Solution manual for payroll accounting 2020 6th edition jeanette landin paulette schirmer by denise.lee110

Solution Manual for Payroll Accounting 2020, 6th Edition, Jeanette Landin, Paulette Schirmer

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SOLUTIONS MANUAL: CHAPTER 5 END OF CHAPTER ANSWERS

Answers to Stop and Check Exercises

Differentiating between Gross and Net Pay

1. Gross pay consists of wages or commissions earned by the employee before deductions Net Pay is the amount of cash the employee receives after all deductions.

2. Student answers may vary but should include: Qualifying medical or dental plans, Internal Revenue Code Section 125 plans, 401(k) retirement plans, federal income tax, Medicare tax, Social Security tax, state income tax, garnishments, charitable contributions, union dues.

3. To “gross up” a payroll amount is to calculate the amount of gross pay necessary to receive a net pay result. This is often done with bonuses.

How Much to Withhold?

1. $52,000 paid semimonthly would give per pay period of $2,166.67.

$52,000/24 = $2,166.67

a) Wage-bracket - $143

b) Percentage method: (Table 3)

$2,166.67 – ($175.00 x 2) = $1,816.67

$1,816.67 – $1,300 = $516.67

$516.67 x 12% = $62.00

$62.00 + $80.80 = $144.90

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2. $2,166.67 gross pay - $100 for 401(k) deduction per pay period = $2,066.67 taxable pay

This is the new amount used in conjunction with the wage-bracket table to calculate the federal income tax withheld of $131. The difference in taxes with the 401(k) deduction is $12 = $143

131.

3. $127 = $2,166.67 - $75 in health insurance - $55 AFLAC = $2,036.67 taxable pay.

FICA Taxes

1. Social Security: $327.36 = $5,280 x .062; Medicare = $76.56 = $5,280 x .0145

2. Total liability: $807.84 = ($327.36 + $76.56) x 2

3. $250,000 / 24 = $10,416.67 per pay period - $75 for Section 125 deduction = $10,341.67 subject to FICA taxes each period.

a) $0 Social Security liability because the maximum amount of wages taxable for social security is $132,900 and she has exceeded that.; Her semi-monthly salary is $250,000 / 24 = 10,416.67. Medicare taxable earnings would be reduced by the qualified insurance deduction, $10,416.67-75 = 10,341.67. Year-to-date gross wages of $197,916.67 less qualified deduction $1,425 ($75 x 19) gives $196,491.67 of YTD Medicare taxable earnings. Medicare base for this payroll is $200,000 – 196,491.67 =, $3,508.33 to reach

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–

the $200,000 cap and $6,833.34 ($10,416.67 – 3,508.33 – 75.00) that will be charged the surcharge. ($3,508.33 x 1.45%) + ($6,833.37 x 2.35%) = $50.87 + $160.58 = $211.45

Medicare tax.

b) Medicare liability will be: ($10,416.67 – 75.00) x (.0145 + .009) = $243.03

State and Local Income Taxes

1. April’s state tax: $62,500 / 26 = $2,403.85

$2,403.85 – 150 for 401(k) – 80 for Section 125 = $2,173.85

$2,173.85 x 1.125% = $24.46

2. Rick’s state income tax: $131.96 = $2,850 x .0463; local $5.75

Post-tax Deductions

1. a, b, d

2. Because the IBEW requires that employees’ union dues be remitted by the employer, the amount due must be deducted on a post-tax basis from his period pay.

Pay Methods

1. Cash, check, direct deposit, paycard, and cryptocurrencies

2. Regulation E.

3. Direct deposit. ANSWERS TO END-OF-CHAPTER MATERIALS

REVIEW QUESTIONS

SM 5-3

1. What are the four factors that affect how much federal income tax is withheld from an employee’s pay?

a. Frequency of the payroll period, employee marital status, the number of withholding exemptions claimed on the employee’s Form W-4, and the amount of the wage payment

2. How is Social Security tax computed? What is the maximum wage base?

a. Social Security tax is computed by multiplying the employee’s gross pay, less allowable deductions, by 6.2 percent. The wage base for 2019 is $132,900.

3. How is Medicare tax computed? What is the maximum wage base?

a. Medical tax is computed by multiplying the employee’s gross pay, less allowable deductions, by 1.45 percent. There is no maximum wage base for Medicare tax; however, the Affordable Care Act stipulated that employees earning more than $200,000 (averaged for this text) must have an additional 0.9 percent withheld for their Medicare tax contribution.

4. Name four states that do not have an income tax for employees (Student answers may vary among the following list).

a. Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming

5. How is an employee’s net income computed?

a. Net income equals the employee’s gross pay less income tax withholdings, FICA tax deductions, other mandatory deductions, and voluntary deductions.

6. Why is the difference between gross pay and taxable income important?

a. The difference between gross pay and taxable income is important because of the pretax deductions that reduce an employee’s liability for income tax withholdings.

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7. What are the five different pay methods?

a. Cash, check, direct deposit, paycard, and cryptocurrency.

8. What are advantages and disadvantages of paycards?

a. Paycards allow the employees to receive their wages rapidly and securely on the pay date without needing to have a bank account. A disadvantage is that the paycard is often handled like cash, so if it is lost or stolen, the employee risks losing money.

9. What are advantages and disadvantages of direct deposit?

a. Direct deposit is advantageous because it allows employees to receive their wages quickly and securely on the pay date. The disadvantage is that the employee must have an established bank account where the funds will be deposited.

10. How does the percentage method work?

a. . When using the percentage method, the deduction for each withholding allowance is subtracted prior to computing the taxes. The taxable income is then examined with the filing status to determine the tier in which the tax will be applied. An amount is subtracted at the tier and the remaining balance is multiplied by the rate with a set amount added to the calculation.

11. When should the percentage method be used instead of the wage-bracket method?

a. The percentage method is appropriate when the employee has more than 10 exemptions, when the gross pay exceeds the maximum amount for the wage-bracket table, or when the employee’s pay period is nonstandard (i.e., daily, quarterly, or annually).

12. What are two examples of garnishments?

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a. Student answers may vary but should include: Child support, consumer credit, liens, or other court judgements.

13. Why are garnishments deducted on a post-tax basis?

a. They are viewed as a post-tax obligation from disposable income. Not all employee elections will reduce the amount available to pay the garnishment.

