Payroll

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module_05_assignment_1.xlsx
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Written Exercise

Module 05 Written Exercise
For this exercise, use chapter 08 of the textbook to answer the following questions:
Instructor Feedback
1 What is the difference between an employee and a contractor?
2 What could be the consequence of incorrectly difining an employee as a contractor?
3 What form is an employee required to complete when hired and what is the purpose of this form?
4 Why are publications 15 and 15A significant to the employer?

Payroll Problems

Module 05 Payroll Problems
Problem 5.1
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file.
With-
Marital holding Amount
Employee Status Allow. Wages Withheld
No. 1 Married 3 $850 weekly
No. 2 Single 2 $1,500 biweekly
No. 3 Single 5 $1,800 semimonthly
No. 4 Married 7 $2,500 semimonthly
No. 5 Married 4 4,500 monthly
Problem 5.2
Use the percentage method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the Publication 15 PDF file provided with the assignment file.
With-
Marital holding Amount
Employee Status Allow. Wages Withheld
No. 1 Married 3 $850 weekly
No. 2 Single 2 $1,500 biweekly
No. 3 Single 5 $1,800 semimonthly
No. 4 Married 7 $2,500 semimonthly
No. 5 Married 4 4,500 monthly
Problem 5.3
Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the wage brackets found in the Publication 15 PDF file provided with the assignment file.
With-
Marital holding Amount
Employee Status Allow. Wages Withheld
No. 1 Single 2 $775 weekly
No. 2 Married 1 $2,800 biweekly
No. 3 Single 0 $2,020 biweekly
No. 4 Single 5 $2,080 semimonthly
No. 5 Married 8 $3,400 monthly
Problem 5.4
Use the percentage method to determine the federal income taxes to withhold from the wages and salaries of each employee. Instructor Feedback
Use the Publication 15 PDF file provided with the assignment file.
With-
Marital holding Amount
Employee Status Allow. Wages Withheld
No. 1 Single 2 $775 weekly
No. 2 Married 1 $2,800 biweekly
No. 3 Single 0 $2,020 biweekly
No. 4 Single 5 $2,080 semimonthly
No. 5 Married 8 $3,400 monthly

Continuing Problem Instructions

Continuing Problem Instructions
Refer to the partially completed payroll register you worked on last week. 1. In the appropriate columns of your payroll register, record the marital status and number of withholding allowances claimed for each employee, using the information provided. 2. Record the amount of federal income taxes using the wage-bracket method. Recall that the 401K and the health plan are both pre-tax deductions. The tax deferral on these deductions applies only to the federal income tax. Use the wage-bracket method to determine the federal income taxes to withhold from the wages and salaries of each employee. Use the wage brackets found in the Publication 15 PDF file provided with the assignment file.
Marital Allow-
No. Employee Status ances
300 Adams, Nikki S 1
111 Barr, Stephanie S 0
208 Duginski, Samuel M 2
198 Glander, Morgan M 4
189 Hines, Terrance S 2
68 Jama, Adamo M 3
45 Lee, Min M 6
17 Rorberts, Tammi S 1
12 Vick, Tomika M 5
9 Yo, Margaret M 7

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