Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Waylands EIN is 91-7444533, and the Utah Employer Account Number is 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method.
For Part 2 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2 on or before the due date 01/15/2020.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and and marital statuses, a table has been included to assist with calculations of state tax due for employees.
For Part 2 of this project, you will use the fourth quarter payroll information that you calculated in Part 1 to complete the following tax forms for Wayland Custom Woodworking:
- U.S. Form 941
- U.S. Form 940
- Utah Form TC-941
- Utah Form 33H
- Form W-2s for all 6 employees
- Form W-3 for WCW
Elective deferrals including deferrals under a simple retirement account that is part of a section 401(k) arrangement should be reported in Box 12, using code D. Employer amounts for health coverage should be reported as 1.5 times the employee's premium in Box 12, using Code DD. Specific instructions on how to complete each form can be found within the individual forms themselves. The employee information for Wayland has been presented again below, for convenience.
| Employee Number | Name and Address | Payroll information |
| 00-Chins | Anthony Chinson | Married, 1 Withholding allowance |
| 530 Sylvann Avenue | Exempt |
| Logan, UT 84321 | $24,000/year + commission |
| 435-555-1212 | Start Date: 10/1/2019 |
| Job title: Account Executive | SSN: 511-22-3333 |
| | | |
| 00-Wayla | Mark Wayland | Married, 5 withholding allowances |
| 1570 Lovett Street | Exempt |
| Logan, UT 84321 | $75,000/year |
| 435-555-1110 | Start Date: 10/1/2019 |
| Job title: President/Owner | SSN: 505-33-1775 |
| | |
| 01-Peppi | Sylvia Peppinico | Married, 7 withholding allowances |
| 291 Antioch Road | Exempt |
| Logan, UT 84321 | $43,500/year |
| 435-555-2244 | Start Date: 10/1/2019 |
| Job title: Craftsman | SSN: 047-55-9951 |
| | |
| 01-Varde | Stevon Varden | Married, 2 withholding allowances |
| 333 Justin Drive | Nonexempt |
| Logan, UT 84321 | $42,000/year |
| 435-555-9981 | Start Date: 10/1/2019 |
| Job title: Craftsman | SSN: 022-66-1131 |
| | |
| 02-Hisso | Leonard Hissop | Single, 4 withholding allowances |
| 531 5th Street | Nonexempt |
| Logan, UT 84321 | $49,500/year |
| 435-555-5858 | Start Date: 10/1/2019 |
| Job title: Purchasing/Shipping | SSN: 311-22-6698 |
| | |
| 00-Succe | Student Success | Single, 1 withholding allowance |
| 1650 South Street | Nonexempt |
| Logan, UT 84321 | $36,000/year |
| 435-556-1211 | Start Date: 10/1/2019 |
| Job title: Accounting Clerk | SSN: 555-55-5555 |
| | |
Total deposits made for the quarter is $10,875.10. Monthly tax liability:
| | |
| October | $ | 5,550.41 | |
| November | | 5,324.69 | |
| December | | 2,557.16 | |
| |
FUTA tax deposited for the year, including any overpayment applied from a prior year is $248.11.
Form 941 for 2019: Employer identification number (EIN) Name (not your trade name) Trade name (if any) Address 1716 Number Logan City 950117 OMB No. 1545-0029 Report for this Quarter 2019 (Check one.) January, February, March April May June Employer's QUARTERLY Federal Tax Return Department of the Treasury - Internal Revenue Service 91-7444533 Mark Wayland 01: Wayland Custom Woodworking O2 Nichol Street 3: Street Suite or room number UT 84321 4 State (NN) ZIP code July, August September October, November December Instructions and prior-year forms are available at www.irs.gov/form941. Foreign country name Foreign Province/county Foreign Postal code 6 Read the separate instructions before you complete this form. Please type or print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 2 Wages, tips, and other compensation (Enter amounts on line 2 that would also be included in box 1 of your employees' Forms W-2.) 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax 2 Check and go to line 6. 5e 0.00 5f 6 0.00 Column 1 Column 2 5a Taxable social security wages x 0.124 0.00 5b Taxable social security tips x 0.124 0.00 5c Taxable Medicare wages & tips X 0.029 0.00 5d Taxable wages & tips subject to Additional Medicare Tax x 0.009 0.00 withholding 5e Add Column 2 from lines 5a, 5b, 5c, and 5d 5f Section 3121(9) Notice and Demand - Tax due on unreported tips (see instructions) 6 Total taxes before adjustments. Add lines 3, 5e, and 5f 7 Current quarter's adjustments for fractions of cents 8 Current quarter's adjustments for sick pay 9 Current quarter's adjustments for tips and group-term life insurance 10 Total taxes after adjustments. Combine lines 6 through 9 11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 12 Total taxes after adjustments and credits. Subtract line 11 from line 10 . 13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941- X (PR), 944-X, or 944-X (SP) filed in the current quarter 14 Balance due. If line 12 is more than line 13, enter the difference and see instructions 7 8 9 9 10 0.00 11 12 0.00 13 14 0.001 15 Overpayment. If line 13 is more than line 12, enter the difference 0.00 Apply to next Check one: retum | Send a refund. Form 941 for 2019: Employer identification number (EIN) Name (not your trade name) Trade name (if any) Address 1716 Number Logan City 950117 OMB No. 1545-0029 Report for this Quarter 2019 (Check one.) January, February, March April May June Employer's QUARTERLY Federal Tax Return Department of the Treasury - Internal Revenue Service 91-7444533 Mark Wayland 01: Wayland Custom Woodworking O2 Nichol Street 3: Street Suite or room number UT 84321 4 State (NN) ZIP code July, August September October, November December Instructions and prior-year forms are available at www.irs.gov/form941. Foreign country name Foreign Province/county Foreign Postal code 6 Read the separate instructions before you complete this form. Please type or print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 2 Wages, tips, and other compensation (Enter amounts on line 2 that would also be included in box 1 of your employees' Forms W-2.) 3 Federal income tax withheld from wages, tips, and other compensation 4 If no wages, tips, and other compensation are subject to social security or Medicare tax 2 Check and go to line 6. 5e 0.00 5f 6 0.00 Column 1 Column 2 5a Taxable social security wages x 0.124 0.00 5b Taxable social security tips x 0.124 0.00 5c Taxable Medicare wages & tips X 0.029 0.00 5d Taxable wages & tips subject to Additional Medicare Tax x 0.009 0.00 withholding 5e Add Column 2 from lines 5a, 5b, 5c, and 5d 5f Section 3121(9) Notice and Demand - Tax due on unreported tips (see instructions) 6 Total taxes before adjustments. Add lines 3, 5e, and 5f 7 Current quarter's adjustments for fractions of cents 8 Current quarter's adjustments for sick pay 9 Current quarter's adjustments for tips and group-term life insurance 10 Total taxes after adjustments. Combine lines 6 through 9 11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 12 Total taxes after adjustments and credits. Subtract line 11 from line 10 . 13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941- X (PR), 944-X, or 944-X (SP) filed in the current quarter 14 Balance due. If line 12 is more than line 13, enter the difference and see instructions 7 8 9 9 10 0.00 11 12 0.00 13 14 0.001 15 Overpayment. If line 13 is more than line 12, enter the difference 0.00 Apply to next Check one: retum | Send a refund
