Accounting I

1. Accounting I Chapter 13 – Preparing Payroll Records

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

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

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

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

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

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

8. 1 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. 2 3 Lesson 13-1, page 305 4

9. 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

10. Work Together & On Your Own – Page 307

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

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

13. 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

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

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

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

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

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

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

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

21. Work Together & On Your Own – Page 313

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

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

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

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

26. PAYROLL REGISTER 1 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

27. 5 EMPLOYEE EARNINGS RECORDS 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

28. Work Together & On Your Own – Page 317

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

30. 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

31. Work Together & On Your Own – Page 321