Chapter 4: Chapter 4: EmployeesEmployees

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EmployeesEmployees

In Chapter 4, you learn how Peachtree In Chapter 4, you learn how Peachtree processes payroll. Once default and processes payroll. Once default and employee maintenance information is set employee maintenance information is set up, payroll is a simple process.up, payroll is a simple process.

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Software Objectives, p. 127Software Objectives, p. 127Restore data from Exercise 3-2. (This back up Restore data from Exercise 3-2. (This back up was made on page 124.)was made on page 124.)Enter and store information using the Maintain Enter and store information using the Maintain Employees/Sales Rep window.Employees/Sales Rep window.Set up default information for payroll.Set up default information for payroll.Store constant information about payroll payment Store constant information about payroll payment methods.methods.Transfer funds from the regular checking account Transfer funds from the regular checking account to the payroll checking account.to the payroll checking account.Enter paychecks in the Payroll Entry window.Enter paychecks in the Payroll Entry window.Print employee paychecks.Print employee paychecks.Make two backups: backup Chapter 4 data; and Make two backups: backup Chapter 4 data; and backup Exercise 4-2.backup Exercise 4-2.

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Web Objectives, p. 127Web Objectives, p. 127

Use your Internet browser to go to the Use your Internet browser to go to the book’s website at book’s website at www.mhhe.com/yacht2005www.mhhe.com/yacht2005

Complete the Internet activity for the Complete the Internet activity for the American Institute of CPAs.American Institute of CPAs.

Use a word processing program to write a Use a word processing program to write a summary about the websites(s) that you summary about the websites(s) that you visited.visited.

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Select default information

Select employees

Enter tax information and define payroll fields

Maintain menu

Maintain menu

Tasks menu

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 TipsPeachtree Tips

All work in Chapters 1, 2, and 3, including the All work in Chapters 1, 2, and 3, including the end-of-chapter exercises, should be completed end-of-chapter exercises, should be completed before starting Chapter 4.before starting Chapter 4.When you are ready to print paychecks, you When you are ready to print paychecks, you pick a form to print. The paycheck form selected pick a form to print. The paycheck form selected is tied to the kind of printer you are using. For is tied to the kind of printer you are using. For example, if you are using an HP DeskJet example, if you are using an HP DeskJet printer, the form selected is PR MultiP Checks 2 printer, the form selected is PR MultiP Checks 2 Stub. You may need to make a different Stub. You may need to make a different selection for printing forms depending on the selection for printing forms depending on the kind of printer being used.kind of printer being used.

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Peachtree TipsPeachtree Tips

In Chapter 14, Payroll, you will learn how to set the In Chapter 14, Payroll, you will learn how to set the defaults for the payroll accounts. Each employee defaults for the payroll accounts. Each employee and employer deduction will be set for individual and employer deduction will be set for individual liability accounts and expense accounts. liability accounts and expense accounts.

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Backing Up Chapter 4Backing Up Chapter 4

Backup NameBackup Name KBKB Page Nos.Page Nos.

Chapter 4.ptbChapter 4.ptb 2,484 KB2,484 KB 145145

Exercise 4-2.ptbExercise 4-2.ptb 2,491 KB2,491 KB 150150

In Chapter 4, you make two backups. The Chapter 4.ptb backup is made on page 145 and the Exercise 4-2.ptb backup is made on page 150. Refer to the chart shown on page 2 in the textbook.

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Chapter 4 TopicsChapter 4 Topics1.1. Software & web objectives, p. 127Software & web objectives, p. 1272.2. Getting started, p. 129Getting started, p. 1293.3. Default information, pp. 130-133Default information, pp. 130-1334.4. Maintain employees, pp.133-134Maintain employees, pp.133-1345.5. Payroll tasks, p. 135Payroll tasks, p. 135

a.a. Transferring cash to the payroll checking account, pp. Transferring cash to the payroll checking account, pp. 135-136135-136b. Payroll entry for a salaried employee, pp. 137-139b. Payroll entry for a salaried employee, pp. 137-139c.c. Payroll entry for an hourly employee, pp. 139-141Payroll entry for an hourly employee, pp. 139-141d. Printing payroll checks, pp. 141-144d. Printing payroll checks, pp. 141-144

6.6. Journal entry for payroll, p. 144Journal entry for payroll, p. 144

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Chapter 4 Topics (concluded)Chapter 4 Topics (concluded)

7.7. Backing up chapter 4 data, p. 145Backing up chapter 4 data, p. 145

8.8. Internet Activity, p. 145Internet Activity, p. 145

9.9. Summary and review, p. 146Summary and review, p. 146

a. Going to the Net, p0. 146-147a. Going to the Net, p0. 146-147

b.b. Short-answer questions, pp. 147-149 Short-answer questions, pp. 147-149

c. Exercise 4-1, p. 150c. Exercise 4-1, p. 150

d. Exercise 4-2, p. 150d. Exercise 4-2, p. 150

e. Chapter 4 index, p. 151e. Chapter 4 index, p. 151

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Employee Defaults window, p. 130Employee Defaults window, p. 130

From the menu bar, select Default From the menu bar, select Default Information, then select Employees.Information, then select Employees.

