1 / 14

IMPORTANCE OF PAYROLL RECORDS

IMPORTANCE OF PAYROLL RECORDS. Payroll is a major expense for most companies and all records must be accurately maintained. Payroll is a list of employees and the payments due to each one for a specific pay period.

lani-norton
Download Presentation

IMPORTANCE OF PAYROLL RECORDS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IMPORTANCE OF PAYROLL RECORDS

  2. Payroll is a major expense for most companies and all records must be accurately maintained.

  3. Payroll is a list of employees and the payments due to each one for a specific pay period.

  4. Pay Period is the amount of time over which an employee is paid; such as weekly, biweekly (every two weeks), semimonthly (twice a month), or monthly pay periods.

  5. Payroll Clerk • Payroll Clerk is a person who is responsible for preparing the payroll. The payroll clerk: • Makes sure employees are paid on time. • Makes sure each employee is paid the correct amount. • Completes payroll records. • Submits payroll reports. • Pays payroll taxes.

  6. THE PAYROLL SYSTEM • Calculates earnings • Calculates deductions • Prepares payroll checks • Reports payroll information to government • Records earnings and deductions in payroll and accounting records.

  7. CALCULATING GROSS EARNINGS

  8. Gross Earnings is the total amount of money an employee earns in a pay period. The calculation of gross earnings depends on the basis an employee is paid. An employee’s pay can be based on: • Salary • Hourly wage • Commission • Salary plus commission or bonus • Overtime pay

  9. Salary is a fixed amount of money paid to an employee for each pay period. Example: John Doe, an administrator, is paid a salary of $2,000 a month.

  10. Wage is an amount of money paid to an employee at a specified rate per hour worked. The number of hours worked multiplied by the hourly wage equals the gross earnings for the pay period. • For example, Sally Smith, a delivery driver for Roadrunner, is paid $6.75 per hour. During the last weekly pay period, she worked 36 hours. Sally's gross earnings are $243 (36 hours x $6.75).

  11. Electronic Badge Reader is an identification badge with a magnetic strip that contains employee information used to record starting and ending work hours.

  12. Commission • Commission is an amount paid to an employee based on a percentage of the employee’s sales. • For example, Sue Smith is paid a 5% commission on all her sales. Last week Sue's total sales were $8,254. Sue's gross earnings for the week are $412.70 • ($8,254 x .05).

  13. Overtime rate, set by the Fair Labor Standards Act of 1938, is 21 1/2 (1.5) times the employee’s regular hourly pay rate. T3 T3 For example, John Dubow, a photo-lab clerk at Wal-Mart, worked 43 hours last week. His rate of pay is $6.60. His hourly overtime rate is $9.90 ($6.60 x 1.5). His gross earnings for the week are $293.70 determined as follows: Regular 40 x $6.60 = $264.00 Overtime 3 x $9.90 = 29.70 Total $293.70 ======

More Related