This is the 2020 edition! DECEMBER 4 PAYROLL: (As you complete your work, answer the following questions for the December 3 and December 4 payroll.) What is the net pay for Joseph T. O'Neill?

2. Parol Proyed Overtime Payroll Accounting 2020 PAY POINTS Forrounding rules refer to instructions on page 2-35 All employees except for the exempe administrative employ O'Neill, the sales manager (Fergon, sales repe Visor (Sokowski-are paid time and a half for any over a week. Workers in employees the president Workers in th regulated over e Plant ( a each workday and sales representative (M ), and super a bralf for any overtime exceeding 40 hours and Ryn) are paid time and a half for any work on Saturdays and twice the Saturdays and me regular hourly rate of pay for work on Sundays or holidays. Timekeeping All othee and plant employees, cusce che president, the sales mana. Also, those sentatives, and supervisors, must ning in and out daily on a time employees who ring in and out must notify the time clerk of the information (The unemployment compensation laws of some states re p loyce The time clerk prepares a weekly renort of the hours worked by The calendar for the last quarter of the year is presented below the sales manager, sales repre- erk of the reason for lost time. M T October W T F S 7 8 14 15 21 22 28 29 November 9 16 23 0 10 17 24 31 10 5 6 7 11 18 25 24 12 19 26 13 20 27 14 21 28 December WT 15 22 11 9 16 23 30 10 17 24 31 25 Payday Employees are paid biweekly on Friday. The first payday in the fourth quarter is Fri- day, October 9. Since the weekly time clerk's report is not finished until the Monday following the end of each week, the first pay (October 9) will be for the two weeks September 20-26 and September 27-October 3. The company, in effect, holds back one week's pay. This policy applies to all employees. The next payday (October 231 will cover the days worked in the weeks ending October 10 and October 17. one wecks pa-26 and September 27-fost pay (October 9) wished until the Mondini Payroll Taxes-Contributions and Withholdings Payroll taxes are levied upon Glo-Brite Paint Company and its employees as shown in Figure 7.3. Depositing Taxes The company must deposit federal, state, and city taxes durine eh deposit rules that affect the company appear in Figure 7.4. state, and city taxes during this quarter. The Payroll Aerounting 2020 FIGURE 7.3 Glo Brine Payroll Taxes Paroles d e Arte P a ndit Employees w hen you with information given Ar m or Warradellaset W omed w y gress enduring the fourth So A c hed on you can add employee p . to growing it for the mln portion" Isprofessors earnings paid e mployee during th e rate new player Merete peces fest gress aming paid each La Indah 100 CoboCAD a le - water in the calendar petanfet 112.000 af gross aming paid each wore in the lender Stof 16 mingspaid each worker in the darac plus an additional 0.9 percent on wages over $700.000 116 percent on total gros camnings paldach worker in the W haund w and in 2019. Rates for 2020 were not "Text s for FE, PICA, T, C, and SUTA ile the publishing PAY POINTS Group Insurance The company carries group-term life insurance on all its employees in an amount equal to one and one-half times the annual salary or wages paid each employee (rounded to the nearest thousand). The group insurance program covers full- time employees. A notation has been made on each employee's earnings record to show that each month 304 for each $1,000 of insurance coverage is deducted from the employee's earnings to pay a portion of the premium cost. For example: Anthony Borno has $55,000 of lunce coverage. Therefore, the calculation for his instance deduction is ($55,000/S1,000) X.30 - $16.50. The amount withheld is credited to a liability account entitled Group Insurance Premiums Collected. The taxable portion of group-term life insurance in excess of $50,000 Deduct insurance premiu only on the last payday of month. is disregarded because the employees pay for group-term life insurance. FIGURE 7.4 Deposit Rules Deposit Rules for Glo Brite Paint Company The Foresund Tres must be deposited on or before the 15th of the month folowing the north whit es were withheld. Since Go-Brite is a new employer and has notas labi Sesting the load period, the company is subject to the monthly deposit rule. Sretenons with 1000 or more each quarter, the company must remit te wethedsnively. There must be it within three banking days after the typerlotsending on the 150 and the last day of the month Sina bechy incomes with more than 5398 but less than $ 16,00 each month, the company beate the mostly it. The dy increases withheld during the month must be mitted by the 15th day of the following month Pub Payroll Accounting 2010 PROJECT AUDIT Union Dues TEST check-off system, $8 is de At the start of each pay period remove the Project Audit Test beginning on page 7-67 Answer the questions as you complete each pay period. Both workers in the plant and are union members. Under the are for t em, 8 is deducted o n ly from the plant workers' earning made s , assements, and initiation fees. A notation to this effect has month each plant workers earnings record. On or before the tenth of each treasure s