14. Why are union dues not considered a garnishment?

a. Union dues are considered a membership fee as part of employment for the negotiation of salaries, benefits, and working conditions. It is voluntary to be in the union in most states.

15. How does cryptocurrency function as a payroll payment method?

a. Cryptocurrency uses Internet technology to securely transfer money from one “wallet” to another. It is a purely electronic currency.

16. Why has cryptocurrency not yet been fully adopted as an employee payment method?

a. Since cryptocurrency is purely electronic, and not backed by a physical currency, there is a wide fluctuation in valuation, and this can lead to “underpayment” of employees as the cryptocurrency loses value. Governmental guidance will likely need to occur.

EXERCISES SET A

E5-1A. Lyle Ingram, the payroll accountant, needs to compute net pay for the employees for Hay Industries. Place the following steps in the proper order.

e. Determine gross pay

b. Subtract pre-tax deductions from gross pay

a. Compute income taxes

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c. Compute Social Security and Medicare taxes

d. Subtract taxes and all other deductions from gross pay

Order: _e b a c d

E5-2A. Daryl Simpson is the owner of Padua Products. During the holiday season, he wants to reward his employees for their work during the year, and he has asked you to gross up their bonuses so that they receive the full amount as net pay. What amount(s) should you consider when computing the grossed up pay? (Select all that apply.)

a. Desired bonus amount

b Garnishments

d. Income tax(es)

E5-3A. Teddy Harrington is the new payroll clerk with B&H Farms. As he prepares to use the wage-bracket tables to determine federal income tax withholdings, what information does he need for each employee? (Select all that apply.)

b. Taxable income

d. Pay frequency

E5-4A. Under which circumstances could the percentage method be used to determine federal income tax withholding amounts? (Select all that apply.)

a. When the employee's taxable income exceeds the maximum amount on the appropriate wage bracket table.

b. When using a computerized accounting system to compute payroll deductions

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d. When computational accuracy is critical.

E5-5A. Which of the following is true about Social Security and Medicare taxes, as they pertain to earnings limits? (Select all that apply )

b. Highly compensated employees are subject to additional Medicare tax withholding

c. Once an employee's year-to-date earnings exceed the wage base, no additional Social Security tax is withheld

E5-6A. Which of the following are the rates for Social Security and Medicare taxes, respectively?

c. 6.2 percent, 1.45 percent

E5-7A. Which of the following statements are true about state and local income taxes? (Select all that apply.)

b. State tax rates on employee earnings vary among states.

c. Certain states have no personal income tax deduction.

d. Some localities levy income tax on employees

E5-8A. Petra Stevens is the accountant for FAB Products, a newly formed company. She is exploring employee pay methods. Which of the following describes a method in which employee earnings is transferred automatically from the employer's bank account to the employee's bank account?

d. Direct deposit

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E5-9A. What are the two methods payroll accountants use to determine federal income tax withholding amounts? (Select all that apply.)

a. Percentage method

d. Wage-bracket method

E5-10A. At what income level do employees contribute an additional percentage to their Medicare tax deduction?

d. $200,000

PROBLEMS SET A

P5-1A. Compute the net pay for Karen Wilson and Katie Smith. Assume that they are paid biweekly, subject to federal income tax (using the wage-bracket method), FICA taxes, and have no other deductions from their pay. If they choose to participate in the cafeteria plan, the deduction for the pay period is $100; otherwise, there is no deduction for the cafeteria plan. The cafeteria plan qualifies under Section 125. You do not need to complete the number of hours.

P5-2A. Tooka’s Trees in Auburn, Tennessee, has six employees who are paid biweekly. Calculate the net pay from the information provided below for the November 15 pay

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Name M/S #W/H Hourly Rate or Period Wage No.of Regular Hours No.of Overtime Hours No.of Holiday Hours Commission Gross Earnings Section 125 Taxable Wagesfor Federal W/H Taxable Wagesfor FICA KarenWilson- nocafeteriaplan M 4 $2,000.00 $2,000.00 2,000.00 $ 2,000.00 $ KarenWilson- cafeteriaplan M 4 $2,000.00 $2,000.00 100.00 $ 1,900.00 $ 1,900.00 $ Katie Smith- nocafeteriaplan S 1 $2,000.00 $2,000.00 2,000.00 $ 2,000.00 $ Katie Smith- cafeteriaplan S 1 $2,000.00 $2,000.00 100.00 $ 1,900.00 $ 1,900.00 $ Name Gross Earnings Taxable Wagesfor Federal W/H Taxable Wagesfor FICA Federal W/H Social Security Tax Medicare Tax State Tax NetPay KarenWilson- nocafeteriaplan $2,000.00 2,000.00 $ $2,000.00 92.00 $ 124.00 $ 29.00 $ 60.00 $ $1,695.00 KarenWilson- cafeteriaplan $2,000.00 1,900.00 $ $1,900.00 80.00 $ 117.80 $ 27.55 $ 57.00 $ $1,617.65 Katie Smith- nocafeteriaplan $2,000.00 2,000.00 $ $2,000.00 213.00 $ 124.00 $ 29.00 $ 60.00 $ $1,574.00 Katie Smith- cafeteriaplan $2,000.00 1,900.00 $ $1,900.00 191.00 $ 117.80 $ 27.55 $ 57.00 $ $1,506.65

date. Assume that all wages are subject to Social Security and Medicare taxes. All 401(k) and Section 125 amounts are pre-tax deductions. The wages are not subject to state taxes You do not need to complete the number of hours.

P5-3A. The following employees of CIBA Ironworks in Bristol, Illinois, are paid in different frequencies. Some employees have union dues and/or garnishments deducted from their pay. Calculate their net pay, including Illinois income tax of 4.95 percent of taxable pay. No employee has exceeded the maximum FICA limits. You do not need to complete the number of hours.

*Use percentage method

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Employee Frequency Marital status / Withholdings Pay Union dues per period Garnishment per period Net pay C. Whaley Weekly M, 2 $850 $50 $ 644.90 F. Paguaga Semimonthly M, 6 $2,800 $120 $2,192.40 K. Harvey* Monthly S, 3 $8,000 $240 $75 $5,562.80 L. Bolling Biweekly M, 0 $2,500 $100 $1,855.00

$8,000 – ($350 x 3) = $6,950

$6,950 - $3,606 = $3,344

$3,344 x .22 = $735 68

$735.68 + $378.52 = $1,114.20

You need to use percentage method for F. Paguaga: 2,682 and over Use Table 3(b) for a married person on page 46. Also see the instructions on page 44.

