Continuing Payroll Problem, 4B: Chapter 4

This problem continues the process of preparing the Olney Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee and using this data, FICA withholding and employer FICA liability was computed. This information is shown in the Employee Payroll Register.

Requirement:

Refer to the SIMPLE Plan Contributions table and enter each employee's SIMPLE plan deduction.

Determine and record the federal income taxes for each employee.

Determine and record the state income taxes for each employee.

Determine and record the city income taxes for the Chalfont Boro residents.

Total each input column.

A SIMPLE IRA is a retirement plan that may be established by employers, including self-employed individuals (sole proprietorships and partnerships). The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.^a

OLNEY COMPANY, INC.
SIMPLE Plan Contributions

Name SIMPLE Deductions

Mangino, R. $20

Flores, I. 50

Palmetto, C. 40

Waters, R. 60

Kroll, C. 20

Ruppert, C. 40

Scott, W. 50

Wickman, S. 50

Foley, L. 30

Olney, M. 80

Employee Data

Below lists each employee's assigned Time Card No., Filing Status, and Withholding Allowances. This information is necessary when determining the amount of tax to withhold.

Time
Card No.
Employee
Name
Filing
Status No. of
Withholding
Allowances

11 Rob A. Mangino S N/A

12 Inga C. Flores S N/A

13 Carson S. Palmetto MFJ N/A

21 Randy F. Waters MFJ N/A

22 Cathy T. Kroll S N/A

31 Carmen V. Ruppert MFJ N/A

32 William M. Scott MFJ N/A

33 Sarah A. Wickman S N/A

51 Lucas T. Foley MFJ N/A

99 Marshal W. Olney MFJ N/A

Payroll Register

For this task, each employee's federal, state, and local taxes to be withheld will be determined. When determining the federal taxes to be withheld, remember that there are some deductions that are allowed "pretax". These deductions reduce the gross earnings upon which the federal tax to be withheld is determined.

Complete the steps outlined below.

Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.

Determine and record the federal income taxes for each employee.

→ Refer to each employee's filing status

→ Click the link below to view the

Wage-Bracket Method

tables

Determine and record the state income taxes for each employee using the State of Pennsylvania's rate of 3.07%.

Determine and record the local income taxes for the Chalfont Boro residents at the rate of 1.0%.

Total each input column.

Note: Round your final answers to the cent. Enter all amounts as positive numbers.

Click here to access the Wage-Bracket Method Tables.

OLNEY COMPANY, INC.
Employee Payroll Register
For Period Ending January 8, 20--

EARNINGS DEDUCTIONS NET PAY

Name Gross OASDI HI FIT SIT   SUTA   CIT SIMPLE Ded. Grp. Ins. Health Ins. Ck. No. Amount

Mangino, R. $740.00 $45.88 $10.73 $fill in the blank febcd7073f95013_1 $fill in the blank febcd7073f95013_2     $fill in the blank febcd7073f95013_3 $fill in the blank febcd7073f95013_4

Flores, I. 1,058.80 65.65 15.35 fill in the blank febcd7073f95013_5 fill in the blank febcd7073f95013_6     fill in the blank febcd7073f95013_7 fill in the blank febcd7073f95013_8

Palmetto, C. 685.30 42.49 9.94 fill in the blank febcd7073f95013_9 fill in the blank febcd7073f95013_10     fill in the blank febcd7073f95013_11 fill in the blank febcd7073f95013_12

Waters, R. 1,045.35 64.81 15.16 fill in the blank febcd7073f95013_13 fill in the blank febcd7073f95013_14     fill in the blank febcd7073f95013_15 fill in the blank febcd7073f95013_16

Kroll, C. 952.00 59.02 13.80 fill in the blank febcd7073f95013_17 fill in the blank febcd7073f95013_18     fill in the blank febcd7073f95013_19 fill in the blank febcd7073f95013_20

Ruppert, C. 837.50 51.93 12.14 fill in the blank febcd7073f95013_21 fill in the blank febcd7073f95013_22     fill in the blank febcd7073f95013_23 fill in the blank febcd7073f95013_24

Scott, W. 780.00 48.36 11.31 fill in the blank febcd7073f95013_25 fill in the blank febcd7073f95013_26     fill in the blank febcd7073f95013_27 fill in the blank febcd7073f95013_28

Wickman, S. 807.69 50.08 11.71 fill in the blank febcd7073f95013_29 fill in the blank febcd7073f95013_30     fill in the blank febcd7073f95013_31 fill in the blank febcd7073f95013_32

Foley, L. 1,233.16 76.46 17.88 fill in the blank febcd7073f95013_33 fill in the blank febcd7073f95013_34     fill in the blank febcd7073f95013_35 fill in the blank febcd7073f95013_36

Olney, M. 1,500.00 93.00 21.75 fill in the blank febcd7073f95013_37 fill in the blank febcd7073f95013_38     fill in the blank febcd7073f95013_39 fill in the blank febcd7073f95013_40

Totals $597.68 $139.77 $fill in the blank febcd7073f95013_41 $fill in the blank febcd7073f95013_42     $fill in the blank febcd7073f95013_43 $fill in the blank febcd7073f95013_44         ----

Question

Continuing Payroll Problem, 4B: Chapter 4

This problem continues the process of preparing the Olney Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each employee and using this data, FICA withholding and employer FICA liability was computed. This information is shown in the Employee Payroll Register.