withheld during the preceding month are turned over to the Treasurer of the union Distribution of Labor Costs sure 75 shows how the salaria accounts. r e to be charged to the labor cos PROJECT AUDIT TEST Wet Paid $12,315.64 Start of Payroll Project October 9, 20- No. 1 The first payroll in Octobercovered the two workweeks that ended on The first payroll in Octo September 26 and October 3. This piroll transaction has been entered for you in the payroll register the employees' earnings records, the gen- eral journal, and the general ledger By reviewing the calculations of the wapes and deductions in the payroll register and the posting of the infor mation to the employees' earnings records, you can see the procedure to be followed each pwyday. Wapes and salaries are paid issuing spel payroll checks. When the bank on which they are drawn focives such checks, they will be charged against the pay- roll cash account. Observe the following rules in computing earnings each pay period: 1. Do not make any deduction from an employee's earnings if the employee loses less than 15 minutes of time in any day. Time lost that exceeds 15 minutes is rounded to the nearest quarter hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a nota- tion to that effect on the Time Clerk's Report FIGURE 7.5 Glo-Brite Labor Cost Accounts Personnel Presidente E t Secretary Ford Program wind Time en el Kenting (Student Accounts to Be Charged Administrat Salaries Sales Manager Work Bonne and Ryan Supervisor Slove) Sales Solares Plantage CHAPTER 7 - Payroll Proje Payroll Accounting 2020 2 Incompleting the time record columns of the payroll register for all work- ers, you should place an 8 in the day column for each full day worked frefer to page PR-2 at the end of the book. If an employee works less than a full des show the actual hours for which the employee will be paid. In the case of an employee who begins werk during a pay period, compute the earnings by paying the employees their weekly rate for any full week worked. For any partial wwk, compute the earnings for that week by mul- tiplying the hours worked by the hourly rate of pay. If time lost is to be deducted from a salaried employee's pay, the employ- el pay must be determined by multiplying the actual hours worked for that week by the hourly rate. If hours are missed but no pay is deducted, include those hours in the Time Record columns on the payroll register. The following schedule shows the weekly and hourly wage rates of the salaried employees: Employee Persmes Fot. Catherine Man Dewy - O'Neill, Joseph I. Russell, Virpinu A. Sokowski, Thomas William Ruch ONeill is paid on a biweekly basis Weekly Rate $1,125.00 610.00 675.00 2,307.69 600.00 1,025.00 61154 Hourly Rate $28.13 15.25 16.88 28.85 15.00 25.63 15.29 5. Plant workers (Bonno and Ryan, other than supervisors, are employed on an hourly basis. Compute the wages by multiplying the number of hours worked during the pay period by the employee's hourly rate. 6. The information needed and the sequence of steps that are completed for the payroll are presented in the following discussion. Time Clerk's Report No. 38 For the Week Ending September 26, 20.- Employee S Time Lost Bonno, A.V.... Ford, C L.. Russell, V. A..... Ryan, N. A AL Student Williams, R. V... Time Record S M T W T 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 88 D8 F 8 8 8 8 4 8 Time Worked 40 hrs. 40 hrs. 40 hrs. 40 hrs. 36 hrs. 32 hrs. Time lost because of personal business charged to personal leave; no deduction for this time lost. D-los full day 8 hrs." CAT Payroll Accounting 2020 Time Clark's Degrt No 39 For the Week Ending October 3, 20- Employee | Time Record T W T F S R VA.. R NA S . Will RV The time clerk prepared Time Clerk's Report used by the employees for these workweeks. aries w be included in the payroll Prepared Time Clerk Report s and 39 from the time cards manager le s for these workweeks. I was the president, sales timecoder s , and sensor de moting and out on the cords are not included in the dels report, but their sal The following schedule Following schedule shows the hourly wage rates of the three hours ployees used in preparing the payroll register for the payday on October Employee Hourly Rate Bore the $1750 Pro 18.00 AY POINTS actions are to be taken Jee decimal places and wounded to two places POINTS bles for biweekly The entry required for each employee is recorded in the payroll register. The names of all employees are listed in alphabetical order, including yours as "Stu- dent." The fold-out payroll register forms needed to complete this project are bound at the back of the book (pages PR-2, PR-3, and PR-4). No deduction has been made for the time lost by Williams. Thus, the total num- ber of hours (80) for which payment was made is recorded in the Regular Farn- ings Hours column of the payroll register. However, a notation of the time lost (D) was made in the Time Record column. When posting to Williams's earnings record, 80 hours is recorded in the Regular Earnings Hours column (no deduc- tion for the time lost). In computing the federal income taxes to be withheld, the wage bracket tables in Tax Table B at the back of the book were used (pages T-5 to T-14). Each