1 / 12

Chapter 11

Chapter 11. Payroll Accounting. 11-1 Gross Receipts Method. The gross receipts method takes all the gross receipts for employees and multiplies that number by 8% to determine if there is a tip shortfall. Problem Data.

malorie
Download Presentation

Chapter 11

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. Chapter 11 Payroll Accounting

  2. 11-1 Gross Receipts Method The gross receipts method takes all the gross receipts for employees and multiplies that number by 8% to determine if there is a tip shortfall. Problem Data Using the provided data, determine the amount of tips that should be allocated to each employee using the gross receipts method.

  3. 11-1 Gross Receipts Method (continued) Step 1: Determine the amount of shortfall to be allocated.

  4. 11-1 Gross Receipts Method (continued) Step 2: Determining individual employee shortfall amounts.

  5. 11-1 Gross Receipts Method (continued) Step 3: Allocation of shortfall.

  6. 11-2 Hours Worked Method The hours worked method takes the total hours worked and multiplies it by 8% to determine if there is a shortfall. Problem Data Using the provided data, determine the amount of tips that should be allocated to each employee using the hours worked method.

  7. 11-2 Hours Worked Method (continued) Step 1: Determine the amount of shortfall to be allocated.

  8. 11-2 Hours Worked Method (continued) Step 2: Determining individual employee shortfall amounts.

  9. 11-2 Hours Worked Method (continued) Step 3: Allocation of shortfall.

  10. 11-3 Employer Payroll Taxes

  11. 11-4 Employer Payroll Entries • Record: • Payroll entry for the week ending January 14. • Payroll taxes associated with the January 14 payroll. FICA (8%); Fed. Unemp. (.8%); State Unemp. (5.4%). • Payment of the January 14 payroll on January 21. • Payment of the January 14 payroll taxes on January 21.

  12. 11-4 Employer Payroll Entries (continued)

More Related