Federal Tax: 2800 – (175*6) = 1750

1750 – 1300 = 450 450 * .12 = 54

54 + 80.80 = 134.80

P5-4A. Frances Newberry is the payroll accountant for Pack-it Services of Jackson, Arizona.

The employees of Pack-it Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $750, which he will pay back in equal parts on the November 15 and December 15 paychecks. Glen is married with 8 withholding allowances and is paid $50,000 per year. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125

SM 5-11

Name Frequency M/S #W/H Hourly Rateor Period Wage No.of Regular Hours No.of Overtime Hours No.of Holiday Hours Commissions Gross Earnings 401(k) Section125 Taxable Wagesfor FederalW/H Taxable Wagesfor FICA C.Whaley Weekly M 2 850.00 $ 850.00 $ 850.00 $ 850.00 $ F.Paguaga Semimonthly M 6 $2,800.00 2,800.00 $ 2,800.00 $ 2,800.00 $ K.Harvey* Monthly S 3 $8,000.00 8,000.00 $ 8,000.00 $ 8,000.00 $ L.Bolling Biweekly M 0 $2,500.00 2,500.00 $ 2,500.00 $ 2,500.00 $ Name GrossEarnings Taxable Wagesfor Federal W/H Taxable Wagesfor FICA Federal W/H Social Security Tax Medicare Tax StateTax UnionDues Garnishment NetPay C.Whaley 850.00 $ 850.00 $ 850.00 $ 48.00 $ 52.70 $ 12.33 $ 42.08 $ 50.00 $ 644.90 $ F.Paguaga 2,800.00 $ 2,800.00 $ $2,800.00 150.00 $ 173.60 $ 40.60 $ 138.60 $ 120.00 $ 2,177.20 $ K.Harvey* 8,000.00 $ 8,000.00 $ $8,000.00 $1,114.20 496.00 $ 116.00 $ 396.00 $ 240.00 $ 75.00 $ 5,562.80 $ L.Bolling 2,500.00 $ 2,500.00 $ $2,500.00 230.00 $ 155.00 $ 36.25 $ 123.75 $ 100.00 $ 1,855.00 $

plan. Compute his net pay on his November 15th paycheck. The state income tax rate is 2.88 percent.

P5-5A Milligan’s Millworks pays its employees on a weekly basis. Using the wage-bracket tables from Appendix C, compute the federal income tax deductions for the following employees of Milligan’s Millworks:

*When the pay is on the edge between two brackets, use the higher one.

P5-6A. Wynne and Associates has employees with pay schedules that vary based by job classification. Compute the federal tax liability for each employee using the percentage method.

SM 5-12

Employee Marital status No. of exemptions Weekly pay Federal tax D. Balestreri S 4 $845 $51 Y. Milligan S 2 $1,233 $140 H. Curran M 7 $682 -0D. Liberti M 0 $755* $57

Name M/S #W/H Hourly Rate or Period Wage Gross Earnings 401(k) Section 125 Plan Taxable Wages for Federal W/H Taxable Wages for FICA Glen Riley M 8 $2,083.33 $2,083.33 62.50 $ 25.00 $ 1,995.83 $ 2,058.33 $ Name Gross Earnings Taxable Wages for Federal W/H Taxable Wages for FICA Federal W/H Social Security Tax Medicare Tax State Income Tax Advance Net Pay Glen Riley $2,083.33 1,995.83 $ $2,058.33 10.00 $ 127.62 $ 29.85 $ 57.48 $ 375.00 $ 1,395.89 $

Answer key should show all calculations to get to net pay:

P5-7A The employees of Agonnacultis, Inc., are paid on a semimonthly basis. Compute the FICA taxes for the employees for the November 15 payroll. All employees have been employed for the entire calendar year.

SM 5-13

Employee Marital status No. of exemptions Pay frequency Pay amount Percentage method S. Turner S 1 Weekly $3,000 $571.07 D. McGorray S 4 Monthly $15,000 $2,702.54 A. Kennedy M 3 Daily $500 $57.47 R. Thomas M 5 Annually $120,000 $10,901.00

Name M/S W/H Pay Freq Amt Exempt Taxable Amt over Taxed Tax Addl Total S. Turner S 1 Weekly 3,000.00 $ 80.80 $ 2,919.20 $ 1,692.00 $ 1,227.20 $ 294.53 $ 276.54 $ 571.07 $ D. McGorray S 4 Monthly 15,000.00 $ 1,400.00 $ $13,600.00 7,333.00 $ 6,267.00 $ $1,504.08 $1,198.46 2,702.54 $ A. Kennedy M 3 Daily 500.00 $ 48.60 $ 451.40 $ 349.00 $ 102.40 $ 22.53 $ 34.94 $ 57.47 $ R. Thomas M 5 Annually $120,000.00 $21,000.00 $99,000.00 $90,750.00 8,250.00 $ $1,815.00 $9,086.00 $10,901.00

* Bogard is subject to additional Medicare taxes under Affordable Care Act.

$10,250 x .0145=$148.63

$10,250 x .009 = $92.25

$148.63 + $92.25 = $240.88

P5-8A. Fannon’s Chocolate Factory operates in North Carolina. Using the state income tax rate of 5.5 percent, calculate the income tax for each employee.

consent

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No reproduction or distribution

the

written

Education. Employee Semimonthly pay YTD pay for Oct 31 pay date Social Security tax for Nov. 15 pay date Medicare tax for Nov. 15 pay date T. Newberry $7,500 $150,000 -0- $108.75 S. Smith $3,500 $70,000 $217.00 $50.75 D. Plott $4,225 $84,500 $261.95 $61.26 I. Ost $6,895 $137,900 -0- $99.98 D. Bogard $10,250 $205,000 -0- $240.88* M. Mallamace $4,100 $82,000 $254.20 $59.45

without

prior

McGraw-Hill

Amount per

period North Carolina income tax K.

$30.25

Employee

pay

Jamieson $550

P5-9A. Using the percentage method, calculate the federal withholding amounts for the following employees.

P5-10A. Margaret Wilson is the new accountant for a startup company, Peaceful Skunk Builders. The company has cross-country drivers, warehouse personnel, and office staff at the main location. The company is looking at options that allow their employees flexibility with receiving their pay. Margaret has been asked to present the advantages and disadvantages of the various pay methods to senior management. Which would be the best option for each class of workers?

