Embedded Files
Project Context
Project Context
Project Context:
"Glo-Brite Paint Company" – A manufacturing environment requiring the administration of a complex Q4 payroll cycle for a mixed workforce of salaried management and hourly unionized staff.
The Objective:
To execute the final payroll cycle of the fiscal year (December 18), ensuring strict adherence to the Fair Labor Standards Act (FLSA) for overtime compensation while reconciling year-to-date figures for annual federal filings.
My Strategy:
I executed the full gross-to-net calculation process within a manual Payroll Register. This allowed me to independently audit every line item – verifying the "OASDI Cap" status for high earners and strictly monitoring the $7,000 wage base limit for FUTA liability – before recording the final journal entries.
Key Technical Challenges
Key Technical Challenges
The simulation introduced specific regulatory hurdles that required precise manual calculation:
Wage Base Limits: The December timeline required precise tracking of the $7,000 FUTA wage base and $10,000 SUTA wage base for the state of Pennsylvania. I had to identify which employees had already capped out to prevent the over-calculation of employer tax liabilities.
Dual-Structure Compensation: Managed distinct pay structures for salaried management vs. hourly union workers, requiring manual calculation of "time-and-half" overtime and specific union deduction hierarchies.
Tax Liability Split: Required the separation of employee withholdings (FIT, OASDI, HI) from employer payroll tax expenses (FUTA, SUTA, OASDI & HI) to ensure accurate general ledger accruals.
Execution & Analysis
Execution & Analysis
1. The Master Register
Utilized the Payroll Register as the primary control ledger to calculate gross earnings. I manually validated tax withholdings using the IRS wage brackets and deducted voluntary contributions to arrive at the final net pay.
2. General Ledger Integration
Drafted journal entries to record the payroll. This involved debiting payroll expense for the gross amount and crediting multiple liability accounts (FIT Payable, FICA Payable - OASDI, etc.) to accurately reflect the company's short-term obligations.
3. Regulatory Reporting
Aggregated the quarter's data to prepare From 941, reconciling the total tax liability against federal deposits. Simultaneously executed the annual close by preparing Form 940, verifying the final FUTA liability against the taxable wage base.
Supporting Documentation
Supporting Documentation
Outcome
Outcome
Achieved a perfect match between the $61,842.44 quarterly tax liability on Form 941 and the general ledger accruals for the quarter.
Correctly identified and applied the $7,000 FUTA and $10,000 SUTA wage base limits to prevent employer tax overpayment during the year-end close.
Produced a transparent audit trail linking individual time cards and the payroll register directly to the final financial statements.
Bring Precision to Your Financial Team
Bring Precision to Your Financial Team
Leveraging nine years of tax compliance experience and formal accounting training. Currently open to corporate accounting internships and full-time opportunities in the Central Valley.
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