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 amount of the debit to Employees SIT Payable on December 3?

Troibe CHAPTER 7. Payroll Proje Payroll Accounting 2020 in completing the time record columns of the payroll register for ers, you should place an in the day column for each full day worked refer to page PR-2 at the end of the book. If an employee works less than a full day show the actual hours for which the employee will be paid in the case of an employee who begins work during a pay period, compute the earnings by paying the employees their weekly rate for any fwil week Worked. For any partial wwk, compute the earnings for that week by mula 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 thar 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: Hourly Rate $28.13 15.25 Employee Pesona for Catherine Im Dewey W Oleh WA Solows, Thomas Weekly Rate $1,125.00 610 00 675.00 2.307.69 600.00 102500 16.88 28.85 15.00 25.63 15.29 el doby 611.54 5. Plant workers (Borno and Ryu), 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 Bonno, AV Time Time Time Record S M T W T Lost F S Worked 8 8 8 8 8 40 hrs. Ford, C L...... 8 8 8 8 8 40 hrs. Russell, V.A.... 8 8 8 8 8 40 hrs. Ryan. N A ..... 8 8 8 8 40 hrs. Student ........ 8 8 8 8 4 36 hrs. Williams, R. V... 88 D8 8 32 hrs. 8 hrs." "The lost because of personal business charged to personal love, no deduction for this time lost. Dlos full day Time Clerk's Report No. 39 For the Week Ending October 3, 20- Employee Time S Time Record T W T 8 8 8 8 8 8 Time Worked M 8 8 S F 8 8 Bonno, A. V... Ford, CL . Russell, V. A. ... Ryan, N. A..... Student ... Williams, R. V... 8 8 8 8 8 8 8 8 8 8 8 8 8 4 8 40 hrs. 40 hrs. 40 hrs 40 hrs. 36 hrs. I 40 hrs. The time clerk prepared Time Clerk's Report Nos. 38 and 39 from the time used by the employees for these workweeks. In as much as the president, manager sales representations, and servisors do not ring in and out of time clock, their records are not included in the time derks report, but their aries mast be included in the payroll. The following schedule shows the hourly wage rates of the three houn employees used in preparing the payroll register for the payday on October 's report, but their sal- Hourly Rate $17.60 be taken s and olaces Employee Bonn, Anthony Ryan, Norman --- 18.00 Student 1400 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 Earn- 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, $8 was deducted from the earnings of the two plant workers for union dues (Bonno and Ryan). e the amounts to be charged to the appropriate 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, each employee's gross earnings were recorded in the column that identifies the department in which the employee regularly works. The totals of Cost Distribution columns provide the amounts to be charged to the a salary and wage expense accounts and aid department managers and super sers and supervisors in comparing the actual labor costs with the budgeted amount Once the net pay of each employee was computed, all the amo payroll register were footed, proved, and ruled. An entry was made in the journal (page 7-24) transfer cash account to the payroll cash account the amount of th roll to cover the net amount of the payroll; next, the en amputed, all the amount columns in the -7-24) transferring from the regular she amount of the check issi Payroll Accounting 2020 register was posted to the employees' earnings Information from the payroll register was posted to the empre records see pages 7-42 o 7446) Note that when posting the deductions for cach employee, a column e and farme in the earnings deduction for FICA and IL HIT SIT SUTA and CIT All other deductions for each employee are e fataled and recorded as one amount in the Other Deductions column. Subsid wry leders are maintained for Group Insurance Premium Collected and Union Withheld. Thus, any question about the amounts withheld from an employ seamangs my be answered by referring to the appropriate subsidiary lcd . this project, your work will not involve any recording in or reference to the subsidiary ledgers. The proper journal entry recorded salaries, wages, taxes, and the net amount of cash paid from the total of the payroll register. The journal entry to record the pyroll for the first pay in the fourth quarter appears below and in the general journal (page 7-24) 2.307.69 465108 3.600.00 4.898.00 Office Sales Glare Plantages FICA Payable ASD Resab Employee Table Employees Sale Employees UTA Payable Employees at Prable Union Dosbe 95833 224.14 859.00 474.55 9.25 599.86 16.00 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 wages were charged as follows: Administrative Salaries Joseph T O'Neill (President) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Clerk) Student (Accounting Trainee) Ruth Williams (Programmer) Sales Salaries James C. Ferguson (Sales Manager) Dewey W. Mann (Sales Representative) Plant Wages Anthony V. Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas). Sokowski (Supervisor) Der Payroll Project Payroll Accounting 2020 were credited for mployees SUTA Payable, were credited for the total FICA Taxes PayableOASDI and FICA Taxes Payable-HI were chwager $958 33 and $224.14, respectively, the deducted froen employee Employees FIT Payable, Employees SIT Payable Employees SUTA Employees CIT Payable, and Union Dues Payable were credited to quent amount withheld for each kind of dedustion from employees' wages for the payroll transactions, Group Insurance Premium Collected will be cou Pay amounts withheld from employees' was for this type of dedaction, roll Cash was credited for the sam of the amount paid all employees The payroll taxes for this pay were then recorded in the general jou 7-24) as follows: Pales RICA Les Payable- SOI RAPH FUT Pole SUTA --- - Payroll Taxes was debited for the sum of the employers FICA, FUTA, and so taxes. The taxable earnings used in computing each of these payroll taxes man cocained from the appropriate column totals of the payroll register North of Si. 220 gross pay for FUIA only part of Ford's wages are taxable ($700 ($7,000 Limit). The computation of the dshit to Payroll Taxes was KA-ORCE ed in the general journal (page 21.12 291 6. 515.65677 15 15.65677 OSUD f54,778 95232 2012 7291 12635 SURG FICA Taxes Payable --OASDI 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 cwployer under the state unemployment compensation law The journal entries were posted to the proper ledger accounts (pages 7-33 to 7.401 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 On this date, Glo-Brite Paint Company must deposit the Pennsylvania state income taxes withheld from the October 9 payroll The depasit 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 tas semimonthly. Thymust be remitted within three banking days after the case of the monthly periods ending on the 15th and the last day of the month Prepare the journal citry to record the deposit of the taxes and to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper form lefile or online filing. The information needed to tell of the taxes, and post cated the filing of paper forms replaced by ation needed to telefile is listed on Payroll Accounting 2020 eded for the first pace 730-complete the information worksheet needed for monthly period of October. The company Pennsylvania employer scount sumber is 000-0-1300, is EIN is 00-0000660, its filing puss word is GAPCOM, and its telephone number is (215) $55.953. LO 1 Prepare payroll registers. October 23 Prepare the payroll for the last pay period of October from Time Clerk's PROJECT AUDIT TEST Net Paid $12,376.89 Report Nos 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register In as much as only a portion of the payroll register sheer was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first blank ruled line after the October 9 payroll, insert "Payday October 23-For Period Ending October 17, 20- "On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolls, continue to conserve space by recording two payrolls on each separate payroll register sheet. The workers in the plant (Bomo and Ryu) are paid time and a half for any hours worked over eight each workday and for work on Saturdays and are passic the regular hourly rate for work on Sundays or holidays. With this pay period, the wwwlative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's earnings record to PAY POINTS Even though they are not on the time clerk's report, remember to pay the president, sales manager, sales representatives, and supervisors. see the amount of cumulative earnings. Time Clerk's Report No. 40 For the Week Ending October 10, 20- LO 2 Maintain employees earnings records Employee S M Bonn, Av..... Food. CL...... 4 Russell, A .... 8 Rran. N ... 8 Scadent ......... 8 Williams, R. V.... 8 "The lost cost of death of t Time Recond Time Time T W T F S 8 8 8 8 4 44 hrs. 8 8 8 8 36 hrs. 8 8 8 8 40 hrs. 8 8 8 8 40 hrs. 8 8 8 4 8 8 8 8 he charged against anual penonal leve no deduction 36 hrs. 40 hrs. Time Clerk's Report No. 41 For the Week Ending October 17, 20- Time Record Employee S M T W T F S Bonno, AV I 8 8 8 8 8 Ford CL 8 8 8 8 Rus , V.A. 8 8 8 8 Rwan, NA... 8 8 8 8 8 8 Student I 8 8 8 8 4 Williams, R. V... 8 8 8 8 8 Time Worked Time Lost 40 hrs. 40 hrs. 40 hrs. 48 hrs. 36 hrs. 40 hrs. 7-12 CUERT. Payroll Accounting 2020 LO 3 Jumaland post parod payroll tax entries Payroll Cash the net amount mation from the payroll register to each at the salaries, wages taxes withheld, group in ld, and net