During the first full week of 20--, the Payroll Department of Quigley Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 10. In this problem, you will complete six of the forms in order to gain some experience in recording the different kinds of information required.

Assume each employee earned the same weekly salary for each of the 52 paydays in 20--, the previous year. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of the last two Forms W-2 reproduced below. Also complete Form W-3. This is the second half of the problem that began with (PR.04.13A.Part1). You will need the data from the first four W-2s on Part 1, along with the two W-2s in this problem to complete the Form W-3. The form is to be signed by the president, Kenneth T. Ford, and is prepared by Ralph I. Volpe.

Company Information:

Address: 4800 River Road

Philadelphia, PA 19113-5548 Pennsylvania state identification number: 00-0-1066

Telephone number: (215) 555-0017 Federal identification number: 00-0000972

Fax number: (215) 555-0010 Philadelphia identification number: 0001895

Income Tax Information:

The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage-bracket table and multiply the answer by 52. The other taxes withheld are shown below.

Employee Data Payroll Data Annual Taxes Withheld

Kelly B. Roach Single Social security tax withheld $2,305.16

54 Gradison Place $715 per week Medicare tax withheld 539.24

Philadelphia, PA 19113-4054 SS#: 000-00-4310 State income tax withheld 1,141.40

Deduction for 401(k) plan: $50/week Local income tax withheld 1,439.36

State unemployment tax withheld** 22.36

Ralph I. Volpe Married filing jointly Social security tax withheld 2,530.84

56 Andrews Court, Apt. 7 $785 per week Medicare tax withheld 591.76

Philadelphia, PA 19103-3356 SS#: 000-00-8804 State income tax withheld 1,253.20

Dependent care payment: $950 Local income tax withheld 1,580.28

$70/week—401(k) State unemployment tax withheld** 24.44

Randi A. Myer Single Social security tax withheld 2,853.24

770 Camac Street $885 per week Medicare tax withheld 667.16

Philadelphia, PA 19101-3770 SS#: 000-00-3316 State income tax withheld 1,412.84

Union dues withheld: $102 Local income tax withheld 1,781.52

State unemployment tax withheld** 27.56

Kenneth T. Ford Married filing jointly Social security tax withheld 4,368.69

338 North Side Avenue $1,350 per week Medicare tax withheld 1,021.97

Philadelphia, PA 19130-6638 SS#: 000-00-6839 State income tax withheld 2,155.40

Cost of group-term life insurance
exceeding $50,000: $262.75*
$100/week—401(k) Local income tax withheld
State unemployment tax withheld** 2,717.52
42.12

Chrissy C. Carman Married filing jointly Social security tax withheld 2,643.68

4900 Gladwynne Terrace $820 per week Medicare tax withheld 618.28

Philadelphia, PA 19127-0049 SS#: 000-00-5771 State income tax withheld 1,308.84

Union dues withheld: $102 Local income tax withheld 1,650.48

State unemployment tax withheld** 25.48

Hal B. Zuber Single Social security tax withheld 2,546.96

480-A Hopkinson Tower $790 per week Medicare tax withheld 595.92

Philadelphia, PA 19101-3301 SS#: 000-00-8703 State income tax withheld 1,261.00

Educational assistance payments Local income tax withheld 1,590.16

(job-required): $675
$50/week—401(k) State unemployment tax withheld** 24.44

^*The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (See Figure 4.8).

**State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14.

If an amount box does not require an entry, leave it blank.

As we go to press, the federal income tax rates for 2022 are being determined by budget talks in Washington and not available for publication. For this edition, the 2021 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2021 FICA rates have been used.

Click here to access the Wage-Bracket Method Tables.

Question

During the first full week of 20--, the Payroll Department of Quigley Corporation is preparing the Forms W-2 for distribution to its employees along with their payroll checks on January 10. In this problem, you will complete six of the forms in order to gain some experience in recording the different kinds of information required.

