Required information Skip to question The following information applies to the questions displayed below 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 the Utah Employer Account Number is 99992901685WTH Wayland has determined it will pay its employees on a semimonthly basis Federal income tax should be computed using the percentage method For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W 2 in Part 2 The SUTA (UI) rate for Wayland Custom Woodworking is 2 6 percent on the first $35,300 The state withholding rate is 4 95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees No employee will reach the SUTA wage cap Rounding can create a challenge For this project, the hourly rate for the individuals should be rounded to five decimal places So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full time, nonexempt employees Example Annual Salary to Hourly Rate, Nonexempt Employee Employee Vardens annual salary is $42,000, and he is a nonexempt employee Hourly rate $42,000 (52 40) $42,000 2,080 Hourly rate $20 19231 per hour Example Period Gross Pay, Salaried Employee Employee Chinson earns an annual salary of $24,000 and is paid semimonthly Period gross pay $24,000 24 $1,000 gross pay For pay periods with holiday hours determine the amount paid per day, multiply by the number of days applicable to each pay Annual salary $24,000 (52 5) $24,000 260 $92 30769 (rounded to 5 decimal points) per day After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings Employees are paid for the following holidays occurring during the final quarter Thanksgiving day and the day after, Thursday and Friday, November 2829 Christmas, which is a Wednesday Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25 For the completion of this project, refer to the tax related information in the table below For federal withholding calculations, use the percentage method tables in Appendix C, which is provided below For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status) Both 401(k) and insurance are pre tax 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) $175 00 per allowance claimed Federal Unemployment Rate (employer only) (less Section 125) 0 6 on the first $7,000 of wages Semimonthly Federal Percentage Method Tax Table Appendix C Table 3 State Unemployment Rate (employer only) (less Section 125) 2 6 on the first $35,300 of wages State Withholding Rate (less 401(k), Section 125) See Utah Schedule 3, Table A 1 or use the Excel Version of Schedule 3 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 Married, 1 Withholding allowance 530 Sylvann Avenue Exempt Logan, UT 84321 $24,000 year commission 435 555 1212 Start Date 10 1 2019 Job title Account Executive SSN 511 22 3333 00 Wayla Mark Wayland Married, 5 withholding allowances 1570 Lovett Street Exempt Logan, UT 84321 $75,000 year 435 555 1110 Start Date 10 1 2019 Job title President Owner SSN 505 33 1775 01 Peppi Sylvia Peppinico Married, 7 withholding allowances 291 Antioch Road Exempt Logan, UT 84321 $43,500 year 435 555 2244 Start Date 10 1 2019 Job title Craftsman SSN 047 55 9951 01 Varde Stevon Varden Married, 2 withholding allowances 333 Justin Drive Nonexempt Logan, UT 84321 $42,000 year 435 555 9981 Start Date 10 1 2019 Job title Craftsman SSN 022 66 1131 02 Hisso Leonard Hissop Single, 4 withholding allowances 531 5 th Street Nonexempt Logan, UT 84321 $49,500 year 435 555 5858 Start Date 10 1 2019 Job title Purchasing Shipping SSN 311 22 6698 00 Succe Student Success Single, 1 withholding allowance 1650 South Street Nonexempt Logan, UT 84321 $36,000 year 435 556 1211 Start Date 10 1 2019 Job title Accounting Clerk SSN 555 55 5555 The departments are as follows Department 00 Sales and Administration Department 01 Factory workers Department 02 Delivery and Customer service You have been hired as of October 1 as the new accounting clerk Your employee number is 00 SUCCE Your name is Student Success Your address is 1650 South Street, Logan, UT 84321 Your phone number is 435 556 1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 07 16 2024, and your Social Security number is 555 55 5555 You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year The balance sheet for WCW as of November 30, 2019, is as follows Wayland Custom Woodworking Balance Sheet November 30, 2019 Assets Liabilities Equity Cash $ 1,085,722 16 Accounts Payable $ 112,640 22 Supplies 42,240 12 Salaries and Wages Payable 10,508 46 Office Equipment 87,250 00 Federal Unemployment Tax Payable 89 55 Inventory 167,090 00 Social Security Tax Payable 3,219 22 Vehicle 25,000 00 Medicare Tax Payable 752 88 Accumulated Depreciation, Vehicle State Unemployment Tax Payable 674 99 Building 164,000 00 Employee Federal Income Tax Payable 1,501 38 Accumulated Depreciation, Building Employee State Income Tax Payable 1,160 92 Land 35,750 00 401(k) Contributions Payable 1,018 66 Total Assets 1,607,061 28 Employee Medical Premiums Payable 750 00 Notes Payable 224,750 00 Utilities Payable Total Liabilities 357,061 28 Owners' Equity 1,250,000 00 Retained Earnings Total Equity 1,250,000 00 Total Liabilities and Equity 1,607,061 28 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 Required 2 Complete the payroll process for Wayland Custom Woodworking's last two pay periods of the fourth quarter Please note that you must carry the ending balance from each account in the December 15 General Ledger to the following period's General Ledger to the input boxes titled Ending account balance from the prior period before posting the payroll journal entries from the current period to the Ledger For additional instructions on how to carry information from one pay period General Ledger to another, along with a guided walkthrough example of this process, refer to the project user guide in the project information section above December Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December 15 December 15 is the end of the first pay period for the month of December Employee pay will be disbursed on December 19, 2019 Remember that the employees are paid on a semimonthly basis Compute the net pay and update the Employees' Earnings Records with the December 15 pay and the new YTD information Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees Complete the Employee Gross Pay tab Complete the Payroll Register for December 15 Pay Employee pay will be disbursed on December 19, 2019 Refer to the Employee Earning Record Forms for each employee for the current YTD amounts after you have completed the December 15 Payroll Register and update each EERF with the amounts from the current period YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee Complete the General Journal entries for the December 15 payroll Post the journal entries to the General Ledger Amounts for the ledger accounts from the previous four pay periods of the fourth quarter are shown

