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 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method.
For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee’s Form W-2 in Part 2.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees. No employee will reach the SUTA wage cap.
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 full-time, nonexempt employees.
Example: Annual Salary to Hourly Rate, Nonexempt Employee
Employee Varden’s annual salary is $42,000, and he is a nonexempt employee.
Hourly rate = $42,000 / (52 × 40) = $42,000 / 2,080
Hourly rate = $20.19231 per hour
Example: Period Gross Pay, Salaried Employee
Employee Chinson earns an annual salary of $24,000 and is paid semimonthly.
Period gross pay = $24,000 / 24 = $1,000 gross pay
For pay periods with holiday hours: determine the amount paid per day, multiply by the number of days applicable to each pay.
Annual salary: $24,000 / (52 × 5) = $24,000 / 260 = $92.30769 (rounded to 5 decimal points) per day.
After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings.
Employees are paid for the following holidays occurring during the final quarter:
- Thanksgiving day and the day after, Thursday and Friday, November 28–29.
- Christmas, which is a Wednesday. Employees receive holiday pay for Tuesday, December 24, and Wednesday, December 25.
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 pre-tax for federal income tax and Utah income tax. Round calculations to get to final tax amounts and 401(k) contributions after calculating gross pay.
Required:
1. Complete the W-4 and, using the given information, complete the I-9 form to start your employee file. Complete it as if you are single with one withholding, you contribute 3 percent to a 401(k), and health insurance is $50 per pay period. The following file provides the lists of acceptable documents for Form I-9.
(NOTE): Further instructions on format can be found on certain cells within the forms. Employer I-9 PG 2 Section should also be completed. Round your intermediate computations to 2 decimal places.
Complete Page 1 of Form I-9 for Student Success.
Complete Page 2 of Form I-9 for Student Success.
Required:
2. Complete the payroll process for Wayland Custom Woodworking’s last two pay periods of the fourth quarter. Please note that you must carry the ending balance from each account in the December 15 General Ledger to the following period’s General Ledger to the input boxes titled “Ending account balance from the prior period” before posting the payroll journal entries from the current period to the Ledger.
For additional instructions on how to carry information from one pay period General Ledger to another, along with a guided walkthrough example of this process, refer to the project user guide in the project information section above.
December 15
December 15 is the end of the first pay period for the month of December. Employee pay will be disbursed on December 19, 2019. Remember that the employees are paid on a semimonthly basis.
Compute the net pay and update the Employees’ Earnings Records 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, 2019.
- Refer to the Employee Earning Record Forms for each employee for the current YTD amounts after you have completed the December 15 Payroll Register and update each EERF with the amounts from the current period. YTD amounts from the previous four pay periods of the fourth quarter are shown for each employee.
- Complete the General Journal entries for the December 15 payroll.
- Post the journal entries to the General Ledger. Amounts for the ledger accounts from the previous four pay periods of the fourth quarter are shown.
December 31
The final pay period of the year will not be paid to employees until January 3, 2020. The company will accrue the wages for the final pay period only. Because the pay period is complete, there will not be a reversing entry for the accrual. As a result, paychecks will not be issued for this pay period since they will be paid in the following year and reflected on the Employee Earning Record forms for each employee when paid. The remainder of the employer liability will be paid with the final filing for the year.
The company pays for Christmas Eve and the day of Christmas for 2019. Employees will be paid for both Tuesday and Wednesday as holiday pay. Standard time for the pay period was 96 hours, but employees worked extra hours on Saturday during the week of 12/23–12/27. Reminder, holidays and vacations are not included as hours worked for calculation of overtime.
- Complete the Employee Gross Pay tab.
- Complete the Payroll Register for December 31.
- Complete the General Journal entries for the December 31 payroll.
- Update the General Ledger with the ending ledger balances from the December 15 pay period ledger accounts first, and then post the journal entries from the current period to the General Ledger.
[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 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentagemethod.
