Wayland Custom Woodworking Is A Firm That Manufactures Custo

Wayland Custom Woodworking Is A Firm That Manufactures Custom Cabinets

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 1716 Nichol Street, Logan, Utah, 84321. The owner is Mark Wayland. Wayland’s EIN is [insert EIN], and the Utah employer account number is [insert number]. The company has decided to pay their employees on a semimonthly basis. Federal income tax should be computed using the percentage method. For part 2 of this project, you will complete payroll for the last month.

The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $33,400 of each employee’s wages. The state withholding rate is 4.95 percent for all income levels and marital statuses. For part 2 of this project, you will use the fourth quarter payroll information from part 1 to complete the following tax forms for Wayland Custom Woodworking: IRS Form 940, Utah Form TC-941, Utah Form 33H, Form W-2s for all six employees, and Form W-3. Employer contributions for health coverage should be reported as 1.5 times the employee’s premium in Box 12, using code DD. Specific instructions for completing each form can be found within the individual forms themselves.

Paper For Above instruction

The payroll management process is a critical component of business operations, ensuring that employees are compensated accurately and in compliance with federal and state regulations. In this analysis, we will explore how Wayland Custom Woodworking, a manufacturer of custom cabinets based in Logan, Utah, can effectively manage its payroll system, including the preparation of necessary tax forms for the fourth quarter. This comprehensive overview covers the calculation of payroll, tax deductions, employer contributions, and the completion of legally mandated tax documents, all essential for maintaining compliance and financial integrity.

Wayland Custom Woodworking operates from 1716 Nichol Street, Logan, Utah, with Mark Wayland serving as the owner. Specific identifiers such as the company's EIN and employer account number are necessary for tax filings; these are placeholders in this scenario and would need to be replaced with actual data. The company’s payroll schedule is semimonthly, meaning employees receive salaries twice a month. This schedule impacts the timing and calculation of payroll filings and tax deposits. The choice of the percentage method for federal income tax withholding aligns with standard practices, allowing for straightforward withholding calculations based on federal tables.

An essential aspect of payroll management is calculating unemployment taxes, both federal and state. The federal unemployment rate (FUTA) applies to the first $7,000 of wages per employee annually, while Utah’s SUTA rate is 2.6 percent on the first $33,400 of wages, requiring periodic deposits and filings. Accurate calculation and reporting of these taxes are vital for compliance and avoiding penalties. For instance, the SUTA contribution includes employer contributions based on wages up to the specified threshold.

State withholding taxes are collected at a rate of 4.95 percent regardless of income level or marital status. This rate simplifies withholding calculations but requires diligent tracking of employee wages throughout the quarter. Using the payroll data from the fourth quarter, the company must prepare various tax forms, including IRS Form 940, which reports the unemployment taxes; Utah Form TC-941, a combined tax report; and Utah Form 33H, which may relate to additional state-specific reporting requirements. Accurate completion of these forms ensures compliance with tax laws.

Employee-specific documents such as Form W-2 are necessary for reporting annual wages and taxes withheld. With six employees, the company must prepare individual W-2 forms, ensuring that all earnings, withholdings, and employer contributions are correctly reported. Additionally, Form W-3 summarizes total wages and taxes for all employees, and all forms must match the payroll records for accuracy.

Employer contributions for health coverage are also part of payroll processing. These contributions should be reported in Box 12 of the W-2 forms, with the amount representing 1.5 times the employee's premium, identified with code DD. Proper reporting ensures transparency and compliance with healthcare laws. Ensuring all these steps are correctly executed not only adheres to regulatory requirements but also upholds the trust and morale of employees.

In conclusion, managing payroll for Wayland Custom Woodworking involves careful calculation, diligent record-keeping, and precise completion of multiple tax forms. By adhering to federal and Utah state regulations, including proper withholding, unemployment tax payments, and health coverage reporting, the company can maintain compliance and avoid penalties. Accurate payroll processing also supports the company's financial health and operational integrity, reinforcing its reputation as a responsible employer in the manufacturing industry.

References

• Internal Revenue Service. (2023). Circular E: Employer’s Tax Guide. IRS Publishing.
• Utah State Tax Commission. (2023). Employer Guide to Utah State Taxes. Utah.gov.
• Social Security Administration. (2023). Employer Guide to payroll taxes. SSA.gov.
• U.S. Department of Labor. (2023). Employer responsibilities for unemployment insurance. DOL.gov.
• American Payroll Association. (2022). Payroll best practices and legal compliance. APA.org.
• U.S. Small Business Administration. (2023). Payroll and employment taxes for small businesses. SBA.gov.
• Feldman, R. (2022). Payroll management and accounting. Journal of Business Finance.
• Johnson, P. (2021). State and federal payroll tax compliance. Tax Journal Quarterly.
• American Institute of Certified Public Accountants. (2023). Guide to payroll tax reporting. AICPA.org.
• National Federation of Independent Business. (2022). Managing employee taxes and health benefits. NFIB.com.