38 by yangxichun

VIEWS: 7 PAGES: 20

									Chapter 10 - Payroll Taxes



                               CHAPTER 10
                             PAYROLL TAXES

Discussion Questions
1. What type of compensation is subject to employer withholding?

Answer:
     Wages subject to withholding include all pay given to employees for services
     performed. The wages include salaries, vacation allowances, bonuses,
     commissions, and possibly fringe benefits.


2. Who completes Form W-4 and what is its purpose? What information does it provide
to employers?

Answer:
     The Form W-4 is completed by the employee at the beginning of
     employment. The W-4 shows the number of withholding allowance
     requested by the taxpayer. The greater the number of withholding
     allowances, the smaller the amount of income tax that will be withheld from
     the employee’s check.


3. If a taxpayer makes $30,000 per year, will the annual withholding differ depending on
whether the taxpayer is paid weekly, semimonthly, or monthly? Explain.

Answer:
     The annual withholding will not materially differ regardless of the pay
     period of the taxpayer. As the payroll period gets shorter, tax withholding
     per check will decrease, yet the total for the year will remain roughly the
     same.


4. If a taxpayer works more than one job, will the withholding from the various jobs
necessarily cover his or her tax liability? Explain.

Answer:
     Generally, no. The withholding tables are designed to estimate the tax
     liability from the amount of the paycheck for a given pay period. If an
     individual receives $1,000 per week from each of two different employers,
     each employer will withhold based on a $1,000 per week salary. Since the
     individual’s wages are really $2,000/week, the employee will likely be in a
     higher tax bracket and the tax withheld will be too low.


                                          10-1
Chapter 10 - Payroll Taxes




                             10-2
Chapter 10 - Payroll Taxes




5. What must the employer do if an employee claims more than 10 allowances or claims
an exemption from withholding?

Answer:
     As of January 1, 2006, employers no longer have to submit Form W-4 to the
     IRS for individuals claiming more than 10 allowances. If the IRS requests to
     review the W-4, the employer must make the form available for review.


6. In addition to federal tax withholding, what other taxes are employers required to
withhold from an employee’s paycheck? How are the calculations made?

Answer:
     FICA taxes – social security of 6.2% up to $97,500 in 2007 and Medicare
     taxes of 1.45% for all wages. Employers will also withhold state and/or local
     income taxes if applicable.


7. Who pays FICA? What are the percentages and limits on the payments?

Answer:
     A total of 15.3% of wages are paid for FICA (up to $97,500 in wages for
     Social Security). The employer plays half and the employee plays half
     through withholding. The total Social Security percentage is 12.4% on the
     first $900 of wages and the total Medicare percentage is 2.9% (unlimited
     wage amount).


8. When are employees required to report tips to their employer? Are tips subject to the
same withholding requirement as regular salary?

Answer:
     Employees are required to report cash tips to their employer by the 10 th of
     the month after the month in which the employee receives the tips.
     Employees can use Form 4070 to report tips. Tips are subject to withholding
     of income taxes, Social Security, and Medicare taxes.


9. What are the tip reporting requirements for a large food and beverage establishment?

Answer:
     For a large food establishment (10 employees or more), employers must
     allocate tips to employees if employees do not report tips in an amount of at
     least 8% of gross receipts.




                                           10-3
Chapter 10 - Payroll Taxes




10. When must employers make payroll tax deposits?

Answer:
     The frequency of the deposits depends on the amounts withheld and owed to
     the government. Generally, employers deposit taxes either monthly or
     semiweekly. The determination is made with reference to a lookback period.


11. What is a “lookback” period?

Answer:
     The lookback period is four quarters beginning July 1 of the second-
     preceding year through June 30 of the preceding year. If the total in payroll
     taxes is less than $50,000, the employer is a monthly depositor. If the total in
     taxes is greater than $50,000, the employer is a semiweekly depositor.


12. When must monthly and semiweekly depositors make their deposits? What taxes
must be deposited?

Answer:
     Monthly depositors are required to deposit payroll taxes on or before the 15th
     day of the following month. For semiweekly depositors with payrolls paid on
     a Wednesday, Thursday, or Friday, taxes must be deposited by the following
     Wednesday. For payrolls paid on Saturday, Sunday, Monday, or Tuesday,
     the semiweekly depositor must deposit the taxes no later than the following
     Friday. The taxes that must be deposited are income taxes, Social Security
     taxes, and Medicare taxes.