SM 5-15

$269.23

$177.38

D. Macranie $4,895

G. Lockhart $3,225

K. McIntyre $1,795 $98.73

Employee Marital Status Withholdings Pay Frequency Amount per Pay Period Federal Income Tax S. Calder M 6 Quarterly $20,000 $1,193.00 P. Singh S 2 Annually $90,000 $10,591.00 B. Nelson M 0 Daily $500 $68.16

Name M/S W/H Pay Freq Amt Exempt Taxable Amt over Taxed Tax Addl Total Calder M 6 Quarterly 20,000.00 $ 6,300.00 $ $13,700.00 7,800.00 $ 5,900.00 $ 708.00 $ 485.00 $ 1,193.00 $ Singh S 2 Annually 90,000.00 $ 8,400.00 $ $81,600.00 $43,275.00 $38,325.00 $8,431.50 $4,543.00 $12,974.50 Nelson M 0 Daily 500.00 $ - $ 500.00 $ 349.00 $ 151.00 $ 33.22 $ 34.94 $ 68.16 $

Student answers will vary. Optimal choice for the cross-country drivers would be paycards to ensure that they are able to access their money in a timely fashion away from their bank. Within the warehouse and office, direct deposit or checks would be preferable methods. Students may consider cryptocurrency as an option for any of the classification of workers, however until this market stabilizes.

Worker Classification

Pay Distribution Option

Cross-country drivers Direct Deposit, Paycards

Advantages Disadvantages

Instant access to pay on payday even away from the office

Paycards can get lost and fees may be involved to access funds for both methods when there is not a bank present in the area the driver is in. Direct deposits may require a full pay cycle before they can be used.

Warehouse Personnel and Office Staff

Check, direct deposit Local representation to be able to pick up pay check the day of

Pay checks can be mislaid resulting in the employee losing their paycheck and

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payday or have funds direct deposited.

take time to clear. Direct deposits may require a full pay cycle before they can be used.

EXERCISE SET B

E5-1B. Chastity Santos is in the process of computing net pay for the employees of Happy Crab Marketing. Place the following steps in order after Chastity has determining the amount of gross pay?

c Compute pre-tax deductions

b. Compute income tax withholding(s)

a. Compute Social Security and Medicare tax withholding

d. Compute post-tax deductions.

E5-2B. Joey Martel is an employee of Overclock Watches. His employer would like to give him a bonus and has asked you to gross it up to ensure that Joey receives the full amount of the desired award. Which of the following should be considered in the denominator to compute the grossed up amount? (Select all that apply )

a. Social Security and Medicare taxes

d. Income tax(es).

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E5-3B. Liam Figuerao is the payroll accountant for Chop Brothers Coffee. As he prepares to use to wage bracket tables to determine federal income tax withholdings for each employee, which information should he have available? (Select all that apply )

a. Marital status

d. Number of withholding allowances.

E5-4B. Which of the following are steps in computing federal income tax withholding using the percentage method? (Select all that apply.)

a. Compute and deduct withholding allowance.

b. Apply the tax rate to the taxable portion of the earnings.

d. Add the marginal tax.

E5-5B. Which of the following are true about Social Security and Medicare tax deductions? (Select all that apply.)

d. Certain pre-tax deductions are exempt from Social Security and Medicare tax computations.

E5-6B. Scout Freeman is the Vice President for Marketing at Sun Field Industries. She earns $140,000 annually and is paid on a semimonthly basis. As of October 31, Scout has year-to-date earnings of $126,666.67. The Social Security wage base is $132,900.

What is the maximum amount of her taxable earnings that may be subject to Social Security tax for the November 15 pay period?

a. $5,833.33

SM 5-18

$140,000/24 = $5,833.33 Since Scout has not reached the wage base of $132,900, all her earnings for the November 15th pay period is taxable.

E5-7B. Which of the following is true about state and local income tax? (Select all that apply)

a. Pre-tax deduction rules for federal income tax are generally the same for state and local income taxes.

b. Nine states do not have a personal income tax on earnings.

d. State income tax computations vary among states.

E5-8B. Which of the following is true about employee pay methods? (Select all that apply )

b. Employers must keep a record all pay disbursements

d. Paycards may be reloaded with an employee's net pay on the pay date.

E5-9B. Which of the following states does not withhold employee income tax? (Select all that apply.)

a. Washington

c. Tennessee

E5-10B. Margarita Sutton is preparing a training session for her colleagues about payroll check fraud. Which of the following may be indicators of check fraud? (Select all that apply.)

a. Changes in font type between company address and employee name.

c. Check number is missing from the check.

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PROBLEM SET B

P5-1B. Compute the net pay for Will Barrett and Eric Martin. Assume that they are paid biweekly, subject to federal income tax (using the wage-bracket method in Appendix C) and FICA taxes, and have no other deductions from their pay. Will’s deduction if he chooses to participate in the cafeteria plan is $75; Eric’s is $250. There is no deduction if they do not participate in the cafeteria plan. The cafeteria plan qualifies for Section 125. There are no state income taxes and you do not need to complete the number of hours.

P5-2B. Hark Enterprises in Taft, Wyoming, has six employees who are paid semimonthly. Calculate the net pay from the information provided below for the August 15 pay date. Assume that all wages are subject to Social Security and Medicare taxes Use the wage-bracket tables in Appendix C to determine the federal income tax withholding. You do not need to complete the number of hours.

SM 5-20

Name M/S #W/H Hourly Rateor Period Wage No.of Regular Hours No.of Overtime Hours No.of Holiday Hours Commissions Gross Earnings Cafeteria Plan Taxable Wagesfor FederalW/H Taxable Wagesfor FICA WillBarrett-nocafeteriaplan S 1 $1,600.00 $1,600.00 1,600.00 $ 1,600.00 $ WillBarrett-cafeteriaplan S 1 $1,600.00 $1,600.00 75.00 $ 1,525.00 $ 1,525.00 $ EricMartin-nocafeteriaplan M 6 $1,875.00 $1,875.00 1,875.00 $ 1,875.00 $ EricMartin-cafeteriaplan M 6 $1,875.00 $1,875.00 250.00 $ 1,625.00 $ 1,625.00 $ Name Gross Earnings Taxable Wagesfor Federal W/H Taxable Wagesfor FICA Federal W/H Social Security Tax Medicare Tax StateIncome Tax NetPay WillBarrett-nocafeteriaplan $1,600.00 1,600.00 $ $1,600.00 147.00 $ 99.20 $ 23.20 $ $1,330.60 WillBarrett-cafeteriaplan $1,600.00 1,525.00 $ $1,525.00 138.00 $ 94.55 $ 22.11 $ $1,270.34 EricMartin-nocafeteriaplan $1,875.00 1,875.00 $ $1,875.00 45.00 $ 116.25 $ 27.19 $ $1,686.56 EricMartin-cafeteriaplan $1,875.00 1,625.00 $ $1,625.00 21.00 $ 100.75 $ 23.56 $ $1,479.69

P5-3B. The following employees of Memory Bytes of Titusville, Washington, are paid in different frequencies. Some employees have union dues or garnishments deducted from their pay. Calculate their net pay. Use the wage-bracket tables in Appendix C unless amount is over the table. No employee has exceeded the maximum FICA limits. You do not need to complete the number of hours.

