Answered: For the third quarter of the year,…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter8: Employer Taxes, Payments, And Reports

Section: Chapter Questions

Problem 3PA

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Question

For the third quarter of the year, Johnson Company, 415 Circle Avenue, Chicago, Illinois 60652, received Form 941 from the Internal Revenue Service. The identification number of Johnson Company is 91-4213171. Its payroll for the quarter ended September 30 is as follows:

		TAXABLE EARNINGS	DEDUCTIONS
NAME	TOTAL EARNINGS	SOCIAL SECURITY	MEDICARE	FEDERAL INCOME TAX	SOCIAL SECURITY TAX	MEDICARE TAX
Brown, D. D.	16,629.00	16,629.00	16,629.00	2,494.00	1,031.00	241.12
Carey, L. R.	18,528.00	18,528.00	18,528.00	2,780.00	1,148.74	268.66
Domzalski, T. P.	14,665.00	14,665.00	14,665.00	2,100.00	909.23	212.64
Grisson, R. O.	13,721.00	13,721.00	13,721.00	2,058.00	850.70	198.95
Tyler, J. L.	17,406.00	17,406.00	17,406.00	2,510.00	1,079.17	252.39
Valdez, K. R.	15,287.00	15,287.00	15,287.00	2,295.00	947.79	221.66
	96,236.00	96,236.00	96,236.00	14,237.00	5,966.63	1,395.42

The company has had six employees throughout the year. Assume that the FICA Social Security (employer) rate is 6.2 percent, the FICA Social Security (employee) rate is 6.2 percent on the first $118,500, and the Medicare tax is 1.45 percent of all earnings. The employer matches the employees’ FICA Medicare taxes. There are no taxable tips, adjustments, backup withholding, or earned income credits. Johnson Company has submitted the following federal tax deposits and written the accompanying checks:

On August 15 for the July Payroll	On September 15 for the August Payroll	On October 15 for the September Payroll
Employees’ income tax withheld	$4,370.00	Employees’ income tax withheld	$5,122.00	Employees’ income tax withheld	$4,745.00
Employees’ Social Security and Medicare tax withheld	2,259.76	Employees’ Social Security and Medicare tax withheld	2,326.28	Employees’ Social Security and Medicare tax withheld	2,776.01
Employer’s Social Security and Medicare tax contributed	2,259.76	Employer’s Social Security and Medicare tax contributed	2,326.28	Employer’s Social Security and Medicare tax contributed	2,776.01
	$8,889.52		$9,774.56		$10,297.02

Required:

Complete Part 1 of Form 941 for the third quarter for Johnson Company.

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