1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 3 Objectives Calculating and Recording Departmental Payroll Data After studying Chapter 3, you will be able to: Define accounting terms related to a departmental payroll system. Identify accounting concepts and practices related to a departmental payroll system. Prepare a commissions record and calculate commission on net sales. Complete payroll records. Journalize payroll transactions. 2 LESSON 3-1

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 3-1 salary: the money paid for employee services pay period: the period covered by a salary payment payroll: the total amount earned by all employees for a pay period payroll taxes: taxes based on the payroll of a business withholding allowance: a deduction from total earnings for each person legally supported by a taxpayer tax base: the maximum amount of earnings on which a tax is calculated 3 LESSON 3-1

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 3-1 payroll register: a business form used to record payroll information employee earnings record: a business form used to record details affecting payments made to an employee 4 LESSON 3-1

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 3-1 PAYROLL DEDUCTIONS page 61

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 3-1 Regular HoursRegular RateRegular Earnings  CALCULATING EMPLOYEE EARNINGS 80  $7.00 per hour  $560.00 Overtime Earnings = Overtime HoursRegular Rate1.5  = $52.505  $7.00  1.5 Regular Earnings Overtime Earnings Total Earnings  $560.00  $52.50  $612.50 page 62

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 3-1 1.Record heading information. 3.Calculate commission on net sales. COMMISSIONS RECORD page 63 2.Obtain amounts and calculate totals. 1 2 3

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 3-1 9.Totals 8.Net pay PREPARING A PAYROLL REGISTER pages 64-65 12 3 5 678 4 2.Date of payment 3.Employee information 4.Hours and earnings 5.Total earnings by department 6.Payroll deductions 7.Total deductions 1.Payroll period ending date 9 9

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 3-1 2.Find the column with the correct number of withholding allowances. 1.Locate the range containing the total earnings. 3.Find the intersection of the row and column. USING THE FEDERAL INCOME TAX WITHHOLDING TABLE page 66 2 1 3

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 3-1 3.Record beginning accumulated earnings. 1.Write last day of quarter. 4.Write ending day of pay period. 2.Enter heading information. 5.Enter total earnings, deductions, and net pay. 6.Calculate and record accumulated earnings. PREPARING AN EMPLOYEE EARNINGS RECORD page 67 12 3 4 5 6

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 3-1 DEFINE TERMS REVIEW In Quizlet salary pay period payroll payroll taxes withholding allowance tax base payroll register employee earnings record page 68 Create: Chapter 3 AdvAcc (then SAVE)

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for today: Audit Your Understanding 3-1 1.What three federal taxes are withheld from an employee’s pay? 2.How is the amount of federal income tax withholding determined? 3.What is the formula for calculating net pay on the payroll register? 4.What amount is added to the accumulated earnings to get the new accumulated earnings to date? 12 LESSON 3-1 In a Word Document, SaveAS: Chapter3-1AYUYourName And drop in my Inbox today!

13. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Complete the following assignments for Chapter 3-1 today Define Terms Review on page 68. Answer Audit Your Understanding questions on page 68. Complete Work Together 3-1 on Aplia – page 68. Complete On Your Own 3-1 on Aplia – page 69. Complete Application Problem 3-1 on Aplia – page 78. Complete Application Problem 3-2 on Aplia – page 78-79. Complete Application Problem 3-3 on Aplia – page 79. 13 LESSON 3-1