* Used percentage method - over wage-bracket tables Oceguera $ 6,600.00 Federal income $ (700.00) withholdings $ 5,900.00 amount subject to tax $ (3,606.00) amount over $ 2,294.00 amount to calculate $ 504.68 calculated at 22% $ 378.52 in addition to $ 883.20 total tax

SM 5-21

Name M/S #W/H Hourly Rateor Period Wage No.of Regular Hours No.of Overtime Hours No.of Holiday Hours Commissions GrossEarnings 401(k) Section125 Taxable Wagesfor Federal W/H Taxable Wagesfor FICA L.Fletcher M 5 $1,320.00 1,320.00 $ 26.40 $ $1,293.60 1,320.00 $ S.Lince S 0 $1,745.00 1,745.00 $ 220.00 $ $1,525.00 1,745.00 $ A.Brown S 5 $2,120.00 2,120.00 $ 150.00 $ 25.00 $ $1,945.00 2,095.00 $ R.Kimble M 6 $1,570.00 1,570.00 $ $1,570.00 1,570.00 $ F.Monteiro M 0 $2,200.00 2,200.00 $ 88.00 $ 100.00 $ $2,012.00 2,100.00 $ K.Giannini S 2 $1,485.00 1,485.00 $ 120.00 $ $1,365.00 1,485.00 $ Name Gross Earnings Taxable Wagesfor Federal W/H Taxable Wagesfor FICA Federal W/H Social Security Tax Medicare Tax UnitedWay Garnishment NetPay L.Fletcher $1,320.00 1,293.60 $ $1,320.00 - $ 81.84 $ 19.14 $ 1,192.62 $ S.Lince $1,745.00 1,525.00 $ $1,745.00 155.00 $ 108.19 $ 25.30 $ 1,236.51 $ A.Brown $2,120.00 1,945.00 $ $2,095.00 101.00 $ 129.89 $ 30.38 $ 1,683.73 $ R.Kimble $1,570.00 1,570.00 $ $1,570.00 3.00 $ 97.34 $ 22.77 $ 25.00 $ 75.00 $ 1,346.89 $ F.Monteiro $2,200.00 2,012.00 $ $2,100.00 166.00 $ 130.20 $ 30.45 $ 1,685.35 $ K.Giannini $1,485.00 1,365.00 $ $1,485.00 94.00 $ 92.07 $ 21.53 $ 1,157.40 $ Name Frequency M/S #W/H Hourly Rateor Period Wage No.of Regular Hours No.of Overtime Hours No.of Holiday Hours Commissions Gross Earnings 401(k) Section125 Taxable Wagesfor FederalW/H Taxable Wagesfor FICA N.Lawrence Biweekly M 5 $1,680.00 1,680.00 $ 1,680.00 $ 1,680.00 $ D.Gaitan Weekly S 0 $1,300.00 1,300.00 $ 1,300.00 $ 1,300.00 $ N.Ruggieri Semimonthly M 2 $2,525.00 2,525.00 $ 2,525.00 $ 2,525.00 $ P.Oceguera* Monthly S 2 $6,600.00 6,600.00 $ 6,600.00 $ 6,600.00 $ Name GrossEarnings Taxable Wagesfor Federal W/H Taxable Wagesfor FICA Federal W/H Social Security Tax Medicare Tax StateTax UnionDues Garnishment NetPay N.Lawrence 1,680.00 $ 1,680.00 $ $1,680.00 41.00 $ 104.16 $ 24.36 $ 102.00 $ 1,408.48 $ D.Gaitan 1,300.00 $ 1,300.00 $ $1,300.00 190.00 $ 80.60 $ 18.85 $ 70.00 $ 940.55 $ N.Ruggieri 2,525.00 $ 2,525.00 $ $2,525.00 187.00 $ 156.55 $ 36.61 $ 110.00 $ 90.00 $ 1,944.84 $ P.Oceguera* 6,600.00 $ 6,600.00 $ $6,600.00 883.20 $ 409.20 $ 95.70 $ 45.00 $ 5,166.90 $

P5-4B. Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. The employees of Sia Lights are paid biweekly. Her employee, Melinda Gunnarson, comes to her on September 13 and requests a pay advance of $825, which she will pay back in equal parts on the September 27 and October 11 paychecks. Melinda is single with 1 withholding allowance and is paid $32,500 per year. She contributes 1% of her pay to a 401(k) plan and has $25 per paycheck deducted for a court-ordered garnishment. Compute her net pay for her September 27th paycheck. Her state income tax rate is 6.84 percent. Use the wage-bracket tables in Appendix C to determine the Federal income tax withholding amount. You do not need to complete the number of hours.

P5-5B. Wolfe Industries pays its employees on a semimonthly basis. Using the wage-bracket tables from Appendix C, compute the federal income tax deductions for the following employees of Wolfe Industries:

SM 5-22

Employee Marital status No. of exemptions Semi-monthly pay Federal tax T. Canter M 1 $1,050 $39

P5-6B. GL Kennels has employees with pay schedules that vary based by job classification. Compute the federal tax liability for each employee using the percentage method.

