Payroll

a177_module_04_assignment.xlsx

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Written Exercise

Module 04 Written Exercise

For this exercise, go to http://www.eftps.gov to search for “Electronic Federal Tax Payments” and go to http://www.ssa.gov/pubs/10022.html to search for “self-employment income”. Discuss the following questions:

Instructor Feedback

How long does it take a taxpayer to enroll in the Electronic Federal Tax Payment System (EFTPS)?

What are the advantages of the EFTPS?

How is self-employment income treated differently than income earned when you work for an employer?

How do you report self-employment income?

Payroll Problems

Module 04 Payroll Problems
Problem 4.1
An employee earns $900 per week. Compute the employee portion of the			Instructor Feedback
FICA taxes. Assume that the OASDI rate is 5.9% and the HI rate is 1.5%.
Determine the following taxes:
Employee OASDI
Employee HI
Problem 4.2
An employee earns $3,500 a month. Compute the employee portion of the			Instructor Feedback
FICA taxes. Assume that the OASDI rate is 7% and the HI rate is .45%.
Determine the following taxes:
Employee OASDI
Employee HI
Problem 4.3
An employee earns $1,100 a month. Compute the employee and employer			Instructor Feedback
portion of the FICA taxes. Assume that the OASDI rate is 5.95% and the HI rate
is 1 .25%. Determine the following taxes:
Employee OASDI
Employee HI
Employer OASDI
Employee HI
Problem 4.4
An employee earns $1,800 per week and has earned 112,800 year to date.			Instructor Feedback
Compute the employee and employer portions of the FICA taxes. Assume
that the OASDI rate is 6.35% and the HI rate is 1.15%. Also assume that the
taxable wage limit for OASDI is the first $113,500 of wages earned for the year.
Determine the following taxes:
Employee OASDI
Employee HI
Employer OASDI
Employee HI
Problem 4.5
An employee earns 4,200 a month and has earned 111,700 year to date.			Instructor Feedback
Compute the employee and employer portions of the FICA taxes. Assume
that the OASDI rate is 6.25% and the HI rate is 1.25%. Also assume that the
taxable wage limit for OASDI is the first $112,500 of wages earned for the year.
Determine the following taxes:
Employee OASDI
Employee HI
Employer OASDI
Employee HI
Problem 4.6
The wags for several employees are listed below. Assume that the OASDI rate is 6.4% and the HI rate is 2%.					Instructor Feedback
Determine the taxable wages for one biweekly pay period (two weeks) and determine the FICA taxes
for the employee and the employer.
		Taxable	FICA Taxes
Employee	Wages	Wages	OASDI	HI
No. 1	$620 weekly
No. 2	$680 weekly
No. 3	$4,200 monthly
No. 4	$5,300 monthly
No. 5	$5,800 monthly
No. 6	$48,000 annually
No. 7	$52,000 annually
Totals
Employer's OASDI
Employer's HI

Continuing Payroll Problem

Contuing Problem Instructions

Refer to the partially completed payroll register from last week. You will now determine the amount of FICA taxes for the employee and the employer for the pay period ending January 7. 1. In the Taxable Earnings columns, record the amount of each employee’s weekly earnings that is subject to FICA taxes. 2. Using the taxable earnings, compute the OASDI (5.4%) and HI (.65%) taxes for each employee and record in the appropriate column. 3. Below the worksheet, in the space provided, use the total wages to calculate the employer's FICA obligation. Note the employer's FICA taxes will be used in module 10 for the journal entry. Keep your partially completed payroll register for use in the next module.

