Search the web Templates O Browser O D Project 1 - Instructions and Direx File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO to = 1 of 4 | Page View All Read aloud Add text y Draw Highlight Frase 6 03 Project 1 - Instructions (One-Month Project) - Ellipses Corp 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 W Allowances State W/H Allowances Marital Status 111-11-1111 2 2 2 Married 777-77-7777 4 3 Married Name Address Hunter Cranston 85 Southern Road Herndon, VA 20170 Allison Harrison 203A Pine Court Herndon, VA 2017 John Parker 212 Tradition Lane Herndon, VA 20170 Pierre Sternberg 41 Seward Boulevard Herndon, VA 20170 444-44-4444 1 1 1 Single 333-33-3333 N/A N/A Married 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. Type here to search o (? 80F Tornado A Ori? Co 5:08 PM 4/12/2022 Templates O Browser O Search the web Project 1 - Instructions and Direx D + O File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO 3 to ! 2 2 of 4 4 | Page view A Read aloud Add text V Draw Highlight 2 Frasel 0 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: Name Regular Wage Rate Annual Salary Weekly 401(k) Deduction Weekly Charitable Contribution Hunter Cranston $15/hour N/A 6% of gross pay $5 $ $23/hour N/A 5% of gross pay $5 Allison Harrison John Parker N/A A S203,000.20 N/A $20 Pierre Sternberg N/A $112,000.20 1% of gross pay 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 Federal State Income Social Tax Security Tan Medicare TAN 401(k) Deduction Gross Farines Income Tax Charitable Cont. Period O Type here to search o (2 80F Tornado 5:08 PM 4/12/2022 Search the web Templates Browser O D Project 1 - Instructions and Direx + LO 3 ! 2 2 of 4 Highlight Frasel 03 File | C:/Users/lader/Downloads/Project%201%20-%20Instructions%20and%20Directions.pdf | D Page view A Read aloud Add text y Draw Hunter Cranston Federal State Income Social Medicare 401(k) Period Gross Earnings Income Tax Tax Security Tax Tax Deduction 1st quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 2nd quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 3rd quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 October $ 3,000.00 $ 85.00 $ 141.00 $ 186.00 $ 43.50 $ $ 180.00 November $ 2,400.00 $ 68.00 $ 112.80 $ $ 148.80 $ 34.80 s $ 144.00 Charitable Cont. $ 65.00 $ $ 65.00 $ 65.00 $ 25.00 $ 20.00 Allison Harrison Period 1st quarter 2nd quarter 3rd quarter October November Gross Earnings $ 11,960.00 $ 11,960,00 $ 11,960.00 $ 4,500.00 $ 3,680.00 Federal Income Tax $ 403.00 S 403.00 $ 403.00 $ 155.00 $ 124.00 State Income Social Tax Security Tax $ 568.10 $ 741.52 $ 568.10 $ 741.52 $ 568.10 $ 741.52 $ $ 218.50 $ 285.20 $ 174.80 $ 228.16 Medicare Tax $ 173.42 $ 173.42 $ 173.42 $ 66.70 S 53.36 401(k) Deduction $ 598.00 S 598.00 $ 598.00 $ 230.00 $ 184.00 Charitable Cont. $ 65.00 $ 65.00 $ $ 65.00 $ $ 25.00 $ 20.00 John Parker Period 1st quarter 2nd quarter 3rd quarter October November Gross Earnings $ 50,750.05 $ 50,750.05 $ 50,750.05 $ 19,519.25 $ 15,615.40 Federal Income Tax $ 10,844.73 $ 10,844.73 $ 10,844.73 $ 4,171.05 $ 3,336.84 State Income Social Tax Security Tax $ 2,537.47 $ 3,146.52 $ 2.537.47 $ 3,146.52 $ 2,537.47 $ 2,244.36 $ 975.95 S $ 780.76 S Medicare 401(k) Tax Deduction $ 735.93 $ $ 735.93 $ $ 735.93 $ $ - $ 283.05 $ $ 226.44 $ $ Charitable Cont. $ 260.00 $ 260.00 $ $ 260.00 $ 100.00 $ 80.00 Pierre Sternberg O Type here to search (? 80F Sunny AGF G 5:08 PM 4/12/2022 Templates O Browser Search the web Project 1 - Instructions and Direx D File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO 3 ! 3 of 4 | Page view A Read aloud Add text y Draw Highlight Frasel 03 Pierre Sternberg Period 1st quarter 2nd quarter 3rd quarter October Gross Earnings $ $ $ $ $ . $ $ 2,153.85 Federal Income Tax $ $ - $ - S $ 340.73 State Income Social Tax Security Tax $ $ $ $ $ $ $ $ $ $ $ 106.62 $ 133.54 Medicare Tax $ $ - $ - $ $ 31.23 401(k) Deduction $ S $ $ - S $ 21.54 Charitable Cont. $ $ $ S $ November Notes: All tax payments and filings are made on the due date. 