1. Chapter 4: Employees Chapter 4: Employees McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Employees In Chapter 4, you learn how Peachtree processes payroll. Once default and employee maintenance information is set up, payroll is a simple process. 4-2

3. Set up Employee Defaults Select employees Enter tax information and define payroll fields Employees Employee Maintenance Record transaction Select employees/sales repsSelect payroll entry Set up employee rates and special deductions Enter employee paycheck information for a specific pay period Peachtree’s Payroll System 4-3

4. Peachtree Tips Peachtree Tips All work in Chapters 1, 2, and 3, including the end-of-chapter exercises, should be completed before starting Chapter 4. When you are ready to print paychecks, you pick a form to print. The paycheck form selected is tied to the kind of printer you are using. The paychecks shown on pp. 161 and 162 are OCR Multi-Purpose PR Laser. Depending on the kind of printer being used, you may need to make a different selection for printing forms. 4-4

5. Peachtree Tips Peachtree Tips In Chapter 15, Employees, Payroll and Account Reconciliation, you learn more about Peachtree’s payroll defaults. For example, each employee and employer deduction will be set for individual liability accounts and expense accounts. 4-5

6. Backing Up Chapter 4 Backup Name Excel Report KB Page Nos. Chapter 4.ptb 3,778 KB 163-164 Exercise 4-2.ptb 3,794 KB 168 Exercise 4-2_Payroll Check Register.xlsx 13 KB 168 In Chapter 4, you make two backups. The Chapter 4.ptb backup is made on pages 163-164 and the Exercise 4-2.ptb backup is made on page 168. For all the backups made in Part 1 (Chapters 1-8), refer to the chart shown on page 2 in the textbook. 4-6

7. Employee Defaults window, pp. 149-150 From the Navigation Bar, select ; click, Set Up Employees Defaults. 4-7

8. Employee Fields, p. 150 After selecting the Employee Fields tab, this window is shown. 4-8

9. Company Fields, pp. 151-152 Read the information on pp. 151-152. After selecting the Company Fields tab, this window is shown. 4-9

10. Maintain Employees/Sales Reps, pp. 152-153 Complete steps 1 and 2 on pages 152-153. The Maintain Employees & Sales Reps window appears as shown on p. 153. 4-10

11. Maintain Employees/Sales Reps, p. 153 Click on the Pay Info tab. Pay information for Brandee M. Nunnley appears below step 3. 4-11

12. Payroll Entry for salaried employee, pp. 156-158 The completed Payroll Entry on page 158 is shown below. 4-12

13. Payroll Entry for hourly employee, pp.158-159 The completed Payroll Entry on page 159 is shown below. (Three overtime hours are added.) 4-13

14. Journal Entry for Payroll, p. 163 Account Description DebitCredit Wages Expense (Regular Hours) 720.00 Wages Expense (Overtime Hours) 40.50 Federal Payroll Taxes Payable (Fed_Income) 84.08 Social Security (Soc_Sec, Employee) 47.15 Medicare (Medicare, Employee) 11.03 State Payroll Taxes Payable (State) 33.01 Payroll Checking Account 585.23 4-14

15. Chapter 4, Internet Activity, p. 164 1 From your Internet browser, go to the book’s website at www.mhhe.com/yacht2011. www.mhhe.com/yacht2011 2 Link to Student Edition. 3 In the Choose a Chapter field, select Chapter 4. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link Internet Activities; then link to Part 1 Internet Activities for Chapter 1-8. Select Open or Save. 4 If necessary, scroll down to the AMERICAN INSTITUTE OF CPAs – Chapter 4. Complete steps 1-3. 5 Using a word processing program, write a summary about the sites you selected. Remember to include the website address(es) of each link. Your summary should be no more than 75 words or less than 50 words. 4-15

16. Going to the Net, p. 164-165 Access the SmartPros website at http://accounting.smartpros.com. Move your cursor over Career Center. From the Career Center list, select Career Resources, then link to “Effective Salary Negotiation (http://accounting.smartpros.com/x28536.xml).” Read the “Effective Salary Negotiation” article. Answer the following questions. http://accounting.smartpros.comhttp://accounting.smartpros.com/x28536.xml http://accounting.smartpros.comhttp://accounting.smartpros.com/x28536.xml 1. What skills should you objectively evaluate? 2. List three factors that affect starting salary. 4-16

17. Assessment Rubric, p. 169 DateTransaction Navigation Center/Module Task Window Journal Dr./Cr. 3/29Record paycheck information for Derrick P. Gross. 4-17

18. Analysis Questions, p. 169 1. What pay methods does Bellwether Garden Supply use to pay employees? Briefly explain how you determine Bellwether’s pay method. 2. Are all employees paid the same way; for example, bi-weekly? Explain how to determine the frequency with which an employee is paid. 4-18