Stanton Company recently hired you to prepare the monthly payroll along with other accounting… 1 answer below »

ACCT 2690 – Capstone Accounting – Payroll Page 1 Stanton Company recently hired you to prepare the monthly payroll along with other accounting tasks on October 1. You will need to create an Excel workbook for your Payroll Register, Earnings Report, General Journal and General Ledger. You will find attached several pdf forms that will assist you in preparing their final returns. All employees are paid monthly with the Manager and President being paid a salary and the other two being paid an hourly rate. Both you and the Salesperson are not considered white-collar employees, so the company is responsible to pay you overtime for time worked beyond 40 hours per week. NOTE: All excel workbooks should be created from scratch and no template should be used. Using a template is considered collusion and will result in an automatic zero for the project. The following taxes are levied upon Stanton Company and its employees • Federal Income Taxes (FIT) – Please use the attached PUB 15 to calculate these taxes • Nebraska State Income Taxes (SIT) – 5.4% • Nebraska State Unemployment Taxes (SUTA) – 1.95% on the first $9,000 of wages • Federal Unemployment Taxes (FUTA) – .6% on the first $7,000 of wages • FICA (OASDI) – 6.2% on the first $128,400 of gross earnings • FICA (HI) – 1.45% on total gross earnings. Other deductions • The President and Manager currently put money into the company sponsored SIMPLE Retirement Plan. As a new employee you will not be allowed to participate. While the company does match these, that is handled by a CPA company and is not your responsibility to keep track of. You will be required to use it when calculating the employees net pay and other deductions. The State of Nebraska for SIT allows for the same benefits as the Federal government for FIT calculations. Taxes are deposited according to the following schedule • Federal Taxes – OASDI, HI and FIT taxes must be deposited on or before the 15th of the month following the month in which the taxes were withheld • State – States taxes are deposited quarterly. The must be remitted along with the 941N by the month following the end of the quarter • SUTA taxes are deposited quarterly. The must be remitted along with the 941N by the month following the end of the quarter • FUTA taxes are deposited in accordance with Federal guidelines. NOTE: Please be sure you use a fictitious SSN for your W-2. Company Information: Stanton Company 2251 G Street Grand Island, NE 68801 Federal ID # 00-0000660 State ID # 000-00-3300 ACCT 2690 – Capstone Accounting – Payroll Page 2 Employee Information: Bill Stanton, President, SSN# 000-00-3481, 315 N Shore Drive, Grand Island, NE 68803 Joel Smith, Manager, SSN# 000-00-8645, 3200 Indian Road, Grand Island, NE 68803 Mary Sellers, Sales, SSN# 000-00-4569, 1919 Avenue L, Grand Island, NE 68801 {Student} Employee Information to date: Annual Salary Hourly Rate Marital Status W/H Allow SIMPLE Deduction Bill Stanton 157,200 M 4 1,000 Joel Smith 130,400 S 1 600 Mary Sellers 20.00 M 2 {Student} 14.00 S 0 YTD as of 9/30/2019 Earnings OASDI HI FIT SIT SIMPLE Net Bill Stanton 117,900 7,309.80 1,709.55 13,134.55 6,366.60 9,000.00 80,379.50 Joel Smith 97,875 6,068.25 1,419.19 12,030.60 5,924.80 5,400.00 67,032.16 Mary Sellers 33,250 2,061.50 482.13 2,169.00 1,795.50 – 26,741.87 {Student} – – – – – – – Balances in General Ledger accounts at 9/30/2019: Account Account # Balance Cash 100 132,692.31 FICA Taxes Payable – OASDI 210 3,431.02 FICA Taxes Payable – HI 211 802.42 FUTA Taxes Payable 212 126.00 SUTA Taxes Payable 213 19.31 FIT Payable 214 3,037.13 SIT Payable 215 4,695.63 SIMPLE Payable 240 – Wages Expense 510 249,025.00 Payroll Tax Expense 520 19,702.92 ACCT 2690 – Capstone Accounting – Payroll Page 3 The following transactions and events occurred during the last quarter of the year 10/15 Prepare a journal entry to record the deposit of Federal Taxes from the prior month and post to the appropriate GL. (NOTE: the amount due is the same as the balance carry forward from the GL. This include the deposit of FICA and FIT taxes) 10/31 SUTA Taxes were paid for the previous quarter 10/31 SIT Taxes were paid for the previous quarter 10/31 Prepare the payroll for the last day of the period of October. There were 5 weeks during October and you worked the following during those 5 weeks (47 hours, 39 hours, 45 hours, 30 hours and 50 hours) Mary recently went to part-time and worked the following (20 hours, 34 hours, 18 hours, 26 hours and 15 hours) NOTE: Be sure you record the both the employees and the employers Journal Entries. PROCESS: Prepare Register, then Employee Earnings, prepare your Journal Entry and then Post to the GL 11/15 Prepare a journal entry to record the deposit of Federal Taxes from the prior month and post to the appropriate GL. 11/20 Mary submitted a new W-4 that changed her allowances to 3. This will take effect on the Nov 30 paycheck. 11/30 Prepare the payroll for the last day of the period of November There were 4 weeks during November and you worked the following during those weeks (48 hours, 44 hours, 41 hours and 45 hours) Mary worked the following (18 hours, 34 hours, 22 hours, 24 hours) 12/4 Joel submitted a new W-4 that changed exemptions to 0 12/15 Prepare a journal entry to record the deposit of Federal Taxes from the prior month and post to the appropriate GL. 12/31 Prepare the payroll for the last day of the period of December There were 4 weeks during December and you worked the following during those weeks (44 hours, 40 hours, 44 hours and 40 hours) Mary worked the following (15 hours, 11 hours, 24 hours, 15 hours) Prepare all journal entries needed in January to pay taxes due. Be sure you date them properly. NOTE: Do not post these to the General Ledger Required: • Using the above transactions complete the Payroll Register, Earnings Reports, Journal Entries and General Ledger accounts you created using your excel knowledge. (please be sure these are created in 1 excel workbook) • Complete the proper yearend tax forms by using the attached pdf files: o 941 o 941N (Nebraska) o Form UI (Nebraska) o 940 o W-2 o W-3 ACCT 2690 – Capstone Accounting – Payroll Page 4 • Answer the following questions on a blank excel worksheet in your workbook. o The total payroll tax expense incurred by the employer on salaries and wages paid during the quarter ended December 31 was _____________ o The total payroll tax expense incurred by the employer on the total earnings of Bill Stanton during the fourth quarter was _________________ o Stanton has decided to give all current employees (including himself) a bonus payment during January equal to 4% of their total gross pay for last year. Determine the total amount he will pay in bonus payments and total amount of payroll tax expenses associated with these bonuses.