Payroll Accounting 2017

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Funjarre

Business Finance

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December 15

Compute the net pay and update the Employees' Earning Record with the December 15 pay and the new YTD information. Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees.

  • Complete the Employee Gross Pay tab.
  • Complete the Payroll Register for December 15 Pay. Employee pay will be disbursed on December 19, 2016.
  • You must update the Employee Earning Record Forms for each employee with the ending YTD amounts from November 30 (the prior pay period) in the "Prior Period YTD" rows. Amounts from the current period are auto-populated from the Payroll Register on the row for December 15.
  • Complete the General Journal entries for the December 15 payroll.
  • Update the General Ledger with the ending ledger balances from the November 15 pay period ledger accounts first, and then post the journal entries from the current period to the General Led

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December 15 Required information [The following information applies to the questions displayed below.] 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 the Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis. Federal income tax should be computed using the percentage method. The SUTA (UI) rate for Wayland Custom Woodworking is 2.6% on the first $32,200. The state withholding rate is 5.0% for all income levels and marital statuses, which will be used in computing Utah withholding tax for each employee using the tax tables provided below. Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So take their salary and divide by 2,080 (52 weeks at 40 hours per week) for all full time employees, both exempt and nonexempt. For nonexempt employees, such as Stevon Varden, 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, and use this to compute the employee’s gross pay based on the number of hours worked. When a nonexempt employee has worked overtime hours for a given pay period, take their regular hourly rate and multiply it by 1.5, round the result to 5 decimal places, and multiply the new rate by their number of overtime hours. For exempt employees, such as Anthony Chinson, an hourly rate rounded to five decimal places should be determined using the same method shown above, but gross pay should be determined by taking the exempt employee’s yearly salary and dividing it by 24, which is the number of payroll periods with a semimonthly frequency. For example, Chinson’s salary is $24,000 and is a full time employee. Chinson’s hourly rate is $11.53846 (determined by taking $24,000/2,080), but as he is an exempt employee, the calculation for his gross pay will be $24,000/24, which would give you $1,000. For pay periods that include paid holidays, ensure to distribute an exempt employee's regular pay accordingly to holiday pay based on the number of hours that consist of the holidays for that period. Employees are paid for the following holidays occurring during the final quarter: • • Thanksgiving day and the day after, Thursday and Friday November 24-25 Christmas, which is a Sunday. When holidays occur on a weekend, the preceding Friday, December 23, is considered a holiday. Employees receive holiday pay for Monday, December 26. For the completion of this project, refer to the tax-related information in the table below. For federal withholding calculations, use the percentage method tables in Appendix C, which is provided below. For Utah state withholding calculations, use the Utah Schedule 3 tax tables linked below (ensure to use the appropriate Utah table based on each employee's marital status). Both 401(k) and insurance are pretax for federal income tax and Utah income tax. Federal Withholding Allowance (less 401(k), Section 125) Semimonthly Federal Percentage Method Tax Table Federal Unemployment Rate (employer only) (less Section 125) State Withholding Rate (less 401(k), Section 125) $168.80 per allowance claimed Appendix C Page 254 Table #3 0.6% on the first $7,000 of wages See Utah Schedule 3, Table 1 or use the Ex Version of Schedule 3 2.6% on the first $32,200 of wages State Unemployment Rate (employer only) (less Section 125) Wayland Custom Woodworking (WCW) pays its employees according to their job classification. The following employees comprise Wayland’s staff: Employee Number 00-Chins Name and Address Anthony Chinson 530 Sylvann Avenue Logan, UT 84321 435-555-1212 Payroll information Married, 1 Withholding allowance Exempt $24,000/year + commission Start Date: 10/1/2016 Job title: Account Executive 00-Wayla Mark Wayland 1570 Lovett Street Logan, UT 84321 435-555-1110 Job title: President/Owner 01-Peppi Sylvia Peppinico 291 Antioch Road Logan, UT 84321 435-555-2244 Job title: Craftsman 01-Varde Stevon Varden 333 Justin Drive Logan, UT 84321 435-555-9981 Job title: Craftsman 02-Hisso Leonard Hissop 531 5th Street Logan, UT 84321 435-555-5858 Job title: Purchasing/Shipping 00-Succe Student F Success 1650 South Street Logan, UT 84321 435-556-1211 Job title: Accounting Clerk Voluntary deductions for each employee are as follows: Name Deduction Insurance: $50/paycheck Chinson 401(k): 3% of gross pay Insurance: $75/paycheck Wayland 401(k): 6% of gross pay Insurance: $75/paycheck Peppinico 401(k): $50 per paycheck Varden Insurance: $50/paycheck SSN: 511-22-3333 Married, 5 withholding allowances Exempt $75,000/year Start Date: 10/1/2016 SSN: 505-33-1775 Married, 7 withholding allowances Exempt $43,500/year Start Date: 10/1/2016 SSN: 047-55-9951 Married, 2 withholding allowances Nonexempt $42,000/year Start Date: 10/1/2016 SSN: 022-66-1131 Single, 4 withholding allowances Nonexempt $49,500/year Start Date: 10/1/2016 SSN: 311-22-6698 Single, 1 withholding allowance Nonexempt $36,000/year Start Date: 10/1/2016 SSN: 555-55-5555 Hissop Student 401(k): 4% of gross pay Insurance: $75/paycheck 401(k): 3% of gross pay Insurance: $50/paycheck 401(k): 3% of gross pay December 15 Compute the net pay and update the Employees' Earning Record with the December 15 pay and the new YTD information. Any hours worked in excess of 80 hours during this pay period are considered overtime for nonexempt employees. • • • • • Complete the Employee Gross Pay tab. Complete the Payroll Register for December 15 Pay. Employee pay will be disbursed on December 19, 2016. You must update the Employee Earning Record Forms for each employee with the ending YTD amounts from November 30 (the prior pay period) in the "Prior Period YTD" rows. Amounts from the current period are auto-populated from the Payroll Register on the row for December 15. Complete the General Journal entries for the December 15 payroll. Update the General Ledger with the ending ledger balances from the November 15 pay period ledger accounts first, and then post the journal entries from the current period to the General Ledger. Here is the Employee Grosspay answer below. Payroll Register Part 1 Chinson The following is the Employee Earning Record Form for Anthony Chinson for the December 15 pay period. Amounts shown for the current pay period are from the Payroll Register. Using the Year to Date (YTD) information for this employee from the previous pay period, input YTD figures in the appropriate rows for both sections of the EERF. The amounts shown in the "Current YTD" rows will be used to complete the Employee Earning Record Forms for the following pay period. (Enter your answers to 2 decimal places.) Part 2 Wayland The following is the Employee Earning Record Form for Mark Wayland for the December 15 pay period. Amounts shown for the current pay period are from the Payroll Register. Using the Year to Date (YTD) information for this employee from the previous pay period, input YTD figures in the appropriate rows for both sections of the EERF. The amounts shown in the "Current YTD" rows will be used to complete the Employee Earning Record Forms for the following pay period. (Enter your answers to 2 decimal places.) Part 3 Peppenico Part 4 Varden Part 5 Hissop PART 6 Succes Journal entry 2 Journal entry 3 General Ledger Post the transactions from the current period journal entries to the General Ledger. Input the YTD amounts from the prior period where directed. Final amounts in the "Balance" column will be used in the following pay period as the prior period YTD amount. (Enter each transaction in the order that they were journalized. Enter your answers to 2 decimal places.) continued fill in the answer in the blue box or separate in word documents and show the solution
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