Chapter 04:

Employees

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Employees

In Chapter 4, you learn how Peachtree

processes payroll. Once default and

employee maintenance information is set

up, payroll is a simple process.

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Set up Employee

Defaults

Select employees

Enter tax information and define payroll fields

Employees

Employee

Maintenance

Record

transaction

Select employees/sales reps Select payroll entry

Set up employee rates and special

deductions

Enter employee paycheck information

for a specific pay period

Peachtree’s

Payroll System

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Peachtree Tips

All work in Chapters 1, 2, and 3, including the end-of-chapter exercises, should be completed before starting Chapter 4.

When you are ready to print paychecks, you pick a form to print. The paycheck form selected is tied to the kind of printer you are using. The paychecks shown on pp. 157 and 158 are OCR Multi-Purpose PR Laser. Depending on the kind of printer being used, you may need to make a different selection for printing forms.

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Peachtree Tips

In Chapter 15, Employees, Payroll and Account

Reconciliation, you learn more about Peachtree’s

payroll defaults. For example, each employee and

employer deduction will be set for individual liability

accounts and expense accounts.

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Backing Up Chapter 4

Backup File (.ptb)

Excel (.xlsx) and Adobe (.pdf) KB Page Nos.

Chapter 4.ptb 3,554 KB 159-160

Exercise 4-2.ptb 3,577 KB 162

Exercise 4-2_Payroll Check

Register.xlsx

13 KB 162

Exercise 4-2_Payroll Check

Register.pdf

58 KB 162

In Chapter 4, you make two backups, and save one Excel file and

one PDF file. For all the backups made in Part 1 (Chapters 1-8),

refer to the chart on pages 2 and 3 in the textbook.

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Employee Defaults window, pp. 145-146

From the Navigation Bar, select ;

click , Set Up Employee Defaults.

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Employee Fields, p. 146

After selecting the Employee Fields tab, this

window is shown.

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Company Fields, pp. 147-148

Read the information on pp. 147-149. After

selecting the Company Fields tab, this

window is shown.

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Maintain Employees/Sales Reps, pp. 148-149

Complete steps 1 and 2 on pages 148-149.

The Maintain Employees & Sales Reps

window appears on p. 149.

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Maintain Employees/Sales Reps, p. 149

Click on the Pay Info tab. Pay information for Brandee M.

Nunnley appears below step 3.

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Payroll Entry for salaried employee, pp. 152-154

The completed Payroll Entry on page 154 is shown

below.

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Payroll Entry for hourly employee, pp.154-155

The completed Payroll Entry on page 155 is shown

below. (Three overtime hours are added.)

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Journal Entry for Payroll, p. 159

Account Description Debit Credit

Wages Expense (Regular Hours) 720.00

Wages Expense (Overtime Hours) 40.50

Federal Payroll Taxes Payable (Fed_Income) 84.08

Social Security (Soc_Sec, Employee) 47.15

Medicare (Medicare, Employee) 11.03

State Payroll Taxes Payable (State) 33.01

Payroll Checking Account 585.23

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Going to the Net, pp. 160-161

Access the SmartPros website at http://accounting.smartpros.com. Move your cursor over Career Center. From the Career Center list, select Career Resources, then link to ―Effective Salary Negotiation (http://accounting.smartpros.com/x28536.xml).‖ Read the ―Effective Salary Negotiation‖ article. Answer the following questions.

1. What skills should you objectively evaluate?

2. List three factors that affect starting salary.

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Analysis Questions, p. 1631. What pay methods does Bellwether Garden Supply use to pay employees? Briefly explain

how you determine Bellwether’s pay method.

The Pay Info tab on the Maintain Employees & Sales Reps window shows that

Bellwether’s employees are paid Hourly – Hours per Pay Period and Salaried.

Another way to determine the Pay Methods is to scroll through the Employees list on the

Employees & Payroll Navigation Center. The Pay Method field shows the two pay

methods—Hourly - Hours per Pay Period and Salary.

2. Are all employees paid the same way; for example, bi-weekly? Explain how to determine

the frequency with which an employee is paid.

No. Some of Bellwether’s employees are paid bi-weekly, others are paid weekly. To see

how employees are paid, go to the Maintain Employees & Sales Reps window. Select the

Pay Info tab. In the Employee ID field, select various employees. To determine when they

are paid, look in the Pay Frequency field. For example, Amanda W. Chester is paid Bi-

weekly; Al L. Duke is paid weekly.

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Assessment Rubric, p. 163

Date Transaction

Navigation

Center/Module

Task

Window

Journal

Dr./Cr.

3/29 Record paycheck

information for Derrick P.

Gross.

Employees & Payroll;

Pay Employees,

Enter Payroll For One

Employee

Payroll (or Employees

and payroll system)

Payroll

Entry

window

Payroll Journal

Dr. Wages

Expense,

$1,346.15

Cr. Federal Payroll

Taxes Payable,

$55.38

Cr. Social Security,

$83.46

Cr. Medicare,

$19.52

Cr. State Payroll

Taxes Payable,

$48.15

Cr. 401 K

Deductions

Payable, $80.77

Cr. Payroll

Checking Account,

$1,058.87

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Online Learning Center Go online to www.mhhe.com/yacht2012 for additional

resources. Link to Student Edition, select Chapter 4.

o Interactive Testing

o Glossary of Terms

o Feature Quizzes

o PowerPoints

o Assessment Rubric

o Going to the Net

o QA Templates

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