SM 5-23

M. McCollum M 5 $1,390 $3 C. Hammond S 2 $1,295 $87 T. Elliott S 4 $1,165 $30

Employee Marital status No. of exemptions Pay frequency Pay amount Percentage method C. Wells M 2 Biweekly $1,825 $110.84 L. Decker M 0 Weekly $750 $55.30 J. Swaby S 5 Weekly $875 $44.02 M. Ohlson M 3 Semimonthly $2,025 $104.80 Name M/S W/H Pay Freq Amt Exempt Taxable Amt over Taxed Tax Addl Total C.Wells M 2 Biweekly 1,825.00 $ 323.00 $ 1,502.00 $ 1,200.00 $ 302.00 $ 36.24 $ 74.60 $ 110.84 $ L.Decker M 0 Weekly 750.00 $ - $ 750.00 $ 600.00 $ 150.00 $ 18.00 $ 37.30 $ 55.30 $ J.Swaby S 5 Weekly 875.00 $ 404.00 $ 471.00 $ 260.00 $ 211.00 $ 25.32 $ 18.70 $ 44.02 $ M.Ohlson M 3 Semimonthly 2,025.00 $ 525.00 $ 1,500.00 $ 1,300.00 $ 200.00 $ 24.00 $ 80.80 $ 104.80 $

P5-7B. The employees of Black Cat Designs are paid on a semi-monthly basis. Compute the FICA taxes for the employees for the November 30, 2019, payroll. All employees have been employed for the entire calendar year.

* $132,700 - $131,775 = $1,125 x .062, Social Security cap reached in the 11/30 pay period

P5-8B. Christensen Ranch operates in Pennsylvania Using the state income tax rate of 3.07 percent, calculate the state income tax for each employee.

SM 5-24

Employee Semimonthly pay YTD pay for 11-15-2019 Social Security tax for 11-30-2019 pay Medicare tax for 11-30-2019 pay P. Gareis $4,250 $89,250 $263.50 $61.63 E. Siliwon $6,275 $131,775 $69.75* $90.99 G. De La Torre $5,875 $123,375 $364.25 $85.19 L. Rosenthal $2,850 $59,850 $176.70 $41.33 C. Bertozzi $5,105 $107,205 $316.51 $74.02 T. Gennaro $2,940 $61,740 $182.28 $42.63

P5-9B. Using the percentage method, calculate the federal withholding amounts for the following employees:

P5-10B. David Adams has been retained as a consultant for Marionet Industries. The company has had difficulty with their cross-country drivers receiving their pay in a timely fashion since they are often away from their home banks. The company is looking at options that allow their employees flexibility with receiving their pay. Prepare a

SM 5-25

Employee Amount per pay period Pennsylvania income tax G. Zonis $1,325 $40.68 V. Sizemore $1,710 $52.50 R. Dawson $925 $28.40 C. Couture $2,550 $78.29

Employee Marital status Withholdings Pay frequency Amount per pay period Federal income tax L. Abbey S 3 Annually $63,500 $6,220.50 G. Narleski M 0 Quarterly $14,000 $1,229.00 T. Leider S 1 Monthly $1,200 $53.30

Name M/S W/H Pay Freq Amt Exempt Taxable Amt over Taxed Tax Addl Total Abbey S 3 Annually 63,500.00 $ $12,600.00 $50,900.00 $43,275.00 7,625.00 $ $1,677.50 $4,543.00 6,220.50 $ Narleski M 0 Quarterly 14,000.00 $ - $ $14,000.00 7,800.00 $ 6,200.00 $ 744.00 $ 485.00 $ 1,229.00 $ Leider S 1 Monthly 1,200.00 $ 350.00 $ 850.00 $ 317.00 $ 533.00 $ 53.30 $ - $ 53.30 $

presentation depicting the advantages and disadvantages of the various pay methods for the senior management.

Worker Classification

Pay Distribution Option

Cross-country drivers Direct Deposit, Paycards

Advantages Disadvantages

Instant access to pay on payday even away from the office

Warehouse Personnel and Office Staff

Check, direct deposit Local representation to be able to pick up pay check the day of payday or have funds direct deposited.

Pay checks can be mislaid resulting in the employee losing their paycheck and take time to clear.

SM 5-26

Direct deposits may require a full pay cycle before they can be used.

CRITICAL THINKING

For the following problems use the following steps to compute the gross-up amount:

1. Compute tax rate: The tax rate on bonuses is 22 percent. The Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate. For bonuses, the total tax rate equals 22% + 6.2% +1.45%, or 29.65%

2. Subtract 100% - Tax rate percentage to get the Net tax rate. For bonuses, it is 100%29.65%, or 70.35%

3. Gross-up amount = Net pay / Net tax rate. For example, if you want the employee to receive a $150 bonus, the equation is $150 / 70.35% = $213.22

(Note: Typically voluntary pre-tax and post-tax deductions are not withheld from bonus checks.)

5-1. Vicky Le, an employee of Sweet Shoppe Industries, receives a bonus of $5,000 for her stellar work. Her boss wants Vicky to receive $5,000 on the check. She contributes 3% of her pay in a pre-tax deduction to her 401(k). Calculate the gross pay amount that would result in $5,000 paid to Vicky.

Answer:

Tax rate: 22% (bonus) + 7.65% (FICA) = 29.65%

Grossed-up pay= $5,000/ (100% - 29.65%) = $7,107.32

SM 5-27

5-2. Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their Christmas bonuses. None of the employees have reached the Social Security wage base for the year. What is the gross-up amount for each of the following employees? (Use the tax rate for bonuses and no state tax.)

IN THE REAL WORLD: SCENARIO FOR DISCUSSION

Student responses will vary.

CONTINUING PAYROLL PROJECT: PREVOSTI FARMS AND SUGARHOUSE

For the February 8, 2019, pay period, use the gross pay totals from the end of Chapter 4 and compute the net pay for each employee. Once you have computed the net pay (using the wagebracket tables in Appendix C), state withholding tax for Vermont is computed at 3.55 percent of taxable wages (i.e., gross pay less pre-tax deductions). Note that the first pay period comprises only one week of work during the February 8 pay period and that the federal income tax should be determined using the biweekly tables in Appendix C.

