Final Answer:
The amount that should be included in the organization's Form 941, Line 5a column 1, "Taxable social security wages," at the end of the second quarter is $1,014,200.00.
Step-by-step explanation:
4. To calculate the taxable social security wages (Form 941, Line 5a column 1) for the second quarter, sum up the employee wages and any pre-tax deductions like 401(k) and 125 plan contributions.
Calculation:
May 31: $989,800.00 (ee wages) - $24,745.00 (401(k) def) - $9,000.00 (125 red) = $955,055.00
June 15: $956,100.00 - $23,902.50 - $9,000.00 = $923,197.50
June 30: $829,200.00 - $20,730.00 - $9,000.00 = $799,470.00
Total taxable social security wages: $955,055.00 + $923,197.50 + $799,470.00 = $2,677,722.50
The taxable social security wages include employee wages minus pre-tax deductions. These calculations are based on each pay period.
May 31, June 15, and June 30 calculations are summed up to get the total taxable social security wages for the second quarter.