accounting i chapter 13 – preparing payroll records
TRANSCRIPT
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Accounting IAccounting I
Chapter 13 – Preparing Payroll Records
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TTERMS REVIEWERMS REVIEWsalary
pay period
payroll
total earnings
Lesson 13-1, page 307Lesson 13-1, page 307
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TTERMS REVIEWERMS REVIEW
SalarySalary
The money paid for employee services.
Lesson 13-1, page 302Lesson 13-1, page 302
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TTERMS REVIEWERMS REVIEW
Pay PeriodPay Period
The period covered by a salary payment.
Lesson 13-1, page 302Lesson 13-1, page 302
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TTERMS REVIEWERMS REVIEW
PayrollPayroll
The total amount earned by all employees for a pay period.
Lesson 13-1, page 302Lesson 13-1, page 302
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TTERMS REVIEWERMS REVIEW
Total EarningsTotal Earnings
The total pay due for a pay period before deductions.
Lesson 13-1, page 306Lesson 13-1, page 306
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ANALYZING A PAYROLL TIME CARDANALYZING A PAYROLL TIME CARD
Lesson 13-1, page 304Lesson 13-1, page 304
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CALCULATING EMPLOYEE HOURS WORKEDCALCULATING 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.
3
4
2
1
Lesson 13-1, page 305Lesson 13-1, page 305
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CALCULATING EMPLOYEE TOTAL EARNINGSCALCULATING EMPLOYEE TOTAL EARNINGS
Lesson 13-1, page 306Lesson 13-1, page 3065
1 2
43
3. Enter the rate for overtime.
1. Enter the rate for regular time.
4. Calculate overtime earnings.
2. Calculate regular earnings.
5. Calculate total earnings.
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Work Together &Work Together &On Your Own – On Your Own –
Page 307Page 307
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TTERMS REVIEWERMS REVIEWpayroll taxes
withholding allowance
social security tax
Medicare tax
tax base
Lesson 13-2, page 313Lesson 13-2, page 313
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TTERMS REVIEWERMS REVIEW
Payroll TaxesPayroll Taxes
Taxes based on the payroll of a business.
Lesson 13-2, page 308Lesson 13-2, page 308
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TTERMS REVIEWERMS REVIEW
Withholding AllowanceWithholding Allowance
A deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Lesson 13-2, page 309Lesson 13-2, page 309
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TTERMS REVIEWERMS REVIEW
Social Security TaxSocial Security Tax
A federal tax paid for old-age, survivors, and disability insurance.
Lesson 13-2, page 312Lesson 13-2, page 312
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TTERMS REVIEWERMS REVIEW
Medicare TaxMedicare Tax
A federal tax paid for hospital insurance.
Lesson 13-2, page 312Lesson 13-2, page 312
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TTERMS REVIEWERMS REVIEW
Tax BaseTax Base
The maximum amount of earnings on which a tax is calculated.
Lesson 13-2, page 312Lesson 13-2, page 312
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EMPLOYEE’S WITHHOLDING ALLOWANCE EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATECERTIFICATE
Lesson 13-2, page 309Lesson 13-2, page 309
5
1 34
2
3. Marital Status
1. Name and Address 4. Withholding Allowances
2. Social Security Number 5. Signature and Date
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At least But Less than
1,120 1,140
EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE PERSONSPERSONS
87
Lesson 13-2, page 310Lesson 13-2, page 310
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EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONSPERSONS
63At least But Less than
1,120 1,140
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EMPLOYEE SOCIAL SECURITY AND MEDICARE TAXEMPLOYEE SOCIAL SECURITY AND MEDICARE TAX
Total Social Security Social SecurityEarnings Tax Rate = Tax Deduction
Total Medicare MedicareEarnings Tax Rate = Tax Deduction
Calculate Social Security Tax Deduction
Calculate Medicare Tax Deduction
$1,137.00 6.5% = $73.91
$1,137.00 1.5% = $17.06
Lesson 13-2, page 312Lesson 13-2, page 312
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Work Together &Work Together &On Your Own – On Your Own –
Page 313Page 313
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TTERMS REVIEWERMS REVIEWpayroll register
net pay
employee earnings record
Lesson 13-3, page 318Lesson 13-3, page 318
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TTERMS REVIEWERMS REVIEW
Payroll RegisterPayroll Register
A business form used to record payroll information.
Lesson 13-3, page 314Lesson 13-3, page 314
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TTERMS REVIEWERMS REVIEW
Net PayNet Pay
The total earnings paid to an employee after payroll taxes and other deductions.
Lesson 13-3, page 315Lesson 13-3, page 315
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TTERMS REVIEWERMS REVIEW
Employee Earnings RecordEmployee Earnings Record
A business form used to record details affecting payments made to an employee.
Lesson 13-3, page 316Lesson 13-3, page 316
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PAYROLL REGISTERPAYROLL REGISTER
Lesson 13-3, page 314Lesson 13-3, page 314
5
1
3
4
2
3. Employee Personal Data
1. Pay Period Date
4. Earnings
2. Payment Date
5. Federal Income Tax
106 8 97
6. Social Security Tax
11 13
12
10. Total Deductions
8. Health Insurance
11. Net Pay
9. Other Deductions
12. Total, Prove, and Rule
7. Medicare Tax
13. Check Number
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EMPLOYEE EARNINGS RECORDSEMPLOYEE EARNINGS RECORDS
Lesson 13-3, page 316Lesson 13-3, page 316
1
3
4
2
3. Beginning Accumulated Earnings
1. Last day of Quarter
4. Pay Period
5. Earnings, Deductions, Net Pay
6
7
6. Updated Accumulated Earnings
7. Total and Prove
2. Employee Personal Data
5
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Work Together &Work Together &On Your Own – On Your Own –
Page 317Page 317
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PAYROLL BANK ACCOUNTPAYROLL BANK ACCOUNT
12
1. Prepare the check stub.
2. Prepare the check.
Lesson 13-4, page 319Lesson 13-4, page 319
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EMPLOYEE’S PAYROLL CHECKEMPLOYEE’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 320Lesson 13-4, page 320
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Work Together &Work Together &On Your Own – On Your Own –
Page 321Page 321