Voluntary deductions for each employee are as follows:

SM 5-28

Employee Regular gross pay per period Grossed-up amount Yves St. John $2,500 $3,553.66 ($2,500 / .7035) Kim Johnson $3,380 $4,804.55 ($3,380 / .7035) Michael Hale $3,178 $4,517.41 ($3,178 / .7035)

Name Deduction

Millen Insurance: $155/paycheck

401(k): 3% of gross pay

Towle Insurance: $100/paycheck

401(k): 5% of gross pay

Long Insurance: $155/paycheck

401(k): 2% of gross pay

Shangraw Insurance: $100/paycheck

401(k): 3% of gross pay

Lewis Insurance: $155/paycheck

401(k): 4% of gross pay

Schwartz Insurance: $100/paycheck

401(k): 5% of gross pay

Prevosti Insurance: $155/paycheck

401(k): 6% of gross pay

You Insurance: $100/paycheck

401(k): 2% of gross pay

SM 5-29

SM 5-30

P/R End Date Company Name PrevostiFarms and Sugarhouse Check Date M/S # W/H Hourly Rate or Period wage # Regular Hours # Overtime Hours # Holiday Hours Commissions Gross Earning Sec 125 401(k) Taxable Wages for Federal Taxable Wages for FICA M 4 673.07692 35 673.08 155.00 20.19 497.89 518.08 S 1 12.00000 35 420.00 100.00 21.00 299.00 320.00 Charlie Long M 2 12.50000 35 5 531.25 155.00 10.63 365.62 376.25 Mary Shangraw S 1 11.00000 20 1 236.50 100.00 7.10 129.40 136.50 Kristen Lewis M 3 615.38462 35 615.38 155.00 24.62 435.76 460.38 M 2 461.53846 35 150.00 611.54 100.00 30.58 480.96 511.54 M 5 865.38462 35 865.38 155.00 51.92 658.46 710.38 S 2 653.84615 35 653.85 100.00 13.08 540.77 553.85 150.00 4,606.98 1,020.00 179.12 3,407.86 3,586.98 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Security Tax Medicare Tax State W/H Net Pay Check No. 497.89 518.08 - 32.12 7.51 16.68 441.58 6628 299.00 320.00 - 19.84 4.64 10.02 264.50 6629 Charlie Long 365.62 376.25 - 23.33 5.46 12.25 324.58 6630 Mary Shangraw 129.40 136.50 - 8.46 1.98 4.33 114.63 6631 Kristen Lewis 435.76 460.38 - 28.54 6.68 14.60 385.94 6632 480.96 511.54 - 31.72 7.42 16.11 425.71 6633 658.46 710.38 - 44.04 10.30 22.06 582.06 6634 540.77 553.85 7.00 34.34 8.03 18.12 473.28 6635 3,407.86 3,586.98 7.00 222.39 52.02 114.17 3,012.28 ToniPrevosti 865.38 Student Success 653.85 Totals 4,606.98 Joe Schwartz 611.54 ToniPrevosti Student Success Totals Name Gross Earning Thomas Millen 673.08 Avery Towle 420.00 531.25 236.50 615.38 Joe Schwartz 2/8/2019 2/13/2019 Name Thomas Millen Avery Towle

EMPLOYEEEARNINGRECORD

SM 5-31

Production Manager $35,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 673.08 673.08 155.00 20.19 497.89 518.08 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTDNet Pay YTDGross Pay 497.89 518.08 - 32.12 7.51 16.68 231.50 441.58 441.58 673.08 M 031-11-3456 Woodstock/VT/05001 802-478-5055 Thomas Millen 1022Forest School Rd Exempt 4 2/1/2019 12/16/1982 Married/Single No. of exemptions Pay Rate Address Name Hire Date Date of Birth Exempt/Nonexempt Position Social Security Number Telephone City/State/Zip

EMPLOYEE EARNINGRECORD

SM 5-32

Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 420.00 420.00 100.00 21.00 299.00 320.00 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 299.00 320.00 - 19.84 4.64 10.02 155.50 264.50 264.50 420.00 089-74-0974 802-967-5873 Nonexempt 2/1/2019 7/14/1991 Plymouth/VT/05102 Avery Towle 4011Route 100 $12.00/hour Position Production Worker Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number 1 S

EMPLOYEE EARNINGRECORD

SM 5-33

$12.50/hour Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 40 437.50 93.75 531.25 155.00 10.63 365.62 376.25 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 365.62 376.25 - 23.33 5.46 12.25 206.67 324.58 324.58 531.25 2/1/2019 3/16/1987 2 056-23-4593 802-429-3846 M S. Woodstock/VT/05002 Nonexempt Position Production Worker Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Charlie Long 242Benedict Rd

EMPLOYEE EARNINGRECORD

SM 5-34

$11/hour Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 21 220.00 16.50 236.50 100.00 7.10 129.40 136.50 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 129.40 136.50 - 8.46 1.98 4.33 121.87 114.63 114.63 236.50 2/1/2019 8/20/1994 1 075-28-8945 802-575-5423 S Bridgewater/VT/05520 Nonexempt Position Administrative Assistant Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Mary Shangraw 1901Main St #2

EMPLOYEEEARNINGRECORD

SM 5-35

$32,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 615.38 615.38 155.00 24.62 435.76 460.38 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 435.76 460.38 - 28.54 6.68 14.60 229.44 385.94 385.94 615.38 2/1/2019 4/6/1960 3 076-39-5673 802-390-5572 M Bridgewater/VT/05523 Exempt Position Office Manager Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Kristen Lewis 840Daily Hollow Rd

EMPLOYEEEARNINGRECORD

SM 5-36

Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 461.54 150.00 611.54 100.00 30.58 480.96 511.54 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 480.96 511.54 - 31.72 7.42 16.11 185.83 425.71 425.71 611.54 802-463-9985 M Woodstock/VT/05534 Joel Schwartz 55Maple Farm Wy Exempt 2/1/2019 5/23/1985 $24,000/year + commission Position Sales Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number 2 021-34-9876

EMPLOYEEEARNINGRECORD

SM 5-37

$45,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 30 865.38 865.38 155.00 51.92 658.46 710.38 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 658.46 710.38 - 44.04 10.30 22.06 283.32 582.06 582.06 865.38 2/1/2019 9/18/1967 5 055-22-0443 802-673-2636 M Bridgewater/VT/05521 Exempt Position Owner/President Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Toni Prevosti 10520Cox Hill Rd

Compute the net pay for the February 22 pay period using the payroll register. All insurance and 401(k) deductions are pre-tax. Update the Employee Earnings Records as of February 22, 2019

SM 5-38

EMPLOYEEEARNINGRECORD $34,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 653.85 653.85 100.00 13.08 540.77 553.85 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 540.77 553.85 7.00 34.34 8.03 18.12 180.57 473.28 473.28 653.85 2 Student Success 1644Smittin Rd Woodstock/VT/05001 (555)555-5555 555-55-5555 2/1/2019 1/1/1991 Nonexempt S Position Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number

