cwu basics & beyond 2016 cwu lab i 1 cwu lab i basics & beyond 2016 cwu lab i 1 copyrighted...

C W U B a s i c s & B e y o n d 2 0 1 6 C W U L a b I 1

Copyrighted Material

CWU Lab IYou are the bookkeeper for Many Happy Returns Tax Service. This is an S-corp that Pete Tin opened on January 1, 2016. Pete is the CEO of the corporation and employs one clerical employee, two tax preparers, and three independent contractors.

In this scenario, you will set up a client in CWU in order to process payroll semi-monthly, process live and ATF payroll, print pay checks, and generate forms W2 and 1099. The tax preparers are hourly employees that also get paid $25 each time a new bookkeeping client brings in a referral coupon from the Drake tax program.

The path to each input screen is provided.

Coupon Sample:

Firm Info./Global SettingsFirm > Firm Info./Global Settings

Enter the demographics for your accounting company.

1. Your firm’s name

2. A contact for the IRS

3. Your firm’s address, city, state, zip, and phone

4. EIN (Employer’s Identification Number)

NOTE Enter the data exactly as provided. Fields that have been omitted require no entry. Save when prompted.

C W U L a b I 2 C W U B a s i c s & B e y o n d 2 0 1 6


5. EFIN (Electronic Filing Identification Number)

6. Your Drake account number - Found on every packing slip and on the Drake Support website

7. Your Drake Password

8. A contact email address for your company

9. The rates on the right side are filled by default and need not be changed for this exercise.

Client SetupFile > New Client, Contact Information tab

Client Code = HAPPY

Click Save.

Don’t click Save yet.



Document Manager Options tab

Business Information tab

W2/W3-1099/1098 Setup tab

* * The setup for the Chart of Accounts displays automatically the 1st time you click Save on a new client. * *

Field Name ValueDocument Manager Not Used



Click Save, then click OK.



Create a Chart of Accounts

1. Select Templates, click Next.

2. Select the 1120S template, click Next. The Chart of Accounts displays.

3. Edit account 100.02 and enter a Current Balance of $23,500 in the Debit column. (Click Save)

4. Edit account 590 (Retained Earnings) and enter an offsetting Current Balance of $23,500 in the Credit column. (Click Save)

5. Click Exit, then click OK.

Create a COA Structure for AdvertisingBookkeeping > Chart of Accounts

In this scenario, we want to track our advertising expenses with more detail. We are going to create a structure dividing account 723 - Advertising into Printed Advertising and Electronic Advertising. “Printed Advertising” consists of Newspaper ads and our ad in the Telephone Book. “Electronic Advertising” is our Radio ads and local Television ads.

1. First, go to Bookkeeping > Chart of Accounts

2. Change account 723 - Advertising from a postable account to an Account Group Level 1 account.

3. Click Save. A message displays regarding setting up levels. This message displays two more times during this exercise.

4. Click OK.

The Chart of Accounts setup comes up automatically the first time you save a newly created client.

If you do not set up the Chart of Accounts now, you can go back to Bookkeeping > Chart of Accounts to set it up at a later time.



Click Add at the bottom of the Chart of Accounts screen to create the following accounts:

The Finished Product

.

5. Make sure that at the bottom of the Chart of Accounts screen, the Retained Earnings Account field says 590 - Retained Earnings.

6. A message displays regarding setting up the Chart of Accounts. Click OK.

Account Number Account Name

Account Type Level Click

723.999 Total Advertising Expense 1 Save & OK

723.1 Printed Advertising Expense 2 Save & OK

723.199 Total Printed Advertising Expense 2 Save & OK

723.11 Newspaper Expense Postable Save & OK

723.12 Telephone Book Expense Postable Save & OK

723.2 Electronic Advertising Expense 2 Save & OK

723.299 Total Electronic Advertising Expense 2 Save & OK

723.21 Radio Expense Postable Save & OK

723.22 Television Expense Postable Save & OK

Exit from the Add/Edit/Delete Account window.

Verify a ZERO balance BEFORE exiting the COA screen. Then click Exit.



Division SetupSetup > Headers & Footnotes

Payroll Check SetupSetup > Check and Stub Options, Preprinted Payroll tab

Click Save.