13. What are the penalties for not making timely payroll deposits.

Answer:
     The penalties are based on the amount not properly or timely deposited. The
     penalties are:
            2% for deposits made 1 to 5 days late.
            5% for deposits made 6 to 15 days late.
            10% for deposits made 16 or more days late.
            10% if electronic deposit is required but not used.
            15% for amounts unpaid after the date of the first notice the IRS sent
            asking for the tax due.




                                          10-4
Chapter 10 - Payroll Taxes


14. If a business fails to make payroll deposits, who is held responsible?

Answer:
     The employer is held responsible. The employers withhold taxes from the
     employee and are held to a high level of responsibility. An individual
     employee (i.e., an employee of a corporation) responsible for collecting,
     accounting for, and paying the tax may be held individually responsible for
     the tax if he or she acted willfully in not paying the taxes.

15. How often must employers report payroll to the IRS? What form must the employer
file?

Answer:
          Employer must provide quarterly reports to the IRS on Form 941. The
          report is due no later than the last day of the month following the end of
          the quarter.


16. What is the FUTA tax and at what percentage is it assessed?

Answer:
     FUTA is the Federal Unemployment Tax Act. The rate is 6.2% of employee
     wages up to $7,000. Employers get a credit for state unemployment taxes
     paid of up to 5.4%. Thus, the effective federal rate is 0.8% if the maximum
     state tax is paid on a timely basis.


17. What individuals are subject to the payroll taxes on household employees?

Answer:
     Individuals employing household workers are to subject payroll taxes rules if
     any of the following are true during a year:
         they paid any one household employee wages of $1,500 or more,
         if federal income taxes were withheld from employee wages,
         if household wages of at least $1,000 were paid to all household
            workers combined.

        Taxpayers do not owe payroll taxes if the individual doing the household
        work is an independent contractor and works for others as well.




                                           10-5
Chapter 10 - Payroll Taxes


18. How are household payroll taxes reported? When are they due?

Answer:
     Instead of filing a Form 941 and Form 940, individuals who employ
     household employees report the employment taxes on Schedule H and file it
     with their Form 1040. Thus, these payroll taxes are due when the Form 1040
     is due (normally April 15th plus any extensions filed).


19. How does an employer report wages to the employee, the federal government, and
the Social Security Administration? When is this notification due?

Answer:
     The wage information is reported via a Form W-2. The W-2 has multiple
     copies that are sent to the employee, the federal government, the state
     government, and the Social Security Administration. The employer must
     mail each employee his or her W-2 no later than January 31 and must file the
     governmental copies of the W-2 no later than February 28 or February 29 in
     a leap year.


20. What are the penalties imposed on employers for filing incorrect W-2s?

Answer:
     $15 per return if the W-2 is filed within 30 days of the due date, $30 per
     return if the W-2 is filed between 30 days and August 1, $50 per return if the
     W-2 is filed after August 1.

        Also a penalty of $100 per return or, if greater, 10% of the amount to be
        reported correctly for intentional disregard for filing requirements,
        providing payees with incorrect statements, or reporting incorrect
        information. $50 for each W-2 where the employee’s name and social
        security numbers are mis-matched. There are also maximum penalties
        ranging from $75,000-$250,000 depending on the size of the business.




                                         10-6
Chapter 10 - Payroll Taxes


21. What are supplemental wage payments?

Answer:
     Supplemental wage payments are compensation paid in addition to an
     employee’s regular wages. It includes vacation pay, commissions, bonuses,
     accumulated sick pay, severance pay, taxable fringe benefits, and expense
     allowances paid under a nonaccountable plan.


22. Explain the two methods for income tax withholding on supplemental wage
payments.

Answer:
     Method 1:
     If taxes are withheld from the employee’s wages, the employer can elect to
     withhold a flat 25% on the supplemental payment, or the employer can add
     both payments and withhold as if the total was a single payment. Subtract
     the tax already withheld from the regular wages. The remaining amount is
     withheld from the supplemental payment.

        Method 2:
        If taxes are not withheld from the employee’s wages, add the supplemental
        and regular wages together and calculate the withholding tax as if they are a
        single payment. This can occur when the value of the employee’s
        withholding allowances claimed on the W-4 are more than the wages.




                                         10-7
Chapter 10 - Payroll Taxes


23. Explain the provisions of “backup withholding” and the conditions where an
employer must comply with these provisions.