payday, 58 was deducted from the earnings of the two plant workers for union dues (Boro and Ryan). Payroll check numbers were assigned beginning with check no. 672. In the Labor Cost Distribution columns at the extreme right of the payroll ree- ister cach employee's gross earnings were recorded in the column that identifies the department in which the employee regularly works. The totals of the Labor Cast Distribution columns provide the amounts to be charged to the appropriate salary and wage expense accounts and aid department managers and supervisor in comparing the actual labor costs with the budgeted amounts Once the net pay of each employee was computed, all the amount column payroll register were footed, proved, and ruled. An entry was made in the journal page /-24) transferring from the real cash account to the payroll cash account the amount of the check issued to pay roll to cover the net amount of the payroll; text, the entry t of the payroll, next, the entry was posted CHAPTER ). Project Parall A ting 2010 i n the role was posted to the employees' earnings Nehawe posting the deductions for each employer, a column has been ided the naming record for recording each deduction for FICA (OASDI HELHESE SITA and CIT. All other inductions for each employee are to beled and carded as one amount in the Other Deductions column Subsid- any r emained for Group Collected and Union De Wild. Thus, ant question about the amous withbold from an employ- cars may be answered by referring to the appropriate subsidiary lodger. te this p o ur un will not involver ing or reference to the subsidiary leder The proper journal entry recorded salaries, wages, taxes, and the net amount of cash from the total of the payroll register. The journal entry to record the parol for the first pay in the fourth quarter appears below and in the peneral journal page 7-24 2007.69 0533 2014 41.55 RAPAL Employees Employees Employees Employs cible Dan be Payroll 599.86 15.00 12.315.64 The amounts charged the salary and wage expense accounts were obtained from the totals of the Labor Cost Distribution columns in the payroll register. The sal- aries and wapes were charged as follows Administrative Salaries Joseph TO'Neill (President) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Clerk) Student Accounting Trainee) Ruth Williams (Programmer) Sales Salaries Jumes C. Ferguson (Sales Manager) Dewcy w Mann (Sales Representative) Plant Wages Anthony Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas). Sokowski (Supervisor) Payroll Accounting 2020 FICA Taxes PayableOASDI and $958.33 and $224.14, respectively, Employees FIT Payable, Employees SHT Employees CIT Payable, and Union amount withheld f i nd of deduction fr payroll transactions, Group In Payrollt ned for unts with Was crede and FICA Tas Pavable HI were credited for ctively, the amounts deducted from employees' wages. ployees SIT Payable. Employees SUTA Payable, d Union Dues Payable were credited for the total of do m mavees . In subsequenir Group Insaan b od will be credited for the m ployees' wages for this type of deduction. Finally, Pay- the sum of the metaments paid all employees. This pay were then recorded in the general journal (page roll Cash was credited for the sum of The payroll taxes for this pay were th 7-24) as follows: nts withheld from employees' wages for this 1.38161 95232 RAP -ONSDI RCA Payable Payable SUTA Testle-Employer Payroll Taxes was debited for the sum of th taxes. The taxable earnings used in comp 2291 bited for the sum of the lower's FICA, FUTA, and SUTA earnings used in comune cach of these payroll taxes were only only part of Fonds on the appropriate column oral of the payroll register. Note that Fonds wages are taxable ($200 out of $1.220 gross pay) for FUTA 57.000 limit). The computation of the debit to Payroll Taxes was 6515.4567 $92 1. 4 15.456.77 2017 ON SER 22.91 54 125 S161 ROASE RCA olyollares FICA Taxes PayableOASDI was credited for $958.32, the amount of the lia- bility for the employer's portion of the tax. FICA Taxes Payable-HI was cred- ited for $224.12, the amount of the liability for the employer's share of this tax. FUTA Taxes Payable was credited for the amount of the tax on the employer for federal unemployment purposes ($22.91). SUTA Taxes Payable-Employer was credited for $176.26, which is the amount of the contribution required of the employer under the state unemployment compensation law. The journal entries were posted to the proper ledger accounts pages 7-33 to 7-40). October 15 This is the day on which the deposits of FICA and FIT taxes and the city of Phil- adelphia 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 the close of the semimonthly periods ending on the 15th and the last day of the month. Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper forms (replaced by telefile or online filing. The information needed to telefile is listed on Prepare the journal ding on the 15th and days after the November 16 No. 11 del W deposit Prepare the only to record appropriate lediger Ne 12 Since Globine Pit Company withholds the act of RA T o ut depot there with the Brutus hat if the the Candidat e r a ndre the Federal Deposit In eral Deposit formation Since the cos t to the monthly pois do h o mo See the lays the explained pre -19. November 15 is P is to be made on the next business day epp e r to coed the depose of the taxes, and post to pany withholds the city of Philadelphia h at affects Glo Beste Pae Company states the e $350 and 516000 month, the company w hy he he follow th. The PAY POINTS w d ON Prepare the journal wild taxes for the O n e were $1,212 to the appropria are the journal entry road the door of the taxes, and post dracu Complete the Philadelphia the Philadelphia Emple Return of Tax withheld cow Monthly Wax , which appears on page 7-31 November 17 1 Prepare an employee's camised for the Woodsame withholding allowance. She is employed as a pro who began work to Todor Words is in de and daimone employed as a programme at a monthly salary of 52,600. Addres, 102 F inc a delphia, PA 19103 915. Telephone, 555-112. Sosial Security 00.1587. She is el for group in T ower of $47.000 ely, although her dada formal e r 18 Department Office Weekly rates Hourly rate: $15.00 November 18 No. 14 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the November 6 and 13 Rath will payrolls and complete the information worksheet. November 20 No. 15 With this pay the company has decided to offer employees a Savings Incentive Match Man for Employees (SIMPLE Retirement Man). Most of the employees opted to wait until the start of the following year to participate. However, the following employees have decided to take part in the plan for the remaining pay periods of the year Dwyane $280 Speed ROJECT AUDIT TEST et Pad 5942515 No The contributions are to be deducted from the participating employee's pay and are excluded from the employees income for federal income tax purposes. The other payroll as still apply. On the payroll registers and the earnings record, use the blank column under "Deductions for the contributions. Use the term "SIMPLE as the new heading for this date tion column on both the payroll register and employee's carnings record, SIMPLE Contribution t he w ater The man d alar for dalla pro of the The points will be d h e Accounts Payable Department Prepare the p roll for the last pay period of November from time a p No 44 and 45. and record the paychecks issued to all es Allemand the employers payroll as C m PAY POINTS Remember to deduct the premiums on the group insurance for each employee The Clark Report No. 44 for the Week Ending November 7, 20. Time Record pas lect ladim dedit hour The low Time Clerks Report No. 45 For the Week Ending November 14, 20.. Time Employee s M S Worked Bonno, A K Ford, CL Russell, VA... 8 8 8 8 D Time Recerd T W T F 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 D 8 6 8 40 hrs. 40 hrs. 40 hrs 36 hrs. 22 hrs. Williams, RV 18 hrs. Time Forecofundidadar 2 houpur. Unescued absence deduct 16 hour' pay No. 16 Salary increases of $30 per week, effective for the two weeks covered in the December 4 payroll, are given to Catherine L. Ford and Virginia A. Russell. The group insurance coverage for Ford will be increased to $50,000; for Russell, it will be increased to $49,000. Update the employ- ees' earnings records accordingly. The new wage rates are listed below. PAY POINTS The new wage rates are effective for the December 4 Employee Ford, Catherine Weekly Rate payroll Russel Virginia 5540.00 630.00 Hourly Rate $16.00 15.75 Payroll Accounting 2020 November 30 No. 17 Prepare an employee's car ident's nephew, who beg, withholding allowance. He y where the home office is located. His per month. Address Telephone, 5552096. Social Security No 000-00-609 for group insurance coverage of $49.000 Department: Sales Weekly rate: $630.00 Hourly rate: $15.75 with nephew a rnings record for Powston Yow , the pres- began work today. Young is single and claims one city where ance. He is Training as a field sales representative in Address 20 ce is located. His beginning salary is $2,730 916 Holmes Drive. Philadelphia, PA 19107-6107, 96. Social Security No 000-00-6057, Young is eligible December 3 NO. 18 Deposit with the the amount of state ed from the Novembe l line General Ledger balance for Account No. 25 and complete the information worksheet. of Pennsylvania the amount of state income taxes CT AUDIT TEST December 4 No. 19 Prepare the payroll for the first $10.970.92 The payroll for the first biweekly pay period of December from Time Clerks Report Nos. 46 and 47 and record the paychecks issued to employees. Record this payroll at the top of the third payroll register sheet. Note: Thursday, November 26, is a paid holiday for all workers. Also, record the employer's payroll taxes. Time Time Clerk's Report No. 46 For the Week Ending November 21, 20- Time Record Employee S M T W T F S Bonno, AV 8 8 8 8 8 Ford, C L ..... 8 8 8 8 8 Russell, VA ... 8 8 8 8 8 Ryan. N. A. ... 8 8 8 4 Student Woods, B. A... "Time out on account of personal business deduct bun pay. 40 hrs. 40 hrs 40 hrs 36 hrs. 36 hrs. 32 hrs. 24hrs Time Clerk's Report No. 47 For the Week Ending November 28, 20. Time Record S M T W T F S Bonno, A. V. ... 