CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-2 Determining Payroll Tax Withholding  Payroll taxes  Employee’s withholding allowance certificate  Employee’s income tax withholding  Employee social security and Medicare tax

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Implementing Payroll and Payroll Tax Procedures 2 LESSON 12-2 Objectives: 82 Describe methods to determine gross earnings (e.g., piece/rate, hourly, salary, commission, overtime, bonuses) 83 Explain the purposes of withholdings and other deductions 84 Computer employee gross earnings, deductions, and net pay on a payroll register 85 Journalize payroll transactions 86 Maintain employee earnings records 87 Generate payroll checks 88 Identify source documents required for adding and deleting employees from payroll 89 Describe record-organization-retention schedule procedures for payroll and payroll taxes

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 12-2 EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE page 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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 12-2 EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS page Select the appropriate table. 2.Locate the employee’s total earnings. 3.Intersection of wages and number of allowances column.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 12-2 TERMS REVIEW payroll taxes withholding allowance social security tax Medicare tax tax base page 350