Required information
Appendix A Continuing Payroll Project: Wayland Custom Woodworking
(1 Month, Part XXXXXXXXXXStatic)
[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 XXXXXXXXXXNichol Street, Logan, Utah, XXXXXXXXXX,
phone number XXXXXXXXXXThe owner is Mark Wayland. Wayland’s EIN is
XXXXXXXXXX, 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 XXXXXXXXXXpercent on the first
$35,300. The state withholding rate is XXXXXXXXXXpercent 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, XXXXXXXXXX
weeks at XXXXXXXXXXhours 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 = $ XXXXXXXXXXper hou
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 = $ XXXXXXXXXXrounded 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 occu
ing 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.
Federal Withholding Allowance (less
401(k), Section 125)
$ XXXXXXXXXXper allowance
claimed
Federal Unemployment Rate (employer
only) (less Section 125)
0.6% on the first
$7,000 of wages
Semimonthly Federal Percentage Method
Tax Table
Appendix C Table #3
State Unemployment Rate (employer
only) (less Section 125)
2.6% on the first
$35,300 of wages
State Withholding Rate (less 401(k),
Section 125)
See Utah Schedule 3,
Table A-1 or use the
Excel Version of
Schedule 3
October 1:
Wayland Custom Woodworking (WCW) pays its employees according to their job
classification. The following employees comprise Wayland’s staff:
Employ
ee
Number Name and Address Payroll information
00-Chin
s
Anthony Chinson Ma
ied, 1 Withholding
allowance
530 Sylvann Avenue Exempt
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