Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland.

Wayland Custom Woodworking is located at 12850 Old Highway 50, Glenbrook, Nevada, 89413, phone number 775-555-9877. The owner is Mark Wayland. Wayland’s EIN is 91-7444533, and the Nevada Employer Account Number is E6462582020-6. Wayland has determined it will pay its employees on a semimonthly basis. Federal income tax should be computed using the percentage method for manual payrolls with Forms W-4 from 2020 or later.

For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2022, which consists of the final pay periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare each employee's Form W-2 in Part 2.

Example: Annual Salary to Hourly Rate, Nonexempt Employee

Employee Cooper's annual salary is $62,000, and he is a nonexempt employee. H

ourly rate = $62,000 (52 x 40) = $62,000 = 2,080

Hourly rate = $29.80769 per hour

Example: Period Gross Pay, Salaried Employee

Employee Chinson earns an annual salary of $48,000 and is paid semimonthly.

Period gross pay = $48,000+ 24 = $2,000 gross pay

For pay periods with holiday hours: determine the amount paid per day, and multiply by the number of days applicable to each pay period.

Annual salary: $48,000 (525)=$48,000+260 = $184.61538 (rounded to five decimal points) per day. Once you have the holiday pay, subtract it from their salary for the period for regular time.

After the gross pay has been calculated, round the result to only two decimal points prior to calculating taxes or other withholdings.

Employees are paid for the following holidays occurring during the final quarter.

• Thanksgiving day and the day after, Thursday and Friday, November 24-25.

• Christmas is on Sunday. Employees receive holiday pay for Monday, December 26.

For the completion of this project, refer to the tax-related information in the table below. Employees' 401(k) and insurance are pre-tax for federal income tax. The SUTA (UI) rate for Wayland Custom Woodworking is 3.25% on the first $36,600 of employee wages. There is an additional 0.05% for Career Enhancement Program (CEP). FUTA, SUTA, and CEP allow for a deduction for Section 125 contributions, not for 401(k) contributions. Employer contribution of section 125 is 1.5 times the employee portion and should be added to wages for completion of FUTA and SUTA forms. For federal tax withholding calculations, use the percentage method tables for manual payroll systems with Forms W-4 from 2022 or later. Assume, all W-4s are received in 2022 and the Step 2 of Form W-4 is not checked.

October 1:

0.6% on the first $7,000 of wages

3.25% on the first $36,600 of wages

0.05% on the first $36,600 of wages

Wayland Custom Woodworking (WCW) pays its employees according to their job classification. Wayland's staff comprises the following employees:

The departments are as follows:

Department 00: Sales and Administration

Department 01: Factory workers

Department 02: Delivery and Customer service

You have been hired as of October 1 as the new accounting clerk. Your employee number is 00-SUCCE. Your name is Student Success. Your address is 16 Kelly Circle number 2, Glenbrook, NV 89413. Your phone number is 775-556-1211, you were born on July 16, 2001, your Nevada driver's license number is 168575381944 expiring on your birthday in 2024, and your Social Security number is 555-55-5555. You are nonexempt and paid at a rate of $42,000 per year as an accounting clerk.