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EmployEEmployEEE Fields, p. 131 Fields, p. 131After selecting the EmployEAfter selecting the EmployEEE Fields tab, this Fields tab, this window is shown.window is shown.

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EmployER Fields, pp. 132-133EmployER Fields, pp. 132-133Read the information on pp. 132-133. After Read the information on pp. 132-133. After selecting the EmployEselecting the EmployERR Fields tab, this Fields tab, this window is shown on p. 132.window is shown on p. 132.

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Maintain Employees/Sales Reps, p. 133-34Maintain Employees/Sales Reps, p. 133-34From the menu bar, click on Maintain, then From the menu bar, click on Maintain, then Employees/Sales Reps. This window is Employees/Sales Reps. This window is shown on p. 133.shown on p. 133.

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Maintain Employees/Sales Reps, p. 134Maintain Employees/Sales Reps, p. 134From the menu bar, click on Maintain, then From the menu bar, click on Maintain, then Employees/Sales Reps, click on the magnifying glass Employees/Sales Reps, click on the magnifying glass icon in the Employee ID box, then select CLELAND, icon in the Employee ID box, then select CLELAND,

Charlene M. LelandCharlene M. Leland. . Select the Pay Info tab.Select the Pay Info tab.

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Payroll Entry for salaried employee, p. 138Payroll Entry for salaried employee, p. 138

The completed Payroll Entry on page 138 is The completed Payroll Entry on page 138 is shown below.shown below.

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Payroll Entry for hourly employee, p. 139Payroll Entry for hourly employee, p. 139

The completed Payroll Entry on page 139 is The completed Payroll Entry on page 139 is shown below.shown below.

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Journal Entry for Payroll, p. 144Journal Entry for Payroll, p. 144Account Description Account Description DebitDebit CreditCredit

Wages Expense (Regular Hours)Wages Expense (Regular Hours) 480.00480.00

Wages Expense (Overtime Hours)Wages Expense (Overtime Hours) 54.0054.00

Federal Payroll Taxes Payable (Fed_Income)Federal Payroll Taxes Payable (Fed_Income) 41.1641.16

Social Security (Soc_Sec, Employee)Social Security (Soc_Sec, Employee) 33.1133.11

Medicare (Medicare, Employee)Medicare (Medicare, Employee) 7.747.74

State Payroll Taxes Payable (State)State Payroll Taxes Payable (State) 24.9924.99

Payroll Checking AccountPayroll Checking Account 427.99427.99

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Backing Up Chapter 4 Data, p. 145Backing Up Chapter 4 Data, p. 145

Complete steps 1-6 on page 155 to Complete steps 1-6 on page 155 to backup Chapter 4 data.backup Chapter 4 data.

The suggested file name is The suggested file name is Chapter 4Chapter 4..

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Chapter 4, Internet Activity, p. 145Chapter 4, Internet Activity, p. 145

11 Go to the book’s website at Go to the book’s website at www.mhhe.com/yacht2005www.mhhe.com/yacht2005

22 In the Student Center list, link to Internet Activities.In the Student Center list, link to Internet Activities.

33 Link to WEB EXERCISES PART 1Link to WEB EXERCISES PART 1..

44 Scroll down to THE AMERICAN INSTITUTE OF Scroll down to THE AMERICAN INSTITUTE OF CPAs-Chapter 4. Complete steps CPAs-Chapter 4. Complete steps

1-3.1-3.

55 Using a word processing program, write a summary Using a word processing program, write a summary about the sites you selected. Include the website about the sites you selected. Include the website address in your summary (maximum length, 75 address in your summary (maximum length, 75 words; minimum length, 50 words.words; minimum length, 50 words.

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Going to the Net, pp. 146-147Going to the Net, pp. 146-147Access the Pro2Net Accounting website at Access the Pro2Net Accounting website at http://accounting.smartpros.comhttp://accounting.smartpros.comMove your cursor over the Move your cursor over the Career CenterCareer Center. From the . From the Career Center list, select Career Resources, then link Career Center list, select Career Resources, then link to “The latest on salaries, the future of the profession, to “The latest on salaries, the future of the profession, career trends, job opportunities and career trends, job opportunities and moremore.” In the .” In the SmartPros 2002 Career GuideSmartPros 2002 Career Guide area, link to area, link to Job Job Opportunities for New GradsOpportunities for New Grads; ; Accounting Industry Top Accounting Industry Top U.S. EmployerU.S. Employer. Answer the following questions.. Answer the following questions.

1.1. According to the 2002 salary survey, what type of firm According to the 2002 salary survey, what type of firm employed the most college graduates?employed the most college graduates?

2.2. What is the average starting salary for accountants?What is the average starting salary for accountants?3.3. In 2002, how many college graduates entered the In 2002, how many college graduates entered the

workforce?workforce?