Question: Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business ... (2 bookmarks) Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Waylands EIN is 91-7444533 and his Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis. Students will complete the payroll for the final quarter of 2015, and will file fourth quarter and annual tax reports on the appropriate dates. When writing out the dollar amount for each check, spell out all words and the cents are presented over 100, for example 50 cents would be 50/100. Federal income tax should be computed using the percentage method tables in Appendix C. FUTA information is in the table below. The Utah state income tax rate and the SUTA (UI) rate are in the table below. Rounding can create a challenge. For these exercises, the rate for the individuals is not rounded. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full time, nonexempt employees. For example, Vardens salary is $42,000 and is a nonexempt employee, so the calculation will be $42,000/2,080, which would give you $20.19231 per hour. Exempt employees salaries are divided by 24 (number of payrolls for semimonthly.) For example, Chinsons salary is $24,000 and is a full time employee, so the calculation will be $24,000/24, which would give you $1,000. After this hourly rate is determined, than it can be applied to the number of hours worked. After the gross pay has been calculated, round this number to only two decimal points prior to calculating taxes or other withholdings. For the completion of this project the following information can be located in Appendix C. Students will use the Percentage method for federal income tax and the tax tables have been provided for Utah. Both 401(k) and insurance are pretax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay. Federal Withholding Allowance (less 401(k), Section 125) $166.70 per allowance claimed Semimonthly Federal Percentage Method Tax Table Appendix C, Page 293, Table #3 Federal Unemployment Rate (Federal unemployment rate less Section 125 health insurance) 0.6% on the first $7,000 of wages State Withholding Rate (less 401(k), Section 125) See Utah Schedule 3 State Unemployment Rate (less Section 125) 2.6% on the first $31,300 of wages Wayland Custom Woodworking Balance sheet 9/30/2015 Assets Liabilities & Equity Cash $ 1,125,000.00 Accounts Payable $ 112,490.00 Supplies 27,240.00 Salaries and Wages Payable Office Equipment 87,250.00 Federal Unemployment Tax Payable Inventory 123,000.00 Social Security Tax Payable Vehicle 25,000.00 Medicare Tax Payable Accumulated Depreciation, Vehicle State Unemployment Tax Payable Building 164,000.00 Employee Federal Income Tax Payable Accumulated Depreciation, Building Employee State Income Tax Payable Land 35,750.00 401(k) Contributions Payable Employee Medical Premiums Payable Total Assets 1,587,240.00 Notes Payable 224,750.00 Utilities Payable Total Liabilities 337,240.00 Owners' Equity 1,250,000.00 Retained Earnings - Total Equity 1,250,000.00 Total Liabilities and Equity 1,587,240.00 October 1: Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Waylands staff: Employee Number Name and Address Payroll information 00-Chins Anthony Chinson 530 Sylvann Avenue Logan, UT 84321 435-555-1212 Job title: Account Executive Married, 1 withholding allowance Exempt $24,000/year + commission Start Date: 10/1/2015 SSN: 511-22-3333 00-Wayla Mark Wayland 1570 Lovett Street Logan, UT 84321 435-555-1110 Job title: President/Owner Married, 5 withholding allowances Exempt $75,000/year Start Date: 10/1/2015 SSN: 505-33-1775 01-Peppi Sylvia Peppinico 291 Antioch Road Logan, UT 84321 435-555-2244 Job title: Craftsman Married, 7 withholding allowances Exempt $43,500/year Start Date: 10/1/2015 SSN: 047-55-9951 01-Varde Stevon Varden 333 Justin Drive Logan, UT 84321 435-555-9981 Job title: Craftsman Married, 2 withholding allowances Nonexempt $42,000/year Start Date: 10/1/2015 SSN: 022-66-1131 02-Hisso Leonard Hissop 531 5th Street Logan, UT 84321 435-555-5858 Job title: Purchasing/Shipping Single, 4 withholding allowances Nonexempt $49,500/year Start Date: 10/1/2015 SSN: 311-22-6698 00-Stude Student F Success 480-555-3322 Job title: Accounting Clerk Single, 1 withholding allowance Nonexempt $36,000/year Start Date: 10/1/2015 SSN: 555-55-5555 Voluntary deductions for each employee are as follows: Name Deduction Chinson Insurance: $50/paycheck 401(k): 3% of gross pay Wayland Insurance: $75/paycheck 401(k): 6% of gross pay Peppinico Insurance: $75/paycheck 401(k): $50 per paycheck Varden Insurance: $50/paycheck 401(k): 4% of gross pay Hissop Insurance: $75/paycheck 401(k): 3% of gross pay Student Insurance: $50/paycheck 401(k): 3% of gross pay The departments are as follows: Department 00: Sales and Administration Department 01: Factory workers Department 02: Delivery and Customer service 1. You have been hired as of October 1 as the new accounting clerk. Your name is Student F. Success and your employee number is 00-STUDE. Your Utah drivers license is 887743 expiring in 7/2018 and social security number is 555-55-5555, and you are non-exempt and paid at a rate of $36,000 per year. Using the information provided, complete the W-4 and the I-9 to start your employee file. Complete as if Single with 1 withholding, you decide to contribute 3% to 401(k) and health insurance is $50 per pay period. 