Ben Kenofee is a new company accountant for Richmond Industries, a small specialty manufacturing business located in The Woodlands, Texas. Ben is a new employee starting January 1, 2023, and expecting to earn wages of $55,080 and will be paid semimonthly. Ben's information is as follows: Name and address: Ben Kenofee, 2000 Berrywood Bend Drive, Apartment 3K, Tomball, TX 77375 Social Security number: 613-27-7730 Current year filing status: Married filing jointly Dependents: One child age 11. Spouse: Tala Kenofee, is self-employed and expects to earn $32,400 in 2023. Tala expects to pay total self-employment taxes of $4,578 and her self-employment income is eligible for a 2023 qualified business income deduction of $6,022 and will not be limited by taxable income or other limits. Ben and Tala expect to take the standard deduction and do not have any for AGI deductions in 2023. Both Ben and Tala are under age 65 and are not blind. They do not expect to claim any credits other than the child tax credit. Ben and Tala have a modest investment portfolio and expect to earn interest of $1,200 in 2023. As the accountant for the company, Ben has access to the Richmond Industries Q4 payroll ledger for 2023 (but some of the information is missing and will need to be calculated): Richmond Industries 4000 Research Forest Drive, The Woodlands, TX 77381 EIN: 56-8188324 Payroll Report 10-1-2023 to 12-31-2023 Current Quarter YTD Employee Gross Wages FIT W/H SS W/H Medicare W/H Gross Wages FIT W/H SS W/H Medicare W/H Hannah Richmond 312-49-0025 41,000.00 8,800.00 2,306.40 594.50 164,000.00 35,200.00 9,932.40 2,378.00 Daniel Glover 429-97-7757 7,000.00 700.00 434.00 101.50 28,000.00 2,800.00 1,736.00 406.00 Jeff Proust 192-45-5518 5,800.00 696.00 359.60 84.10 6,430.00 734.00 398.66 93.24 Jane Thor 577-14-6389 - - - - 14,300.00 2,150.00 886.60 207.35 Wilma Wildman 745-45-4641 1,200.00 232.00 74.40 17.40 15,600.00 3,016.00 967.20 226.20 Ben Kenofee 613-27-7730 13,770.00 ? 853.74 199.67 55,080.00 ? 3,414.96 798.66 Totals 68,770.00 ? 4,028.14 997.17 283,410.00 ? 17,335.82 4,109.45 Note that Ben's information on income tax withholding should be compiled using the answers from part b. Assume that Richmond pays the exact amount of their tax deposits each quarter and thus does not have overpayments or underpayments from the previous quarter. Richmond does not offer healthcare or a qualified retirement plan to its employees. Required: Prepare Ben's Form W-4 for 2023. Tala will be making estimated payments to cover her share of income taxes, but Ben will reflect the effects of her self-employment income on his W-4 like a second job to reduce the chances that he will be underwithheld. Ignore the for AGI deduction of one-half of Tala's self-employment taxes for purposes of this part. Ben receives his first semimonthly paycheck for gross wages of $2,295.00 on January 15, 2023. Using the W-4 prepared in part a. and the percentage method for withholding, calculate Ben's income tax withholding on his first paycheck. Use worksheet 4. Prepare the 2023 Estimated Tax Worksheet of Form 1040-ES to determine Tala's required annual payment to avoid penalty and the first quarter payment amount. Consider the following when completing this part: Line 1: Total AGI will include her expected AGI plus Ben's wages Lines 7 and 11b: Do not reflect any child tax credits Line 12b: Prior year tax liability was $10,000. Assume that withholding for Ben's wages is equal to the withholding calculated in part b above, multiplied by 24 pay periods. There were no prior year overpayments applied to this year's first quarter payment. Prepare Part 1 of Form 941 for Richmond Industries for the fourth quarter of 2023. Assume Richmond is a monthly depositor and has made payments of $18,512.12 for the fourth quarter thus far. Prepare parts 1–4 (as needed) of Form 940 for Richmond Industries. Assume Richmond pays state unemployment to only Texas which taxes the first $9,000 of wages at a rate of 1.3%. Texas is not a credit reduction state in 2023. Using the information from the Richmond payroll records and your results from part b., prepare Ben's Form W-2 for 2023 and the Richmond Industries' Form W-3. Assume that Ben's actual 2023 wages are $55,080 and Tala's Schedule C net profits, self-employment tax, and qualified business income deduction are as assumed above. Assume Tala made four equal estimated payments based on the Estimated Tax Worksheet in part c. Compute the Kenofees' tax liability (use tax rate schedules instead of tax tables) and determine the amount of refund or overpayment. Note: Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0." If required, round any dollar amount to the nearest dollar.

To address your questions, let's break down each part: ### Part a: Prepare Ben's Form W-4 for 2023 1. **Filing Status**: Married filing jointly. 2. **Multiple Jobs or Spouse Works**: Ben should check this box since Tala is self-employed. 3. **Dependents**: Ben can claim the child tax credit for one child. For 2023, the credit is $2,000 per child. 4. **Other Adjustments**: Ben should account for Tala's self-employment income as a second job. This can be done by using the IRS's online withholding estimator or the W-4 worksheet to adjust withholding. ### Part b: Calculate Ben's Income Tax Withholding on First Paycheck 1. **Gross Pay**: $2,295.00 2. **Annualize Pay**: $2,295 x 24 = $55,080 3. **Standard Deduction**: $27,700 for married filing jointly in 2023. 4. **Taxable Income**: $55,080 + $32,400 + $1,200 - $27,700 = $61,080 5. **Tax Calculation**: Use the 2023 tax brackets for married filing jointly. 6. **Withholding Calculation**: Use the IRS percentage method tables for 2023 to determine withholding per pay period. ### Part c: Prepare 2023 Estimated Tax Worksheet for

Get Started

Get your tax questions answered