Name: Setting up QuickBooks: Grade Id: Ch 3 –Payroll Setup Due Date: Instructor: Jyoti Chandra Score (40 pts):

CIM 223B Assignment #2 Cover Sheet

1. Read/practice Setting Up QuickBooks’s Chapter 3. Skip the Steps which are for reference only.  Copy the file PRSetup-04.QBB from the class web site.  Change the company name to Payroll – Your name- Grade id#.  Setup payroll items using Setup wizard.  After step 2 (page 132) Print the Employee List: Click List, select Employee List. Click the Employee button at the bottom and select Print List option. NOTE: This will not print the company name on the top.  After Step 3 (page 150), Print Payroll Item List (landscape/ Fit to one page wide- Print Payroll Item, Type, Amount, Annual Limit, Expense Account and Liability Account)  Print Employee Contact List (Fig 3-91, Page 152).

2. Copy CIM223bAssign2.QBW from the web site to your disk and change the company name to CIM223b - Your Name – GradeId – Assign 2.

3. Modify the payroll preferences to print the vacation information on check vouchers and to assign one class per earnings Item.

CIM223b Assign2 - Jyoti Chandra Page 1 of 6 1/19/2018 4. Verify that your Chart of Accounts is properly set up for Payroll tracking. Make sure you have the accounts shown below. These accounts have already been set up for you in the problem template.

Chart of Accounts for Payroll setup

5. Using the Payroll Setup wizard, add the following payroll items. The order of the items in this list corresponds to the order in which they appear in the wizard. However, you must change the item names in the wizard to match the Item Name column below. Set up the items in the wizard and then modify them as appropriate using the payroll item list.

CIM223b Assign2 - Jyoti Chandra Page 2 of 6 1/19/2018 Item Name Setup Notes California Using the Wizard, set up all of the necessary payroll items for California Payroll State Items Taxes. Set all State tax items to point to the State PR Taxes liability account. California Tax ID: 123-4567-8 State Unemployment Rate for all four quarters: 4.5% Salary Regular This item should point to Gross Wages Expense, a subaccount of the Payroll Expenses account. Salary Sick This item should point to Gross Wages Expense, a subaccount of the Payroll Expenses account. Salary This item should point to Gross Wages Expense, a subaccount of the Payroll Vacation Expenses account. Hourly Regular This item should point to Gross Wages Expense, a subaccount of the Payroll Expenses account. Hourly This item should point to Gross Wages Expense, a subaccount of the Payroll Overtime Expenses account. Hourly Sick This item should point to Gross Wages Expense, a subaccount of the Payroll Expenses account. Hourly This item should point to Gross Wages Expense, a subaccount of the Payroll Vacation Expenses account. Commission Add a 4% commission item. This item should point to Gross Wages Expense, a subaccount of the Payroll Expenses account. Health Use Health Insurance (taxable) item to set up this item. Leave the payee and Insurance account number fields blank. Use “Health Insurance Expense” to track the withholding. 408(k) SEP Payee is Merrill Lynch: Account number with Merrill Lynch is "99-1133335.” Employee Liability account is “Other Payroll Liabilities,” Tax Tracking type is “408(k)(6) SEP,” and you should deduct the Item before calculating Federal and State income tax. Maximum annual deduction is $13,000.00. Match 408(k) Track this expense by Job: payee is Merrill Lynch; Account number is “99-1133335.” Liability account is “Other Payroll Liabilities.” Expense account is “Benefits.” Tax Tracking type is “None.” Maximum annual deduction is $6500.00. Child Support This garnishment is payable to Contra Costa County Commissioner (set up new Garnishment vendor), and the agency ID should read “Case #23453”

Add these payroll items.