Answer:
     Payments subject to backup withholding include interest, dividends, rents,
     royalties, commissions, nonemployee compensation, and certain other
     payments made in the course of a trade or business. Certain payments made
     by broker and barter exchanges as well as certain payment made by fishing
     boat operators are subject to backup withholding. The rate is a flat 28% of
     taxable payments.

        Payments received by a taxpayer are subject to backup withholding if:
         the taxpayer does not furnish a TIN to the requester
         the IRS tells the requester that a taxpayer has furnished an incorrect TIN
         IRS informs the payee that he/she is subject to backup withholding due to
           non-reporting of any interest and dividends n a tax return
         The payee did not certify to the requester that he/she was not subject to
           backup withholding.


24. What is a Form W-9? Why must this form be filed?

Answer:
     Form W-9 is used to provide a Taxpayer ID Number to a third party.
     Anyone who is required to file an information return with the IRS must
     supply the payer with a correct TIN. The form is used by a U.S. person (or
     resident alien) to
          Certify that the TIN the taxpayer is giving is correct
          Certify that the taxpayer is not subject to backup withholding or
          Claim exemption from backup withholding if the taxpayer is a U.S.
         exempt payee.




                                         10-8
Chapter 10 - Payroll Taxes


25. Explain the purpose of Form 1040-ES. Under what conditions are taxpayers required
to file 1040-ES? When is Form 1040-ES filed?

Answer:
     The purpose of Form 1040-ES if for the taxpayer to remit additional
     payments for potential tax liability in the event the taxpayer believes
     insufficient taxes will be paid during the year.
     The form is required if the taxpayer expects his/her withholding and credits
     to be less than the smaller of :
          90% of the tax shown on the taxpayer’s current year return or
          100% of the tax shown on the taxpayer’s prior year return (the 100%
             amount changes to 110% if the adjusted gross income shown on the
             prior year return is more than $150,000 or $75,000 if married filing
             separately).
     The taxpayer uses the 1040-ES coupons to make estimated payments
     throughout the year. For 2007, they are due April 16, 2007, June 15, 2007,
     September 17, 2007, and January 15, 2008.


Multiple Choice

26. Employees claim withholding allowances on Form W-4. Each withholding
allowance claimed lowers their annual withholding base by what amount for calendar
year 2007?
a. $3,000
b. $3,200
c. $3,300
d. $3,400

Answer: d


27. Iesiah is single and is paid $1,154 per week and claims one allowance. What is the
amount of federal income tax withheld on Iesiah’s gross wages for the week? Use the
wage bracket table in Appendix A at the end of the chapter.
a. $126
b. $176
c. $193
d. $209

Answer: c




                                          10-9
Chapter 10 - Payroll Taxes


28. Latrice is married, is paid $2,685 semimonthly, and claimed 4 withholding
allowances. What is the amount of federal income tax withheld on Latrice’s gross wages
for the semimonthly period? Use the wage bracket table in Appendix A at the end of the
chapter.
a. $234
b. $237
c. $240
d. $243

Answer: b


29. Erica earned $95,700 during 2007. How much will her employer withhold from her,
in total, for FICA taxes?
a. $7,244.55
b. $7,381.05
c. $7,432.65
d. $7,458.75

Answer: b


30. Doris has two jobs and earned $98,000 from her first job and $18,000 from her
second job. How much total FICA taxes will she have withheld from her wages from
working two jobs?
a. $7,466.00
b. $8,669.40
c. $8,843.00
d. $8,874.00

Answer: c


31. Carlos earned a total of $150,000 for 2007. How much in FICA tax will his employer
be required to withhold in his name?
a. $6,045 in social security and $1,413.25 in Medicare
b. $6,045 in social security and $2,175 in Medicare
c. $9,300 in social security and $2,175 in Medicare
d. $9,300 in social security and $1,366 in Medicare

Answer: b




                                         10-10
Chapter 10 - Payroll Taxes


32. Ken has 2 jobs and both employers withheld FICA tax. From his first job, he earned
$75,000 and from his second job he earned $25,000. How much can Ken claim as an
additional payment on his Form 1040 as excess social security paid for 2007?
a $0
b. $119.25
c. $155.00
d. $191.25

Answer: c


33. Sheila earned $75 in tips in September. When must she inform her employer of her
tips on Form 4070 for federal income tax and FICA withholding purposes?
a. By September 30.
b. By October 10.
c. By October 31
d. She is not subject to payroll taxes on tips of less than $80 in any one month.

