Chapter 13 – Preparing Payroll Records Accounting I Chapter 13 – Preparing Payroll Records

TERMS REVIEW salary pay period payroll total earnings Lesson 13-1, page 307

TERMS REVIEW Salary The money paid for employee services. Lesson 13-1, page 302

TERMS REVIEW Pay Period The period covered by a salary payment. Lesson 13-1, page 302

TERMS REVIEW Payroll The total amount earned by all employees for a pay period. Lesson 13-1, page 302

TERMS REVIEW Total Earnings The total pay due for a pay period before deductions. Lesson 13-1, page 306

ANALYZING A PAYROLL TIME CARD Lesson 13-1, page 304

CALCULATING 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. 1 2 3 Lesson 13-1, page 305 4

CALCULATING EMPLOYEE TOTAL EARNINGS 1. Enter the rate for regular time. 2. Calculate regular earnings. 3. Enter the rate for overtime. 4. Calculate overtime earnings. 5. Calculate total earnings. 1 2 3 4 5 Lesson 13-1, page 306

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TERMS REVIEW payroll taxes withholding allowance social security tax Medicare tax tax base Lesson 13-2, page 313

TERMS REVIEW Payroll Taxes Taxes based on the payroll of a business. Lesson 13-2, page 308

TERMS REVIEW Withholding Allowance A deduction from total earnings for each person legally supported by a taxpayer, including the employee. Lesson 13-2, page 309

TERMS REVIEW Social Security Tax A federal tax paid for old-age, survivors, and disability insurance. Lesson 13-2, page 312

TERMS REVIEW Medicare Tax A federal tax paid for hospital insurance. Lesson 13-2, page 312

TERMS REVIEW Tax Base The maximum amount of earnings on which a tax is calculated. Lesson 13-2, page 312

EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE 2 1 3 4 5 1. Name and Address 4. Withholding Allowances 2. Social Security Number 5. Signature and Date 3. Marital Status Lesson 13-2, page 309

EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE PERSONS At least But Less than 1,120 1,140 87 Lesson 13-2, page 310

EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS At least But Less than 1,120 1,140 63

EMPLOYEE SOCIAL SECURITY AND MEDICARE TAX     Calculate Social Security Tax Deduction Total Social Security Social Security Earnings  Tax Rate = Tax Deduction $1,137.00  6.5% = $73.91     Calculate Medicare Tax Deduction Total Medicare Medicare Earnings  Tax Rate = Tax Deduction $1,137.00  1.5% = $17.06 Lesson 13-2, page 312

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TERMS REVIEW payroll register net pay employee earnings record Lesson 13-3, page 318

TERMS REVIEW Payroll Register A business form used to record payroll information. Lesson 13-3, page 314

TERMS REVIEW Net Pay The total earnings paid to an employee after payroll taxes and other deductions. Lesson 13-3, page 315

TERMS REVIEW Employee Earnings Record A business form used to record details affecting payments made to an employee. Lesson 13-3, page 316

PAYROLL REGISTER 1. Pay Period Date 8. Health Insurance 2 11 13 4 5 6 7 8 9 10 3 12 1. Pay Period Date 8. Health Insurance 2. Payment Date 9. Other Deductions 3. Employee Personal Data 10. Total Deductions 4. Earnings 11. Net Pay 5. Federal Income Tax 12. Total, Prove, and Rule 6. Social Security Tax 13. Check Number Lesson 13-3, page 314 7. Medicare Tax

EMPLOYEE EARNINGS RECORDS 5 5. Earnings, Deductions, Net Pay 1. Last day of Quarter 1 2. Employee Personal Data 3. Beginning Accumulated Earnings 2 3 4. Pay Period 4 6 7 6. Updated Accumulated Earnings Lesson 13-3, page 316 7. Total and Prove

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PAYROLL BANK ACCOUNT 1 2 1. Prepare the check stub. Lesson 13-4, page 319

EMPLOYEE’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 320

Work Together & On Your Own – Page 321