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

2. 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

3. ANALYZING A PAYROLL TIME CARD
page 341
LESSON 12-1

4. 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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

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

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

18. 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

19. 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