6. Modify the items to point to the following accounts, and set them to use the tax agencies (vendors) as shown:

CIM223b Assign2 - Jyoti Chandra Page 3 of 6 1/19/2018 Item Name Account: Set the items to point to the accounts shown below. Vendor: Set up all of the Federal items to use one vendor in the Setup Wizard, and then edit them later to assign them to different vendors. Do the same with the State items. Federal Account: Federal PR Taxes (Subaccount of Payroll Liabilities) Withholding Vendor: EFTPS (Note: EFTPS is not in the vendor list. You will need to add this vendor.) Social Security Liability Account: Federal PR Taxes (Subaccount of Payroll Liabilities) Medicare Expense Account: Payroll Taxes (Subaccount of Payroll Expenses) Vendor: EFTPS Federal Liability Account: Federal PR Taxes (Subaccount of Payroll Unemployment Liabilities) Expense Account: Payroll Taxes (Subaccount of Payroll Expenses) Vendor: EFTPS Federal Unemployment Tax Rate is 0.8% CA – Withholding Account: State PR Taxes (Subaccount of Payroll Liabilities) CA – Disability Vendor: EDD CA – Liability Account: State PR Taxes (Subaccount of Payroll Unemployment Liabilities) CA – Employment Expense Account: Payroll Taxes (Subaccount of Payroll Training Tax Expenses) Vendor: EDD Health Insurance Account: Health Insurance Expense (Subaccount of Insurance) Vendor: No Vendor, No agency identification number. 408(k) SEP Account: Other Payroll Liabilities (Subaccount of Payroll Employee Liabilities) Vendor: Merrill Lynch. Account number with Merrill Lynch is "99- 1133335”. Note: Tax Tracking type is “408(k)(6) SEP”. You should deduct this item before calculating Federal and State withholding. Maximum annual deduction is $13,000.00. Match 408(k) Liability Account: Other Payroll Liabilities (Subaccount of Payroll Liabilities) Expense Account: Benefits (Subaccount of Payroll Expenses) Vendor: Merrill Lynch. Account number is “99-1133335”, Note: Track this expense by job. Tax Tracking type is “None”. Maximum annual deduction is $6500.00

CIM223b Assign2 - Jyoti Chandra Page 4 of 6 1/19/2018 Child Support Account: Other Payroll Liabilities (Subaccount of Payroll Garnishment Liabilities) Vendor: Contra Costa County Commissioner (Note: Contra Costa County Commissioner is not in the vendor list. You will need to add this vendor.) Number that identifies you to the agency: Case #23453

Modify these payroll items.

7. In the Payroll Setup wizard, set up your Employee Defaults for the following:

Field Name Setup Notes Payroll Period Weekly Additions, Deductions 408(k) SEP Employee (4%), Maximum $13,000.00 and Company Match 408(k) (2%), Maximum $6,500.00 Contributions Health Insurance ($2 per paycheck) Pension Plan Employees are covered by a qualified pension plan. Federal Taxes Filing Status: Single Subject to: Social Security, FUTA, Medicare State Taxes Default State Worked: CA Default State Subject to Withholding: CA Other Taxes CA – Employment Training Tax Sick Hours Accruals Accrual Period: Beginning of Year Hours Accrued at Beginning of Year: 40 Maximum number of hours: 40 Reset hours each new year Vacation Hours Accrual Period: Beginning of Year Accruals Hours Accrued at Beginning of Year: 80 Maximum number of hours: 240 Do not reset hours each new year. Employee default settings

8. Edit the Federal and State tax items to ensure that they point to the correct accounts as indicated in Step 6.

9. Edit all of the Earnings items to ensure that they point to Gross Wages as indicated in Step 5.

10. Set up yourself as a new employee with the following information:

CIM223b Assign2 - Jyoti Chandra Page 5 of 6 1/19/2018 Address 555 Adams Ave. Pleasanton, CA 94555 Contact Cynthia Plum Phone 925-555-6352 Alt Ph. SS No. 123-12-3123 Email Your email Type Regular Gender Your gender Date of Birth 04/16/1961 Hire Date 01/01/1999 Release Date Employee # 4466 Hint: use the Account field on the Additional Info tab for this number. Spouse Name Craig Department Sales Title Sales Rep Review Date January Earnings Hourly Regular – Rate $32 per hour Time Data Use Time Data to Create Paychecks Additions, 408(k) SEP Employee (4%), limit $13,000 Deductions, Match 408(k) (2%), limit $6,500 and Company Health Insurance ($2) Contributions Pay Period Weekly Class San Jose Marital Status Married, 2 Allowances, Subject to Social Security, FUTA, Medicare State Worked CA – Subject to SUI, Subject to SDI State Subject to CA – Filing Status Married (one income) 2 Withholding allowances Other Taxes CA – Employment Training Tax Sick/Vacation Default Sick and Vacation settings Settings Qualified Yes Pension Plan

11. Finish the Payroll Setup Wizard and select all of the remaining defaults. Do not set up any YTD amounts. If prompted, indicate that you paid all your taxes for last quarter, and that all the amounts were zero (both Federal and State).

12. Create a Payroll Item Listing report. Select the Reports menu, then choose List and then choose Payroll Item Listing. Modify the report to include the Payable to column and then print the report. Set the report to print on 1 page wide.

13. Print the Employee List: Click List, select Employee List. Click the Employee button at the bottom and select Print List option. NOTE: This will not print the company name on the top.

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