Thursday, May 3, 2012

1. Thursday, May 3, 2012 Good morning Moment of silence/Pledge/Announcements Bell Ringer Chapter 12: Preparing Payroll Records Define the twelve terms from Chapter 12 in your notebooks

2. LESSON 12-1and LESSON 12-2 Preparing Payroll Time Cards Calculate Employee Total Earnings Determining Payroll Tax Withholding Calculate Federal, Social Security, and Medicare Tax

3. PAYING EMPLOYESS • Pay employees weekly, biweekly, semimonthly, monthly • Money paid hourly to employees referred to as wages • Fixed amount paid per period is referred to as Salary LESSON 12-1

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

5. 1 2 3 4 CALCULATING EMPLOYEE HOURS WORKED page 342 1. Calculate the number of regular hours for each day and enter the amounts. 2. Calculate the number of overtime hours and enter the amounts. 3. Add Hours Reg and Hours OT columns and enter the totals. 4. Add the Hours column. LESSON 12-1

6. 1 2 4 3 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. LESSON 12-1

7. Worksheet Calculate Employees Total Earnings Employee # 1 Regular Earnings $ Overtime Earnings $ Total Earnings

8. TERMS REVIEW page 344 • salary • pay period • payroll • total earnings LESSON 12-1

9. LESSON 12-2 Determining Payroll Tax Withholding Businesses are required by law to withhold payroll taxes. Accurate and Detailed records must be maintained. Payroll taxes are a liability for the employer until they are paid.

10. LESSON 12-2 Determining Payroll Tax Withholding Federal Income Tax withheld must be paid periodically to the federal government Employers in many states are also required to withhold state, city, and/or county income taxes from employees earnings.

11. 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

12. 2 3 EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS page 348 1 1. Select the appropriate table. 2. Locate the employee’s total earnings. 3. Intersection of wages and number of allowances column. LESSON 12-2

13. Other Federal Taxes Social Security Tax Medicare Tax A federal tax paid for old-age, survivors, and disability insurance A federal tax for hospital insurance Paid by both Employerand Employee LESSON 12-1

14. Other Federal Taxes Medicare Tax Social Security Tax A federal tax paid for old-age, survivors, and disability insurance A federal tax for hospital insurance Employers are required to withhold and deposit the Employees part of the taxes and pay a matching amount. LESSON 12-1

15. SOCIAL SECURITY TAX • Social Security Tax is calculated on employee earnings up to a maximum paid in a calendar year. • The maximum amount on which a tax is paid is called a tax base • Social Security has a tax base, • Medicare does not have a tax • base LESSON 12-1

16. SOCIAL SECURITY TAX Calculate Social Security Tax 2012 Tax Rate LESSON 12-1

17. MEDICARE TAX Calculate Medicare Tax LESSON 12-1

18. TERMS REVIEW page 350 • payroll taxes • withholding allowance • social security tax • Medicare tax • tax base LESSON 12-2

19. ASSIGNMENT WORKSHEET: Drill 12-D2 Extra Credit: APLIA APPLICATION PROBLEM 12-2 (maximum 12 points) LESSON 12-1