CWU Basics & Beyond 2016 CWU Lab I 1

CWU Basics & Beyond 2016 CWU Lab I 1 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. NOTE Enter the data exactly as provided. Fields that have been omitted require no entry. Save when prompted. 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)

CWU Lab I 2 CWU Basics & Beyond 2016 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. Click Save. Client Setup File > New Client, Contact Information tab Client Code = HAPPY

CWU Basics & Beyond 2016 CWU Lab I 3 Document Manager Options tab Document Manager Not Used Business Information tab W2/W3-1099/1098 Setup tab Click Save, then click OK. * * The setup for the Chart of Accounts displays automatically the 1st time you click Save on a new client. * *

CWU Lab I 4 CWU Basics & Beyond 2016 Create a Chart of Accounts 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. 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 Advertising Bookkeeping > 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.

CWU Basics & Beyond 2016 CWU Lab I 5 Click Add at the bottom of the Chart of Accounts screen to create the following accounts: 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 The Finished Product. Exit from the Add/Edit/Delete Account window. 5. Make sure that at the bottom of the Chart of Accounts screen, the Retained Earnings Account field says 590 - Retained Earnings. Verify a ZERO balance BEFORE exiting the COA screen. Then click Exit. 6. A message displays regarding setting up the Chart of Accounts. Click OK.

CWU Lab I 6 CWU Basics & Beyond 2016 Division Setup Setup > Headers & Footnotes Click Save. Payroll Check Setup Setup > Check and Stub Options, Preprinted Payroll tab Click Save.

CWU Basics & Beyond 2016 CWU Lab I 7 Payroll Setup Employees > Account & Payroll Information, Payroll Options tab

CWU Lab I 8 CWU Basics & Beyond 2016 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.

CWU Basics & Beyond 2016 CWU Lab I 9 Click on the State Rates/Limits tab. State Wage Base 22300 State Unemployment Rate 0.06 Click Save. Payroll Deductions Setup Employees > Deductions & Benefits, Deductions tab Employee s Shirt Cleaning Deduction Click New to add the employee s shirt cleaning deduction. 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.

CWU Lab I 10 CWU Basics & Beyond 2016 Employee s Health Savings Account Deduction Click New to add the employee s Health Savings Account deduction. Name HSA Account (Press F2 and add a new account - 340.01 - see below) Add a New Account Account Number 340.01 Name HSA Type Current Liability Click Save to save the new account. Dollars/Cents Amount 40.00 Ceiling 3350.00 W2 Box 12 Code Withholding Code Federal SS Medicare State Exempt from FUTA Exempt from SUTA Exempt from Garnish W2 Box 10 W2 Box 14 NA CP Don t check. Don t check. Don t check. Don t check. Don t check. Click Save to save the deduction.

CWU Basics & Beyond 2016 CWU Lab I 11 Employee s Group Life Insurance Deduction Click New to add the employee s Group Life insurance deduction. Name Life Ins Account (Press F2 and add a new account - 340.02 - see below) Add a New Account. Account Number 340.02 Name Life Insurance Type Current Liability Click Save to save the new account. Dollars/Cents Amount 6.00 W2 Box 12 Code C Withholding Code NA Federal SS Medicare State Local Click Save to save the deduction.

CWU Lab I 12 CWU Basics & Beyond 2016 Employee s 401K Contribution Click New to add the employee s 401K contribution as a deduction. Name 401K - Employee (only displays 401K - Emplo ) Account (Press F2 and add a new account - 340.03 - see below) Add a New Account. Account Number 340.03 Name 401K - Employee Type Current Liability Click Save to save the new account. Percent Amount 0.0500 Ceiling 18000 W2 Box 12 Code Withholding Code Federal SS Medicare State Local Exempt from FUTA Exempt from SUTA Exempt from Garnish D 401K Don t check. Don t check. Don t check. Click Save to save the deduction.

CWU Basics & Beyond 2016 CWU Lab I 13 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 Setup Employee: Pete Tin Employees > Employee Setup, Personal Info tab Click New to add an employee.

CWU Lab I 14 CWU Basics & Beyond 2016 (Employee: Pete Tin) Click on the Payroll Wages/Rates tab. (Employee: Pete Tin) Click on the Payroll Options tab. 401K Status Active Sick Calculations Vacation Calculations Don t check. Don t check. (Employee: Pete Tin) Click on the Federal Tax Status tab.

