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 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis. Federal income tax should be computed using the percentage method.

The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $34,300. The state withholding rate is 4.95 percent for all income levels and marital statuses, a table has been included to assist with calculations.

Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees. For nonexempt employees, such as Stevon Varden, Vardens salary is $42,000 and is a nonexempt employee, so the calculation will be $42,000/2,080, which would give you $20.19231 per hour, and use this to compute the employees gross pay based on the number of hours worked. When a nonexempt employee has worked overtime hours for a given pay period, take their regular hourly rate and multiply it by 1.5, round the result to 5 decimal places, and multiply the new rate by their number of overtime hours.

For exempt employees', such as Anthony Chinson, an hourly rate rounded to five decimal places should be determined using the same method shown above, but gross pay should be determined by taking the exempt employees yearly salary and dividing it by 24, which is the number of payroll periods with a semimonthly frequency. For example, Chinsons salary is $24,000 and is a full time employee. Chinsons hourly rate is $11.53846 (determined by taking $24,000/2,080), but as he is an exempt employee, the calculation for his gross pay will be $24,000/24, which would give you $1,000. For pay periods that include paid holidays, ensure to distribute an exempt employee's regular pay accordingly to holiday pay based on the number of hours that consist of the holidays for that period. After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings. Employees are paid for the following holidays occurring during the final quarter:

• Thanksgiving day and the day after, Thursday and Friday November 22-23.
• Christmas, which is a Tuesday. Employees receive holiday pay for Monday, December 24, and Tuesday, December 25.

Federal Withholding Allowance (less 401(k), Section 125)	$172.90 per allowance claimed
Federal Unemployment Rate (employer only) (less Section 125)	0.6% on the first $7,000 of wages
Semimonthly Federal Percentage Method Tax Table	Appendix C Page 393 Table #3
State Unemployment Rate (employer only) (less Section 125)	2.6% on the first $34,300 of wages
State Withholding Rate (less 401(k), Section 125)	See Utah Schedule 3, Table 1 or use the Excel Version of Schedule 3

Required:

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

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

December 15

December 15 is the end of the first pay period for the month of December. Employee pay will be disbursed on December 20, 2018. Remember that the employees are paid on a semimonthly basis.

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

December 31

The final pay period of the year will not be paid to employees until January 4, 2019. The company will accrue the wages for the final pay period only. Because the pay period is complete, there will not be a reversing entry for the accrual. As a result, paychecks will not be issued for this pay period since they will be paid in the following year and reflected on the Employee Earning Record forms for each employee when paid. The remainder of the employer liability will be paid with the final filing for the year.

The company pays for Christmas Eve and the day of Christmas for 2018. Employees will be paid for both Monday and Tuesday as holiday pay. Standard time for the pay period was 88 hours, but employees worked extra hours on Saturday during the week of 12/2412/28. Reminder, holidays and vacations are not included as hours worked for calculation of overtime.

• Complete the Employee Gross Pay tab.
• Complete the Payroll Register for December 31.
• Complete the General Journal entries for the December 31 payroll.
• Update the General Ledger with the ending ledger balances from the December 15 pay period ledger accounts first, and then post the journal entries from the current period to the General Ledger.

