CWU Basics & Beyond 2016 CWU Lab I 1 Copyrighted Material CWU Lab I You 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 Settings Firm > 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.
28
Embed
CWU Basics & Beyond 2016 CWU Lab I 1 CWU Lab I Basics & Beyond 2016 CWU Lab I 1 Copyrighted Material CWU Lab I You are the bookkeeper for Many Happy Returns Tax Service. This is an
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
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.
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
Copyrighted Material
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.
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 3
Copyrighted Material
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
Don’t click Save yet.
Don’t click Save yet.
Click Save, then click OK.
C W U L a b I 4 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
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.
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 5
Copyrighted Material
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.
C W U L a b I 6 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 8 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
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.
Don’t click Save yet.
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 9
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
Copyrighted Material
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
Click Save to save the deduction.
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
Copyrighted Material
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
Account (Press F2 and add a new account - 340.02 - see below)
Account Number 340.02
Name Life Insurance
Type Current Liability
Click Save to save the new account.
Field Name Value
Dollars/Cents Amount 6.00
W2 Box 12 Code C
Withholding Code NA
Federal SS Medicare State Local
Click Save to save the deduction.
C W U L a b I 1 2 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
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”)
Account (Press F2 and add a new account - 340.03 - see below)
Account Number 340.03
Name 401K - Employee
Type Current Liability
Click Save to save the new account.
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
Click Save to save the deduction.
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 3
Copyrighted Material
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.
Don’t click Save yet.
C W U L a b I 1 4 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
(Employee: Pete Tin)
Click on the Payroll Wages/Rates tab.
(Employee: Pete Tin)
Click on the Payroll Options tab.
(Employee: Pete Tin)
Click on the Federal Tax Status tab.
Don’t click Save yet.
Field Name Value401K Status Active
Sick Calculations Vacation Calculations
Don’t click Save yet.
Don’t click Save yet.
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 5
Copyrighted Material
(Employee: Pete Tin)
Click on the State/Local Tax Status tab.
(Employee: Pete Tin)
Click on the Deductions tab.
** Notice the edited deduction amount for Pete’s HSA account. **
Don’t click Save yet.
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.
C W U L a b I 1 6 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
Employee: Lou Pole
Employees > Employee Setup, Personal Info tab
Click New to add an employee.
(Employee: Lou Pole)
Click on the Payroll Wages/Rates tab.
Don’t click Save yet.
Don’t click Save yet.
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 7
C W U L a b I 1 8 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
(Employee: Lou Pole)
Click on the State/Local Tax Status tab.
(Employee: Lou Pole)
Click on the Deductions tab.
Don’t click Save yet.
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.
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 9
Copyrighted Material
Employee: Jack PottEmployees > Employee Setup, Personal Info tab
Click New to add an employee.
(Employee: Jack Pott)
Click on the Payroll Wages/Rates tab.
Don’t click Save yet.
Don’t click Save yet.
C W U L a b I 2 0 C W U B a s i c s & B e y o n d 2 0 1 6
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 2 1
Copyrighted Material
(Employee: Jack Pott)
Click on the State/Local Tax Status tab.
(Employee: Jack Pott)
Click on the Deductions tab.
** Notice the edited deduction amount for Jack’s HSA account and his 401K. **
Don’t click Save yet.
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.
C W U L a b I 2 2 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
Employee: Carrie OakeyEmployees > Employee Setup, Personal Info tab
Click New to add an employee.
(Employee: Carrie Oakey)
Click on the Payroll Wages/Rates tab.
Don’t click Save yet.
Don’t click Save yet.
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 2 3
C W U L a b I 2 4 C W U B a s i c s & B e y o n d 2 0 1 6
Copyrighted Material
(Employee: Carrie Oakey)
Click on the State/Local Tax Status tab.
(Employee: Carrie Oakey)
Click on the Deductions tab.
** Notice the edited deduction amount for Carrie’s HSA account. **
Don’t click Save yet.
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.
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 2 5