Answer Happy

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 12850 Old Highway 50, Glenbrook, Nevada, 89413, phone number 775-555-9877. The owner is Mark Wayland. Wayland's EIN is 91-7444533, and the Nevada Employer Account Number is E6462582020-6. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method. For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2021, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2. Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. Take the employee's salary and divide it by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt employees. NOTE: Leave the hourly rate rounded to 5 decimal places as shown in this example. After the gross pay has been calculated, then round the result to two decimal points prior to calculating taxes or other withholdings. Example: Annual Salary to Hourly Rate, Nonexempt Employee Employee Cooper's annual salary is $62,000, and he is a nonexempt employee. Hourly rate = $62,000 / (52 x 40) = $62,000 / 2,080 Hourly rate = $29.80769 per hour Example: Period Gross Pay, Salaried Employee Employee Chinson earns an annual salary of $48,000 and is paid semimonthly. Period gross pay = $48,000 / 24 = $2,000 gross pay For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days applicable to each pay period. Annual salary: $48,000 / (52 * 5) = $48,000 / 260 = $184.61538 (rounded to 5 decimal points) per day. Once you have the holiday pay, subtract it from their salary for the period for regular time. 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 25-26. • Christmas is on Saturday. Employees receive holiday pay for Friday, December 24.

For the completion of this project, refer to the tax-related information in the table below. Employees' 401(k) and insurance are pre-tax for federal income tax. The SUTA (UI) rate for Wayland Custom Woodworking is 3.25% on the first $33,400 of employee wages. There is an additional 0.05% for Career Enhancement Program (CEP). Both FUTA and SUTA have a deduction for section 125 but not for 401(k) contributions by the employee. The same is applicable for the calculation of Career Enhancement Program (CEP). Employer contribution of section 125 is 1.5 times the employee portion and should be added to wages for completion of FUTA and SUTA forms. For federal tax withholding calculations, use the percentage method tables for manual payroll systems with Forms W-4 from 2021 or later. Assume, all W-4s are received in 2021 and the Step 2 of Form W-4 is not checked. Federal Unemployment Rate (employer only) (less Section 0.6% on the first $7,000 of wages Semimonthly Federal Percentage Method for Manual Appendix Payrolls with Forms W-4 from 2020 or later Tax Table State Unemployment Rate (employer only)(less Section 3.25% on the first $33,400 of wages 125) Nevada Career Enhancement Program (employer only) (less 0.05% on the first $33,400 of wages Section 125) October 1 Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland's staff: 125) Employee Number 00-Chins 00-Wayla 01- Peppi Name and Address Anthony Chinson 530 Chimney Rock Road Stateline, NV 89449 775-555-1212 Job title: Account Executive Mark Wayland 1650 Power House Drive Glenbrook, NV 89413 775-555-1110 Job title: President/Owner Sylvia Peppinico 1575 Flowers Avenue Glenbrook, NV 89413 775-555-2244 Job title: Craftsman Stevon Cooper 2215 Lands End Drive Glenbrook, NV 89413 775-555-9981 Job title: Craftsman Leonard Hissop 333 Engine House Circle Glenbrook, NV 89413 775-555-5858 Job title: Purchasing/Shipping Student Success 16 Kelly Circle #2 Glenbrook, NV 89413 775-556-1211 Job title: Accounting Clerk Payroll information Married/Joint; 2 < 17 Exempt $48,000/year + commission Start Date: 10/1/2021 SSN: 511-22-3333 Married/Joint; 3 <17, 1 Other Exempt $85,000/year Start Date: 10/1/2021 SSN: 505-33-1775 Married/Joint; 1 < 17, 1 Other Exempt $58,500/year Start Date: 10/1/2021 SSN: 047-55-9951 Single; None Nonexempt $62,000/year Start Date: 10/1/2021 SSN: 022-66-1131 Single; 1 Other Nonexempt $51,500/year Start Date: 10/1/2021 SSN: 311-22-6698 Single; None Nonexempt $42,000/year Start Date: 10/1/2021 SSN: 555-55-5555 01-Coope 02-Hisso 00-Succe

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 00-SUCCE. Your name is Student Success. Your address is 16 Kelly Circle #2, Glenbrook, NV 89413. Your phone number is 775-556-1211, you were born July 16, 1985, your Nevada driver's license number is 168575381944 expiring on your birthday in 2024, and your Social Security number is 555-55-5555. You are nonexempt and paid at a rate of $42,000 per year as an accounting clerk. The balance sheet for WCW as of November 30, 2021, is as follows: Assets Cash Supplies Office Equipment Inventory Vehicle Accumulated Depreciation, Vehicle Building Accumulated Depreciation, Building Land Total Assets Wayland Custom Woodworking Balance Sheet November 30, 2021 Liabilities & Equity $ 1,075,478.16 Accounts Payable 42,240.11 Salaries and Wages Payable 87,250.00 Federal Unemployment Tax Payable 167,099.00 Social Security Tax Payable 25,000.00 Medicare Tax Payable 0.00 State Unemployment Tax Payable 164,000.00 Career Enhancement Program Payable 0.00 Employee Federal Income Tax Payable 35,750.00 401(k) Contributions Payable $ 1,596,817.27 Employee Medical Premiums Payable Notes Payable Total Liabilities Owners' Equity Retained Earnings Total Equity Total Liabilities and Equity $ 112,747.25 14,946.28 62.26 4,041.54 945.24 1,059.26 16.30 1,499.57 1,223.46 750.00 210,426.11 346,817.27 1,250,000.00 0.00 1,250,000.00 $ 1,596,817.27 Voluntary deductions for each employee are as follows: Name Chinson Wayland Peppinico Deduction Insurance: $50/paycheck 401(k): 3% of gross pay Insurance: $75/paycheck 401(k): 6% of gross pay Insurance: $75/paycheck 401(k): $50 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 Cooper Hissop Success