Answer: b


34. In a large food or beverage establishment, any tip shortfall from a directly tipped
employee is recorded on the employee’s W-2 as:
a. W-2 box 1 wages, tips, other compensation
b. W-2 box 14 Other
c. W-2 box 8 allocated tips
d. W-2 box 7 social security tips

Answer: c


35. Employers with a payroll tax liability of $2,500 or less at the end of any quarter must
pay their tax liability:
a. Directly to their authorized depository after the end of the quarter when Form 941 is
filed.
b. Directly to the authorized depository on the same day the Form 941 is mailed.
c. Directly to the Internal Revenue Service when they file Form 941.
d. Directly only if they use the EFTPS form of payment before Form 941 is filed.

Answer: c




                                           10-11
Chapter 10 - Payroll Taxes


36. The Lauer Company started its business on June 30, 2007. On July 13, it paid wages
for the first time and accumulated a tax liability of $48,000. On Friday, July 27, it
incurred a tax liability of $52,000. How is Lauer Company treated as a depositor?
a. Monthly as all new companies do not have a lookback period.
b. Semiweekly because their tax liability is $100,000
c. Monthly because their tax liability is not greater than $100,000
d. Semiweekly for this pay period only and then monthly for the remainder of the year.

Answer: c


37. What is the penalty for sending a required tax payment (unless specifically excluded)
directly to the Internal Revenue Service?
a. 2%
b. 5%
c. 10%
d. 15%

Answer: c


38. A monthly depositor’s payroll period ends on Friday, June 23. The depositor
(employer) must deposit the federal taxes for this pay period on or before:
a. June 30
b. June 26
c. The following Wednesday
d. The following Friday

Answer: c


39. What amount of employer tax accumulation does the one-day deposit rule apply?
a. $75,000
b. $100,000
c. more than $100,000
d. an amount between $75,000 and $99,999

Answer: b




                                          10-12
Chapter 10 - Payroll Taxes


40. Employers are required to deposit FUTA taxes when their liability exceeds:
a. $100
b. $500
c. $1,000
d. $1,500

Answer: b


41. Household employees are subject to FICA withholding if they are paid more than
what amount during 2007?
a. $1,000
b. $1,400
c. $1,500
d. $2,000

Answer: c


42. Employers pay a maximum unemployment tax of 6.2% on how much of an
employee’s taxable wages for 2007?
a. $1,000
b. $1,500
c. $3,200
d. $7,000

Answer: d


43. Carlos has two jobs; he is an attorney (not a partner) in a law firm and he has a small
legal practice (sole proprietorship) providing real estate legal services. How does he
compute his federal income tax for the year?
a. His wages from the law firm are taxed as an employee as are his wages from the
private practice.
b. His wages from the law firm are considered self-employment as are the earnings from
his private practice.
c. His wages from the law firm are taxed as an employee and his earnings from his
private practice are taxed as a self-employed proprietor.
d. His wages from the law firm are taxed as an employee and his earnings from self-
employment are taxed up to the maximum for social security only.

Answer: c




                                           10-13
Chapter 10 - Payroll Taxes


44. Adrienne is a self-employed attorney. She has net self-employment earnings from
her practice of $80,500. Her self-employment taxes for the year are:
a. $9,982.00
b. $11,374.29
c. $12,919.12
d. $12,316.50

Answer: b


45. Carol works for ABC Company and earned $63,000 for 2007. How much in FUTA
tax is her employer required to withhold from her? Assume that the employer receives
the maximum credit for state unemployment taxes.
a. $0
b. $56
c. $378
d. $434

Answer: a


46. On January 2, 2007, Jane employed a part-time household worker in her home. She
paid the household worker $300 per month for 2007. What amount of FICA tax is Jane
required to record on Schedule H?
a. $168.30
b. $275.40
c. $336.60
d. $550.80

Answer: d


47. A taxpayer with a 2007 AGI of $238,000 has no income tax withholding and is
required to pay estimated taxes. The taxpayer can avoid an underpayment penalty by
paying:
a. at least 90% of their 2007 tax liability ratably over four quarterly payments.
b. at least 100% of their 2006 tax liability ratably over four quarterly payments.
c. at least 90% of their 2006 tax liability ratably over four quarterly payments.
d. 100% of their 2007 tax liability ratably over four quarterly payments.

