Question

The bank manager was pleased to see that you have a plan in place for dealing with accounts receivables and uncollectible accounts as evidenced in your memo last week.

The bank manager now wishes to know how much you will need to borrow. You will need to prepare a budget of expenses and calculate the anticipated amount needed to cover payroll expenses for hiring a new employee before you can respond to the bank's request.

Using the Excel template below, complete the budget for expenses and the payroll worksheet. Refer to the details found on the Information tab found in the workbook to get started

Expenses
	Monthly Amount	One-Time fee*
Advertising	$                     50.00
Licenses		$                   100.00
Office Supplies		$                   200.00
Professional Fees		$                   400.00
Rent Expense	$                   500.00
Subscription Expense	$                     91.96
Telephone Expense	$                   100.00
Website Expenses	$                   150.00
Total Expenses	$                   891.96	$                   700.00
*The One-Time fees will be due in July.
Part-time Employee information:
You have placed an ad for part-time help for 15 hours per week at $14/hour.
You found a potential employee and their effective date to start would be July 1st.
Assume Federal Income Tax will be withheld at a rate of 12%.
When you called your State, they told you that your State Unemployment tax rate would be 5.4%.
Recall that the Federal Unemployment rate is the same for all businesses.
Required:
Complete the Budget for Expenses worksheet
Complete the Payroll Worksheet
Please note that you will need the information from the Payroll Worksheet to finalize your Budget for Expenses.

Answer 1

Assuming there are 4 weeks in the month
Payroll Worksheets
Monthly Payroll
Gross Payroll			840
(15*4*14)
Less : Federal Income Tax			100.8
Net Pay			739.2
The employer will have to pay $ 101 to government towards federal Income Tax
Federal Unemployment Rate is 5.4%
This the employer has to pay from his pocket
840*0.054			45.36	45
Expenses
	Monthly Amount	One-Time fee*	Total Expenses
Advertising	50		50
Licenses		100	100
Office Supplies		200	200
Professional Fees		400	400
Rent Expense	500		500
Subscription Expense	91.96		91.96
Telephone Expense	100		100
Website Expenses	150		150
Part-Time Employee Expense	739.2		739.2
Federal Withheld tax	100.8		100.8
State Unemployment tax	45.36		45.36
Total Expenses	1777.32	700	2477.32