amount paid, is necessary to record the la PAY POINTS The employees' Pennsylvania State Unemployment The SUTA S ed (0009 on the total wages of each employee. There is notable wage limit on the employees portion of the tax Make the entry transfer from Cash to Payroll cas of the total payroll, and post Post the required information from the employee's earnings record Record in the journal the salaries, wages, ance premiums collected union dus withheld, and net and post to the proper ledger accounts. as that 5. quired to record the October 23 mayroll is the same as to record the October 9 payroll. except it is necessary to pay their bility for the amount withheld from the employees should part of the group insuranse premium. The amount w Collected recorded as a credit to Group Insurance Premium Collect Record in the journal the employer's payrol created; post to the appropriate leder accounts. Journal the employer's payroll taxes and the liabilities November 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 2 roll and complete information worksheet. No: 3 Virginia Russell completed a new Farm W.. changing the number on withholding allowances to 2. Change Russell's earnings record (her mar ital status has not changed). No. 6 Thomas Sokosi completed a Form 4, showing that his mar ital status changed to single and that the number of withholding allow- ances remains at 2. Change Sokowski's earnings record accordingly. No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PAY POINTS Be sure to deduct precum for each $1.000 of group insurance Comed by each employee last day of each month PROJECT AUDIT TEST Net Paid $12,180,03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Clerk's Report No. 42 For the Week Ending October 24, 20- Time Record S M T W T F S 8 8 8 8 8 Employee Time Worked Bonno, AV Fond, CL Russell A Ryan, NA 8 8 8 8 8 8 8 8 Student .... 8 8 8 8 8 8 8 7 The lost out of fly function; deduct 2b "Time out because of tarde debat 1 hour's Day 40 hrs 40 hrs 38 hrs 40 hrs 6 8 4 8 William RV 36 hrs 39 hrs CHAPTER 7 Payroll Accounting 2020 Time For the Report No. 43 Ending October 31, 20.- Windd The T Renard W T F 5 Employee M Bonn, AV Ford CL Rul, V.A. NA... 36 hes William R . PAY POINTS Make changes in November 6 pay. Refer to Nos 5.6 and 7. Na Prepare the payroll for the fo o d in November from Time Clerks Report No. 42 and 43 and record the paychecks issued to all employees Recond this payroll ar the top of the second payroll register she Note: I worked only 38 hours in the week ending Octo- ber 24. Therefore, compute her pay for that week by multiplying 38 by $13.00 (her hourly rate. Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate. Also, record the employer's payroll taxes. PROJECT AUDIT TEST Net Paid $ 1,494.06 November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay (51.223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.381. The total pay for the two partial weeks is $856.24. Record a separate payroll register (on one line) to show Williams's total camnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Wil liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record Wil liams's final pay and the employer's payroll taxes. Post to the ledger PAY POINTS accounts Prepare a Wage and Tax Statement, Form W-2, to be given to Williams Use the blank Form W-2 on page 7-59. Box "a" should be left blank, Since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2 7-14 CHAPTER 7. Polect Payroll Accounting 2020 LO4 Complete dettate and city depost form and jumala the transactions Since the company is subject to the months mplete the Federal Deposit Information oth of the following month. See the deposit of the taxes, and post to thholds the city of Philadelphia The de p osit the faves with che neument of Neucht h the company PAY POINTS Onalax and deposit forms requiring asignature, use Joseph O sname. November 16 No. 11 Electronically deposit the amount of FICA Cases n for the October payrolls and complete the Federal Depos deposit the amount of FICA awes and federal inco Worksheet (page 7-49). Since the comp deposit rule, the deposit is dus on the 15th of the following her 15 is a deposit requirements explained on pas 3.17 to 3-19. ss day. Sunday: therefore, the deposit is to be made on the next Prepare the journal entry to read the deposit of the tach the appropriate ledger accounts. No. 12 Since Glo-Brite Paint Company withholds the city income tax, you must deposit the taxes with th ny states that affects Globe Paw withheld taxes are between $350 a $16.000 per month, the The must deposit the osposit the tax monthly by the 15th of the following month withheld taxes for the October rolls were $1,212.21. Frepare the journal entry to read the deposit of the taxes, and post to