Assume each employee earned the same weekly salary for each of the 52 paydays in 20--, the previous year. Using the following information obtained from the personnel and payroll records of the firm, complete Copy A of the last two Forms W-2 reproduced below. Also complete Form W-3. This is the second half of the problem that began with (PR.04.13A.Part1). You will need the data from the first four W-2s on Part 1, along with the two W-2s in this problem to complete the Form W-3. The form is to be signed by the president, Kenneth T. Ford, and is prepared by Ralph I. Volpe.

Company Information:

Address:	4800 River Road
	Philadelphia, PA 19113-5548	Pennsylvania state identification number:	00-0-1066
Telephone number: (215) 555-0017	Federal identification number:	00-0000972
Fax number: (215) 555-0010	Philadelphia identification number:	0001895

Income Tax Information:
*The wage-bracket method is used to determine federal income tax withholding. Calculate the annual federal income tax withheld by using the weekly wage-bracket table and multiply the answer by 52.* The other taxes withheld are shown below.
Employee Data	Payroll Data	Annual Taxes Withheld
Kelly B. Roach	Single	Social security tax withheld	$2,305.16
54 Gradison Place	$715 per week	Medicare tax withheld	539.24
Philadelphia, PA 19113-4054	SS#: 000-00-4310	State income tax withheld	1,141.40
	Deduction for 401(k) plan: $50/week	Local income tax withheld	1,439.36
		State unemployment tax withheld**	22.36
Ralph I. Volpe	Married filing jointly	Social security tax withheld	2,530.84
56 Andrews Court, Apt. 7	$785 per week	Medicare tax withheld	591.76
Philadelphia, PA 19103-3356	SS#: 000-00-8804	State income tax withheld	1,253.20
	Dependent care payment: $950	Local income tax withheld	1,580.28
	$70/week—401(k)	State unemployment tax withheld**	24.44
Randi A. Myer	Single	Social security tax withheld	2,853.24
770 Camac Street	$885 per week	Medicare tax withheld	667.16
Philadelphia, PA 19101-3770	SS#: 000-00-3316	State income tax withheld	1,412.84
	Union dues withheld: $102	Local income tax withheld	1,781.52
		State unemployment tax withheld**	27.56
Kenneth T. Ford	Married filing jointly	Social security tax withheld	4,368.69
338 North Side Avenue	$1,350 per week	Medicare tax withheld	1,021.97
Philadelphia, PA 19130-6638	SS#: 000-00-6839	State income tax withheld	2,155.40
	Cost of group-term life insurance exceeding $50,000: $262.75* $100/week—401(k)	Local income tax withheld State unemployment tax withheld**	2,717.52 42.12
Chrissy C. Carman	Married filing jointly	Social security tax withheld	2,643.68
4900 Gladwynne Terrace	$820 per week	Medicare tax withheld	618.28
Philadelphia, PA 19127-0049	SS#: 000-00-5771	State income tax withheld	1,308.84
	Union dues withheld: $102	Local income tax withheld	1,650.48
		State unemployment tax withheld**	25.48
Hal B. Zuber	Single	Social security tax withheld	2,546.96
480-A Hopkinson Tower	$790 per week	Medicare tax withheld	595.92
Philadelphia, PA 19101-3301	SS#: 000-00-8703	State income tax withheld	1,261.00
	Educational assistance payments	Local income tax withheld	1,590.16
	(job-required): $675 $50/week—401(k)	State unemployment tax withheld**	24.44

^*The cost of excess group-term life insurance is added to gross wages for federal income tax, Social Security, and Medicare. Employers withhold OASDI and HI tax on these amounts but are not required to withhold federal income tax. The cost is not added to gross wages for state and local taxes; therefore, it is not subject to those taxes (See Figure 4.8).

**State unemployment tax withheld for Pennsylvania labeled as PA SUI on Form W-2 Box 14.

If an amount box does not require an entry, leave it blank.

As we go to press, the federal income tax rates for 2022 are being determined by budget talks in Washington and not available for publication. For this edition, the 2021 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2021 FICA rates have been used.

Click here to access the Wage-Bracket Method Tables.

Accepted Answer

Part 1
$34,580
Box 1 includes income subject to federal income tax = (715-50)*52 = 34580