8 8 8 8 8 8 8 8 8 Russell, VA..... Employee Ford, C.L . Time Worked Time e I Ryan, N.A..... Studi Woods, B.A.... "Double time 8 8 9 10 PAID HOLIDAY o o 48 hrs 40 hrs 40 hrs 43 hrs 36 hes 40 hrs. 2. Parol Proyed Overtime Payroll Accounting 2020 PAY POINTS Forrounding rules refer to instructions on page 2-35 All employees except for the exempe administrative employ O'Neill, the sales manager (Fergon, sales repe Visor (Sokowski-are paid time and a half for any over a week. Workers in employees the president Workers in th regulated over e Plant ( a each workday and sales representative (M ), and super a bralf for any overtime exceeding 40 hours and Ryn) are paid time and a half for any work on Saturdays and twice the Saturdays and me regular hourly rate of pay for work on Sundays or holidays. Timekeeping All othee and plant employees, cusce che president, the sales mana. Also, those sentatives, and supervisors, must ning in and out daily on a time employees who ring in and out must notify the time clerk of the information (The unemployment compensation laws of some states re p loyce The time clerk prepares a weekly renort of the hours worked by The calendar for the last quarter of the year is presented below the sales manager, sales repre- erk of the reason for lost time. M T October W T F S 7 8 14 15 21 22 28 29 November 9 16 23 0 10 17 24 31 10 5 6 7 11 18 25 24 12 19 26 13 20 27 14 21 28 December WT 15 22 11 9 16 23 30 10 17 24 31 25 Payday Employees are paid biweekly on Friday. The first payday in the fourth quarter is Fri- day, October 9. Since the weekly time clerk's report is not finished until the Monday following the end of each week, the first pay (October 9) will be for the two weeks September 20-26 and September 27-October 3. The company, in effect, holds back one week's pay. This policy applies to all employees. The next payday (October 231 will cover the days worked in the weeks ending October 10 and October 17. one wecks pa-26 and September 27-fost pay (October 9) wished until the Mondini Payroll Taxes-Contributions and Withholdings Payroll taxes are levied upon Glo-Brite Paint Company and its employees as shown in Figure 7.3. Depositing Taxes The company must deposit federal, state, and city taxes durine eh deposit rules that affect the company appear in Figure 7.4. state, and city taxes during this quarter. The Payroll Aerounting 2020 FIGURE 7.3 Glo Brine Payroll Taxes Paroles d e Arte P a ndit Employees w hen you with information given Ar m or Warradellaset W omed w y gress enduring the fourth So A c hed on you can add employee p . to growing it for the mln portion" Isprofessors earnings paid e mployee during th e rate new player Merete peces fest gress aming paid each La Indah 100 CoboCAD a le - water in the calendar petanfet 112.000 af gross aming paid each wore in the lender Stof 16 mingspaid each worker in the darac plus an additional 0.9 percent on wages over $700.000 116 percent on total gros camnings paldach worker in the W haund w and in 2019. Rates for 2020 were not "Text s for FE, PICA, T, C, and SUTA ile the publishing PAY POINTS Group Insurance The company carries group-term life insurance on all its employees in an amount equal to one and one-half times the annual salary or wages paid each employee (rounded to the nearest thousand). The group insurance program covers full- time employees. A notation has been made on each employee's earnings record to show that each month 304 for each $1,000 of insurance coverage is deducted from the employee's earnings to pay a portion of the premium cost. For example: Anthony Borno has $55,000 of lunce coverage. Therefore, the calculation for his instance deduction is ($55,000/S1,000) X.30 - $16.50. The amount withheld is credited to a liability account entitled Group Insurance Premiums Collected. The taxable portion of group-term life insurance in excess of $50,000 Deduct insurance premiu only on the last payday of month. is disregarded because the employees pay for group-term life insurance. FIGURE 7.4 Deposit Rules Deposit Rules for Glo Brite Paint Company The Foresund Tres must be deposited on or before the 15th of the month folowing the north whit es were withheld. Since Go-Brite is a new employer and has notas labi Sesting the load period, the company is subject to the monthly deposit rule. Sretenons with 1000 or more each quarter, the company must remit te wethedsnively. There must be it within three banking days after the typerlotsending on the 150 and the last day of the month Sina bechy incomes with more than 5398 but less than $ 16,00 each month, the company beate the mostly it. The dy increases withheld during the month must be mitted by the 15th day of the following month Pub Payroll Accounting 2010 PROJECT AUDIT Union Dues TEST check-off system, $8 is de At the start of each pay period remove the Project Audit Test beginning on page 7-67 Answer the questions as you complete each pay period. Both workers in the plant and are union members. Under the are for t em, 8 is deducted o n ly from the plant workers' earning made s , assements, and initiation fees. A notation to this effect has month each plant workers earnings record. On or before the tenth of each treasure s withheld during the preceding month are turned over to the Treasurer of the union Distribution of Labor Costs sure 75 shows how the salaria accounts. r e to