Chapter 12
description
Transcript of Chapter 12
Preparing Payroll Records
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Salary – money paid for employee services
Pay period – period covered by a salary payment
Payroll – total amount earned by all employees for a pay period
Total earnings – total pay due for a pay period before deductions (gross earnings/pay)
3 LESSON 12-1
4. Add the Hours column.
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3. Add Hours Reg and Hours OT columns and enter the totals.
2. Calculate the number of overtime hours and enter the amounts.
1. Calculate the number of regular hours for each day and enter the amounts.
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1. Enter the rate for regular time in the Rate column.
2. Calculate the regular earnings. Enter the amount.
3. Enter the rate for overtime.
4. Calculate the overtime earnings. Enter the amount.
5. Add the Amount column to calculate total earnings. Enter the amount of total earnings.
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Payroll taxes – taxes based on the payroll of a business
Withholding allowance – a deduction from total earnings for each person legally supported by a taxpayer, including the employee
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1. Write the employee’s name and address2. Write the employee’s social security number.3. Check the appropriate marital status block.4. Write the total number of withholding allowances claimed.5. The employee signs and dates the form.
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1. Select the appropriate table.
2. Locate the employee’s total earnings.
3. Intersection of wages and number of allowances column.
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Social security tax – a federal tax paid for old-age, survivors, and disability insurance
Medicare tax – a federal tax paid for hospital insurance
Tax base – the maximum amount of earnings on which a tax is calculated
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Payroll register – a business form used to record payroll information
Net pay – total earnings paid to an employee after payroll taxes and other deductions
Employee earnings record – a business form used to record details affecting payments made to an employee
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8. Health insurance premium deductions2. Payment date
3. Employee personal data9. Other employee payroll deductions
4. Earnings10. Total deductions
5. Federal income tax withheld11. Net pay
6. Social security tax withheld12. Total, prove, and rule
7. Medicare tax withheld13. Check number
1. Pay period date
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7. Total and prove
5. Earnings, deductions, net pay
2. Employee personal data
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1. Last day of quarter
4. Pay period
3. Beginning accumulated earnings
6. Updated accumulated earnings
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13 LESSON 12-4
PAYROLL BANK ACCOUNT
1.Prepare the check stub.
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2. Prepare the check.
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14 LESSON 12-4
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1. Prepare the check stub of each employee’s payroll check.
2. Prepare each employee’s payroll check.
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