Question

November 13

No. 10

Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending November 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks’ notice, Williams was given two full weeks’ pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending November 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24.

Pay Points

Prepare a Wage and Tax Statement, Form W-2, to be given to Williams.

1 Record a separate payroll register (on one line) to show Williams’s total earnings, deductions, and net pay. The two weeks’ dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams.

The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams’s discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Williams’s discharge on this date.

2 Prepare the journal entries to transfer the net cash and to record Williams’s final pay and the employer’s payroll taxes. Post to the ledger accounts.

3 Use the blank Form W-2. Box “a” should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2.

Answer 1

STEP1: Payroll register form and details for Nov13

• Name                                                                       : Ruth Williams
• Pay period                                                                : 2 partial weeks
• Pay date                                                                  : Nov 7th
• Regular hours                                                            : No need to enter
• Overtime hours                                                          : No need to enter
• Pay rate                                                                    : Nil
• Gross pay                                                                   : $2079.32
• Federal, state, and local income taxes
  Employee withholding for Social Security and Medicare taxes
• Other deductions                                                                   : ($14.4)
•                                                                                            ------------------
• Net pay                                                                                  2064.6
•                                                                                            ------------------