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Required information Skip to question [The following information applies to the questions displayed below.] Wayland Custom Woodworking is a firm that manufactures custom cabinets and

Required information

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[The following information applies to the questions displayed below.]

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 the Utah Employer Account Number is 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method.

For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2.

The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees. No employee will reach the SUTA wage cap.

Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees.

Example: Annual Salary to Hourly Rate, Nonexempt Employee

Employee Vardens annual salary is $42,000, and he is a nonexempt employee.

Hourly rate = $42,000 / (52 40) = $42,000 / 2,080

Hourly rate = $20.19231 per hour

Example: Period Gross Pay, Salaried Employee

Employee Chinson earns an annual salary of $24,000 and is paid semimonthly.

Period gross pay = $24,000 / 24 = $1,000 gross pay

For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days applicable to each pay.

Annual salary: $24,000 / (52 5) = $24,000 / 260 = $92.30769 (rounded to 5 decimal points) per day.

After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings. Employees are paid for the following holidays occurring during the final quarter:

Thanksgiving day and the day after, Thursday and Friday, November 2829.
Christmas, which is a Wednesday. Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25.

For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage method tables in Appendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status). Both 401(k) and insurance are pre-tax 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)	$175.00 per allowance claimed
Federal Unemployment Rate (employer only) (less Section 125)	0.6% on the first $7,000 of wages
Semimonthly Federal Percentage Method Tax Table	Appendix C Table #3
State Unemployment Rate (employer only) (less Section 125)	2.6% on the first $35,300 of wages
State Withholding Rate (less 401(k), Section 125)	See Utah Schedule 3, Table A-1 or use the Excel Version of Schedule 3

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	Married, 1 Withholding allowance
	530 Sylvann Avenue	Exempt
	Logan, UT 84321	$24,000/year + commission
	435-555-1212	Start Date: 10/1/2019
	Job title: Account Executive	SSN: 511-22-3333