the appropriate ledger accounts. Complete the Philadelphia Easte r of Tax Withheld cou- pon (Monthly Wage Tax, which appears on page 7-51. November 17 No. 13 Prepare an employee's marines record for Bebe Am Woods, a new employee who began work today. Todwoods is single and claims one withholding allowance. She is emelowed as a programmer at a monthly salary of $2.600. Address, 102 Franklin Court Philadelphia, PA 19105- 0915. Telephone, 555-1128. Social Security No. 000-00-1587. She is cli- gible for group insurance coverage of $47.000 immediately, although her first deduction for group insurance will not be made until December 18. Department Office Weekly rate: $600.00 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 (Ruth Williams) payrolls and complete the information worksheet. November 20 CT AUDIT TEST 59425.15 No. 15 With this pay, the company has decided to offer employees a Savings Incentive Match Plan for Employees (SIMPLE Retirement Planl. 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. Dewey $900 trution per pay period $250 carbution per a period 5700 contribution perpay period O r ion per a period purposes. The other payrolla The contributions are to be deducted from the participating employees ay and are excluded from the employee's income for federal income tas ws. The other payroll taxes Stall apply. On the payroll registers and mines record, use the blank column under "Deductions for the Use the term "SIMPLE as the new heading for this dedu column on both the payroll register and employee's camin contributions. Use the Isach the payroll register and employees caming record). Project CHAPTER 1. Payroll Accounting 2020 the account in the general leder for SIMPLE Contribution Payable count no. 29. se company must match these contribution dollar for dollar, apo Port of the employee Th e wie cessed through the Accounts Payable Department repare the payroll for the last pay period of November from time eres Report No. 44 and 45, and record the paychecks issued to all employees. Al cord the employer payroll as PAY POINTS The Clarks Report No. 44 For the Week Ending November 7, 20 The Record World S M T W T F S Remember to deduct the premiums on the group insurance for each employee Employee 8 6 Henna AV Ford. CL... Russell VL Ryan N. A . Seadent...... William RV 40 hrs 36 hrs 34 hrs. 8 4 "Th e ordine deduct 6 h Time Time Clerk's Report No. 45 For the Week Ending November 14, 20- Time Record Time Employee S M T W T F S Bonn, A. V . . .. 8 8 8 24 hrs. Fond. CL. ... 8 8 8 8 8 40 hrs Run, VA 8 8 8 8 8 40 hrs. 8 8 8 8 8 40 hrs. 8 8 8 8 4 36 hrs William RV DD 6 8 22 hrs. The lower of d e cu dolot 16 Ryan. NA 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' earings records accordingly. The new wage rates are listed below. PAY POINTS The new wage rates are effective for the December 4 Ford Gatherine Reign Weekly Rate Hourly Rate payroll. 5540.00 610.00 $16.00 15.75 Payroll Accounting 2020 for Paul Weston Young, the pres- d amson 5 2.730 a field sales representative in November 30 No. 17 Prepare an employee's camins record for O Ident's nephew, who began work today. Young is single withholding allowance. He is field sales rep the city where the home office located His beginning per month. Address, 7936 Holmes Drive, Philadelphia Telephone, 555-2096. Social Security No. 000-00- for group insurance coverage of $49.000 Department Sales Weekly rate: $630.00 Hourly rates $15.75 Philadelphia, PA 19107-6107. a W Yangis et Security N roup in December 3 No 18 Deposit with the state of P a nie the amount of state in withheld from the November 20 payroll using Account No. 25 and complete the information worksheet November 20 payroll using General Ledger balance for Vania the amount of state income taxes PROJECT AUDIT TEST Net Paid $1097092 December 4 No. 19 Prepare the payroll for the first of December from Time Clerk Report Nos. 46 and 47 and record the paychecks issued to all employees. Record this payroll at the top of the third payroll registe sheet Note: Thursday, November 26, is a paid holiday for all workers. Also, record the employer's payroll taxes. Employee Time Time Clerk's Report No. 46 For the Week Ending November 21, 20- Time Record Time S M T W T F S Worked Bonn, A. V. 8 8 8 8 8 Ford, CL 8 8 8 8 8 40 hrs. Russell A ... 8 8 8 8 8 40 h Ryan. N. A. .... 8 8 8 4 8 36 hrs Scadent........ 8 8 8 4 8 36 hrs Weds. BA ... 