Federal Taxation

As Accountant for Western Manufacturing, you are responsible to compute and prepare a monthly payroll. It is also your responsibility to calculate the Federal and State tax withholding amounts and prepare the quarterly reports. Monthly tax payments must be made to the respective entities. Below you will find the company information, three months of information for each employee and the Federal and State tax tables for 2014. Calculate each employee’s salary amount; determine the correct amount of Federal and State withholding tax as well as FICA and Medicare. In some cases, an employee might have additional funds withheld from his/her salary. Compile the information for each month individually and for the quarter. Calculate the monthly State and Federal tax liability. At the quarter end, prepare the IRS Form 941. Western Manufacturing 12435 Main Street Liberty, OR 97000 Tax ID Number 01-2345678 Angelina Hall, Married 1 Hourly Wage: $14.75 January: 160 regular hours, 6 hours overtime at 1.5 February: 172 regular hours, 2 hours overtime at 1.5 March: 167 hours Additional $100 per month Federal withholding Marcus Fitzpatrick, Married 2 Hourly Wage: $13.50 January: 158 regular hours February: 165 regular hours March 168 regular hours, 4 hours overtime at 1.5 Howard Sterno, Single 1 Hourly Wage: $15.00 January: 170 regular hours February: 164 regular hours March: 163 regular hours Mitchell Easterly, Married 0 Hourly Wage: $13.00 January: 172 regular hours February: 165 regular hours March: 167 regular hours $250 per month deduction to his savings account Cameron Beckett, Married 4 Hourly Wage: $21.00 January: 168 regular hours February: 176 regular hours March: 160 regular hours Margaret Dunham, Single 1 Hourly Wage: $16.00 January: 158 regular hours, 4 hours at 1.5 February: 168 regular hours, 8 hours at 1.5 March: 170 regular hours, 2 hours at 1.5 Samuel Martinson, Married 3 Hourly Wage: $16.00 January: 165 regular hours February: 168 regular hours March: 170 regular hours Kurt VanHess, Married 0 Hourly Wage: $15.00 January: 169 regular hours February: 172 regular hours, 3 hours at 1.5 March: 170 regular hours