For Part 2 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Then file the annual tax forms for Wayland as well as prepare each employee’s Form W-2 in Part 2 on or before the due date 01/15/2020.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees.
For Part 2 of this project, you will use the fourth quarter payroll information that you calculated in Part 1 to complete the following tax forms for Wayland Custom Woodworking:
- U.S. Form 941
- U.S. Form 940
- Utah Form TC-941
- Utah Form 33H
- Form W-2s for all 6 employees
- Form W-3 for WCW
Elective deferrals including deferrals under a simple retirement account that is part of a section 401(k) arrangement should be reported in Box 12, using code D. Employer amounts for health coverage should be reported as 1.5 times the employee’s premium in Box 12, using Code DD.
Specific instructions on how to complete each form can be found within the individual forms themselves. The employee information for Wayland has been presented again below, for convenience.
Required:
1. Complete Form 941 for the remittance of quarterly federal taxes.
Complete Page 2 of Form 941. (Round your intermediate computations and final answers to 2 decimal places. Input all values as positive numbers.)
[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 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentagemethod.
For Part 2 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Then file the annual tax forms for Wayland as well as prepare each employee’s Form W-2 in Part 2 on or before the due date 01/15/2020.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees.
For Part 2 of this project, you will use the fourth quarter payroll information that you calculated in Part 1 to complete the following tax forms for Wayland Custom Woodworking:
- U.S. Form 941
- U.S. Form 940
- Utah Form TC-941
- Utah Form 33H
- Form W-2s for all 6 employees
- Form W-3 for WCW
Elective deferrals including deferrals under a simple retirement account that is part of a section 401(k) arrangement should be reported in Box 12, using code D. Employer amounts for health coverage should be reported as 1.5 times the employee’s premium in Box 12, using Code DD.
Specific instructions on how to complete each form can be found within the individual forms themselves. The employee information for Wayland has been presented again below, for convenience.
| Employee Number | Name and Address | Payroll information |
| 00-Chins | Anthony Chinson | Married, 1 Withholding allowance |
| 530 Sylvann Avenue | Exempt | |
| Logan, UT 84321 | $24,000/year + commission | |
| 435-555-1212 | Start Date: 10/1/2019 | |
| Job title: Account Executive | SSN: 511-22-3333 | |
| 00-Wayla | Mark Wayland | Married, 5 withholding allowances |
| 1570 Lovett Street | Exempt | |
| Logan, UT 84321 | $75,000/year | |
| 435-555-1110 | Start Date: 10/1/2019 | |
| Job title: President/Owner | SSN: 505-33-1775 | |
| 01-Peppi | Sylvia Peppinico | Married, 7 withholding allowances |
| 291 Antioch Road | Exempt | |
| Logan, UT 84321 | $43,500/year | |
| 435-555-2244 | Start Date: 10/1/2019 | |
| Job title: Craftsman | SSN: 047-55-9951 | |
| 01-Varde | Stevon Varden | Married, 2 withholding allowances |
| 333 Justin Drive | Nonexempt | |
| Logan, UT 84321 | $42,000/year | |
| 435-555-9981 | Start Date: 10/1/2019 | |
| Job title: Craftsman | SSN: 022-66-1131 | |
| 02-Hisso | Leonard Hissop | Single, 4 withholding allowances |
| 531 5th Street | Nonexempt | |
| Logan, UT 84321 | $49,500/year | |
| 435-555-5858 | Start Date: 10/1/2019 | |
| Job title: Purchasing/Shipping | SSN: 311-22-6698 | |
| 00-Succe | Student Success | Single, 1 withholding allowance |
| 1650 South Street | Nonexempt | |
| Logan, UT 84321 | $36,000/year | |
| 435-556-1211 | Start Date: 10/1/2019 | |
| Job title: Accounting Clerk | SSN: 555-55-5555 | |
Total deposits made for the quarter is $10,875.10.
Monthly tax liability:
| October | $ | 5,550.41 | |
| November | 5,324.69 | ||
| December | 2,557.16 | ||
FUTA tax deposited for the year, including any overpayment applied from a prior year is $248.11.