8 8 8 8 32 hrs. "This out of personali delect the Time Clerk's Report No. 47 For the Week Ending November 28, 20.. Time Record Time S M T W T F S Worked Employee Bosan. A 8 Ford, CL Russell, VA Ryan, NA Seudent PAID HOLIDAY 48 hrs. 40 hrs 40 hrs. 43 hrs. Woods. B.A.... "Double 36 vs. 40 hrs. Troibe CHAPTER 7. Payroll Proje Payroll Accounting 2020 in completing the time record columns of the payroll register for ers, you should place an in the day column for each full day worked refer to page PR-2 at the end of the book. If an employee works less than a full day show the actual hours for which the employee will be paid in the case of an employee who begins work during a pay period, compute the earnings by paying the employees their weekly rate for any fwil week Worked. For any partial wwk, compute the earnings for that week by mula 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 thar 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: Hourly Rate $28.13 15.25 Employee Pesona for Catherine Im Dewey W Oleh WA Solows, Thomas Weekly Rate $1,125.00 610 00 675.00 2.307.69 600.00 102500 16.88 28.85 15.00 25.63 15.29 el doby 611.54 5. Plant workers (Borno and Ryu), 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 Bonno, AV Time Time Time Record S M T W T Lost F S Worked 8 8 8 8 8 40 hrs. Ford, C L...... 8 8 8 8 8 40 hrs. Russell, V.A.... 8 8 8 8 8 40 hrs. Ryan. N A ..... 8 8 8 8 40 hrs. Student ........ 8 8 8 8 4 36 hrs. Williams, R. V... 88 D8 8 32 hrs. 8 hrs." "The lost because of personal business charged to personal love, no deduction for this time lost. Dlos full day Time Clerk's Report No. 39 For the Week Ending October 3, 20- Employee Time S Time Record T W T 8 8 8 8 8 8 Time Worked M 8 8 S F 8 8 Bonno, A. V... Ford, CL . Russell, V. A. ... Ryan, N. A..... Student ... Williams, R. V... 8 8 8 8 8 8 8 8 8 8 8 8 8 4 8 40 hrs. 40 hrs. 40 hrs 40 hrs. 36 hrs. I 40 hrs. The time clerk prepared Time Clerk's Report Nos. 38 and 39 from the time used by the employees for these workweeks. In as much as the president, manager sales representations, and servisors do not ring in and out of time clock, their records are not included in the time derks report, but their aries mast be included in the payroll. The following schedule shows the hourly wage rates of the three houn employees used in preparing the payroll register for the payday on October 's report, but their sal- Hourly Rate $17.60 be taken s and olaces Employee Bonn, Anthony Ryan, Norman --- 18.00 Student 1400 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 Earn- 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, $8 was deducted from the earnings of the two plant workers for union dues (Bonno and Ryan). e the amounts to be charged to the appropriate 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, each employee's gross earnings were recorded in the column that identifies the department in which the employee regularly works. The totals of Cost Distribution columns provide the amounts to be charged to the a salary and wage expense accounts and aid department managers and super sers and supervisors in comparing the actual labor costs with the budgeted amount Once the net pay of each employee was computed, all the amo payroll register were footed, proved, and ruled. An entry was made in the journal (page 7-24) transfer cash account to the payroll cash account the amount of th roll to cover the net amount of the payroll; next, the en amputed, all the amount columns in the -7-24) transferring from the regular she amount of the check issi Payroll Accounting 2020 register was posted to the employees' earnings Information from the payroll register was posted to the empre records see pages 7-42 o 7446) Note that when posting the deductions for cach employee, a column e and farme in the earnings deduction for FICA and IL HIT SIT SUTA and CIT All other deductions for each employee are e fataled and recorded as one amount in the Other Deductions column. Subsid wry leders are maintained for Group Insurance Premium Collected and Union Withheld. Thus, any question about the amounts withheld from an employ seamangs my be answered by referring to the appropriate subsidiary lcd . this project, your work will not involve any recording in or reference to the subsidiary ledgers. The proper journal entry recorded salaries, wages, taxes, and the net amount of cash paid from the total of the payroll register. The journal entry to record the pyroll for the first pay in the fourth quarter appears below and in the general journal (page 7-24) 2.307.69 465108 3.600.00 4.898.00 Office Sales Glare Plantages FICA Payable ASD Resab Employee Table Employees Sale Employees UTA Payable Employees at Prable Union Dosbe 95833 224.14 859.00 474.55 9.25 599.86 16.00 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 wages were charged as follows: Administrative Salaries Joseph T O'Neill (President) Office Salaries Catherine L Ford (Executive Secretary) Virginia A. Russell (Time Clerk) Student (Accounting Trainee) Ruth Williams (Programmer) Sales Salaries James C. Ferguson (Sales Manager) Dewey W. Mann (Sales