century 21 accounting © 2009 south-western, cengage learning lesson 3-1 completing payroll records...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1LESSON 3-1
Completing Payroll Records for Employee Earnings and Deductions
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 3 ObjectivesChapter 3 ObjectivesCalculating and Recording Departmental Calculating and Recording Departmental Payroll DataPayroll Data
After studying Chapter 3, you will be able to:Define accounting terms related to a departmental payroll system.Identify accounting concepts and practices related to a departmental payroll system.Prepare a commissions record and calculate commission on net sales.Complete payroll records.Journalize payroll transactions.
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LESSON 3-1
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 3-1Lesson 3-1
salary: the money paid for employee services pay period: the period covered by a salary payment payroll: the total amount earned by all employees for
a pay period 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
tax base: the maximum amount of earnings on which a tax is calculated
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 3-1Lesson 3-1
payroll register: a business form used to record payroll information
employee earnings record: a business form used to record details affecting payments made to an employee
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 3-1
PAYROLL DEDUCTIONSPAYROLL DEDUCTIONS page 61
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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Regular Hours Regular Rate Regular Earnings
CALCULATING EMPLOYEE EARNINGSCALCULATING EMPLOYEE EARNINGS
80 $7.00 per hour $560.00
Overtime Earnings=Overtime Hours Regular Rate 1.5 = $52.505 $7.00 1.5
RegularEarnings
OvertimeEarnings
TotalEarnings
$560.00 $52.50 $612.50
page 62
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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1. Record heading information.
3. Calculate commission on net sales.
COMMISSIONS RECORDCOMMISSIONS RECORD page 63
2. Obtain amounts and calculate totals.
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9. Totals8. Net pay
PREPARING A PAYROLL REGISTERPREPARING A PAYROLL REGISTER pages 64-65
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66 77 88
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2. Date of payment3. Employee information4. Hours and earnings5. Total earnings by
department6. Payroll deductions7. Total deductions
1. Payroll period ending date
99
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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2. Find the column with the correct number of withholding allowances.
1. Locate the range containing the total earnings.
3. Find the intersection of the row and column.
USING THE FEDERAL INCOME TAX USING THE FEDERAL INCOME TAX WITHHOLDING TABLEWITHHOLDING TABLE page 66
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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3. Record beginning accumulated earnings.
1. Write last day of quarter.
4. Write ending day of pay period.
2. Enter heading information.
5. Enter total earnings, deductions, and net pay.
6. Calculate and record accumulated earnings.
PREPARING AN EMPLOYEE PREPARING AN EMPLOYEE EARNINGS RECORDEARNINGS RECORD page 67
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet
salary pay period payroll payroll taxes withholding allowance tax base payroll register employee earnings record
page 68
Create: Chapter 3 AdvAcc (then SAVE)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 3-1Audit Your Understanding 3-1
1. What three federal taxes are withheld from an employee’s pay?
2. How is the amount of federal income tax withholding determined?
3. What is the formula for calculating net pay on the payroll register?
4. What amount is added to the accumulated earnings to get the new accumulated earnings to date?
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In a Word Document, SaveAS: Chapter3-1AYUYourNameAnd drop in my Inbox today!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Complete the following assignments for Complete the following assignments for Chapter 3-1 todayChapter 3-1 today
Define Terms Review on page 68. Answer Audit Your Understanding questions on page
68. Complete Work Together 3-1 on Aplia – page 68. Complete On Your Own 3-1 on Aplia – page 69. Complete Application Problem 3-1 on Aplia – page
78. Complete Application Problem 3-2 on Aplia – page
78-79. Complete Application Problem 3-3 on Aplia – page
79.
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