Wayland custom woodworking is a firm that manufactures custom
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 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Wayland’s EIN is 91-7444533 and his Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis.
Students will complete the payroll for the final quarter of 2015, and will file fourth quarter and annual tax reports on the appropriate dates. When writing out the dollar amount for each check, spell out all words and the cents are presented over 100, for example 50 cents would be 50/100.
Federal income tax should be computed using the percentage method tables in Appendix C. FUTA information is in the table below. The Utah state income tax rate and the SUTA (UI) rate are in the table below.
Rounding can create a challenge. For these exercises, the rate for the individuals is not rounded. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for full time, nonexempt employees. For example, Varden’s salary is $42,000 and is a nonexempt employee, so the calculation will be $42,000/2,080, which would give you $20.19231 per hour. Exempt employees salaries are divided by 24 (number of payrolls for semimonthly.) For example, Chinson’s salary is $24,000 and is a full time employee, so the calculation will be $24,000/24, which would give you $1,000. After this hourly rate is determined, than it can be applied to the number of hours worked. After the gross pay has been calculated, round this number to only two decimal points prior to calculating taxes or other withholdings.
For the completion of this project the following information can be located in Appendix C. Students will use the Percentage method for federal income tax and the tax tables have been provided for Utah. Both 401(k) and insurance are pretax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay.
| Federal Withholding Allowance (less 401(k), Section 125) | $166.70 per allowance claimed |
| Semimonthly Federal Percentage Method Tax Table | Appendix C, Page 270, Table #3 |
| Federal Unemployment Rate (Federal unemployment rate less Section 125 health insurance) | 6.0% on the first $7,000 of wages |
| State Withholding Rate (less 401(k), Section 125) | See Utah Schedule 3 |
| State Unemployment Rate (less Section 125) | 2.6% on the first $31,300 of wages |
|
|
|
| Wayland Custom Woodworking Balance Sheet 9/30/2015 |
||||||
| Assets | Liabilities & Equity | |||||
| Cash | $ | 1,125,000.00 | Accounts Payable | $ | 112,490.00 | |
| Supplies | 27,240.00 | Salaries and Wages Payable | ||||
| Office Equipment | 87,250.00 | Federal Unemployment Tax Payable | ||||
| Inventory | 123,000.00 | Social Security Tax Payable | ||||
| Vehicle | 25,000.00 | Medicare Tax Payable | ||||
| Accumulated Depreciation, Vehicle | State Unemployment Tax Payable | |||||
| Building | 164,000.00 | Employee Federal Income Tax Payable | ||||
| Accumulated Depreciation, Building | Employee State Income Tax Payable | |||||
| Land | 35,750.00 | 401(k) Contributions Payable | ||||
|
|
|
Employee Medical Premiums Payable | ||||
| Total Assets | 1,587,240.00 | Notes Payable | 244,750.00 | |||
|
|
|
Utilities Payable | ||||
| Total Liabilities | 337,240.00 | |||||
| Owners’ Equity | 1,250,000.00 | |||||
| Retained Earnings | ||||||
| Total Equity |
|
1,250,000.00 |
||||
|
|
|
|||||
| Total Liabilities and Equity | 1,587,240.00 | |||||
|
|
|
|||||
|
|
||||||
October 1:
Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland’s staff:
| Employee Number | Name and Address | Payroll information |
| 00-Chins | Anthony Chinson 530 Sylvann Avenue Logan, UT 84321 435-555-1212 Job title: Account Executive |
Married, 1 withholding allowance Exempt $24,000/year + commission Start Date: 10/1/2015 SSN: 511-22-3333 |
| 00-Wayla | Mark Wayland 1570 Lovett Street Logan, UT 84321 435-555-1110 Job title: President/Owner |
Married, 5 withholding allowances Exempt $75,000/year Start Date: 10/1/2015 SSN: 505-33-1775 |
| 01-Peppi | Sylvia Peppinico 291 Antioch Road Logan, UT 84321 435-555-2244 Job title: Craftsman |
Married, 7 withholding allowances Exempt $43,500/year Start Date: 10/1/2015 SSN: 047-55-9951 |
| 01-Varde | Stevon Varden 333 Justin Drive Logan, UT 84321 435-555-9981 Job title: Craftsman |
Married, 2 withholding allowances Nonexempt $42,000/year Start Date: 10/1/2015 SSN: 022-66-1131 |
| 02-Hisso | Leonard Hissop 531 5th Street Logan, UT 84321 435-555-5858 Job title: Purchasing/Shipping |
Single, 4 withholding allowance Nonexempt $49,500/year Start Date: 10/1/2015 SSN: 311-22-6698 |
|
|
||
Voluntary deductions for each employee are as follows:
| Name | Deduction |
| Chinson | Insurance: $50/paycheck |
| 401(k): 3% of gross pay | |
| Wayland | Insurance: $75/paycheck |
| 401(k): 6% of gross pay | |
| Peppinico | Insurance: $75/paycheck |
| 401(k): $50 per paycheck | |
| Varden | Insurance: $50/paycheck |
| 401(k): 4% of gross pay | |
| Hissop | Insurance: $75/paycheck |
| 401(k): 3% of gross pay | |
| Student | Insurance: $50/paycheck |
| 401(k): 3% of gross pay | |
|
|
|
The departments are as follows:
Department 00: Sales and Administration
Department 01: Factory workers
Department 02: Delivery and Customer service
1. You have been hired as of October 1 as the new accounting clerk. Your name is Student F. Success and your employee number is 00-STUDE. Your Utah drivers license is 887743 expiring in 7/2018 and social security number is 555-55-5555, and you are non-exempt and paid at a rate of $36,000 per year. Using the information provided, complete the W-4 and the I-9 to start your employee file. Complete as if Single with 1 withholding, you decide to contribute 3% to 401(k) and health insurance is $50 per pay period.
2. Complete the headers of the Employees’ Earnings Records for all company employees. Enter the YTD earnings for each employee.
rev: 03_30_2016_QC_CS-46759, 07_09_2016_QC_CS-52845, 07_13_2016_QC_CS-52845