If you have submitted Part 1 already, it is recommended that you access your submission while attempting Part 2, as you will need the information from Part 1 in order to complete all applicable tax forms.
For additional instructions on how to navigate and work through through Part 2 of this project, please download the student project guide here.
rev: 05_14_2020_QC_CS-212632, 07_28_2020_QC_CS-221746, 05_31_2021_
2. Complete Form 940 for Wayland Custom Woodworking.
[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 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentagemethod.
For Part 2 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay periods of the year. Then file the annual tax forms for Wayland as well as prepare each employee’s Form W-2 in Part 2 on or before the due date 01/15/2020.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees.
For Part 2 of this project, you will use the fourth quarter payroll information that you calculated in Part 1 to complete the following tax forms for Wayland Custom Woodworking:
- U.S. Form 941
- U.S. Form 940
- Utah Form TC-941
- Utah Form 33H
- Form W-2s for all 6 employees
- Form W-3 for WCW
Elective deferrals including deferrals under a simple retirement account that is part of a section 401(k) arrangement should be reported in Box 12, using code D. Employer amounts for health coverage should be reported as 1.5 times the employee’s premium in Box 12, using Code DD.
Specific instructions on how to complete each form can be found within the individual forms themselves. The employee information for Wayland has been presented again below, for convenience.
| Employee Number | Name and Address | Payroll information |
| 00-Chins | Anthony Chinson | Married, 1 Withholding allowance |
| 530 Sylvann Avenue | Exempt | |
| Logan, UT 84321 | $24,000/year + commission | |
| 435-555-1212 | Start Date: 10/1/2019 | |
| Job title: Account Executive | SSN: 511-22-3333 | |
| 00-Wayla | Mark Wayland | Married, 5 withholding allowances |
| 1570 Lovett Street | Exempt | |
| Logan, UT 84321 | $75,000/year | |
| 435-555-1110 | Start Date: 10/1/2019 | |
| Job title: President/Owner | SSN: 505-33-1775 | |
| 01-Peppi | Sylvia Peppinico | Married, 7 withholding allowances |
| 291 Antioch Road | Exempt | |
| Logan, UT 84321 | $43,500/year | |
| 435-555-2244 | Start Date: 10/1/2019 | |
| Job title: Craftsman | SSN: 047-55-9951 | |
| 01-Varde | Stevon Varden | Married, 2 withholding allowances |
| 333 Justin Drive | Nonexempt | |
| Logan, UT 84321 | $42,000/year | |
| 435-555-9981 | Start Date: 10/1/2019 | |
| Job title: Craftsman | SSN: 022-66-1131 | |
| 02-Hisso | Leonard Hissop | Single, 4 withholding allowances |
| 531 5th Street | Nonexempt | |
| Logan, UT 84321 | $49,500/year | |
| 435-555-5858 | Start Date: 10/1/2019 | |
| Job title: Purchasing/Shipping | SSN: 311-22-6698 | |
| 00-Succe | Student Success | Single, 1 withholding allowance |
| 1650 South Street | Nonexempt | |
| Logan, UT 84321 | $36,000/year | |
| 435-556-1211 | Start Date: 10/1/2019 | |
| Job title: Accounting Clerk | SSN: 555-55-5555 | |
Total deposits made for the quarter is $10,875.10.
Monthly tax liability:
| October | $ | 5,550.41 | |
| November | 5,324.69 | ||
| December | 2,557.16 | ||
FUTA tax deposited for the year, including any overpayment applied from a prior year is $248.11.
If you have submitted Part 1 already, it is recommended that you access your submission while attempting Part 2, as you will need the information from Part 1 in order to complete all applicable tax forms.
For additional instructions on how to navigate and work through through Part 2 of this project, please download the student project guide here.
rev: 05_14_2020_QC_CS-212632, 07_28_2020_QC_CS-221746, 05_31_2021_QC_CS-243974
