Payroll Accounting
Continuing Payroll Problem, 4A: Chapter 4
This problem continues the process of preparing the Kipley Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee, and using this data FICA withholding and employer FICA liability were computed.
Requirements:
1. Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.
2. Determine and record the federal income taxes for each employee.
3. Determine and record the state income taxes for each employee.
4. Determine and record the city income taxes for the city of Pittsburgh.
5. Total each input column.
SIMPLE Plan Contributions
A SIMPLE IRA is a retirement plan that may be established by employers, including self-employed individuals (sole proprietorships and partnerships). The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.a
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KIPLEY COMPANY, INC. SIMPLE Plan Contributions |
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Name |
SIMPLE Deductions |
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Carson, F. |
$20 |
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Wilson, W. |
50 |
|
Utley, H. |
40 |
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Fife, L. |
50 |
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Smith, L. |
20 |
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Fay, G. |
40 |
|
Robey, G. |
50 |
|
Schork, T. |
60 |
|
Hardy, B. |
30 |
|
Kipley, C. |
80 |
a https://www.investopedia.com/university/retirementplans/simpleira/?adtest=rira-layout-bttn-bsln
Employee Data
Below lists each employee's assigned Time Card No., Filing Status, and Withholding Allowances. This information is necessary when determining the amount of tax to withhold.
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Time Card No. |
Employee Name |
Filing Status |
No. of Withholding Allowances |
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11 |
Fran M. Carson |
S |
N/A |
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12 |
William A. Wilson |
S |
N/A |
|
13 |
Harry T. Utley |
MFJ |
N/A |
|
21 |
Lawrence R. Fife |
MFJ |
N/A |
|
22 |
Lucy K. Smith |
S |
N/A |
|
31 |
Gretchen R. Fay |
MFJ |
N/A |
|
32 |
Glenda B. Robey |
MFJ |
N/A |
|
33 |
Thomas K. Schork |
S |
N/A |
|
51 |
Barbara T. Hardy |
MFJ |
N/A |
|
99 |
Carson C. Kipley |
MFJ |
N/A |
Payroll Register
For this task, each employee's federal, state, and local taxes to be withheld will be determined. When determining the federal taxes to be withheld, remember that there are some deductions that are allowed "pretax". These deductions reduce the gross earnings upon which the federal tax to be withheld is determined.
Complete the steps outlined below.
1. Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.
2. Determine and record the federal income taxes for each employee.
3. → Refer to each employee's filing status. → Click the link below to view the Wage-Bracket Method tables.
4. Determine and record the state income taxes for each employee using the State of Pennsylvania's rate of 3.07%.
5. Determine and record the city income taxes for the city of Pittsburgh at the rate of 3%.
6. Total each input column.
Note : Round your final answers to the cent. Enter all amounts as positive numbers.
Click here to access the Wage-Bracket Method Tables.
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KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20-- |
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EARNINGS |
DEDUCTIONS |
NET PAY |
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|
Name |
Gross |
OASDI |
HI |
FIT |
SIT |
SUTA |
CIT |
SIMPLE Ded. |
Grp. Ins. |
Health Ins. |
Ck. No. |
Amount |
|
Carson, F. |
$700.00 |
$43.40 |
$10.15 |
fill in the blank 1 of 44$ |
fill in the blank 2 of 44$ |
|
fill in the blank 3 of 44$ |
fill in the blank 4 of 44$ |
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Wilson, W. |
690.00 |
55.62 |
13.01 |
fill in the blank 5 of 44 |
fill in the blank 6 of 44 |
|
fill in the blank 7 of 44 |
fill in the blank 8 of 44 |
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Utley, H. |
678.75 |
42.08 |
9.84 |
fill in the blank 9 of 44 |
fill in the blank 10 of 44 |
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fill in the blank 11 of 44 |
fill in the blank 12 of 44 |
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Fife, L. |
716.00 |
54.38 |
12.72 |
fill in the blank 13 of 44 |
fill in the blank 14 of 44 |
|
fill in the blank 15 of 44 |
fill in the blank 16 of 44 |
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Smith, L. |
790.00 |
48.98 |
11.46 |
fill in the blank 17 of 44 |
fill in the blank 18 of 44 |
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fill in the blank 19 of 44 |
fill in the blank 20 of 44 |
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Fay, G. |
515.00 |
33.43 |
7.82 |
fill in the blank 21 of 44 |
fill in the blank 22 of 44 |
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fill in the blank 23 of 44 |
fill in the blank 24 of 44 |
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Robey, G. |
623.08 |
38.63 |
9.03 |
fill in the blank 25 of 44 |
fill in the blank 26 of 44 |
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fill in the blank 27 of 44 |
fill in the blank 28 of 44 |
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Schork, T. |
773.08 |
47.93 |
11.21 |
fill in the blank 29 of 44 |
fill in the blank 30 of 44 |
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fill in the blank 31 of 44 |
fill in the blank 32 of 44 |
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Hardy, B. |
579.23 |
41.30 |
9.66 |
fill in the blank 33 of 44 |
fill in the blank 34 of 44 |
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fill in the blank 35 of 44 |
fill in the blank 36 of 44 |
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Kipley, C. |
1,000.00 |
62.00 |
14.50 |
fill in the blank 37 of 44 |
fill in the blank 38 of 44 |
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fill in the blank 39 of 44 |
fill in the blank 40 of 44 |
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Totals |
$467.75 |
$109.40 |
fill in the blank 41 of 44$ |
fill in the blank 42 of 44$ |
|
fill in the blank 43 of 44$ |
fill in the blank 44 of 44$ |
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