2. Complete the headers of the Employees' Earnings Records for all company employees. Enter the YTD earnings for each employee. rev: 03_07_2016_QC_CS-42315, 03_16_2016_QC_CS-45577, 07_11_2016_QC_CS-52303, 07_15_2016_QC_CS-52303, 11_10_2016_QC_CS-69317, 11_16_2016_QC_CS-69516 1. value: 30.00 points Required information October 15 is the end of the first pay period for the month of October. Employee pay will be disbursed on October 18, 201X. Any time worked in excess of 88 hours is considered overtime. Remember that the employees are paid on a semimonthly basis. Compute the employee gross pay. Compute the Net Pay for each employee using the payroll register. Once you have computed the net pay, complete the paycheck for each employee (assume that all employees are paid by check). Date the checks 10/18/1X (current year). The first check number is 174556. Complete the General Journal entries as follows: 15-Oct Journalize employee pay including the issuance of paychecks (use one entry for all checks) 15-Oct Journalize employer payroll tax for the October 15 pay date 18-Oct Journalize the payment of payroll Update the Employees' Earnings Records for the period's pay and the new YTD amount. -NOTE 1: Do not round intermediate calculations and round hourly rate to 5 decimal places & remaining answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. -NOTE 2: When writing out the net amount of an employee's check, be sure to write it in the correct format (e.g. Three Hundred Ninety-nine and 75/100). Be sure to capitalize the letters as shown. Enter all dates in mm/dd/yy format where year is entered as 1X. rev: 03_03_2016_QC_CS-42315, 04_25_2016_QC_CS-49952, 07_12_2016_QC_CS-52303, 07_15_2016_QC_CS-52303, 11_07_2016_QC_CS-68960, 11_18_2016_QC-CS-70425 References eBook & Resources WorksheetLearning Objective: 04-02 Determine Federal Income Tax Withholding AmountsLearning Objective: 05-05 Relate Labor Expenses to Company Profitability Difficulty: 2 MediumLearning Objective: 04-03 Compute Social Security and Medicare Tax WithholdingLearning Objective: 05-06 Complete Benefit Analysis as a Function of Payroll Learning Objective: 01-06 Differentiate between Exempt and Nonexempt WorkersLearning Objective: 04-04 Apply State and Local Income TaxesLearning Objective: 06-01 Create a Payroll Register Learning Objective: 02-02 Prepare Required Employee DocumentationLearning Objective: 04-05 Explain Post-Tax DeductionsLearning Objective: 06-02 Transfer Payroll Data to the Employees' Earnings Records Learning Objective: 03-01 Analyze Minimum Wage Pay for Nonexempt WorkersLearning Objective: 04-06 Analyze Employee Net PayLearning Objective: 06-03 Describe Financial Accounting Concepts Learning Objective: 03-02 Compute Gross Pay for Different Pay BasesLearning Objective: 04-07 Discuss Employee Pay MethodsLearning Objective: 06-04 Complete Payroll-Related General Journal Entries Learning Objective: 03-03 Calculate Pay Based on Hours and Fractions of HoursLearning Objective: 05-01 List Employer-Paid and Employee-Paid ObligationsLearning Objective: 06-05 Generate Payroll-Related General Ledger Entries Learning Objective: 03-04 Apply Combination Pay MethodsLearning Objective: 05-02 Discuss Reporting Periods and Requirements for Employer Tax DepositsLearning Objective: 06-06 Describe Payroll Effects on the Accounting System Learning Objective: 03-05 Explain Special Pay SituationsLearning Objective: 05-03 Prepare Mid-Year and Year-End Employer Tax Reporting and DepositsLearning Objective: 06-07 Explain Payroll Entries in Accounting Reports Learning Objective: 04-01 Identify Pre-Tax DeductionsLearning Objective: 05-04 Describe Payroll Within the Context of Business Expenses Ask your instructor a questionCheck my work 2. value: 30.00 points Required information October 31 is the final pay period for the month. Employee pay will be disbursed on November 5, 201X. Any hours exceeding 96 are considered overtime. Compute the employee gross pay. Compute the Net Pay for each employee using the payroll register. Once you have computed the net pay, complete the paycheck for each employee (assume that all employees are paid by check). Date the checks 11/5/1X (current year). Any hours over 96 are considered overtime. Remember that the employees are paid semi-monthly. Complete the General Journal entries as follows: 31-Oct Journalize employee pay for the period 31-Oct Journalize employer payroll tax for the October 31 pay date 05-Nov Journalize payment of payroll to employees (use one entry for all checks) 05-Nov Journalize remittance of 401(k) and health insurance premiums deducted 05-Nov Journalize remittance of monthly payroll taxes Update the Employees' Earnings Records for the period's pay and the new YTD amount. -NOTE 1: Do not round intermediate calculations and round hourly rate to 5 decimal places & remaining answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. -NOTE 2: When writing out the net amount of an employee's check, be sure to write it in the correct format (e.g. Three Hundred Ninety-nine and 75/100). Be sure to capitalize the letters as shown. Enter all dates in mm/dd/yy format where year is entered as 1X.