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 Start Date Hunter Cranston Allison Harrison 40 37 38 41 November 28 December 5 5 December 12 December 19 43.5 0 40 0 Type here to search O o Ei (2) 80F Sunny AG CM F 5:08 PM 4/12/2022 O Search the web Templates Browser O D Project 1 - Instructions and Direx LO 3 File C:/Users/lader/Downloads:/Project%201%20-%20Instructions%20and%20Directions.pdf | Page view A Read aloud = 4 of 4 - Add text y Draw Highlight Frase 03 From the provided information, please respond to the following One-Month Project analysis questions: 1. What are the total taxable FUTA wages for the year? What would these FUTA taxable wages have been if John Parker earned $100,000 less for the year? 2. For Allison Harrison, by how much do her Wages, Tips, and Other Compensation on Form W-2 differ from her Medicare Wages and Tips? What does this amount represent? 3. Why does the employer not sign Form W-2? Does the employer sign any form that conveys annual employee compensation to the IRS? If so, which form? 4. For John Parker, by how much do his Social Security Wages on Form W-2 differ from his Medicare Wages and Tips? Why does this difference exist? 5. What is the standard Medicare tax rate? Why does this rate differ from the ".029" displayed on line 5c of Form 941? Why does this rate differ from the ".009" displayed on line 5d of Form 941? 6. On Form 940, should Part 5 be completed for the current year? Why or why not? 7. For the 4th quarter, what portion of the total Medicare tax is paid by the employer (not withheld from Employee earnings)? 8. Is John Parker's Medicare tax withheld the same for each pay period in December? Why or why not? 9. Does the employer owe the same amount of SUTA tax for each employee? Why or why not? What is the amount of SUTA tax owed for each employee? this tax 10. Is Additional Medicare Tax withheld from any employee? If so, which employee(s), and why withheld from them? Type here to search (2) 80F Sunny AG 5:09 PM 4/12/2022 Search the web Templates O Browser O D Project 1 - Instructions and Direx File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO to = 1 of 4 | Page View All Read aloud Add text y Draw Highlight Frase 6 03 Project 1 - Instructions (One-Month Project) - Ellipses Corp 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 W Allowances State W/H Allowances Marital Status 111-11-1111 2 2 2 Married 777-77-7777 4 3 Married Name Address Hunter Cranston 85 Southern Road Herndon, VA 20170 Allison Harrison 203A Pine Court Herndon, VA 2017 John Parker 212 Tradition Lane Herndon, VA 20170 Pierre Sternberg 41 Seward Boulevard Herndon, VA 20170 444-44-4444 1 1 1 Single 333-33-3333 N/A N/A Married 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. Type here to search o (? 80F Tornado A Ori? Co 5:08 PM 4/12/2022 Templates O Browser O Search the web Project 1 - Instructions and Direx D + O File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO 3 to ! 2 2 of 4 4 | Page view A Read aloud Add text V Draw Highlight 2 Frasel 0 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: Name Regular Wage Rate Annual Salary Weekly 401(k) Deduction Weekly Charitable Contribution Hunter Cranston $15/hour N/A 6% of gross pay $5 $ $23/hour N/A 5% of gross pay $5 Allison Harrison John Parker N/A A S203,000.20 N/A $20 Pierre Sternberg N/A $112,000.20 1% of gross pay 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 Federal State Income Social Tax Security Tan Medicare TAN 401(k) Deduction Gross Farines Income Tax Charitable Cont. Period O Type here to search o (2 80F Tornado 5:08 PM 4/12/2022 Search the web Templates Browser O D Project 1 - Instructions and Direx + LO 3 ! 