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Don Beldon earns $7.50/hour, and worked 43 hours during the most recent week. He participates in a cafeteria plan, to which he pays $100 each period. Don Beldon is single, and claims three federal and two state withholding allowances.

Don Beldon earns $7.50/hour, and worked 43 hours during the most recent week. He participates in a cafeteria plan, to which he pays $100 each period. Don Beldon is single, and claims three federal and two state withholding allowances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Payroll Register Instructions #### Task: Completing the FWT and SWT Columns Use the employee data provided below to complete the Federal Withholding Tax (FWT) and State Withholding Tax (SWT) columns of the payroll register. The specified payroll period ends on 08/07/2020, with paychecks printed and distributed six days later. #### Key Points: - **Overtime Pay**: Hourly overtime wages are calculated at 1.5 times the employee's regular hourly rate. - **Employee Name Format**: Enter all employees' names in the format Last Name, First Initial (e.g., Rick Smith should be entered as Smith, R). - **State Income Tax Rate**: The withholding rate for state income tax is 5.0% of taxable pay, with taxable pay being the same for both federal and state taxation purposes. - **Voluntary Withholding**: This column has been partially filled based on the provided information. #### Example Calculation **Employee**: Don Beldon 1. **Hourly Wage**: $7.50 per hour 2. **Weekly Hours Worked**: 43 hours 3. **Cafeteria Plan Payment**: $100 per pay period 4. **Marital Status**: Single 5. **Withholding Allowances**: Three federal and two state allowances ### Calculation Details: - **Regular Pay Calculation**: - Regular Hours: 40 hours - Overtime Hours: 3 hours - Overtime Rate: $7.50 x 1.5 = $11.25 per hour - Regular Pay: 40 hours x $7.50 = $300 - Overtime Pay: 3 hours x $11.25 = $33.75 - **Total Pay**: $300 + $33.75 = $333.75 - **Deductions**: - Cafeteria Plan: $100 - Taxable Pay: $333.75 - $100 = $233.75 - **Federal and State Withholdings** (Based on taxable pay): - SWI: 5% of $233.75 = $11.69 #### Notes: - Ensure all the calculations are accurate and any additional instructions are followed while filling out the payroll register. - The Voluntary Withholding column should align with the given partial information.
Transcribed Image Text:### Payroll Register Instructions #### Task: Completing the FWT and SWT Columns Use the employee data provided below to complete the Federal Withholding Tax (FWT) and State Withholding Tax (SWT) columns of the payroll register. The specified payroll period ends on 08/07/2020, with paychecks printed and distributed six days later. #### Key Points: - **Overtime Pay**: Hourly overtime wages are calculated at 1.5 times the employee's regular hourly rate. - **Employee Name Format**: Enter all employees' names in the format Last Name, First Initial (e.g., Rick Smith should be entered as Smith, R). - **State Income Tax Rate**: The withholding rate for state income tax is 5.0% of taxable pay, with taxable pay being the same for both federal and state taxation purposes. - **Voluntary Withholding**: This column has been partially filled based on the provided information. #### Example Calculation **Employee**: Don Beldon 1. **Hourly Wage**: $7.50 per hour 2. **Weekly Hours Worked**: 43 hours 3. **Cafeteria Plan Payment**: $100 per pay period 4. **Marital Status**: Single 5. **Withholding Allowances**: Three federal and two state allowances ### Calculation Details: - **Regular Pay Calculation**: - Regular Hours: 40 hours - Overtime Hours: 3 hours - Overtime Rate: $7.50 x 1.5 = $11.25 per hour - Regular Pay: 40 hours x $7.50 = $300 - Overtime Pay: 3 hours x $11.25 = $33.75 - **Total Pay**: $300 + $33.75 = $333.75 - **Deductions**: - Cafeteria Plan: $100 - Taxable Pay: $333.75 - $100 = $233.75 - **Federal and State Withholdings** (Based on taxable pay): - SWI: 5% of $233.75 = $11.69 #### Notes: - Ensure all the calculations are accurate and any additional instructions are followed while filling out the payroll register. - The Voluntary Withholding column should align with the given partial information.
### 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later #### Weekly Payroll Period ### STANDARD Withholding Rate Schedules (**Use these if the box in Step 2 of Form W-4 is NOT checked**) | If the Adjusted Wage Amount (line 1h) is: | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds... | |-------------------------------------------|------------------------------------|-------------------------|---------------------------------------------------| | **At least** | **But less than** | **Amount** | **Percentage** | **Amount** | | **(A)** | **(B)** | **(C)** | **(D)** | **(E)** | #### Married Filing Jointly | At least | But less than | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds | |------------|---------------|--------------------------------------|-------------------------|-----------------------------------------------| | $0 | $477 | $0.00 | 0% | $0 | | $477 | $857 | $0.00 | 10% | $477 | | $857 | $2,020 | $38.00 | 12% | $857 | | $2,020 | $3,756 | $177.56 | 22% | $2,020 | | $3,756 | $6,758 | $561.68 | 24% | $3,756 | | $6,758 | $8,452 | $1,257.76 | 32% | $6,758 | | $8,452 | $12,439 | $1,821.84 | 35% | $8,452 | | $12,439 | - | $3,217.29 | 37% | $12,439 | #### Single or Married Filing Separately | Single | But less than | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds | |--------------------|---------------
Transcribed Image Text:### 2020 Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later #### Weekly Payroll Period ### STANDARD Withholding Rate Schedules (**Use these if the box in Step 2 of Form W-4 is NOT checked**) | If the Adjusted Wage Amount (line 1h) is: | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds... | |-------------------------------------------|------------------------------------|-------------------------|---------------------------------------------------| | **At least** | **But less than** | **Amount** | **Percentage** | **Amount** | | **(A)** | **(B)** | **(C)** | **(D)** | **(E)** | #### Married Filing Jointly | At least | But less than | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds | |------------|---------------|--------------------------------------|-------------------------|-----------------------------------------------| | $0 | $477 | $0.00 | 0% | $0 | | $477 | $857 | $0.00 | 10% | $477 | | $857 | $2,020 | $38.00 | 12% | $857 | | $2,020 | $3,756 | $177.56 | 22% | $2,020 | | $3,756 | $6,758 | $561.68 | 24% | $3,756 | | $6,758 | $8,452 | $1,257.76 | 32% | $6,758 | | $8,452 | $12,439 | $1,821.84 | 35% | $8,452 | | $12,439 | - | $3,217.29 | 37% | $12,439 | #### Single or Married Filing Separately | Single | But less than | The Tentative amount to withhold is: | Plus this percentage... | ...of the amount that the Adjusted Wage exceeds | |--------------------|---------------
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