LESSON 12-1 Preparing Payroll Time Cards 6/10/2018 LESSON 12-1 Preparing Payroll Time Cards

PAYING EMPLOYEES Salary – the money paid for employee services page 340 Salary – the money paid for employee services Pay period – The period covered by a salary payment Every week, every two weeks, twice a month, once a month Hobby Shack uses a semimonthly pay period and employees are paid on the 15th and the last day of each month. Payroll – The total amount earned by all employees for a pay period. LESSON 12-1

ANALYZING A PAYROLL TIME CARD page 341 LESSON 12-1

CALCULATING EMPLOYEE HOURS WORKED page 342 1. Calculate the number of regular hours for each day and enter the amounts. 1 2. Calculate the number of overtime hours and enter the amounts. 3. Add Hours Reg and Hours OT columns and enter the totals. 2 4. Add the Hours column. 3 4 LESSON 12-1

CALCULATING EMPLOYEE TOTAL EARNINGS page 343 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. 1 2 4 3 5 LESSON 12-1

TERMS REVIEW salary pay period payroll page 344 salary pay period payroll total earnings – the total due for a pay period before deductions. (Gross pay) LESSON 12-1

LESSON 12-2 Determining Payroll Tax Withholding 6/10/2018 LESSON 12-2 Determining Payroll Tax Withholding

PAYROLL TAXES page 345 Payroll taxes are required by law and based on your earnings. Employee income tax – federal income tax based on the W-4 withholding allowances (a deduction for each person legally supported by a taxpayer). LESSON 12-1

EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE page 346 3 2 1 4 5 1. Write the employee’s name and address 2. 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. LESSON 12-2

EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS page 348 1 2 3 1. Select the appropriate table. 2. Locate the employee’s total earnings. 3. Intersection of wages and number of allowances column. LESSON 12-2

EMPLOYEE SOCIAL SECURITY AND MEDICARE TAX page 349 Social security tax – a federal tax paid for old-age, survivors, and disability insurance. (6.2%) Medicare tax – a federal tax paid for hospital insurance (1.45%) These taxes are paid by BOTH the employees and employer. Social Security is calculated on earnings up to a maximum tax base in a calendar year. Medicare does not have a tax base. LESSON 12-1

TERMS REVIEW payroll taxes withholding allowance social security tax page 350 payroll taxes withholding allowance social security tax Medicare tax tax base LESSON 12-2

LESSON 12-3 Preparing Payroll Records 6/10/2018 LESSON 12-3 Preparing Payroll Records

PAYROLL REGISTER 1. Pay period date page 351 1 2 11 4 5 6 7 8 9 10 3 13 12 1. Pay period date 8. Health insurance premium deductions 2. Payment date 9. Other employee payroll deductions 3. Employee personal data 10. Total deductions 4. Earnings 11. Net pay 5. Federal income tax withheld 12. Total, prove, and rule 6. Social security tax withheld 13. Check number 7. Medicare tax withheld LESSON 12-3

EMPLOYEE EARNINGS RECORDS page 353 1. Last day of quarter 4 2. Employee personal data 5 3. Beginning accumulated earnings 1 2 4. Pay period 3 5. Earnings, deductions, net pay 6 6. Updated accumulated earnings 7 7. Total and prove LESSON 12-3

TERMS REVIEW payroll register net pay employee earnings record page 355 payroll register net pay employee earnings record LESSON 12-3

LESSON 12-4 Preparing Payroll Checks 6/10/2018 LESSON 12-4 Preparing Payroll Checks

PAYROLL BANK ACCOUNT 1 2 1. Prepare the check stub. page 356 1 2 1. Prepare the check stub. 2. Prepare the check. LESSON 12-4

EMPLOYEE’S PAYROLL CHECK page 357 1 2 1. Prepare the check stub of each employee’s payroll check. 2. Prepare each employee’s payroll check. LESSON 12-4