Click Save.



Payroll SetupEmployees > Account & Payroll Information, Payroll Options tab



Click on the G/L Account Numbers tab.

• Press F2 to select a postable account from the Chart of Accounts.

• The fields below indicated with arrows will require that you create a new account. Press F2 in those fields, then double-click New to create a new account on the fly.

NOTE You should not need to make any changes to the Liability Accounts on the right side of this screen.




Click on the State Rates/Limits tab.

Payroll Deductions SetupEmployees > Deductions & Benefits, Deductions tab

Employee’s Shirt Cleaning Deduction

Click New to add the employee’s shirt cleaning deduction.

Field Name ValueState Wage Base 22300

State Unemployment Rate 0.06

Click Save.

Field Name Value

Name Shirt Clean

Account 763

Dollars/Cents Amount 5.00

W2 Box 12 Code NA

Withholding Code NA

Federal SS Medicare State

Click Save to save the deduction.

C W U L a b I 1 0 C W U B a s i c s & B e y o n d 2 0 1 6


Employee’s Health Savings Account Deduction

Click New to add the employee’s Health Savings Account deduction.

Add a New Account

Field Name ValueName HSA

Account (Press F2 and add a new account - 340.01 - see below)

Account Number 340.01

Name HSA

Type Current Liability

Click Save to save the new account.

Field Name Value

Dollars/Cents

Amount 40.00

Ceiling 3350.00

W2 Box 12 Code NA

Withholding Code CP

Federal SS Medicare State Exempt from FUTA

Exempt from SUTA

Exempt from Garnish

W2 Box 10 W2 Box 14


Don’t check.

Don’t check.

Don’t check.

Don’t check.

Don’t check.

C W U B a s i c s & B e y o n d 2 0 1 6 C W U L a b I 1 1


Employee’s Group Life Insurance Deduction

Click New to add the employee’s Group Life insurance deduction.

Add a New Account.

Field Name ValueName Life Ins



Name Life Insurance



Field Name Value

Dollars/Cents Amount 6.00

W2 Box 12 Code C

Withholding Code NA

Federal SS Medicare State Local




Employee’s 401K Contribution

Click New to add the employee’s 401K contribution as a deduction.

Add a New Account.

Field Name ValueName 401K - Employee (only displays “401K - Emplo”)



Name 401K - Employee



Field Name Value

Percent

Amount 0.0500

Ceiling 18000

W2 Box 12 Code D

Withholding Code 401K

Federal SS

Medicare

State Local Exempt from FUTA

Exempt from SUTA

Exempt from Garnish


Don’t check.

Don’t check.

Don’t check.



Employee Setup

Employee: Pete Tin

Employees > Employee Setup, Personal Info tab

Click New to add an employee.

Completed Deductions Setup - Use this to verify all deductions are set up correctly.

IMPORTANT!!! DO NOT CONTINUE WITH THE LAB UNTIL YOU HAVE VERIFIED THAT ALL DEDUCTIONS ARE SET UP CORRECTLY.

Click Exit.




(Employee: Pete Tin)

Click on the Payroll Wages/Rates tab.


Click on the Payroll Options tab.


Click on the Federal Tax Status tab.


Field Name Value401K Status Active

Sick Calculations Vacation Calculations



Don’t check.

Don’t check.




Click on the State/Local Tax Status tab.


Click on the Deductions tab.

** Notice the edited deduction amount for Pete’s HSA account. **


NOTEDouble-click a deduction to select it. Press F3 to bring forward the default deduction amount. Edit the Amount, Priority, and Ceiling as needed. Click OK and the deduction appears in the grid below with an “X” to indicate that the deduction has been assigned to the employee.

Field Name Amount Priority Ceiling HSA 50.00 1 6750.00 OK

Life Ins 6.00 2 0.00 OK

401K - Employee 0.05 3 18000.00 OK

Click Save.