CWU Basics & Beyond 2016 CWU Lab I 15 (Employee: Pete Tin) Click on the State/Local Tax Status tab. (Employee: Pete Tin) Click on the Deductions tab. NOTE Double-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. ** Notice the edited deduction amount for Pete s HSA account. ** 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.

CWU Lab I 16 CWU Basics & Beyond 2016 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.

CWU Basics & Beyond 2016 CWU Lab I 17 (Employee: Lou Pole) Click on the Payroll Options tab. 401K Status Active 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 (Employee: Lou Pole) Click on the Federal Tax Status tab.

CWU Lab I 18 CWU Basics & Beyond 2016 (Employee: Lou Pole) Click on the State/Local Tax Status tab. (Employee: Lou Pole) Click on the Deductions tab. NOTE Double-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.

CWU Basics & Beyond 2016 CWU Lab I 19 Employee: Jack Pott Employees > Employee Setup, Personal Info tab Click New to add an employee. (Employee: Jack Pott) Click on the Payroll Wages/Rates tab.

CWU Lab I 20 CWU Basics & Beyond 2016 (Employee: Jack Pott) Click on the Payroll Options tab. 401K Status Active 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 (Employee: Jack Pott) Click on the Federal Tax Status tab.

CWU Basics & Beyond 2016 CWU Lab I 21 (Employee: Jack Pott) Click on the State/Local Tax Status tab. (Employee: Jack Pott) Click on the Deductions tab. NOTE Double-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. ** Notice the edited deduction amount for Jack s HSA account and his 401K. ** 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.

CWU Lab I 22 CWU Basics & Beyond 2016 Employee: Carrie Oakey Employees > Employee Setup, Personal Info tab Click New to add an employee. (Employee: Carrie Oakey) Click on the Payroll Wages/Rates tab.

CWU Basics & Beyond 2016 CWU Lab I 23 (Employee: Carrie Oakey) Click on the Payroll Options tab. 401K Status InActive 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 (Employee: Carrie Oakey) Click on the Federal Tax Status tab.

CWU Lab I 24 CWU Basics & Beyond 2016 (Employee: Carrie Oakey) Click on the State/Local Tax Status tab. (Employee: Carrie Oakey) Click on the Deductions tab. NOTE Double-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. ** Notice the edited deduction amount for Carrie s HSA account. ** Field Name Amount Priority Ceiling Shirt Cleaning 5.00 3 0.00 HSA 25.00 1 3350.00 Life Ins 6.00 2 0.00 Click Save and Exit.

CWU Basics & Beyond 2016 CWU Lab I 25 Contractor Payments Setup Contractors > Account & Payroll Information, Payroll Options tab Auto Post Detailed Payroll to Journal Cumulative G/L Account Numbers tab NO SETTINGS ON THIS TAB FOR THIS LAB Click on the Detailed G/L Account Numbers tab. Click Save.

CWU Lab I 26 CWU Basics & Beyond 2016 Contractor Setup Contractor: Ken Kilowatt Contractors > Contractor Setup, Personal Info tab Click New to add a contractor. Contractor 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. Contractor: Royal Flush Plumbing Contractors > Contractor Setup, Personal Info tab Click New to add a contractor. Contractor Code FLUSH Company Name Royal Flush Plumbing Country United States-US Address 1 14 Dry Floor Road Zip 28734

CWU Basics & Beyond 2016 CWU Lab I 27 Phone 8285557788 ID Number 222990101 (EIN) Hire Date 01/01/2016 Division Maintenance Name Code 1099 EF ROYA Use Company Name and Address Click Save. Contractor: Just Kick It Computer Repair Contractors > Contractor Setup, Personal Info tab Click New to add a contractor. Contractor Code KICKIT Company Name Just Kick It Computer Repair Country United States-US Address 1 444 Data Drive Zip 28734 Phone 8285551024 ID Number 222441024 (EIN) Hire Date 01/01/2016 Division Maintenance Name Code 1099 EF JUST Use Company Name and Address Click Save and Exit.

CWU Lab I 28 CWU Basics & Beyond 2016 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.