Representative) Plant Wages Anthony V. Bonno (Mixer Operator) Norman A. Ryan (Electrician) Thomas). Sokowski (Supervisor) Der Payroll Project Payroll Accounting 2020 were credited for mployees SUTA Payable, were credited for the total FICA Taxes PayableOASDI and FICA Taxes Payable-HI were chwager $958 33 and $224.14, respectively, the deducted froen employee Employees FIT Payable, Employees SIT Payable Employees SUTA Employees CIT Payable, and Union Dues Payable were credited to quent amount withheld for each kind of dedustion from employees' wages for the payroll transactions, Group Insurance Premium Collected will be cou Pay amounts withheld from employees' was for this type of dedaction, roll Cash was credited for the sam of the amount paid all employees The payroll taxes for this pay were then recorded in the general jou 7-24) as follows: Pales RICA Les Payable- SOI RAPH FUT Pole SUTA --- - Payroll Taxes was debited for the sum of the employers FICA, FUTA, and so taxes. The taxable earnings used in computing each of these payroll taxes man cocained from the appropriate column totals of the payroll register North of Si. 220 gross pay for FUIA only part of Ford's wages are taxable ($700 ($7,000 Limit). The computation of the dshit to Payroll Taxes was KA-ORCE ed in the general journal (page 21.12 291 6. 515.65677 15 15.65677 OSUD f54,778 95232 2012 7291 12635 SURG FICA Taxes Payable --OASDI 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 cwployer under the state unemployment compensation law The journal entries were posted to the proper ledger accounts (pages 7-33 to 7.401 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 On this date, Glo-Brite Paint Company must deposit the Pennsylvania state income taxes withheld from the October 9 payroll The depasit 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 tas semimonthly. Thymust be remitted within three banking days after the case of the monthly periods ending on the 15th and the last day of the month Prepare the journal citry to record the deposit of the taxes and to the appropriate ledger accounts. Pennsylvania has eliminated the filing of paper form lefile or online filing. The information needed to tell of the taxes, and post cated the filing of paper forms replaced by ation needed to telefile is listed on Payroll Accounting 2020 eded for the first pace 730-complete the information worksheet needed for monthly period of October. The company Pennsylvania employer scount sumber is 000-0-1300, is EIN is 00-0000660, its filing puss word is GAPCOM, and its telephone number is (215) $55.953. LO 1 Prepare payroll registers. October 23 Prepare the payroll for the last pay period of October from Time Clerk's PROJECT AUDIT TEST Net Paid $12,376.89 Report Nos 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register In as much as only a portion of the payroll register sheer was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first blank ruled line after the October 9 payroll, insert "Payday October 23-For Period Ending October 17, 20- "On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolls, continue to conserve space by recording two payrolls on each separate payroll register sheet. The workers in the plant (Bomo and Ryu) are paid time and a half for any hours worked over eight each workday and for work on Saturdays and are passic the regular hourly rate for work on Sundays or holidays. With this pay period, the wwwlative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's earnings record to PAY POINTS Even though they are not on the time clerk's report, remember to pay the president, sales manager, sales representatives, and supervisors. see the amount of cumulative earnings. Time Clerk's Report No. 40 For the Week Ending October 10, 20- LO 2 Maintain employees earnings records Employee S M Bonn, Av..... Food. CL...... 4 Russell, A .... 8 Rran. N ... 8 Scadent ......... 8 Williams, R. V.... 8 "The lost cost of death of t Time Recond Time Time T W T F S 8 8 8 8 4 44 hrs. 8 8 8 8 36 hrs. 8 8 8 8 40 hrs. 8 8 8 8 40 hrs. 8 8 8 4 8 8 8 8 he charged against anual penonal leve no deduction 36 hrs. 40 hrs. Time Clerk's Report No. 41 For the Week Ending October 17, 20- Time Record Employee S M T W T F S Bonno, AV I 8 8 8 8 8 Ford CL 8 8 8 8 Rus , V.A. 8 8 8 8 Rwan, NA... 8 8 8 8 8 8 Student I 8 8 8 8 4 Williams, R. V... 8 8 8 8 8 Time Worked Time Lost 40 hrs. 40 hrs. 40 hrs. 48 hrs. 36 hrs. 40 hrs. 7-12 CUERT. Payroll Accounting 2020 LO 3 Jumaland post parod payroll tax entries Payroll Cash the net amount mation from the payroll register to each at the salaries, wages taxes withheld, group in ld, and net amount paid, is necessary to record the la PAY POINTS The employees' Pennsylvania State Unemployment The SUTA S ed (0009 on the total