be charged to the labor cos PROJECT AUDIT TEST Wet Paid $12,315.64 Start of Payroll Project October 9, 20- No. 1 The first payroll in Octobercovered the two workweeks that ended on The first payroll in Octo September 26 and October 3. This piroll transaction has been entered for you in the payroll register the employees' earnings records, the gen- eral journal, and the general ledger By reviewing the calculations of the wapes and deductions in the payroll register and the posting of the infor mation to the employees' earnings records, you can see the procedure to be followed each pwyday. Wapes and salaries are paid issuing spel payroll checks. When the bank on which they are drawn focives such checks, they will be charged against the pay- roll cash account. Observe the following rules in computing earnings each pay period: 1. Do not make any deduction from an employee's earnings if the employee loses less than 15 minutes of time in any day. Time lost that exceeds 15 minutes is rounded to the nearest quarter hour and deducted. If the time lost by an employee is not to be deducted, the time clerk will make a nota- tion to that effect on the Time Clerk's Report FIGURE 7.5 Glo-Brite Labor Cost Accounts Personnel Presidente E t Secretary Ford Program wind Time en el Kenting (Student Accounts to Be Charged Administrat Salaries Sales Manager Work Bonne and Ryan Supervisor Slove) Sales Solares Plantage CHAPTER 7 - Payroll Proje Payroll Accounting 2020 2 Incompleting the time record columns of the payroll register for all work- ers, you should place an 8 in the day column for each full day worked frefer to page PR-2 at the end of the book. If an employee works less than a full des show the actual hours for which the employee will be paid. In the case of an employee who begins werk during a pay period, compute the earnings by paying the employees their weekly rate for any full week worked. For any partial wwk, compute the earnings for that week by mul- tiplying the hours worked by the hourly rate of pay. If time lost is to be deducted from a salaried employee's pay, the employ- el pay must be determined by multiplying the actual hours worked for that week by the hourly rate. If hours are missed but no pay is deducted, include those hours in the Time Record columns on the payroll register. The following schedule shows the weekly and hourly wage rates of the salaried employees: Employee Persmes Fot. Catherine Man Dewy - O'Neill, Joseph I. Russell, Virpinu A. Sokowski, Thomas William Ruch ONeill is paid on a biweekly basis Weekly Rate $1,125.00 610.00 675.00 2,307.69 600.00 1,025.00 61154 Hourly Rate $28.13 15.25 16.88 28.85 15.00 25.63 15.29 5. Plant workers (Bonno and Ryan, other than supervisors, are employed on an hourly basis. Compute the wages by multiplying the number of hours worked during the pay period by the employee's hourly rate. 6. The information needed and the sequence of steps that are completed for the payroll are presented in the following discussion. Time Clerk's Report No. 38 For the Week Ending September 26, 20.- Employee S Time Lost Bonno, A.V.... Ford, C L.. Russell, V. A..... Ryan, N. A AL Student Williams, R. V... Time Record S M T W T 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 88 D8 F 8 8 8 8 4 8 Time Worked 40 hrs. 40 hrs. 40 hrs. 40 hrs. 36 hrs. 32 hrs. Time lost because of personal business charged to personal leave; no deduction for this time lost. D-los full day 8 hrs." CAT Payroll Accounting 2020 Time Clark's Degrt No 39 For the Week Ending October 3, 20- Employee | Time Record T W T F S R VA.. R NA S . Will RV The time clerk prepared Time Clerk's Report used by the employees for these workweeks. aries w be included in the payroll Prepared Time Clerk Report s and 39 from the time cards manager le s for these workweeks. I was the president, sales timecoder s , and sensor de moting and out on the cords are not included in the dels report, but their sal The following schedule Following schedule shows the hourly wage rates of the three hours ployees used in preparing the payroll register for the payday on October Employee Hourly Rate Bore the $1750 Pro 18.00 AY POINTS actions are to be taken Jee decimal places and wounded to two places POINTS bles for biweekly The entry required for each employee is recorded in the payroll register. The names of all employees are listed in alphabetical order, including yours as "Stu- dent." The fold-out payroll register forms needed to complete this project are bound at the back of the book (pages PR-2, PR-3, and PR-4). No deduction has been made for the time lost by Williams. Thus, the total num- ber of hours (80) for which payment was made is recorded in the Regular Farn- ings Hours column of the payroll register. However, a notation of the time lost (D) was made in the Time Record column. When posting to Williams's earnings record, 80 hours is recorded in the Regular Earnings Hours column (no deduc- tion for the time lost). In computing the federal income taxes to be withheld, the wage bracket tables in Tax Table B at the back of the book were used (pages T-5 to T-14). Each payday, 58 was deducted from the earnings of the two plant workers for union dues (Boro and Ryan). Payroll