The information given below was taken from the payroll records of Clegg Company (Oregon employer) for 20--. Use the information to complete the partially illustrated Form 940 shown below. Assume that all taxes were deposited timely. Total remuneration: $155,900
The information given below was taken from the payroll records of Clegg Company (Oregon employer) for 20--. Use the information to complete the partially illustrated Form 940 shown below. Assume that all taxes were deposited timely. Total remuneration: $155,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The information given below was taken from the payroll records of Clegg Company (Oregon employer) for 20--. Use the information to complete the partially illustrated Form 940 shown below. Assume that all taxes were deposited timely.
Total remuneration: $155,900
Included in the total remuneration is $3,000 of employer's contributions to the employees' 401(k) plans.
Remuneration in excess of $7,000: $66,670
| Taxable remuneration by quarters: | |
| 1st quarter | $43,700 |
| 2nd quarter | $24,940 |
| 3rd quarter | $14,360 |
| 4th quarter | $3,230 |
If required, round your answers to two decimal places.
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| 3 | Total payments to all employees | 3 fill in the blank 1 | |
| 4 | Payments exempt from FUTA tax | 4 fill in the blank 2 | |
| Select:
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| 5 | Total of payments made to each employee in excess of $7,000 | 5 fill in the blank 4 | |
| 6 | Subtotal (line 4 + line 5 = line 6) | 6 fill in the blank 5 | |
| 7 | Total taxable FUTA wages (line 3 – line 6 = line 7) | 7 fill in the blank 6 | |
| 8 | FUTA tax before adjustments (line 7 x .006 = line 8) | 8 fill in the blank 7 |
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| 16 | Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank. | |
| 16a 1st quarter (January 1 – March 31) | 16a fill in the blank 8 | |
| 16b 2nd quarter (April 1 – June 30) | 16b fill in the blank 9 | |
| 16c 3rd quarter (July 1 – September 30) | 16c fill in the blank 10 | |
| 16d 4th quarter (October 1 – December 31) | 16d fill in the blank 11 | |
| 17 | Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) | 17 fill in the blank 12 Total must equal line 12. |
20. PR.05.056
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