Chapter 9 – Wage and tax reporting
Project description
Chapter 9 – Wage and tax reporting
ACC213 Summer 2014
Principals of Payroll Administration
Chapter 9 – Wage and tax reporting
Problem 1
During the fourth quarter of 2013, there were seven biweekly paydays on Friday (October 4, 18; November 1, 15, 29; December 13, 27) for Last Mile Towing Service. Using the forms supplied and available on
IRS.gov http://www.irs.gov/pub/irs-prior/f941–2013.pdf
and Missouri Department of Revenue http://dor.mo.gov/forms/MO-941.pdf
(assume the compensation deduction is 2%) complete the following for the fourth quarter: Be sure to save the form locally before completing, the complete on your locally saved form. You cannot save information on the .gov websites.
a. Complete the Federal Deposit Information Work-sheets reflecting electronic deposits (monthly depositor). Federal deposit liability each pay, $677.68.
b. Employer’s Quarterly Federal Tax Return, Form 941 2013. The form is signed by you as president. There are 5 employees.
c. Employer’s Report of State Income Tax Withheld for the quarter, due on or before January 31, 2014.
Quarterly Payroll Data 4th Quarter 2013
Total Earnings OASDI HI FIT SIT
$18750 1162.50 271.88 1875.00 1312.50
Employer’s OASDI $1,162.50
Employer’s HI 271.88
Federal deposit liability each pay 677.68
Federal Deposit Information Worksheet
Company name_________________________________________
Date of deposit_________________________
Month tax year ends ____________________
Amount of deposit¬¬¬¬¬_______¬¬¬¬____________¬¬¬¬¬¬¬¬___¬¬¬
Type of Tax (Form)_____________________
Tax period______________________________
Problem 2
During the first week of 2014, the Payroll Department of XYZ Sales and Service Inc. is preparing the Forms W-2 for distribution to its employees.
Assume each employee earned the same weekly salary for each of the 52 paydays in 2013. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of all six employees Forms W-2 reproduced on the following pages. Also complete Form W-3. The form is to be signed by the president, William C. Johnson, and is prepared by you as a paid preparer.
Fillable Forms W2 and W3 may be available online.
Company Information:
Address: 1300 7th Street
St. Louis MO 63101
Telephone number: (314) 555–0017
Fax number: (314) 555-0010
Missouri state identification number: 00-0-1066
Federal identification number: 00-0000972
Income Tax Information:
The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage-bracket table and multiply the answer by 52. Assume correct OASDI and HI (social security and Medicare) were withheld as well as 5% Missouri withholding tax and 1% City of St. Louis.
Dick A. Jones Single 1 allowance
123 Washington Ave $415 per week
St. Louis MO 63101 SSN 000-00-4310
Jane A Smith Married 1 allowance
456 Broadway $485 per week
St. Louis MO 63101 SSN 000-00-8804
Sam B Carter Single 0 allowance
789 Olive St. $510 per week
St Louis MO 63101 SSN 000-00-1236
Union dues withheld $250
William C Johnson Married 7 allowances
9101 Market St. $1350 per week
St. Louis MO 63101 SSN 000-00 7834
Cost of group term insurance exceeding
$50,000: $262.75
No income tax withheld on insurance
cost but FICA taxes are withheld
Hal D. Williams Married 2 allowances
8934 Tucker Blvd. $450 per week
St. Louis MO 63101 SSN 000-00 2234
Non accountable plan employee expense
Reimbursement $500
Kenneth E. Davis Single 2 allowances
555 Market St. $580 per week
St. Louis MO 63101 SSN 000-00 9876
Educational assistance payments (job required) $675
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