Requirement:

Refer to the SIMPLE Plan Contributions table and enter each employee's SIMPLE plan deduction.
Determine and record the federal income taxes for each employee.
Determine and record the state income taxes for each employee.
Determine and record the city income taxes for the Chalfont Boro residents.
Total each input column.

A SIMPLE IRA is a retirement plan that may be established by employers, including self-employed individuals (sole proprietorships and partnerships). The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed.^a

OLNEY COMPANY, INC. SIMPLE Plan Contributions
Name	SIMPLE Deductions
Mangino, R.	$20
Flores, I.	50
Palmetto, C.	40
Waters, R.	60
Kroll, C.	20
Ruppert, C.	40
Scott, W.	50
Wickman, S.	50
Foley, L.	30
Olney, M.	80

Employee Data

Below lists each employee's assigned Time Card No., Filing Status, and Withholding Allowances. This information is necessary when determining the amount of tax to withhold.

Time Card No.	Employee Name	Filing Status	No. of Withholding Allowances

11	Rob A. Mangino	S	N/A
12	Inga C. Flores	S	N/A
13	Carson S. Palmetto	MFJ	N/A
21	Randy F. Waters	MFJ	N/A
22	Cathy T. Kroll	S	N/A
31	Carmen V. Ruppert	MFJ	N/A
32	William M. Scott	MFJ	N/A
33	Sarah A. Wickman	S	N/A
51	Lucas T. Foley	MFJ	N/A
99	Marshal W. Olney	MFJ	N/A

Payroll Register

For this task, each employee's federal, state, and local taxes to be withheld will be determined. When determining the federal taxes to be withheld, remember that there are some deductions that are allowed "pretax". These deductions reduce the gross earnings upon which the federal tax to be withheld is determined.

Complete the steps outlined below.

Refer to the SIMPLE Plan Contributions and enter each employee's SIMPLE plan deduction.
Determine and record the federal income taxes for each employee.

→ Refer to each employee's filing status

→ Click the link below to view the

Wage-Bracket Method

tables

Determine and record the state income taxes for each employee using the State of Pennsylvania's rate of 3.07%.
Determine and record the local income taxes for the Chalfont Boro residents at the rate of 1.0%.
Total each input column.

Note: Round your final answers to the cent. Enter all amounts as positive numbers.

Click here to access the Wage-Bracket Method Tables.

Name	Gross	OASDI	HI	FIT	SIT	SUTA	CIT	SIMPLE Ded.	Health Ins.
OLNEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20--
	EARNINGS	DEDUCTIONS	NET PAY
Mangino, R.	$740.00	$45.88	$10.73	$fill in the blank febcd7073f95013_1	$fill in the blank febcd7073f95013_2		$fill in the blank febcd7073f95013_3	$fill in the blank febcd7073f95013_4
Flores, I.	1,058.80	65.65	15.35	fill in the blank febcd7073f95013_5	fill in the blank febcd7073f95013_6		fill in the blank febcd7073f95013_7	fill in the blank febcd7073f95013_8
Palmetto, C.	685.30	42.49	9.94	fill in the blank febcd7073f95013_9	fill in the blank febcd7073f95013_10		fill in the blank febcd7073f95013_11	fill in the blank febcd7073f95013_12
Waters, R.	1,045.35	64.81	15.16	fill in the blank febcd7073f95013_13	fill in the blank febcd7073f95013_14		fill in the blank febcd7073f95013_15	fill in the blank febcd7073f95013_16
Kroll, C.	952.00	59.02	13.80	fill in the blank febcd7073f95013_17	fill in the blank febcd7073f95013_18		fill in the blank febcd7073f95013_19	fill in the blank febcd7073f95013_20
Ruppert, C.	837.50	51.93	12.14	fill in the blank febcd7073f95013_21	fill in the blank febcd7073f95013_22		fill in the blank febcd7073f95013_23	fill in the blank febcd7073f95013_24
Scott, W.	780.00	48.36	11.31	fill in the blank febcd7073f95013_25	fill in the blank febcd7073f95013_26		fill in the blank febcd7073f95013_27	fill in the blank febcd7073f95013_28
Wickman, S.	807.69	50.08	11.71	fill in the blank febcd7073f95013_29	fill in the blank febcd7073f95013_30		fill in the blank febcd7073f95013_31	fill in the blank febcd7073f95013_32
Foley, L.	1,233.16	76.46	17.88	fill in the blank febcd7073f95013_33	fill in the blank febcd7073f95013_34		fill in the blank febcd7073f95013_35	fill in the blank febcd7073f95013_36
Olney, M.	1,500.00	93.00	21.75	fill in the blank febcd7073f95013_37	fill in the blank febcd7073f95013_38		fill in the blank febcd7073f95013_39	fill in the blank febcd7073f95013_40

Totals	$597.68	$139.77	$fill in the blank febcd7073f95013_41	$fill in the blank febcd7073f95013_42		$fill in the blank febcd7073f95013_43	$fill in the blank febcd7073f95013_44		----

Accepted Answer

Federal Income Tax
Calculation of Federal Income taxes which comes under the wage bracket in which…