Answer: a




                                         10-14
Chapter 10 - Payroll Taxes


48. Henry received a bonus of $4,400 from his employer. Which one of the federal
income withholding tax amounts below is not in accordance with IRS rules regarding
supplemental wage payments? Henry earns biweekly wages of $3,500, is single, and
claims 1 allowance. Assume his employer uses the percentage method of withholding.
a. $1,307.37 on his bonus if taxes were already withheld from his regular pay.
b. $1,643.82 if his bonus and wages are paid at the same time during the pay period.
c. $1,795.91 if his bonus is taxed at the supplemental wage percent and added to his
regular wages paid in the same period.
d. $2,003.28 if his bonus and wages are paid at the same time during the pay period.

Answer: b


Problems

49. Allison is paid $500 per week. What is the amount of federal income tax withheld
from Allison’s paycheck under the following conditions? Use the percentage method
table in the Appendix to this chapter.

a. Allison is single and claims three withholding allowances

        $65.38 x 3= $196.14
        $500.00-$196.14 = $303.86 - $195.00= $108.86 x 15% = $16.33 + $14.40 =
        $30.73

b. Allison is married and claims three withholding allowances

        $65.38 x 3 = $196.14
        $500.00 - $196.14 = $303.86 - $154.00 = $149.86 x 10% = $14.99

c. Allison is single and claims one withholding allowance.

        $65.38 x 1 = $65.38
        $500 -$65.38 = $434.62 - $195.00 = $239.62 x 15% = $35.94 + $14.40 = $50.34




                                          10-15
Chapter 10 - Payroll Taxes


50. Martin is married and claims five exemptions on his W-4. What is his federal
income tax withholding under the following conditions? Use the percentage method table
in the Appendix to this chapter.

a. Martin is paid semimonthly and his gross pay is $2,300 per paycheck.

        $141.67 x 5 = $708.35
        $2,300.00 - $708.35 = $1,591.65 - $973.00 = $618.65 x 15%= $92.80 + $64.00 =
        $156.80

b. Martin is paid monthly and his gross pay is $2,800 per paycheck.

        $283.33 x 5 = $1,416.65
        $2,800.00 - $1,416.65 = $1,383.35 - $667.00 = $716.35 x 10% = $71.64

c. Martin is paid weekly and his gross pay is $3,300 per paycheck.

        $65.38 x 5 = $326.90
        $3,300.00 - $326.90 = $2,973.10 - $2,573.00 = $400.10 x 28% = $112.03 +
        $469.40 = $581.43


51. Lisa earns $48,000 per year. She is married and claims two allowances. Use the
wage bracket tables:

a. If she is paid weekly, what is her withholding per paycheck?
         $48,000 / 52 = $932.08
         Wage bracket          %Tables
                 $83           $81.01

b. If she is paid monthly, what is her withholding per paycheck?
        $48,000 / 12 = $4,000.00
        Wage bracket          % Tables
                 $354         $351.04

c. If she is paid semimonthly, what is her withholding per paycheck?
         $48,000 / 24 = $2,000
         Wage bracket          % Tables
                 $177          $175.52

d. In each of these circumstances, should the annual withholding differ? Explain.

        Weekly total for the year = $4,316; Monthly total for the year = $4,248;
        Semi-monthly total for the year = $4,248. The withholding under the three
        different pay periods is essentially the same and differences are due to
        averaging using the wage bracket table.



                                          10-16
Chapter 10 - Payroll Taxes




52. Henry, who earned $58,500 during 2007, is paid on a monthly basis, is married, and
claims four allowances.

a. What is Henry’s federal tax withholding?

        $58,500 / 12 = $4,875.00
        $283.33 x 4 = $1,133.32
        $4,875.00 - $1,133.32 = $3,741.68 - $1,946.00 = $1,795.68 x 15% = $269.35 +
        $127.90 = $397.25

b. What is Henry’s FICA withholding?

        $4,875.00 x 6.2% = $302.25; $4,875.00 x 1.45% = $70.69
        Total of: $372.94


53. Roberto’s salary is $107,000 in 2007. Roberto is paid on a semimonthly basis, is
single, and claims one allowance

a. What is Roberto’s federal tax withholding per pay period?

        $107,000 / 24 = $4,458.33
        $130.77 x 1 = $130.77
        $4,458.33 - $130.77 = $4,327.56 - $3,211.00 = $1,116.56 x 28% = $312.64 +
        $630.95 = $943.59

b. What is Roberto’s FICA withholding per pay period before he reaches the Social
Security limit?

        $4,458.33 x 7.65 % = $341.06

c. What is Roberto’s FICA withholding per pay period after he reaches the Social
Security limit?

