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