 3rd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 October $3,000 $85 $141 $186 $43.50 $180 $25 November $2,400 $68 $112.80 $148.80 $34.80 $144 $20 Allison Harrison Period Gross Federal Earnings Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. 1st quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 2nd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 3rd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 October $4,600 $155 $218.50 $285.20 $66.70 $230 $25 November $3,680 $124 $174.80 $228.16 $53.36 $184 $20 Allison Harrison Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. Period 1st quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 2nd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 3rd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 October $4,600 $155 $218.50 $285.20 $66.70 $230 $25 November $3,680 $124 $174.80 $228.16 $53.36 $184 $20 John Parker Period Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. 1st quarter $50,750.05 $10,844.73 $2,537.47 $3,146.52 $735.93 SO $260 2nd quarter $50,750.05 $10,844.73 $2,537.47 $3,146.52 $735.93 SO $260 3rd quarter $50,750.05 $10,844.73 $2,537.47 $2,244.36 $735.93 $0 $260 October $19,519.25 $4,171.05 $975.95 $0 $283.05 SO $100 November $15,615.40 $3,336.84 $780.76 $0 $226.44 $o $80 Pierre Sternberg Gross Earnings Federal Income Tax State Income Tax Social Medicare Security Tax Tax 401(k) Deduction Charitable Cont. Period 1st quarter SO $0 SO SO $0 $0 SO 2nd quarter SO $O SO SO $0 $0 SO 3rd quarter SO $O $0 SO $0 $0 SO October SO $0 SO SO $0 $0 SO November $2,153.85 $340.73 $106.62 $133.54 $31.23 $21.54 SO 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 during December. 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 (Cranston, Harrison, Parker, Sternberg) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in December is check #762. 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: Weekly Hours Worked Weekly Start Date Hunter Cranston Allison Harrison November 28 40 37 December 5 38 41 December 12 43.5 0 December 19 40 0 WARNING! The above dates are weekly start dates. Refer to a calendar to determine the weekly end dates and associated pay dates. Keep in mind that tax liability and payment amounts are determined based on the weekly pay dates. 3. Complete the employee earnings records for December for each of the four employees. Divide the voluntary deductions from the payroll register appropriately across the associated columns within the employee earnings records. If directed to do so by your instructor, record the necessary journal entries for each pay period. One-Month Project 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. Ellipses Corp. is a small business that operates in Herndon, VA. The company is located at 10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its president, who signs all tax forms, is John Parker (telephone #571-555-0073). The company does not wish to name a third-party designee on forms. During 2020 four individuals are employed by Ellipses Corp. These employees are as follows: Social Security # Federal W/H Allowances State W/H Marital Allowances Status Name Address Hunter Cranston 111-11-1111 2. 2 Married 85 Southern Road Herndon, VA 20170 Allison Harrison 777-77-7777 4 3 Married 203A Pine Court Herndon, VA 20170 John Parker 444-44-4444 1 1 212 Tradition Lane Herndon, VA 20170 Single Pierre Sternberg 333-33-3333 N/A N/A Married 41 Seward Boulevard Herndon, VA 20170 Note that Pierre Sternberg was hired in November, and his first day of work was Monday, November 23. On his W-4 Form Pierre checked box 2c and left sections 3 and 4 blank. Pierre files as married filing jointly on his tax return. Additionally, due to an economic downturn, Allison Harrison was laid off in mid-December, with her last day of work on Friday, December 11. All employees of Ellipses Corp. 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 Friday for the current week (which runs from Saturday through Friday, although employees never work on weekends). The SUTA tax rate applicable to Ellipses Corp. is 3.1%, while the SUTA wage base in Virginia is $8,000. Earnings and voluntary deduction information for each of the four employees is as follows: Regular Wage Rate $15/hour Weekly Charitable Contribution $5 Name Hunter Cranston Allison Harrison John Parker Pierre Sternberg Annual Weekly 401(k) Salary Deduction N/A 6% of gross pay N/A 5% of gross pay $203,000.20 N/A $112,000.20 1% of gross pay $23/hour $5 N/A $20 N/A N/A The first 11 months of the year have passed, and all payroll-related activity has been properly accounted for as of 11/30/2020. Payroll data for each of the four employees for the first three quarters of the year, as well as for the months of October and November, is as follows: Hunter Cranston Period Gross Earnings Federal Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. 1st quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 2nd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 3rd quarter $7,800 $221 $366.60 $483.60 $113.10 $468 $65 October $3,000 $85 $141 $186 $43.50 $180 $25 November $2,400 $68 $112.80 $148.80 $34.80 $144 $20 Allison Harrison Period Gross Federal Earnings Income Tax State Social Medicare 401(k) Income Tax Security Tax Tax Deduction Charitable Cont. 1st quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 2nd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 3rd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 October $4,600 $155 $218.50 $285.20 $66.70 $230 $25 November $3,680 $124 $174.80 $228.16 $53.36 $184 $20 Allison Harrison Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. Period 1st quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 2nd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 3rd quarter $11,960 $403 $568.10 $741.52 $173.42 $598 $65 October $4,600 $155 $218.50 $285.20 $66.70 $230 $25 November $3,680 $124 $174.80 $228.16 $53.36 $184 $20 John Parker Period Gross Earnings Federal Income Tax State Social Medicare Income Tax Security Tax Tax 401(k) Deduction Charitable Cont. 1st quarter $50,750.05 $10,844.73 $2,537.47 $3,146.52 $735.93 SO $260 2nd quarter $50,750.05 $10,844.73 $2,537.47 $3,146.52 $735.93 SO $260 3rd quarter $50,750.05 $10,844.73 $2,537.47 $2,244.36 $735.93 $0 $260 October $19,519.25 $4,171.05 $975.95 $0 $283.05 SO $100 November $15,615.40 $3,336.84 $780.76 $0 $226.44 $o $80 Pierre Sternberg Gross Earnings Federal Income Tax State Income Tax Social Medicare Security Tax Tax 401(k) Deduction Charitable Cont. Period 1st quarter SO $0 SO SO $0 $0 SO 2nd quarter SO $O SO SO $0 $0 SO 3rd quarter SO $O $0 SO $0 $0 SO October SO $0 SO SO $0 $0 SO November $2,153.85 $340.73 $106.62 $133.54 $31.23 $21.54 SO 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 during December. 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 (Cranston, Harrison, Parker, Sternberg) each pay period and are written from a bank account that is used solely for these payments. The first payroll check written in December is check #762. 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: Weekly Hours Worked Weekly Start Date Hunter Cranston Allison Harrison November 28 40 37 December 5 38 41 December 12 43.5 0 December 19 40 0 WARNING! The above dates are weekly start dates. Refer to a calendar to determine the weekly end dates and associated pay dates. Keep in mind that tax liability and payment amounts are determined based on the weekly pay dates. 3. Complete the employee earnings records for December for each of the four employees. Divide the voluntary deductions from the payroll register appropriately across the associated columns within the employee earnings records. If directed to do so by your instructor, record the necessary journal entries for each pay period