        $4,458.33 x 1.45% = $64.65




                                          10-17
Chapter 10 - Payroll Taxes


54. Baker Company is trying to determine how often it needs to deposit payroll taxes for
calendar year 2007. The company made the following quarterly payroll tax deposits
during the last two years:

             Quarter beginning January 1, 2005…………….……. $ 10,000
             Quarter beginning April 1, 2005…………….…….. .             10,000
             Quarter beginning July 1, 2005…………….…….. . .            11,000
             Quarter beginning October 1, 2005 . . . .…..…………        12,000
             Quarter beginning January 1, 2006 . . .………............. 12,000
             Quarter beginning April 1, 2006 . . . . . . . . . ….……… 12,000
             Quarter beginning July 1, 2006. . . . . ………….…….        11,000
             Quarter beginning October 1, 2006 . . . …..………….. 12,000

a. What is the lookback period and amount?

        Quarters beginning July 1, 2005 – April 1, 2006 for a total of $47,000

b. In 2007, how often must Baker Company make payroll deposits?

        Since the lookback period totals were $47,000, this is less than the $50,000
        threshold, so Baker is a monthly depositor.


55. CFG Company has the following employees:

                              Wages Paid
        Eddie                  $12,000
        Melanie                $ 8,000
        Shelly                 $22,000

CFG receives the maximum credit for state unemployment taxes. Calculate the FUTA
tax that CFG Company would owe for the year.

        All employees have reached their limit of $7,000 so the amount of FUTA tax
        that CFG Company would owe is $7,000 x 0.8% = $56 x 3 = $168.




                                           10-18
Chapter 10 - Payroll Taxes


56. Jacob Turner hired Jen Hatcher to clean his house starting on January 2 at $55 per
week. Jacob does not withhold any federal taxes. Assume that Jen does not clean houses
for anyone else.

a. How much in payroll taxes should Jacob pay?

        $55 x 52 = $2,860.
        $2,860 x 12.4 %= $354.64; $2,860.00 x 2.9% = 82.94 = $437.58

b. Complete Schedule H that Jacob must file.

------------------------- insert completed Schedule H about here -------------------


c. When should Schedule H be filed?

        Jacob files Schedule H when he files his Form 1040.


57. Jones Company has the following employees on payroll:

                             Semimonthly        Withholding             Marital
                             Payroll            Allowances              Status
Heather                      $1,500                 4                   Married
Keith                        $1,700                 3                   Married
Thad                         $3,100                 1                   Single
Abbie                        $3,500                 2                   Married

Calculate the payroll for the end of February. Include in your calculations federal
withholding, FICA, and FUTA. Assume that Jones Company received the maximum
credit for state unemployment taxes

Heather:         FIT - $60.03                           Keith:          FIT - $109.30
                 FICA - $114.75                                         FICA - $130.05
                 FUTA - $12.00                                          FUTA - $13.60

Thad:            FIT - $567.78                          Abbie:          FIT - $427.62
                 FICA - $237.15                                         FICA - $267.75
                 FUTA - $0                                              FUTA - $0




                                             10-19
Chapter 10 - Payroll Taxes



Tax Return Problems

These problems are intended to be completed manually. The forms are located at the end
of the book. You can also go to the IRS website at www.irs.gov to obtain 2007 forms.


Tax Return Problem # 1

Use the information from Problem 57. Prepare the Form 941 including Schedule B for
the first quarter of 2007. Assume that the payroll is consistent every pay period
beginning in January through March 31 and that all tax deposits were made on a timely
basis as required. Jones Company FEIN is 36-1238975 and their address is 1825 Elkhart
Way, Osecola, FL 30512.

-------------- Insert completed Form 941 here ---------------------------



Tax Return Problem # 2

Use the information from Problem 57. Prepare the Form 940 for 2007. Assume that
Jones Company has timely paid all amounts due to the state unemployment fund in the
amount of $3,471 and that the payroll was consistent throughout the entire year. No
FUTA deposits were made during the year.

----------------------- Insert completed 940 here --------------------



Tax Return Problem # 3

Use the information from Problem 57. Prepare a Form W-2 for Abbie Cooper. Her
Social Security Number is 123-45-6789 and her address is 988 Main Street, Mainville,
FL 30512. The FEIN for Jones Company is 36-1238975 and their address is 1825
Elkhart Way, Osecola, FL 30512.

-------------- Insert completed W-2 here -----------------------------




                                               10-20

								
To top