Payroll Project -
ABC, Inc. is a seasonal company that is only open the first and last quarters of the year. By the end of 2017 there were 3 employees. Carol Wolfe and Mary Ray worked both quarters; whereas, Ryan Kruger worked the last 2 pay periods only.
The three employees are paid semi-monthly on the 15th and the last day of the month.
For the pay period ending December 31st both Carol Wolfe and Mary Ray received a bonus. Each of their bonuses was equal to 15% of annual regular wages. The bonus is to be paid along with the regular salaries on December 31, 2017. Federal income taxes pertaining to the bonuses was withheld at a flat 25% rate.
Carol Wolfe and Mary Ray both contributed to the company's 401(k) plan each pay period.
ABC, Inc. is a monthly depositor for 941 purposes.
Company Information:
Address: 5380 Industrial Lane Austin, TX 78711
Telephone number: (215) 555-0017
Texas state ID number: 00-0-1052
Federal ID number: 74-0005923
State SUTA rate: 3.4%
Employee Data: Payroll Data:
Carol Wolfe Single, 0 allowances
54 Gradison Place $9,600 per semi-monthly period
Austin, TX 78711 SS #: 155-62-2010 Deduction for 401 (k) plan: $500 per pay period
Mary Ray Married, 5 allowances
338 North Side Avenue $7,800 per semi-monthly period
Austin, TX 78711 SS #: 000-25-2011 Deduction for 401 (k) plan: $350 per pay period
Ryan Kruger Single, 3 allowance
4900 Terrace Ridge $2,100 per semi-monthly period
Austin, TX 78711 SS #: 888-00-2012
Note: Regular federal income taxes to be withheld for Carol Wolfe and Mary Ray should be calculated using the percentage methold. Use the wage-bracket method for Ryan Kruger.
Use $118,500 as the taxable maximum OASDI earnings.
Use .6% as your net FUTA rate.
Required:
1. Prepare the payroll registers for the periods ending January 15, 2017 and December 31, 2017. (Use the Excel template which I have created and is named 'PR registers'.)
2. Record the following journal entries:
Payroll for the period ending January 15, 2017.
Employer's payroll taxes for the period ending January 15, 2017.
Payment of 941 taxes for January.
Payroll for the period ending December 31, 2017.
Employer's payroll taxes for the period ending December 31, 2017.
(Use the general journal computer form which I have created and is named 'general journal'.)
3. Complete "Payroll Recap for 2017". (Use the Excel template which I have created and is named 'PR recap'.)
4. Compute the monthly 941 tax liability for months Jan., Feb., March, Oct., Nov., and Dec. (Use the Excel template which I have created and is named '941 tax liability'.)
5. Compute the FUTA and SUTA liability for the first and fourth quarter of 2017. (Use the Excel template which I have created for you.)
6. Prepare Form 941 for the quarter ending March 31, 2017. (Use the fill-in form on the IRS website.)
7. Prepare the SUTA quarterly report for the quarter ending March 31, 2017. (Use the excel template which I have created and is named 'SUTA for 3-31-2017.)
8. Prepare Form 941 for the quarter ending December 31, 2017. (Use the fill-in form on the IRS website.)
9. Prepare the SUTA quarterly report for the quarter ending December 31, 2017. (Use the excel template which I have created and is named 'SUTA for 12-31-2017.)
10. Prepare the annual Form 940 for 2017. (Use the fill-in form on the IRS website.)
11. Prepare the W-2s for the three employees for 2017. (Use the word document which I have placed on Blackboard.)
12. Prepare W-3 for 2017. (Use the word document which I have placed on Blackboard.)
13. Upon completion your project should be in the following order:
- Payroll Registers
- General Journal
- Payroll Recap for 2017
- Computation of Monthly 941 Tax Liability
- Computation of FUTA and Computation of SUTA
- Form 941 for Quarter Ending March 31, 2017
- SUTA Report (TX Form UC-2) for Quarter Ending March 31, 2017
- Form 941 for Quarter Ending December 31, 2017
- SUTA Report (TX Form UC-2) for Quarter Ending Decemberh 31, 2017
- Form 940, Annual FUTA Report
- W-3 for 2017
- W-2s for 2017 for each of the three employees
Attachment:- Assignment Files.rar