wages of each employee. There is notable wage limit on the employees portion of the tax Make the entry transfer from Cash to Payroll cas of the total payroll, and post Post the required information from the employee's earnings record Record in the journal the salaries, wages, ance premiums collected union dus withheld, and net and post to the proper ledger accounts. as that 5. quired to record the October 23 mayroll is the same as to record the October 9 payroll. except it is necessary to pay their bility for the amount withheld from the employees should part of the group insuranse premium. The amount w Collected recorded as a credit to Group Insurance Premium Collect Record in the journal the employer's payrol created; post to the appropriate leder accounts. Journal the employer's payroll taxes and the liabilities November 4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 2 roll and complete information worksheet. No: 3 Virginia Russell completed a new Farm W.. changing the number on withholding allowances to 2. Change Russell's earnings record (her mar ital status has not changed). No. 6 Thomas Sokosi completed a Form 4, showing that his mar ital status changed to single and that the number of withholding allow- ances remains at 2. Change Sokowski's earnings record accordingly. No. 7 Dewey Mann completed a new Form W-4, leaving his marital status as married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. November 6 PAY POINTS Be sure to deduct precum for each $1.000 of group insurance Comed by each employee last day of each month PROJECT AUDIT TEST Net Paid $12,180,03 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October Time Clerk's Report No. 42 For the Week Ending October 24, 20- Time Record S M T W T F S 8 8 8 8 8 Employee Time Worked Bonno, AV Fond, CL Russell A Ryan, NA 8 8 8 8 8 8 8 8 Student .... 8 8 8 8 8 8 8 7 The lost out of fly function; deduct 2b "Time out because of tarde debat 1 hour's Day 40 hrs 40 hrs 38 hrs 40 hrs 6 8 4 8 William RV 36 hrs 39 hrs CHAPTER 7 Payroll Accounting 2020 Time For the Report No. 43 Ending October 31, 20.- Windd The T Renard W T F 5 Employee M Bonn, AV Ford CL Rul, V.A. NA... 36 hes William R . PAY POINTS Make changes in November 6 pay. Refer to Nos 5.6 and 7. Na Prepare the payroll for the fo o d in November from Time Clerks Report No. 42 and 43 and record the paychecks issued to all employees Recond this payroll ar the top of the second payroll register she Note: I worked only 38 hours in the week ending Octo- ber 24. Therefore, compute her pay for that week by multiplying 38 by $13.00 (her hourly rate. Ruth Williams worked only 39 hours in the week ending October 24. Therefore, compute her pay for that week by multiplying 39 by $15.29 (her hourly rate. Also, record the employer's payroll taxes. PROJECT AUDIT TEST Net Paid $ 1,494.06 November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay (51.223.08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.381. The total pay for the two partial weeks is $856.24. Record a separate payroll register (on one line) to show Williams's total camnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Wil liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record Wil liams's final pay and the employer's payroll taxes. Post to the ledger PAY POINTS accounts Prepare a Wage and Tax Statement, Form W-2, to be given to Williams Use the blank Form W-2 on page 7-59. Box "a" should be left blank, Since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2 7-14 CHAPTER 7. Polect Payroll Accounting 2020 LO4 Complete dettate and city depost form and jumala the transactions Since the company is subject to the months mplete the Federal Deposit Information oth of the following month. See the deposit of the taxes, and post to thholds the city of Philadelphia The de p osit the faves with che neument of Neucht h the company PAY POINTS Onalax and deposit forms requiring asignature, use Joseph O sname. November 16 No. 11 Electronically deposit the amount of FICA Cases n for the October payrolls and complete the Federal Depos deposit the amount of FICA awes and federal inco Worksheet (page 7-49). Since the comp deposit rule, the deposit is dus on the 15th of the following her 15 is a deposit requirements explained on pas 3.17 to 3-19. ss day. Sunday: therefore, the deposit is to be made on the next Prepare the journal entry to read the deposit of the tach the appropriate ledger accounts. No. 12 Since Glo-Brite Paint Company withholds the city income tax, you must deposit the taxes with th ny states that affects Globe Paw withheld taxes are between $350 a $16.000 per month, the The must deposit the osposit the tax monthly by the 15th of the following month withheld taxes for the October rolls were $1,212.21. Frepare the journal entry to read the deposit of the taxes, and post to the appropriate ledger accounts. Complete the Philadelphia Easte r of Tax Withheld cou- pon (Monthly Wage Tax, which appears on page 7-51. November 17 No. 13 Prepare an employee's marines record for Bebe Am Woods, a new employee who began work today. Todwoods is single and claims one withholding allowance. She is emelowed as a programmer at a monthly salary of $2.600. Address, 102 Franklin Court Philadelphia, PA 19105- 0915. Telephone, 555-1128. Social Security No. 000-00-1587. She is cli- gible for group insurance coverage of $47.000 immediately, although her first deduction for group insurance will not be made until December 18. Department Office Weekly rate: $600.00 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 (Ruth Williams) payrolls and complete the information worksheet. November 20 CT AUDIT TEST 59425.15 No. 15 With this pay, the company has decided to offer employees a Savings Incentive Match Plan for Employees (SIMPLE Retirement Planl. 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. Dewey $900 trution per pay period $250 carbution per a period 5700 contribution perpay period O r ion per a period purposes. The other payrolla The contributions are to be deducted from the participating employees ay and are excluded from the employee's income for federal income tas ws. The other payroll taxes Stall apply. On the payroll registers and mines record, use the blank column under "Deductions for the Use the term "SIMPLE as the new heading for this dedu column on both the payroll register and employee's camin contributions. Use the Isach the payroll register and employees caming record). Project CHAPTER 1. Payroll Accounting 2020 the account in the general leder for SIMPLE Contribution Payable count no. 29. se company must match these contribution dollar for dollar, apo Port of the employee Th e wie cessed through the Accounts Payable Department repare the payroll for the last pay period of November from time eres Report No. 44 and 45, and record the paychecks issued to all employees. Al cord the employer payroll as PAY POINTS The Clarks Report No. 44 For the Week Ending November 7, 20 The Record World S M T W T F S Remember to deduct the premiums on the group insurance for each employee Employee 8 6 Henna AV Ford. CL... Russell VL Ryan N. A . Seadent...... William RV 40 hrs 36 hrs 34 hrs. 8 4 "Th e ordine deduct 6 h Time Time Clerk's Report No. 45 For the Week Ending November 14, 20- Time Record Time Employee S M T W T F S Bonn, A. V . . .. 8 8 8 24 hrs. Fond. CL. ... 8 8 8 8 8 40 hrs Run, VA 8 8 8 8 8 40 hrs. 8 8 8 8 8 40 hrs. 8 8 8 8 4 36 hrs William RV DD 6 8 22 hrs. The lower of d e cu dolot 16 Ryan. NA 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' earings records accordingly. The new wage rates are listed below. PAY POINTS The new wage rates are effective for the December 4 Ford Gatherine Reign Weekly Rate Hourly Rate payroll. 5540.00 610.00 $16.00 15.75 Payroll Accounting 2020 for Paul Weston Young, the pres- d amson 5 2.730 a field sales representative in November 30 No. 17 Prepare an employee's camins record for O Ident's nephew, who began work today. Young is single withholding allowance. He is field sales rep the city where the home office located His beginning per month. Address, 7936 Holmes Drive, Philadelphia Telephone, 555-2096. Social Security No. 000-00- for group insurance coverage of $49.000 Department Sales Weekly rate: $630.00 Hourly rates $15.75 Philadelphia, PA 19107-6107. a W Yangis et Security N roup in December 3 No 18 Deposit with the state of P a nie the amount of state in withheld from the November 20 payroll using Account No. 25 and complete the information worksheet November 20 payroll using General Ledger balance for Vania the amount of state income taxes PROJECT AUDIT TEST Net Paid $1097092 December 4 No. 19 Prepare the payroll for the first of December from Time Clerk Report Nos. 46 and 47 and record the paychecks issued to all employees. Record this payroll at the top of the third payroll registe sheet Note: Thursday, November 26, is a paid holiday for all workers. Also, record the employer's payroll taxes. Employee Time Time Clerk's Report No. 46 For the Week Ending November 21, 20- Time Record Time S M T W T F S Worked Bonn, A. V. 8 8 8 8 8 Ford, CL 8 8 8 8 8 40 hrs. Russell A ... 8 8 8 8 8 40 h Ryan. N. A. .... 8 8 8 4 8 36 hrs Scadent........ 8 8 8 4 8 36 hrs Weds. BA ... 8 8 8 8 32 hrs. "This out of personali delect the Time Clerk's Report No. 47 For the Week Ending November 28, 20.. Time Record Time S M T W T F S Worked Employee Bosan. A 8 Ford, CL Russell, VA Ryan, NA Seudent PAID HOLIDAY 48 hrs. 40 hrs 40 hrs. 43 hrs. Woods. B.A.... "Double 36 vs. 40 hrs