© 2014 Cengage Learning. All Rights Reserved. Do Now ●What information should you use from an employee’s earnings record when preparing an employee’s payroll check? SLIDE 1

© 2014 Cengage Learning. All Rights Reserved. Payroll Bank Account ●A voucher check has a detachable check stub, or voucher, that contains detailed information about the cash payment. ●Original check with voucher attached is mailed to vendor and copy is filed SLIDE 2 LO8 Lesson 12-4 Check for total net pay for all employees written Deposited in payroll checking account, separate from general checking account

© 2014 Cengage Learning. All Rights Reserved. Payroll Bank Account SLIDE 3 LO8 Lesson Prepare the check stub Prepare the check from the information on the check stub. Date Description Amount Payee

© 2014 Cengage Learning. All Rights Reserved. On the Overhead ●12-4 Work Together, Part 1 Only SLIDE 4

© 2014 Cengage Learning. All Rights Reserved. Employee’s Payroll Check SLIDE 5 Lesson 12-4 LO Prepare each employee’s payroll check payable for the amount of net pay. 1.Enter earnings information from the payroll register and the employee’s time card. 2.Enter the YTD Total Earnings from the employee earnings record. 3.Enter the employee’s current deductions from the payroll register and record the total. 4.Add each current deduction amount to the YTD amount reported on the employee’s prior check stub and record the total. 5.Total the Current and YTD deductions columns. Calculate and enter the amounts for Current and YTD net pay.

© 2014 Cengage Learning. All Rights Reserved. Give me a Visual ●With a partner, draw a picture or chart illustrating the relationship among the following: ●W-4 forms ●Time cards ●Federal income tax withholding table ●Payroll register ●Employee earnings records ●Employee check SLIDE 6

© 2014 Cengage Learning. All Rights Reserved. Electronic Funds Transfer ●The payment of an employee’s net pay using electronic funds transfer is called direct deposit. (ETF) ●Bank deducts total amount of employees’ net pay from business’ payroll checking account, then to be deposited in his/her bank account ●Each employee receives electronic statement of earnings SLIDE 7 Lesson 12-4 LO9

© 2014 Cengage Learning. All Rights Reserved. Electronic Funds Transfer SLIDE 8

© 2014 Cengage Learning. All Rights Reserved. Working Papers…for the last time? ●12-4 WT, part 2 on Overhead ●12-4 OYO actually On-Your-Own ●Chapter 12 Application Problems ●HW: Finish Application Problems SLIDE 9

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 1.Why does ThreeGreen have a separate checking account for payroll checks? SLIDE 10 ANSWER 1.A separate checking account is used to help protect and control payroll payments. 2.Payroll checks require space to record earnings and deduction information. Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 2.What is the source of the information that is recorded on each employee’s payroll check voucher? SLIDE 11 ANSWER The payroll register, employee earnings record, and prior pay period paycheck stub Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 3.How do payroll procedures differ for employees who request direct deposit of their pay? SLIDE 12 ANSWER Each employee’s net pay is deposited to his or her bank account. Individual checks are not written and do not have to be distributed. However, each direct deposit employee will receive a printed or electronic statement of earnings and deductions that supports the amount deposited. Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Closure ●Red, Yellow, Green SLIDE 13