The departments are as follows Department 00: Sales and Administration Department 01: Factory workers Department 02: Delivery and Customer service You have been hired as of October 1 as the new accounting clerk. Your employee number is OO-SUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321. Your phone number is 435-556-1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 7/16/2019, and your Social Security number is 555- 55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year The balance sheet for WCW as of September 30, 2018, is as follows Wayland Custom Woodworking Balance Sheet September 30, 2018 Liabilities & Equity Assets $1,125,000.00Accounts Payable $112,490.00 Cash Supplies Office Equipment Inventory Vehicle Accumulated Depreciation, Vehicle Salaries and Wages Payable Federal Unemployment Tax Payable Social Security Tax Payable Medicare Tax Payable 27,240.00 87,250.00 123,000.00 25,000.00 State Unemployment Tax Payable Employee Federal Income Tax Payable Building 164,000.00 Accumulated Depreciation, Building Employee State Income Tax Payable 35,75.00 401(k) Contributions Payable 1,587,240.00Employee Medical Premiums Payable an Total Assets Notes Payable Utilities Payable Total Liabilities Owners' Equity Retained Earnings Total Equity Total Liabilities and Equity 224,750.00 337,240.00 1,250,000.00 1,250,000.00 1,587,240.00 Voluntary deductions for each employee are as follows Deduction Name Insurance: $50/paycheck 401(k): 3% of gross pay Insurance: $75/paycheck 401 (k): 6% of gross pay Insurance: $75/paycheck 401(k): $5e per paycheck Insurance: $50/paycheck 401(k): 4% of gross pay Insurance: $75/paycheck 401(k): 3% of gross pay Insurance: $50/paycheck 401(k): 3% of gross pay Chinson Wayland P eppinlco Varden Hissop Student For additional instructions on how to navigate and work through through Part 1 of this project, please download the student project quide here Run Date PIR Date 1215/2018 Company Name: Wayland Custom Woodworking 12/20V2018 Taxable Wages Insurancefor Federal WH Taxable Wages for No of Regular No of Overtime No of Holiday Hours Commissionsrs Earnings Name M/S | #ofWH Hourly Rate 401(k) Hours Hours FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals Gross Eaming Taxable Wages for Taxable W Net Pay Name Federal WH Social Secu Medicare WWH State WH Tax Check No. Federal WH for FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success 174580 174581 174582 174583 174584 174585 Totals Run Date 12131/2018 Company Name: Wayland Custom Woodworking PIR Date 01/04/2019 No of Regular Hours No of Overtime No of Holiday Taxable Wages Taxable Wages for 401(k) MIS | # of W/H | Hourly Rate CommissionsGross Earnings Insurance for Federal W/H Hours FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals for Taxable Wages forF FICA Social Security Medicare W/H Eang ederal WH Taxable Wages for Net Pay WHState W/H Tax Check No. Tax 174586 174587 174588 174589 174590 174591 Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals The departments are as follows Department 00: Sales and Administration Department 01: Factory workers Department 02: Delivery and Customer service You have been hired as of October 1 as the new accounting clerk. Your employee number is OO-SUCCE. Your name is Student Success. Your address is 1650 South Street, Logan, UT 84321. Your phone number is 435-556-1211, you were born July 16, 1985, your Utah driver's license number is 887743 expiring in 7/16/2019, and your Social Security number is 555- 55-5555. You are considered a nonexempt employee, have one withholding allowance, and paid a rate of $36,000 per year The balance sheet for WCW as of September 30, 2018, is as follows Wayland Custom Woodworking Balance Sheet September 30, 2018 Liabilities & Equity Assets $1,125,000.00Accounts Payable $112,490.00 Cash Supplies Office Equipment Inventory Vehicle Accumulated Depreciation, Vehicle Salaries and Wages Payable Federal Unemployment Tax Payable Social Security Tax Payable Medicare Tax Payable 27,240.00 87,250.00 123,000.00 25,000.00 State Unemployment Tax Payable Employee Federal Income Tax Payable Building 164,000.00 Accumulated Depreciation, Building Employee State Income Tax Payable 35,75.00 401(k) Contributions Payable 1,587,240.00Employee Medical Premiums Payable an Total Assets Notes Payable Utilities Payable Total Liabilities Owners' Equity Retained Earnings Total Equity Total Liabilities and Equity 224,750.00 337,240.00 1,250,000.00 1,250,000.00 1,587,240.00 Voluntary deductions for each employee are as follows Deduction Name Insurance: $50/paycheck 401(k): 3% of gross pay Insurance: $75/paycheck 401 (k): 6% of gross pay Insurance: $75/paycheck 401(k): $5e per paycheck Insurance: $50/paycheck 401(k): 4% of gross pay Insurance: $75/paycheck 401(k): 3% of gross pay Insurance: $50/paycheck 401(k): 3% of gross pay Chinson Wayland P eppinlco Varden Hissop Student For additional instructions on how to navigate and work through through Part 1 of this project, please download the student project quide here Run Date PIR Date 1215/2018 Company Name: Wayland Custom Woodworking 12/20V2018 Taxable Wages Insurancefor Federal WH Taxable Wages for No of Regular No of Overtime No of Holiday Hours Commissionsrs Earnings Name M/S | #ofWH Hourly Rate 401(k) Hours Hours FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals Gross Eaming Taxable Wages for Taxable W Net Pay Name Federal WH Social Secu Medicare WWH State WH Tax Check No. Federal WH for FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success 174580 174581 174582 174583 174584 174585 Totals Run Date 12131/2018 Company Name: Wayland Custom Woodworking PIR Date 01/04/2019 No of Regular Hours No of Overtime No of Holiday Taxable Wages Taxable Wages for 401(k) MIS | # of W/H | Hourly Rate CommissionsGross Earnings Insurance for Federal W/H Hours FICA Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals for Taxable Wages forF FICA Social Security Medicare W/H Eang ederal WH Taxable Wages for Net Pay WHState W/H Tax Check No. Tax 174586 174587 174588 174589 174590 174591 Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Varden Leonard Hissop Student F Success Totals