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. Sunday Monday Tuesday 5 12 19 26 6 13 20 27 7 14 21 28 December 2021 Wednesday Thursday 1 2 8 9 15 16 22 23 29 30 Friday 3 10 17 24 31 Saturday 4 11 18 25 No employee has additional information in Step 4 of their W-4s, all W-4s were received in 2021, no box 2c has been checked. Refer to page 54 of publication 15-T 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, 2021. 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 88 hours during this pay period are considered overtime for nonexempt employees. • Complete the Employee Gross Pay tab. • Complete the Payroll Register for December 15 Pay. Employee pay will be disbursed on December 20, 2021. • Refer to the Employee Earning Record Forms for each employee for the current YTD amounts after you have completed the December 15 Payroll Register and update each EERF with the amounts from the current period. YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee. • Complete the General Journal entries for the December 15 payroll. • Post the journal entries to the General Ledger. Amounts for the ledger accounts from the previous four pay periods of the fourth quarter are shown.

Employee Gross pay Payroll Register Chinson EERF Wayland EERF Peppinico EERF Cooper EERF Hissop EERF Success EERF General Journal General Ledger Compute the gross earnings for regular, overtime, and holiday pay for each employee for the December 15 pay period. Remember that while an hourly rate is shown for all employees, the period pay for exempt employees should be calculated by taking their yearly salary and dividing it by the number of semimonthly pay periods in a year, which should then be split between the number of hours considered regular time and holiday time. (Round answers for hourly rate or period wages to 5 decimal places and all other answers to 2 decimals.) Last Name Hourly Rate or Period Wage (Round to 5 decimal) Pay Period Hours 12/01-12/15 Regular Overtime Holiday Commission $ 1,680.00 Chinson Wayland Peppinico Cooper Hissop Success 88 hours (exempt) 88 hours (exempt) 88 hours (exempt) 92 hours 88 hours 91 hours Employee Gross pay Payroll Register >

Employee Gross pay Payroll Register Chinson EERF Wayland EERF Peppinico EERF Cooper EERF Hissop EERF Success EERF General Journal General Ledger Complete the payroll register for the December 15 pay period. (Round your answers to 2 decimal places.) 12/15/2021 12/15/2021 Hourly Rate or Period Wage Company Name: Wayland Custom Woodworking Check Date 12/20/2021 Number of Holiday Commissions Gross Earnings Hours Dependents Number of Regular Hours Number of Overtime Hours Section 125 401(k) Run Date Payroll End Date Name Filing Status Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Cooper Leonard Hissop Student Success Totals Taxable Wages Taxable Wages for for Federal W/H FICA $ 0.00 $ 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00 $ 0.00 $ 0.0 0.00 $ 0.00 $ Name Gross Earnings Net Pay Check Number 4239 Anthony Chinson Mark Wayland Sylvia Peppinico Stevon Cooper Leonard Hissop Student Success $ 0.00 $ Taxable Wages for Federal Social Security Taxable Wages for FICA Federal W/H Medicare W/H Total Deduction W/H Tax $ 0.00 $ 0.00 $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 4240 4241 4242 4243 4244 Totals $ 0.00 0.00 <Employee Gross pay Chinson EERF