00-Wayla	Mark Wayland	Married, 5 withholding allowances
	1570 Lovett Street	Exempt
	Logan, UT 84321	$75,000/year
	435-555-1110	Start Date: 10/1/2019
	Job title: President/Owner	SSN: 505-33-1775

01-Peppi	Sylvia Peppinico	Married, 7 withholding allowances
	291 Antioch Road	Exempt
	Logan, UT 84321	$43,500/year
	435-555-2244	Start Date: 10/1/2019
	Job title: Craftsman	SSN: 047-55-9951

01-Varde	Stevon Varden	Married, 2 withholding allowances
	333 Justin Drive	Nonexempt
	Logan, UT 84321	$42,000/year
	435-555-9981	Start Date: 10/1/2019
	Job title: Craftsman	SSN: 022-66-1131

02-Hisso	Leonard Hissop	Single, 4 withholding allowances
	531 5^th Street	Nonexempt
	Logan, UT 84321	$49,500/year
	435-555-5858	Start Date: 10/1/2019
	Job title: Purchasing/Shipping	SSN: 311-22-6698

00-Succe	Student Success	Single, 1 withholding allowance
	1650 South Street	Nonexempt
	Logan, UT 84321	$36,000/year
	435-556-1211	Start Date: 10/1/2019
	Job title: Accounting Clerk	SSN: 555-55-5555

The departments are as follows:

Department 00: Sales and Administration

Department 01: Factory workers

Department 02: Delivery and Customer service

You have been hired as of October 1 as the new accounting clerk. Your employee number is 00-SUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321. Your phone number is 435-556-1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 07/16/2024, and your Social Security number is 555-55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year.

The balance sheet for WCW as of November 30, 2019, is as follows:

Wayland Custom Woodworking Balance Sheet November 30, 2019
Assets			Liabilities & Equity
Cash	$	1,085,722.16	Accounts Payable	$	112,640.22
Supplies		42,240.12	Salaries and Wages Payable		10,508.46
Office Equipment		87,250.00	Federal Unemployment Tax Payable		89.55
Inventory		167,090.00	Social Security Tax Payable		3,219.22
Vehicle		25,000.00	Medicare Tax Payable		752.88
Accumulated Depreciation, Vehicle			State Unemployment Tax Payable		674.99
Building		164,000.00	Employee Federal Income Tax Payable		1,501.38
Accumulated Depreciation, Building			Employee State Income Tax Payable		1,160.92
Land		35,750.00	401(k) Contributions Payable		1,018.66
Total Assets		1,607,061.28	Employee Medical Premiums Payable		750.00
			Notes Payable		224,750.00
			Utilities Payable
			Total Liabilities		357,061.28
			Owners' Equity		1,250,000.00
			Retained Earnings		-
			Total Equity		1,250,000.00
			Total Liabilities and Equity		1,607,061.28

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

Required:

2. Complete the payroll process for Wayland Custom Woodworking's last two pay periods of the fourth quarter. Please note that you must carry the ending balance from each account in the December 15 General Ledger to the following period's General Ledger to the input boxes titled "Ending account balance from the prior period" before posting the payroll journal entries from the current period to the Ledger.

For additional instructions on how to carry information from one pay period General Ledger to another, along with a guided walkthrough example of this process, refer to the project user guide in the project information section above.

December 15

December 15 is the end of the first pay period for the month of December. Employee pay will be disbursed on December 19, 2019. Remember that the employees are paid on a semimonthly basis.

Compute the net pay and update the Employees' Earnings Records with the December 15 pay and the new YTD information. Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees.

Complete the Employee Gross Pay tab.
Complete the Payroll Register for December 15 Pay. Employee pay will be disbursed on December 19, 2019.
Refer to the Employee Earning Record Forms for each employee for the current YTD amounts after you have completed the December 15 Payroll Register and update each EERF with the amounts from the current period. YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee.
Complete the General Journal entries for the December 15 payroll.
Post the journal entries to the General Ledger. Amounts for the ledger accounts from the previous four pay periods of the fourth quarter are shown.