2 2 of 4 Highlight Frasel 03 File | C:/Users/lader/Downloads/Project%201%20-%20Instructions%20and%20Directions.pdf | D Page view A Read aloud Add text y Draw Hunter Cranston Federal State Income Social Medicare 401(k) Period Gross Earnings Income Tax Tax Security Tax Tax Deduction 1st quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 2nd quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 3rd quarter $ 7,800.00 $ 221.00 $ 366.60 $ 483.60 $ 113.10 $ 468.00 October $ 3,000.00 $ 85.00 $ 141.00 $ 186.00 $ 43.50 $ $ 180.00 November $ 2,400.00 $ 68.00 $ 112.80 $ $ 148.80 $ 34.80 s $ 144.00 Charitable Cont. $ 65.00 $ $ 65.00 $ 65.00 $ 25.00 $ 20.00 Allison Harrison Period 1st quarter 2nd quarter 3rd quarter October November Gross Earnings $ 11,960.00 $ 11,960,00 $ 11,960.00 $ 4,500.00 $ 3,680.00 Federal Income Tax $ 403.00 S 403.00 $ 403.00 $ 155.00 $ 124.00 State Income Social Tax Security Tax $ 568.10 $ 741.52 $ 568.10 $ 741.52 $ 568.10 $ 741.52 $ $ 218.50 $ 285.20 $ 174.80 $ 228.16 Medicare Tax $ 173.42 $ 173.42 $ 173.42 $ 66.70 S 53.36 401(k) Deduction $ 598.00 S 598.00 $ 598.00 $ 230.00 $ 184.00 Charitable Cont. $ 65.00 $ 65.00 $ $ 65.00 $ $ 25.00 $ 20.00 John Parker Period 1st quarter 2nd quarter 3rd quarter October November Gross Earnings $ 50,750.05 $ 50,750.05 $ 50,750.05 $ 19,519.25 $ 15,615.40 Federal Income Tax $ 10,844.73 $ 10,844.73 $ 10,844.73 $ 4,171.05 $ 3,336.84 State Income Social Tax Security Tax $ 2,537.47 $ 3,146.52 $ 2.537.47 $ 3,146.52 $ 2,537.47 $ 2,244.36 $ 975.95 S $ 780.76 S Medicare 401(k) Tax Deduction $ 735.93 $ $ 735.93 $ $ 735.93 $ $ - $ 283.05 $ $ 226.44 $ $ Charitable Cont. $ 260.00 $ 260.00 $ $ 260.00 $ 100.00 $ 80.00 Pierre Sternberg O Type here to search (? 80F Sunny AGF G 5:08 PM 4/12/2022 Templates O Browser Search the web Project 1 - Instructions and Direx D File | C/Users/lader/Downloads/Project%201%20-%20Instructions%20and20Directions.pdf LO 3 ! 3 of 4 | Page view A Read aloud Add text y Draw Highlight Frasel 03 Pierre Sternberg Period 1st quarter 2nd quarter 3rd quarter October Gross Earnings $ $ $ $ $ . $ $ 2,153.85 Federal Income Tax $ $ - $ - S $ 340.73 State Income Social Tax Security Tax $ $ $ $ $ $ $ $ $ $ $ 106.62 $ 133.54 Medicare Tax $ $ - $ - $ $ 31.23 401(k) Deduction $ S $ $ - S $ 21.54 Charitable Cont. $ $ $ S $ November Notes: All tax payments and filings are made on the due date. 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 Start Date Hunter Cranston Allison Harrison 40 37 38 41 November 28 December 5 5 December 12 December 19 43.5 0 40 0 Type here to search O o Ei (2) 80F Sunny AG CM F 5:08 PM 4/12/2022 O Search the web Templates Browser O D Project 1 - Instructions and Direx LO 3 File C:/Users/lader/Downloads:/Project%201%20-%20Instructions%20and%20Directions.pdf | Page view A Read aloud = 4 of 4 - Add text y Draw Highlight Frase 03 From the provided information, please respond to the following One-Month Project analysis questions: 1. What are the total taxable FUTA wages for the year? What would these FUTA taxable wages have been if John Parker earned $100,000 less for the year? 2. For Allison Harrison, by how much do her Wages, Tips, and Other Compensation on Form W-2 differ from her Medicare Wages and Tips? What does this amount represent? 3. Why does the employer not sign Form W-2? Does the employer sign any form that conveys annual employee compensation to the IRS? If so, which form? 4. For John Parker, by how much do his Social Security Wages on Form W-2 differ from his Medicare Wages and Tips? Why does this difference exist? 5. What is the standard Medicare tax rate? Why does this rate differ from the ".029" displayed on line 5c of Form 941? Why does this rate differ from the ".009" displayed on line 5d of Form 941? 6. On Form 940, should Part 5 be completed for the current year? Why or why not? 7. For the 4th quarter, what portion of the total Medicare tax is paid by the employer (not withheld from Employee earnings)? 8. Is John Parker's Medicare tax withheld the same for each pay period in December? Why or why not? 9. Does the employer owe the same amount of SUTA tax for each employee? Why or why not? What is the amount of SUTA tax owed for each employee? this tax 10. Is Additional Medicare Tax withheld from any employee? If so, which employee(s), and why withheld from them? Type here to search (2) 80F Sunny AG 5:09 PM 4/12/2022