The following is the Employee Earning Record Form for Anthony Chinson for the December 15 pay period. Amounts from the first four pay periods of the fourth quarter (October 15 to November 30) are shown. Using the payroll register you have just co December 15 pay period for Chinson to complete his EERF. (Round your intermediate computations and final answers to 2 decimal places.) Name Address City/State/Zip Telephone Social Security Number Period Ended Hours Worked Anthony Chinson 530 Chimney Rock Road Stateline, NV 89449 775-555-1212 511-22-3333 FUTA per NVC per Regular Pay O.T. Pay Holiday Pay $ 10/15/2021 10/31/2021 88.00 80.00 88.00 88.00 2,000.00 2,000.00 2,000.00 1.630.77 11/15/2021 11/30/2021 12/15/2021 369.23 EMPLOYEE EARNINGS RECORD Hire Date 10/01/2021 Dependent child<17 2 Date of Birth Dependent other None Position Account Executive Step 4a W-4 Info none Filing Status Married/Joint Step 4b W-4 Info none Pay Rate (Hourly, Yearly, Yearly + Commission) $48,000 per year + Commission Step 4c W-4 Info none Commissions Gross Pay Section 125 Taxable Pay Taxable Pay 401(k) (Federal) SUTA per period (FICA) period period $ 1,500.00 $ 3,500.00 $ 50.00 $ 105.00 $ 3,345.00 $ 3,450.00 $ 20.701 $ 112.13 $ 1.73 1,750.00 3,750.00 50.00 112.50 3,587.50 3,700.00 21.30 120.25 1.85 1,050.00 3,050.00 50.00 91.50 2,908.50 3,000.00 97.50 1.50 2,325.00 4,325.00 50.00 129.75 4,145.25 4,275.00 138.94 2.14 0.00 0.00 $ 6,625.00 $ 14,625.00 $ 200.00 $ 438.75 $ 13,986.25 $ 14,425.00 $ 42.00 $ $ 468.82 $ $ 7.22 Total Deductions YTD Net Pay Current Taxable YTD Gross Pay Current Taxable for FUTA for SUTA $ 511.56 $ 2,988.44 $ 2,988.44 $ 3,500.00 $ 3,450.00 $ 3,450.00 567.28 3,182.72 6.171.15 7,250.00 3,550.00 3,700.00 411.25 2,638.75 8,809.90 10,300.00 3,000.00 695.45 3,629.55 12,439.45 14,625.00 4,275.00 0.00 $ 2,185.54 $ 12,439.46 Current YTD 344.00 $ 7,630.77 $ 0.00 $ 369.23 Taxable Pay for Federal Taxable Pay for FICA Federal Income Tax Social Security Tax Medicare Net pay $ $ 50.03 92.63 121.73 40.25 213.90 $ 229.40 186.00 3,345.00 $ 3,587.50 2,908.50 4,145.25 0.00 13,986.25 $ $ 3,450.00 $ 3,700.00 3,000.00 4,275.00 0.00 14,425.00 $ $ 53.65 43.50 61.99 188.66 265.05 Current YTD $ 443.27 $ 894.35 $ 209.17 < Payroll Register Wayland EERF >

The following is the Employee Earning Record Form for Mark Wayland for the December 15 pay period. Amounts from the first four pay periods of the fourth quarter (October 15 to November 30) are shown. Using the payroll register you have just complete 15 pay period for Wayland to complete his EERF. (Round your intermediate computations and final answers to 2 decimal places.) 3 1 1 Name Address City/State/Zip Telephone Social Security Number Mark Wayland 1650 Power House Drive Glenbrook, NV 89413 775-555-1110 505-33-1775 EMPLOYEE EARNINGS RECORD Hire Date 10/01/2021 Date of Birth Position President/Owner Filing Status Married/Joint Pay Rate (Hourly, Yearly, Yearly + Commission) $85,000 per year Commissions Gross Pay Section 125 401(k) none Period Ended Hours Worked Regular Pay O.T. Pay Holiday Pay $ $ $ 75.00 75.00 3,541.67 3,541.67 3,541.67 3,541.67 212.50 212.50 212.50 212.50 none none NVC per period $ 1.73 1.73 1.73 1.73 75.00 75.00 Dependent child<17 Dependent other Step 4a W-4 Info Step 4b W-4 Info Step 4c W-4 Info Taxable Pay FUTA per SUTA per (Federal) Taxable Pay (FICA) period period $ 3,254.17 $ 3,466.67 $ 20.80 $ 112.67 3,254.17 3,466.67 20.80 112.67 3,254.17 3,466.67 0.40 112.67 3,254.17 3,466.67 112.67 0.00 0.00 $ $ 13,016.68 $ 13,866.68 $ 42.000 $ $ 450.68 Current Taxable Current Taxable for for FUTA SUTA $ 3,466.67 $ 3,466.67 3,466.67 3,466.67 66.66 3,466.67 3,466.67 653.85 653.85 $ 0.00 $ 14,166.68 $ 300.00 $ $ 850.00 $ 10/15/2021 88.00 $ 3,541.67 10/31/2021 80.00 3,541.67 11/15/2021 88.00 3,541.67 11/30/2021 88.00 2.887.82 12/15/2021 Current YTD 344.00 $ 13,512.83 $ 0.00 $ Taxable Pay for Taxable Pay for Federal Income Social Security Tax Federal FICA Tax $ 3,254.17 $ 3,466.67 $ 0.00 $ 214.93 $ 3,254.17 3,466.67 0.00 214.93 3,254.17 3,466.67 0.00 214.93 3,254.17 3,466.67 0.00 214.93 0.00 0.00 0.00 Current YTD $ $ 13,016.68 $ 13,866.68 $ 0.00 $ 859.72 $ 6.92 Medicare Total Deductions Net pay YTD Net Pay YTD Gross Pay $ 552.70 $ $ 50.27 50.27 50.27 50.27 552.70 552.70 552.70 2,988.97 2,988.97 2.988.97 2,988.97 2,988.97 5,977.94 8,966.91 11,955.88 3,541.67 7,083.34 10,625.01 14,166.68 M 201.08 $ 0.00 2,210.80 $ 11,955.88 < Chinson EERF Peppinico EERF >