accounting i chapter 13 – preparing payroll records
TRANSCRIPT
Accounting IAccounting I
Chapter 13 – Preparing Payroll Records
TTERMS REVIEWERMS REVIEWsalary
pay period
payroll
total earnings
Lesson 13-1, page 307Lesson 13-1, page 307
TTERMS REVIEWERMS REVIEW
SalarySalary
The money paid for employee services.
Lesson 13-1, page 302Lesson 13-1, page 302
TTERMS REVIEWERMS REVIEW
Pay PeriodPay Period
The period covered by a salary payment.
Lesson 13-1, page 302Lesson 13-1, page 302
TTERMS REVIEWERMS REVIEW
PayrollPayroll
The total amount earned by all employees for a pay period.
Lesson 13-1, page 302Lesson 13-1, page 302
TTERMS REVIEWERMS REVIEW
Total EarningsTotal Earnings
The total pay due for a pay period before deductions.
Lesson 13-1, page 306Lesson 13-1, page 306
ANALYZING A PAYROLL TIME CARDANALYZING A PAYROLL TIME CARD
Lesson 13-1, page 304Lesson 13-1, page 304
CALCULATING EMPLOYEE HOURS WORKEDCALCULATING EMPLOYEE HOURS WORKED
1. Calculate regular hours.
2. Calculate overtime hours.
3. Add Hours Reg and Hours OT columns and enter totals.
4. Add Hours column.
3
4
2
1
Lesson 13-1, page 305Lesson 13-1, page 305
CALCULATING EMPLOYEE TOTAL EARNINGSCALCULATING EMPLOYEE TOTAL EARNINGS
Lesson 13-1, page 306Lesson 13-1, page 3065
1 2
43
3. Enter the rate for overtime.
1. Enter the rate for regular time.
4. Calculate overtime earnings.
2. Calculate regular earnings.
5. Calculate total earnings.
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Page 307Page 307
TTERMS REVIEWERMS REVIEWpayroll taxes
withholding allowance
social security tax
Medicare tax
tax base
Lesson 13-2, page 313Lesson 13-2, page 313
TTERMS REVIEWERMS REVIEW
Payroll TaxesPayroll Taxes
Taxes based on the payroll of a business.
Lesson 13-2, page 308Lesson 13-2, page 308
TTERMS REVIEWERMS REVIEW
Withholding AllowanceWithholding Allowance
A deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Lesson 13-2, page 309Lesson 13-2, page 309
TTERMS REVIEWERMS REVIEW
Social Security TaxSocial Security Tax
A federal tax paid for old-age, survivors, and disability insurance.
Lesson 13-2, page 312Lesson 13-2, page 312
TTERMS REVIEWERMS REVIEW
Medicare TaxMedicare Tax
A federal tax paid for hospital insurance.
Lesson 13-2, page 312Lesson 13-2, page 312
TTERMS REVIEWERMS REVIEW
Tax BaseTax Base
The maximum amount of earnings on which a tax is calculated.
Lesson 13-2, page 312Lesson 13-2, page 312
EMPLOYEE’S WITHHOLDING ALLOWANCE EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATECERTIFICATE
Lesson 13-2, page 309Lesson 13-2, page 309
5
1 34
2
3. Marital Status
1. Name and Address 4. Withholding Allowances
2. Social Security Number 5. Signature and Date
At least But Less than
1,120 1,140
EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE PERSONSPERSONS
87
Lesson 13-2, page 310Lesson 13-2, page 310
EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONSPERSONS
63At least But Less than
1,120 1,140
EMPLOYEE SOCIAL SECURITY AND MEDICARE TAXEMPLOYEE SOCIAL SECURITY AND MEDICARE TAX
Total Social Security Social SecurityEarnings Tax Rate = Tax Deduction
Total Medicare MedicareEarnings Tax Rate = Tax Deduction
Calculate Social Security Tax Deduction
Calculate Medicare Tax Deduction
$1,137.00 6.5% = $73.91
$1,137.00 1.5% = $17.06
Lesson 13-2, page 312Lesson 13-2, page 312
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Page 313Page 313
TTERMS REVIEWERMS REVIEWpayroll register
net pay
employee earnings record
Lesson 13-3, page 318Lesson 13-3, page 318
TTERMS REVIEWERMS REVIEW
Payroll RegisterPayroll Register
A business form used to record payroll information.
Lesson 13-3, page 314Lesson 13-3, page 314
TTERMS REVIEWERMS REVIEW
Net PayNet Pay
The total earnings paid to an employee after payroll taxes and other deductions.
Lesson 13-3, page 315Lesson 13-3, page 315
TTERMS REVIEWERMS REVIEW
Employee Earnings RecordEmployee Earnings Record
A business form used to record details affecting payments made to an employee.
Lesson 13-3, page 316Lesson 13-3, page 316
PAYROLL REGISTERPAYROLL REGISTER
Lesson 13-3, page 314Lesson 13-3, page 314
5
1
3
4
2
3. Employee Personal Data
1. Pay Period Date
4. Earnings
2. Payment Date
5. Federal Income Tax
106 8 97
6. Social Security Tax
11 13
12
10. Total Deductions
8. Health Insurance
11. Net Pay
9. Other Deductions
12. Total, Prove, and Rule
7. Medicare Tax
13. Check Number
EMPLOYEE EARNINGS RECORDSEMPLOYEE EARNINGS RECORDS
Lesson 13-3, page 316Lesson 13-3, page 316
1
3
4
2
3. Beginning Accumulated Earnings
1. Last day of Quarter
4. Pay Period
5. Earnings, Deductions, Net Pay
6
7
6. Updated Accumulated Earnings
7. Total and Prove
2. Employee Personal Data
5
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Page 317Page 317
PAYROLL BANK ACCOUNTPAYROLL BANK ACCOUNT
12
1. Prepare the check stub.
2. Prepare the check.
Lesson 13-4, page 319Lesson 13-4, page 319
EMPLOYEE’S PAYROLL CHECKEMPLOYEE’S PAYROLL CHECK
1 2
1. Enter on check stub information from payroll register.
2. Prepare employee’s payroll check for net amount of earnings.
Lesson 13-4, page 320Lesson 13-4, page 320
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Page 321Page 321