check numbers were assigned beginning with check no. 672. In the Labor Cost Distribution columns at the extreme right of the payroll ree- ister cach employee's gross earnings were recorded in the column that identifies the department in which the employee regularly works. The totals of the Labor Cast Distribution columns provide the amounts to be charged to the appropriate salary and wage expense accounts and aid department managers and supervisor in comparing the actual labor costs with the budgeted amounts Once the net pay of each employee was computed, all the amount column payroll register were footed, proved, and ruled. An entry was made in the journal page /-24) transferring from the real cash account to the payroll cash account the amount of the check issued to pay roll to cover the net amount of the payroll; text, the entry t of the payroll, next, the entry was posted CHAPTER ). Project Parall A ting 2010 i n the role was posted to the employees' earnings Nehawe posting the deductions for each employer, a column has been ided the naming record for recording each deduction for FICA (OASDI HELHESE SITA and CIT. All other inductions for each employee are to beled and carded as one amount in the Other Deductions column Subsid- any r emained for Group Collected and Union De Wild. Thus, ant question about the amous withbold from an employ- cars may be answered by referring to the appropriate subsidiary lodger. te this p o ur un will not involver ing or reference to the subsidiary leder The proper journal entry recorded salaries, wages, taxes, and the net amount of cash from the total of the payroll register. The journal entry to record the parol for the first pay in the fourth quarter appears below and in the peneral journal page 7-24 2007.69 0533 2014 41.55 RAPAL Employees Employees Employees Employs cible Dan be Payroll 599.86 15.00 12.315.64 The amounts charged the salary and wage expense accounts were obtained from the totals of the Labor Cost Distribution columns in the payroll register. The sal- aries and wapes were charged as follows Administrative Salaries Joseph TO'Neill (President) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Clerk) Student Accounting Trainee) Ruth Williams (Programmer) Sales Salaries Jumes C. Ferguson (Sales Manager) Dewcy w Mann (Sales Representative) Plant Wages Anthony Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas). Sokowski (Supervisor) Payroll Accounting 2020 FICA Taxes PayableOASDI and $958.33 and $224.14, respectively, Employees FIT Payable, Employees SHT Employees CIT Payable, and Union amount withheld f i nd of deduction fr payroll transactions, Group In Payrollt ned for unts with Was crede and FICA Tas Pavable HI were credited for ctively, the amounts deducted from employees' wages. ployees SIT Payable. Employees SUTA Payable, d Union Dues Payable were credited for the total of do m mavees . In subsequenir Group Insaan b od will be credited for the m ployees' wages for this type of deduction. Finally, Pay- the sum of the metaments paid all employees. This pay were then recorded in the general journal (page roll Cash was credited for the sum of The payroll taxes for this pay were th 7-24) as follows: nts withheld from employees' wages for this 1.38161 95232 RAP -ONSDI RCA Payable Payable SUTA Testle-Employer Payroll Taxes was debited for the sum of th taxes. The taxable earnings used in comp 2291 bited for the sum of the lower's FICA, FUTA, and SUTA earnings used in comune cach of these payroll taxes were only only part of Fonds on the appropriate column oral of the payroll register. Note that Fonds wages are taxable ($200 out of $1.220 gross pay) for FUTA 57.000 limit). The computation of the debit to Payroll Taxes was 6515.4567 $92 1. 4 15.456.77 2017 ON SER 22.91 54 125 S161 ROASE RCA olyollares FICA Taxes PayableOASDI was credited for $958.32, the amount of the lia- bility for the employer's portion of the tax. FICA Taxes Payable-HI was cred- ited for $224.12, the amount of the liability for the employer's share of this tax. FUTA Taxes Payable was credited for the amount of the tax on the employer for federal unemployment purposes ($22.91). SUTA Taxes Payable-Employer was credited for $176.26, which is the amount of the contribution required of the employer under the state unemployment compensation law. The journal entries were posted to the proper ledger accounts pages 7-33 to 7-40). October 15 This is the day on which the deposits of FICA and FIT taxes and the city of Phil- adelphia 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 the close of the semimonthly periods ending on the 15th and the last day of the month. Prepare the journal entry to record the deposit of the taxes, and post to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper forms (replaced by telefile or online filing. The information needed to telefile is listed on Prepare the journal ding on the 15th and days after the November 16 No. 11 del W deposit Prepare the only to record appropriate lediger Ne 12 Since Globine Pit Company withholds the act of RA T o ut depot there with the Brutus hat if the the Candidat e r a ndre the Federal Deposit In eral Deposit formation Since the cos t to the monthly pois