1. 12-3 P AYROLL MANAGEMENT Goal 1Describe the components of a business payroll system. Goal 2Identify key information included in payroll records and paychecks. SLIDE 1

2. KEY TERMS Payroll – the financial record of employee compensation, deductions and pay Payroll system – maintains information on each employee to be able to calculate the company’s payroll and to make the necessary payments to each employee. Payroll records – the documentation used to process earnings payments and record each employees pay history. Direct deposit – employer transfers new pay electronically into the employees bank account. SLI DE 2

3. PAYROLL SYSTEMS Income taxes- federal government, most states and some local governments require employers to withhold income tax from their employees pay. $ withheld based on the wages or salary paid and number of employee dependents Social Security and Medicare – known as FICA, government requires that every employee pay these taxes. In addition employer must contribute to this tax. WHY??? Unemployment taxes – goes to unemployment insurance system. Employee and employer must contribute to this tax. WHO BENEFITS FROM THIS TAX? “Where do our tax dollars go?” video https://www.youtube.com/watch?v=a7f6Z26w0yY SLI DE 3

4. TAX THE RICH-AN ANIMATED FAIRY TALE https://www.youtube.com/watch?v=S6ZsXrzF8Cc Your thoughts on this video?

5. C HECKPOINT What is the purpose of the payroll system? The purpose of the payroll system is to maintain information on each employee to be able to calculate the company’s payroll and make the necessary payments to each employee, taking the proper legal state and federal deductions from each paycheck. SLI DE 5

6. SAMPLE EARNINGS REPORT AND DIRECT DEPOSIT RECEIPT SLI DE 6

7. A QUESTION OF ETHICS Read “disclosing employee performance information” and be ready to answer questions 1 and 2

8. S ALARY DEDUCTIONS CALCULATOR http://www.paycheckcity.com/calculator/salary/

9. EXIT CARD One important factor about payroll that I learned as a result of this lesson is….