Chapter 4: Employees Chapter 4: Employees Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Employees In Chapter 4, you learn how Sage 50 processes payroll. Once default and employee maintenance information is set up, payroll is a simple process. 4-2

Set up Employee Defaults Select employees Enter tax information and define payroll fields Employees Employee Maintenance Record transaction Select employees/sales repsSelect payroll entry Set up employee rates and special deductions Enter employee paycheck information for a specific pay period Sage 50’s Payroll System 4-3

Sage 50 Tips Sage 50 Tips All work in Chapters 1, 2, and 3, including the end-of-chapter exercises, should be completed before starting Chapter 4. When you are ready to print paychecks, you pick a form to print. The paycheck form selected is tied to the kind of printer you are using. The paychecks shown in Chapter 4 are OCR Multi- Purpose PR Laser. Depending on the kind of printer being used, you may need to make a different selection for printing forms. 4-4

Sage 50 Tips Sage 50 Tips In Chapter 15, Employees, Payroll and Account Reconciliation, you learn more about Sage 50’s payroll defaults. For example, each employee and employer deduction will be set for individual liability accounts and expense accounts. 4-5

Backing Up Chapter 4 Backup File (.ptb) Excel (.xlsx) and Adobe (.pdf) KB Page Nos. Chapter 4.ptb 3,528 KB 149 Exercise 4-2.ptb 3,541 KB 151 Exercise 4-2_Payroll Check Register.xlsx 13 KB 151 Exercise 4-2_Payroll Check Register.pdf 56 KB 151 In Chapter 4, you make two backups, and save one Excel file and one PDF file. The chart showing backups, PDF files saved, and reports exported to Excel, refer to the Part 1 introduction. 4-6

Employee Defaults window From the Navigation Bar, select ; click, Set Up Employee Defaults. 4-7

Employee Fields After selecting the Employee Fields tab, this window is shown. 4-8

Company Fields After selecting the Company Fields tab, this window is shown. 4-9

Maintain Employees/Sales Reps The Maintain Employees & Sales Reps window is shown in Chapter

Maintain Employees/Sales Reps For Brandee Nunnley’s pay information, click on the Pay Info tab. 4-11

Payroll Entry for salaried employee 4-12

Payroll Entry for hourly employee 4-13

Journal Entry for Payroll Account Description DebitCredit Wages Expense (Regular Hours) Wages Expense (Overtime Hours) Federal Payroll Taxes Payable (Fed_Income) Social Security (Soc_Sec, Employee) Medicare (Medicare, Employee) State Payroll Taxes Payable (State) Payroll Checking Account

Online Learning Center  Go online to for additional resources. Link to Student Edition, select Chapter 4. o Interactive Testing o Glossary of Terms o Feature Quizzes o Narrated PowerPoints o Assessment Rubric o Going to the Net o QA Templates o Appendix C: Review of Accounting Principles o Appendix D: Glossary of Terms 4-15

Going to the Net Access the All Accounting Careers website at What is the career outlook for accounting professionals? 2. What organizations should beginning accounting professionals join? 3. What are average accounting salaries? accounting salariesaccounting salaries 4-16

Analysis Questions 1. What pay methods does Bellwether Garden Supply use to pay employees? Briefly explain how you determine Bellwether’s pay method. 2. Are all employees paid the same way; for example, bi-weekly? Explain how to determine the frequency with which an employee is paid. 4-17

Assessment Rubric DateTransaction Navigation Center/Module Task Window Journal Dr./Cr. 3/29Record paycheck information for Derrick P. Gross. 4-18