How to Complete the Payroll Accounting Project Chapter 7zip
If you are taking a course in payroll accounting, you may be required to complete a comprehensive project that involves calculating payroll taxes, preparing payroll registers, journalizing payroll transactions, and filing tax forms for a hypothetical company. The project is based on the book Payroll Accounting 2020 by Bieg and Toland, and it covers the payroll activities for the month of December 2019.
The project is available in two versions: paper-based and computerized. The paper-based version requires you to use templates that are included in the Student Exercise Files download for this course. The computerized version requires you to use Excel and QuickBooks software. In this article, we will focus on the paper-based version of the project.
The project consists of seven steps, each with its own set of instructions and questions. You will need to follow the instructions carefully and answer the questions accurately. You will also need to refer to the year-to-date payroll data for the company, which is provided in a separate template. The company's name is Ellipses Corp., and it is located in Herndon, VA. It has four employees: Hunter Cranston, Allison Harrison, John Parker, and Pierre Sternberg.
The seven steps of the project are as follows:
Calculate gross pay, deductions, and net pay for each employee for each weekly pay period in December 2019.
Prepare a payroll register for each weekly pay period in December 2019.
Journalize the payroll transactions for each weekly pay period in December 2019.
Prepare a payroll register summary for December 2019.
Journalize the adjusting entries for December 2019.
Prepare Form 941 for the fourth quarter of 2019.
Prepare Form W-2 and Form W-3 for 2019.
To complete the project successfully, you will need to apply your knowledge of payroll accounting concepts and procedures, such as computing wages and salaries, withholding income tax and social security tax, calculating unemployment tax, analyzing and journalizing payroll transactions, and filing tax forms. You will also need to use basic math skills, such as adding, subtracting, multiplying, dividing, rounding, and using percentages.
The project is designed to help you develop your practical skills in payroll accounting and prepare you for real-world scenarios. It will also test your attention to detail and accuracy. You should check your work carefully before submitting it to your instructor. You can also compare your answers with the answer key that is available online or in your textbook.
The payroll accounting project chapter 7zip is a challenging but rewarding assignment that will enhance your understanding of payroll accounting. By completing it successfully, you will demonstrate your proficiency in this important area of accounting.
In this section, we will provide a brief overview of each step of the project and some tips on how to complete them. You should refer to the detailed instructions and questions that are provided in the project template for each step.
Step 1: Calculate gross pay, deductions, and net pay
In this step, you will need to calculate the gross pay, deductions, and net pay for each employee for each weekly pay period in December 2019. You will need to use the payroll information that is given for each employee, such as their regular wage rate, annual salary, overtime rate, hours worked, withholding allowances, voluntary deductions, and year-to-date earnings. You will also need to use the tax tables and rates that are provided in the project template or in your textbook.
To calculate the gross pay, you will need to multiply the regular wage rate by the regular hours worked, and add the overtime pay if applicable. To calculate the overtime pay, you will need to multiply the overtime rate by the overtime hours worked. To calculate the deductions, you will need to apply the appropriate tax rates and formulas to the gross pay, and subtract any voluntary deductions. To calculate the net pay, you will need to subtract the total deductions from the gross pay.
You should round all amounts to the nearest cent. You should also keep track of the cumulative earnings and deductions for each employee for each pay period. You will need this information for later steps of the project.
Step 2: Prepare a payroll register
In this step, you will need to prepare a payroll register for each weekly pay period in December 2019. A payroll register is a summary of the payroll data for all employees for a given pay period. It shows the gross pay, deductions, and net pay for each employee, as well as the totals for each category.
To prepare a payroll register, you will need to use the results from step 1 and enter them in the appropriate columns of the payroll register template. You will also need to enter some additional information, such as the pay date, the check number, and the employee identification number. You should make sure that all amounts are aligned properly and that there are no errors or omissions.
You should add up all the amounts in each column and enter them in the total row at the bottom of the payroll register. You should also check that the total gross pay equals the total deductions plus the total net pay. This is called balancing the payroll register.
Step 3: Journalize the payroll transactions
In this step, you will need to journalize the payroll transactions for each weekly pay period in December 2019. Journalizing is the process of recording the effects of business transactions in a journal. A journal is a chronological record of business transactions expressed in terms of debits and credits.
To journalize the payroll transactions, you will need to use the results from step 2 and identify the accounts that are affected by each transaction. You will also need to determine whether each account is debited or credited and by what amount. You should follow the rules of debit and credit and make sure that each journal entry is balanced.
You should enter each journal entry in the general journal template using proper format and notation. You should also provide a brief explanation for each journal entry. You should use separate journal entries for recording wages expense, payroll tax expense, cash payments to employees, and tax payments to government agencies. ec8f644aee