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. Wayland's EIN is 91-7444533 and his Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis.
Students will complete the payroll for the final quarter of 2015, and will file fourth quarter and annual tax reports on the appropriate dates. When writing out the dollar amount for each check, spell out all words and the cents are presented over 100, for example 50 cents would be 50/100.
Federal income tax should be computed using the percentage method tables in Appendix C. FUTA information is in the table below. The Utah state income tax rate and the SUTA (UI) rate are in the table below.
Rounding can create a challenge. For these exercises, the rate for the individuals is not rounded. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full time, nonexempt employees. For example, Varden's 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. Exempt employees salaries are divided by 24 (number of payrolls for semimonthly.) For example, Chinson's salary is $24,000 and is a full time employee, so the calculation will be $24,000/24, which would give you $1,000. After this hourly rate is determined, than it can be applied to the number of hours worked. After the gross pay has been calculated, round this number to only two decimal points prior to calculating taxes or other with holdings.
For the completion of this project the following information can be located in Appendix C. Students will use the Percentage method for federal income tax and the tax tables have been provided for Utah. Both 401(k) and insurance are pretax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay.
Federal Withholding Allowance (less 401(k), Section 125)$166.70 per allowance claimed Semimonthly Federal Percentage Method Tax Table Appendix C, Page 293, Table #3 Federal Unemployment Rate (Federal unemployment rate less Section 125 health insurance)0.6% on the first $7,000 of wages State Withholding Rate (less 401(k), Section 125)See Utah Schedule 3 State Unemployment Rate (less Section 125)2.6% on the first $31,300 of wages
Wayland Custom Woodworking
Balance sheet
9/30/2015Assets Liabilities & Equity Cash$1,125,000.00 Accounts Payable$112,490.00 Supplies 27,240.00 Salaries and Wages Payable Office Equipment 87,250.00 Federal Unemployment Tax Payable Inventory 123,000.00 Social Security Tax Payable Vehicle 25,000.00 Medicare Tax Payable Accumulated Depreciation, Vehicle State Unemployment Tax Payable Building 164,000.00 Employee Federal Income Tax Payable Accumulated Depreciation, Building Employee State Income Tax Payable Land 35,750.00 401(k) Contributions Payable
Employee Medical Premiums Payable Total Assets 1,587,240.00 Notes Payable 224,750.00
Utilities Payable Total Liabilities 337,240.00 Owners' Equity 1,250,000.00 Retained Earnings - Total Equity
1,250,000.00
Total Liabilities and Equity 1,587,240.00
October 1:
Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland's staff:
Employee NumberName and AddressPayroll information 00-ChinsAnthony Chinson
530 Sylvann Avenue
Logan, UT 84321
435-555-1212
Job title: Account ExecutiveMarried, 1 withholding allowance
Exempt
$24,000/year + commission
Start Date: 10/1/2015
SSN: 511-22-3333 00-WaylaMark Wayland
1570 Lovett Street
Logan, UT 84321
435-555-1110
Job title: President/OwnerMarried, 5 withholding allowances
Exempt
$75,000/year
Start Date: 10/1/2015
SSN: 505-33-1775 01-PeppiSylvia Peppinico
291 Antioch Road
Logan, UT 84321
435-555-2244
Job title: CraftsmanMarried, 7 withholding allowances
Exempt
$43,500/year
Start Date: 10/1/2015
SSN: 047-55-9951 01-VardeStevon Varden
333 Justin Drive
Logan, UT 84321
435-555-9981
Job title: CraftsmanMarried, 2 withholding allowances
Nonexempt
$42,000/year
Start Date: 10/1/2015
SSN: 022-66-1131 02-HissoLeonard Hissop
531 5th Street
Logan, UT 84321
435-555-5858
Job title: Purchasing/ShippingSingle, 4 withholding allowances
Nonexempt
$49,500/year
Start Date: 10/1/2015
SSN: 311-22-6698 00-StudeStudent F Success
480-555-3322
Job title: Accounting ClerkSingle, 1 withholding allowance
Nonexempt
$36,000/year
Start Date: 10/1/2015
SSN: 555-55-5555
Voluntary deductions for each employee are as follows:
Name Deduction ChinsonInsurance: $50/paycheck401(k): 3% of gross pay WaylandInsurance: $75/paycheck401(k): 6% of gross pay PeppinicoInsurance: $75/paycheck401(k): $50 per paycheck VardenInsurance: $50/paycheck401(k): 4% of gross pay HissopInsurance: $75/paycheck401(k): 3% of gross pay StudentInsurance: $50/paycheck401(k): 3% of gross pay
The departments are as follows:
Department 00: Sales and Administration
Department 01: Factory workers
Department 02: Delivery and Customer service
1. You have been hired as of October 1 as the new accounting clerk. Your name is Student F. Success and your employee number is 00-STUDE. Your Utah drivers license is 887743 expiring in 7/2018 and social security number is 555-55-5555, and you are non-exempt and paid at a rate of $36,000 per year. Using the information provided, complete the W-4 and the I-9 to start your employee file. Complete as if Single with 1 withholding, you decide to contribute 3% to 401(k) and health insurance is $50 per pay period.
2. Complete the headers of the Employees' Earnings Records for all company employees. Enter the YTD earnings for each employee.
Need the total hours worked, hours overtime, federal, state, social, medicare, 401k, insurance final pay and general journal.