CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-2 Recording a Payroll and Payroll Taxes

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 3-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 3-2 automatic check deposit: depositing payroll checks directly to an employee’s checking or savings account in a specific bank electronic funds transfer (EFT): a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents 3 LESSON 3-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON Write the date. 2.Record the salary expense accounts. 3.Enter the check number. 4.Write the salary expense amounts. 5.Enter the liability accounts. 6.Record the liability amounts. 7.Write the net pay. JOURNALIZING PAYMENT OF A PAYROLL page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 3-2 Audio Department Payroll Taxes Expense CALCULATING EMPLOYER PAYROLL TAXES page 72

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON Write the date. 3.Write the source document. 4.Record the amount of payroll taxes. 2.Write expense account titles. 6.Enter the liability amounts. 5.Write the liability account titles. JOURNALIZING EMPLOYER PAYROLL TAXES page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON Write the date. 3.Write the check number. 5.Record the amount paid. 4.Enter the liability amounts. 2.Enter the liability accounts. JOURNALIZING PAYMENT OF FEDERAL INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX LIABILITY page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON Record the amounts paid. 1.Write the date. 3.Write the check numbers. 4.Enter the liability amounts. 2.Enter the liability accounts. JOURNALIZING PAYMENT OF FEDERAL UNEMPLOYMENT TAX LIABILITY page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 3-2 DEFINE TERMS REVIEW In Quizlet automatic check deposit electronic funds transfer (EFT) page 76 Edit this set: Chapter 3 AdvAcc (then SAVE)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for today: Audit Your Understanding When a payroll is journalized, which account is credited for the total net amount paid to all employees? 2.What four separate payroll taxes do most employers have to pay? 10 LESSON 3-2 In a Word Document, SaveAS: Chapter3-2AYUYourName And drop in my Inbox today!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Complete the following assignments for Chapter 3-2 today Define Terms Review on page 76. Answer Audit Your Understanding questions on page 76. Complete Work Together 3-2 on Aplia – page 76. Complete On Your Own 3-2 on Aplia – page 76. Complete Application Problem 3-4 on Aplia – page 79. Complete Application Problem 3-5 on Aplia – page LESSON 3-2