do h o mo See the lays the explained pre -19. November 15 is P is to be made on the next business day epp e r to coed the depose of the taxes, and post to pany withholds the city of Philadelphia h at affects Glo Beste Pae Company states the e $350 and 516000 month, the company w hy he he follow th. The PAY POINTS w d ON Prepare the journal wild taxes for the O n e were $1,212 to the appropria are the journal entry road the door of the taxes, and post dracu Complete the Philadelphia the Philadelphia Emple Return of Tax withheld cow Monthly Wax , which appears on page 7-31 November 17 1 Prepare an employee's camised for the Woodsame withholding allowance. She is employed as a pro who began work to Todor Words is in de and daimone employed as a programme at a monthly salary of 52,600. Addres, 102 F inc a delphia, PA 19103 915. Telephone, 555-112. Sosial Security 00.1587. She is el for group in T ower of $47.000 ely, although her dada formal e r 18 Department Office Weekly rates Hourly rate: $15.00 November 18 No. 14 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the November 6 and 13 Rath will payrolls and complete the information worksheet. November 20 No. 15 With this pay the company has decided to offer employees a Savings Incentive Match Man for Employees (SIMPLE Retirement Man). Most of the employees opted to wait until the start of the following year to participate. However, the following employees have decided to take part in the plan for the remaining pay periods of the year Dwyane $280 Speed ROJECT AUDIT TEST et Pad 5942515 No The contributions are to be deducted from the participating employee's pay and are excluded from the employees income for federal income tax purposes. The other payroll as still apply. On the payroll registers and the earnings record, use the blank column under "Deductions for the contributions. Use the term "SIMPLE as the new heading for this date tion column on both the payroll register and employee's carnings record, SIMPLE Contribution t he w ater The man d alar for dalla pro of the The points will be d h e Accounts Payable Department Prepare the p roll for the last pay period of November from time a p No 44 and 45. and record the paychecks issued to all es Allemand the employers payroll as C m PAY POINTS Remember to deduct the premiums on the group insurance for each employee The Clark Report No. 44 for the Week Ending November 7, 20. Time Record pas lect ladim dedit hour The low Time Clerks Report No. 45 For the Week Ending November 14, 20.. Time Employee s M S Worked Bonno, A K Ford, CL Russell, VA... 8 8 8 8 D Time Recerd T W T F 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 4 D 8 6 8 40 hrs. 40 hrs. 40 hrs 36 hrs. 22 hrs. Williams, RV 18 hrs. Time Forecofundidadar 2 houpur. Unescued absence deduct 16 hour' pay No. 16 Salary increases of $30 per week, effective for the two weeks covered in the December 4 payroll, are given to Catherine L. Ford and Virginia A. Russell. The group insurance coverage for Ford will be increased to $50,000; for Russell, it will be increased to $49,000. Update the employ- ees' earnings records accordingly. The new wage rates are listed below. PAY POINTS The new wage rates are effective for the December 4 Employee Ford, Catherine Weekly Rate payroll Russel Virginia 5540.00 630.00 Hourly Rate $16.00 15.75 Payroll Accounting 2020 November 30 No. 17 Prepare an employee's car ident's nephew, who beg, withholding allowance. He y where the home office is located. His per month. Address Telephone, 5552096. Social Security No 000-00-609 for group insurance coverage of $49.000 Department: Sales Weekly rate: $630.00 Hourly rate: $15.75 with nephew a rnings record for Powston Yow , the pres- began work today. Young is single and claims one city where ance. He is Training as a field sales representative in Address 20 ce is located. His beginning salary is $2,730 916 Holmes Drive. Philadelphia, PA 19107-6107, 96. Social Security No 000-00-6057, Young is eligible December 3 NO. 18 Deposit with the the amount of state ed from the Novembe l line General Ledger balance for Account No. 25 and complete the information worksheet. of Pennsylvania the amount of state income taxes CT AUDIT TEST December 4 No. 19 Prepare the payroll for the first $10.970.92 The payroll for the first biweekly pay period of December from Time Clerks Report Nos. 46 and 47 and record the paychecks issued to employees. Record this payroll at the top of the third payroll register sheet. Note: Thursday, November 26, is a paid holiday for all workers. Also, record the employer's payroll taxes. Time Time Clerk's Report No. 46 For the Week Ending November 21, 20- Time Record Employee S M T W T F S Bonno, AV 8 8 8 8 8 Ford, C L ..... 8 8 8 8 8 Russell, VA ... 8 8 8 8 8 Ryan. N. A. ... 8 8 8 4 Student Woods, B. A... "Time out on account of personal business deduct bun pay. 40 hrs. 40 hrs 40 hrs 36 hrs. 36 hrs. 32 hrs. 24hrs Time Clerk's Report No. 47 For the Week Ending November 28, 20. Time Record S M T W T F S Bonno, A. V. ... 8 8 8 8 8 8 8 8 8 Russell, VA..... Employee Ford, C.L . Time Worked Time e I Ryan, N.A..... Studi Woods, B.A.... "Double time 8 8 9 10 PAID HOLIDAY o o 48 hrs 40 hrs 40 hrs 43 hrs 36 hes 40 hrs