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 Manufacturing12435 Main StreetLiberty, OR 97000Tax ID Number 01-2345678Angelina Hall, Married 1Hourly Wage: $14.75January: 160 regular hours, 6 hours overtime at 1.5February: 172 regular hours, 2 hours overtime at 1.5March: 167 hoursAdditional $100 per month Federal withholdingMarcus Fitzpatrick, Married 2Hourly Wage: $13.50January: 158 regular hoursFebruary: 165 regular hoursMarch 168 regular hours, 4 hours overtime at 1.5Howard Sterno, Single 1Hourly Wage: $15.00January: 170 regular hoursFebruary: 164 regular hoursMarch: 163 regular hoursMitchell Easterly, Married 0Hourly Wage: $13.00January: 172 regular hoursFebruary: 165 regular hoursMarch: 167 regular hours$250 per month deduction to his savings accountCameron Beckett, Married 4Hourly Wage: $21.00January: 168 regular hoursFebruary: 176 regular hoursMarch: 160 regular hoursMargaret Dunham, Single 1Hourly Wage: $16.00January: 158 regular hours, 4 hours at 1.5February: 168 regular hours, 8 hours at 1.5March: 170 regular hours, 2 hours at 1.5Samuel Martinson, Married 3Hourly Wage: $16.00January: 165 regular hoursFebruary: 168 regular hoursMarch: 170 regular hoursKurt VanHess, Married 0Hourly Wage: $15.00January: 169 regular hoursFebruary: 172 regular hours, 3 hours at 1.5March: 170 regular hours