Employee: Lou Pole

Employees > Employee Setup, Personal Info tab


(Employee: Lou Pole)











Sick Calculations Rollover Hrs Beginning Balance 8.00

Sick Hrs Per Year 40.00

Hrs Required 32.00

Sick Hrs Available 0.00

Sick Hrs Used 0.00

Vacation Calculations Rollover Hrs Beginning Balance 32.00

Vac Hrs Per Year 80.00

Hrs Required 8.50

Vac Hrs Available 0.00

Vac Hrs Used 0.00










NOTEDouble-click a deduction to select it. Press F3 to bring forward the default deduction amount. Edit the Amount, Priority, and Ceiling as needed. Click OK and the deduction appears in the grid below with an “X” to indicate that the deduction has been assigned to the employee.

Field Name Amount Priority Ceiling Shirt Cleaning 5.00 4 0.00 OK

HSA 40.00 1 3350.00 OK

Life Ins 6.00 2 0.00 OK

401K - Employee 0.05 3 18000.00 OK

Click Save.



Employee: Jack PottEmployees > Employee Setup, Personal Info tab


(Employee: Jack Pott)













Hrs Required 32.00


Sick Hrs Used 0.00



Hrs Required 8.50


Vac Hrs Used 0.00









** Notice the edited deduction amount for Jack’s HSA account and his 401K. **


NOTEDouble-click a deduction to select it. Press F3 to bring forward the default deduction amounts. Edit the Amount, Priority, and Ceiling as needed. Click OK and the deduction appears in the grid below with an “X” to indicate that the deduction has been assigned to the employee.

Field Name Amount Priority Ceiling Shirt Cleaning 5.00 4 0.00 OK

HSA 25.00 1 3350.00 OK

Life Ins 6.00 2 0.00 OK

401K - Employee 0.04 3 18000.00 OK

Click Save.



Employee: Carrie OakeyEmployees > Employee Setup, Personal Info tab


(Employee: Carrie Oakey)










Field Name Value401K Status InActive



Hrs Required 32.00


Sick Hrs Used 0.00



Hrs Required 8.50


Vac Hrs Used 0.00









** Notice the edited deduction amount for Carrie’s HSA account. **


NOTEDouble-click a deduction to select it. Press F3 to bring forward the default deduction amounts. Edit the Amount, Priority, and Ceiling as needed. Click OK and the deduction appears in the grid below with an “X” to indicate that the deduction has been assigned to the employee.

Field Name Amount Priority CeilingShirt Cleaning 5.00 3 0.00

HSA 25.00 1 3350.00

Life Ins 6.00 2 0.00

Click Save and Exit.



Contractor Payments SetupContractors > Account & Payroll Information, Payroll Options tab

Cumulative G/L Account Numbers tab

NO SETTINGS ON THIS TAB FOR THIS LAB

Click on the Detailed G/L Account Numbers tab.

Field Name ValueAuto Post Detailed Payroll to Journal



Click Save.



Contractor Setup

Contractor: Ken Kilowatt

Contractors > Contractor Setup, Personal Info tab

Click New to add a contractor.

Contractor: Royal Flush Plumbing



Field Name ValueContractor Code KILOWATT

First Name Ken

Last Name Kilowatt

Country United States-US

Address 1 100 Watts Way

Zip 28734

Phone 8285551421

ID Number 444119999 (SSN)

Hire Date 01/01/2016

Division Maintenance

Name Code 1099 EF KILO

Use First and Last Name and Address

Click Save.

Field Name ValueContractor Code FLUSH

Company Name Royal Flush Plumbing


Address 1 14 Dry Floor Road

Zip 28734



Contractor: Just Kick It Computer Repair



Phone 8285557788

ID Number 222990101 (EIN)



Name Code 1099 EF ROYA

Use Company Name and Address

Click Save.

Field Name ValueContractor Code KICKIT

Company Name Just Kick It Computer Repair


Address 1 444 Data Drive

Zip 28734

Phone 8285551024

ID Number 222441024 (EIN)



Name Code 1099 EF JUST

Use Company Name and Address

Click Save and Exit.

Field Name Value



Please stop after setting up Just Kick It Computer Repair.

Do not continue working in the Many Happy Returns Tax Service client. We will start from this point in the next lab.

cwu basics & beyond 2016 cwu lab i 1 cwu lab i basics & beyond 2016 cwu lab i 1 copyrighted...

Documents