Continuing Problem Worksheet

Continuing Problem Worksheen
North Country Hotel and Resort
Payroll Register
For the Period Ending: Jan. 07, 20XX
No.	Employee	Marital Status	Allow.	Regular Earnings			Overtime Earnings				Deductions									Net Pay		Taxable Earnings							OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE	GROUP	HEALTH	Net
				Hours	Hourly Rate	Earnings	Hours	Hourly Rate	Earnings	Total Earnings	Group Life	Health Plan	401K / Simple	FICA		FIT	SIT	CIT	SUTA	Check No.	Amount	OASDI	HI	FUTA	SUTA				0.062	0.0145		0.0307	0.0007	0.03		INS	INS	pay	oasdi	hi	futa	suta
														OASDI	HI
300	Adams, Nikki																			21313						300		300	18.60 Mark Sears: Enter as a formula of taxable earnings x OASDI rate	4.35 Mark Sears: Enter as a formula of taxable earnings x HI rate	17.00	9.21	0.21	9.00	20.00	0.85	1.65	219.13	300.00	300.00	300.00	300.00
111	Barr, Stephanie																			21314						290	87.04	377.04	23.38	5.47	34.00	11.58	0.26	11.31	50.00	0.85	1.65	238.55	377.04	377.04	377.04	377.04
208	Duginski, Samuel																			21315						303.75		303.75	18.83	4.40	- 0	9.33	0.21	9.11	40.00	0.85	1.65	219.36	303.75	303.75	303.75	303.75
198	Glander, Morgan																			21316						316	71.1	387.1	24.00	5.61	- 0	11.88	0.27	11.61	50.00	0.85	1.65	281.22	387.10	387.10	387.10	387.10
189	Hines, Terrance																			21317						390		390	24.18	5.66	19.00	11.97	0.27	11.70	20.00	- 0	1.65	295.57	390.00	390.00	390.00	390.00
68	Jama, Adamo																			21318						515	24.15	539.15	33.43	7.82	11.00	16.55	0.38	16.17	40.00	0.85	1.65	411.30	539.15	539.15	539.15	539.15
45	Lee, Min																			21319						392.31		392.31	24.32	5.69	- 0	12.04	0.27	11.77	50.00	0.85	1.65	285.71	392.31	392.31	392.31	392.31
17	Rorberts, Tammi																			21320						542.31		542.31	33.62	7.86	47.00	16.65	0.38	16.27	60.00	- 0	1.65	358.88	542.31	542.31	542.31	542.31
12	Vick, Tomika																			21321						348.46	52.28	400.74	24.85	5.81	- 0	12.30	0.28	12.02	30.00	0.85	1.65	312.98	400.74	400.74	400.74	400.74
9	Yo, Margaret																			21322						1000		1000	62.00	14.50	24.00	30.70	0.70	30.00	80.00	0.85	1.65	755.60	1,000.00	1,000.00	1,000.00	1,000.00
	Totals																									4,397.83 Mark Sears: Enter as formula totaling column	234.57 Mark Sears: Enter as formula totaling column	4,632.40 Mark Sears: Enter as formula totaling column	287.21 Mark Sears: Enter as formula totaling column	67.17 Mark Sears: Enter as formula totaling column	152.00 Mark Sears: Enter as formula totaling column	142.21 Mark Sears: Enter as formula totaling column	3.24 Mark Sears: Enter as formula totaling column	138.97 Mark Sears: Enter as formula totaling column	440.00 Mark Sears: Enter as formula totaling column	6.80 Mark Sears: Enter as formula totaling column	16.50 Mark Sears: Enter as formula totaling column	3,378.29 Mark Sears: Enter as formula totaling column	4,632.40 Mark Sears: Enter as formula totaling column	4,632.40 Mark Sears: Enter as formula totaling column	4,632.40 Mark Sears: Enter as formula totaling column	4,632.40 Mark Sears: Enter as formula totaling column
																													Mark Sears: Enter as a formula of taxable earnings x OASDI rate	Mark Sears: Enter as a formula of taxable earnings x HI rate	Mark Sears: Enter as formula totaling column	Mark Sears: Enter as formula totaling column		Mark Sears: Enter as formula totaling column	Mark Sears: Enter as formula totaling column	Mark Sears: Enter as formula totaling column	Mark Sears: Enter as formula totaling column	Mark Sears: Enter as formula totaling column	Journal
		Date		Account					Debit	Credit						Taxable		OASDI
																Earnings	Rate	Tax
		01/07/20XX		Salaries and Wages Expense											OASDI												4,632.40
				Employee FIT Payable																								287.21
				Employee SIT Payable														HI Tax										67.17					Taxable
				Empoyee SUTA Payable											HI													152.00					Earnings	Rate	Net FUTA
				Employee CIT Payabale																								142.21					4,632.40	0.006	27.79
				FICA - OASDI Payable																								3.24							SUTA
				FICA - HI Payable														FUTA Tax										138.97					4,632.40	0.036785	170.40
				401K Contributions Payable											FUTA													440.00
				Group Insurance Premiums Payable																								6.80
				Health Insurance Premiums Payable														SUTA Tax										16.50
				Salaries and Wages Payable											SUTA													3,378.29
		01/07/20XX		Payroll Taxes Expense																							552.58
				FICA - OASDI Payable																								287.21
				FICA - HI Payabale																								67.17
				FUTA Taxes Payable																								27.79
				SUTA Taxes Payable																								170.40
		01/14/20XX		Salaries and Wages Payable																							3,378.29
				Cash																								3,378.29