SM 5-39

P/R End Date Company Name PrevostiFarms and Sugarhouse Check Date M/S # W/H Hourly Rate or Period wage # Regular Hours # Overtime Hours # Holiday Hours Commissions Gross Earning Sec 125 401(k) Taxable Wages for Federal Taxable Wages for FICA M 4 1,346.15385 70 1,346.15 155.00 40.38 1,150.77 1,191.15 S 1 12.00000 70 10 1,020.00 100.00 51.00 869.00 920.00 Charlie Long M 2 12.50000 70 875.00 155.00 17.50 702.50 720.00 Mary Shangraw S 1 11.00000 40 2 473.00 100.00 14.19 358.81 373.00 Kristen Lewis M 3 1,230.76923 70 1,230.77 155.00 49.23 1,026.54 1,075.77 M 2 923.07692 70 225.00 1,148.08 100.00 57.40 990.68 1,048.08 M 5 1,730.76923 70 1,730.77 155.00 103.85 1,471.92 1,575.77 S 2 1,307.69231 71 1 1,335.71 100.00 26.71 1,209.00 1,235.71 225.00 9,159.48 1,020.00 360.26 7,779.22 8,139.48 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Security Tax Medicare Tax State W/H Net Pay Check No. 1,150.77 1,191.15 5.00 73.85 17.27 38.55 1,016.10 6636 869.00 920.00 61.00 57.04 13.34 29.11 708.51 6637 Charlie Long 702.50 720.00 - 44.64 10.44 23.53 623.89 6638 Mary Shangraw 358.81 373.00 5.00 23.13 5.41 12.02 313.25 6639 Kristen Lewis 1,026.54 1,075.77 10.00 66.70 15.60 34.39 899.85 6640 990.68 1,048.08 22.00 64.98 15.20 33.19 855.31 6641 1,471.92 1,575.77 21.00 97.70 22.85 49.31 1,281.06 6642 1,209.00 1,235.71 83.00 76.61 17.92 40.50 990.97 6643 7,779.22 8,139.48 207.00 504.65 118.03 260.60 6,688.94 ToniPrevosti 1,730.77 Student Success 1,335.71 Totals 9,159.48 Joe Schwartz 1,148.08 ToniPrevosti Student Success Totals Name Gross Earning Thomas Millen 1,346.15 Avery Towle 1,020.00 875.00 473.00 1,230.77 Joe Schwartz 2/22/2019 2/27/2019 Name Thomas Millen Avery Towle

SM 5-40

Production Manager $35,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 673.08 673.08 155.00 20.19 497.89 518.08 22-Feb 70 1,346.15 1,346.15 155.00 40.38 1,150.77 1,191.15 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTDNet Pay YTDGross Pay 497.89 518.08 - 32.12 7.51 16.68 231.50 441.58 441.58 673.08 1,150.77 1,191.15 5.00 73.85 17.27 38.55 330.05 1,016.10 1,457.68 2,019.23 M 031-11-3456 Woodstock/VT/05001 802-478-5055 Thomas Millen 1022Forest School Rd Exempt 4 2/1/2019 12/16/1982 Married/Single No. of exemptions Pay Rate Address Name Hire Date Date of Birth Exempt/Nonexempt Position Social Security Number Telephone City/State/Zip

EMPLOYEEEARNINGRECORD

EMPLOYEE EARNINGRECORD

SM 5-41

Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 420.00 420.00 100.00 21.00 299.00 320.00 22-Feb 80 840.00 180.00 1,020.00 100.00 51.00 869.00 920.00 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 299.00 320.00 - 19.84 4.64 10.02 155.50 264.50 264.50 420.00 869.00 920.00 61.00 57.04 13.34 29.11 311.49 708.51 973.01 1,440.00 089-74-0974 802-967-5873 Nonexempt 2/1/2019 7/14/1991 Plymouth/VT/05102 Avery Towle 4011Route 100 $12.00/hour Position Production Worker Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number 1 S

EMPLOYEE EARNINGRECORD

SM 5-42

$12.50/hour Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 40 437.50 93.75 531.25 155.00 10.63 365.62 376.25 22-Feb 70 875.00 875.00 155.00 17.50 702.50 720.00 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 365.62 376.25 - 23.33 5.46 12.25 206.67 324.58 324.58 531.25 702.50 720.00 - 44.64 10.44 23.53 251.11 623.89 948.47 1,406.25 2/1/2019 3/16/1987 2 056-23-4593 802-429-3846 M S. Woodstock/VT/05002 Nonexempt Position Production Worker Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Charlie Long 242Benedict Rd

EMPLOYEE EARNINGRECORD

SM 5-43

$11/hour Period Ended Hrs Worked Reg Pay OT Pay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 21 220.00 16.50 236.50 100.00 7.10 129.40 136.50 22-Feb 42 440.00 33.00 473.00 100.00 14.19 358.81 373.00 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 129.40 136.50 - 8.46 1.98 4.33 121.87 114.63 114.63 236.50 358.81 373.00 5.00 23.13 5.41 12.02 159.75 313.25 427.88 709.50 2/1/2019 8/20/1994 1 075-28-8945 802-575-5423 S Bridgewater/VT/05520 Nonexempt Position Administrative Assistant Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Mary Shangraw 1901Main St #2

EMPLOYEEEARNINGRECORD

SM 5-44

$32,000/year Period Ended Hrs Worked Reg Pay OTPay Holiday Comm Gross Pay Ins 401(k) Taxable Wages for Federal Taxable Wages for FICA 8-Feb 35 615.38 615.38 155.00 24.62 435.76 460.38 22-Feb 70 1,230.77 1,230.77 155.00 49.23 1,026.54 1,075.77 Taxable Wages for Federal Taxable Wages for FICA Federal W/H Social Sec. Tax Medicare Tax State W/H Total Deduc Net pay YTD Net Pay YTD Gross Pay 435.76 460.38 - 28.54 6.68 14.60 229.44 385.94 385.94 615.38 1,026.54 1,075.77 10.00 66.70 15.60 34.39 330.92 899.85 1,285.79 1,846.15 2/1/2019 4/6/1960 3 076-39-5673 802-390-5572 M Bridgewater/VT/05523 Exempt Position Office Manager Hire Date Date of Birth Exempt/Nonexempt Married/Single No. of exemptions Pay Rate Name Address City/State/Zip Telephone Social Security Number Kristen Lewis 840Daily Hollow Rd