Question

Problem 9-10
Federal Tax Deposit System (LO 9.4)

Drew Freeman operates a small business and his payroll records for the first quarter of 2018 reflect the following:

Employee Emmy M. Jack F. Avery F. Tiffany Y. Gross wages $2,900.00 $1,400.00 $1,750.00 $4,200.00 Federal income tax withheld 37.00 17.00 24.00 191.00 FICA taxes 443.70 214.20 267.75 642.60

Drew’s employee identification number is 34-4321321 and his business is located at 732 Nob Hill Blvd. in Yakima, WA 98902. Drew is eligible to pay his withholding at the time he files his quarterly Form 941.

Complete page 1 of Form 941 for Drew for the first quarter of 2018. If your answer is zero, enter "0". Round your answers to two decimal places, if necessary.

Form941 for 2018: (Rev. January 2018) Employer's QUARTERLY Federal Tax Return Department of the Treasury — Internal Revenue Service 950117 OMB No. 1545-0029 Employer identification number (EIN) 3 4 – 4 3 2 1 3 2 1 Name (not your trade name) Drew Freeman Trade name (if any) Address 732 Nob Hill Blvd. Number Street Suite or room number Yakima WA 98902 City State ZIP code Foreign country name   Foreign province/county Foreign postal code Report for this Quarter of 2018 (Check one.) ☒ 1: January, February, March ◻ 2: April, May, June ◻ 3: July, August, September ◻ 4: October, November, December Go to www.irs.gov/form941 for instructions and the latest information. Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1:   Answer these questions for this quarter.   1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1   2 Wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2   3 Federal income tax withheld from wages, tips, and other compensation . . . . . . . . . . . . . . . . . . . . . . . . 3   4 If no wages, tips, and other compensation are subject to social security or Medicare tax ◻ Check and go to line 6.   Column 1   Column 2 5a Taxable social security wages . . . . . x 0.124 = 5b Taxable social security tips . . . . . . . . x 0.124 = 5c Taxable Medicare wages & tips . . . . . x 0.029 = 5d Taxable wages & tips subject to Additional Medicare Tax withholding x 0.009 =   5e Add Column 2 from lines 5a, 5b, 5c, and 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5e$_______   5f Section 3121(q) Notice and Demand—Tax due on unreported tips (see instructions) . . . . . . . . . . . . . . 5f$_______   6 Total taxes before adjustments. Add lines 3, 5e, and 5f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6$_______   7 Current quarter's adjustment for fractions of cents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7$_______   8 Current quarter's adjustment for sick pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8$_______   9 Current quarter's adjustments for tips and group-term life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 9$_______   10 Total taxes after adjustments. Combine lines 6 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10$______   11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 . . . . . . . 11$______   12 Total taxes after adjustments and credits. Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . 12$_______   13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter . . . . . . . . . . . 13$_______   14 Balance due. If line 12 is more than line 13, enter the difference and see instructions . . . . . . . . . . . . . . . . . . . 14$______   15 Overpayment. If line 13 is more than line 12, enter the difference   Check one: ☒ Apply to next return. ◻ Send a refund.

Answer 1