Finances Accounting plays an important role in any business.

1. Finances Accounting plays an important role in any business. Why do you think it is important for a business to keep track of its expenses?

2. Lesson Objective Complete a payroll register. Content Vocabulary payroll register A record of the gross income, deductions, and net income of a company’s employees. • Payroll register

4. Example 1 Natural Foods Center pays its employees weekly. Mary Clark prepares the payroll register for the center’s five employees from the following information.

5. Example 1 (cont.) Clark has prepared the payroll register for the week of March 2.

6. Example 1 Answer Step: Find the net pay for the week.

7. Example 2 Ajani Samuel is a printer employed by Kwik Copy. He is single and claims no allowances. Determine his net pay for a week when his gross pay was $285. Medicare is 1.45 percent of gross, Social Security is 6.2 percent of gross, and city tax is 1.5 percent of gross. Use the tables on pages 788-791 for federal income tax (FIT).

8. Example 2 Answer Step: Find the net pay. Medicare: (0.0145 × $285) = $ 4.13 Social Security: (0.062 × $285) = 17.67 City tax: (0.015 × $285) = 4.28 FIT: 28.00 $285.00 – ($4.13 + $17.67 + $4.28 + $29.00) = $285.00 – $54.08 = $230.92

9. Practice 1 Find the total net pay. Gross pay: $399.70 Federal income tax: $10 State income tax: $6.40 Social security: 6.2 percent of gross Medicare: 1.45 percent of gross Health insurance: $65

10. Practice 1 Answer $287.72

11. Practice 2 Find the net pay. Total gross pay: $24,600 Total deductions: $9,930

12. Practice 2 Answer $14,670