1. Preparing Payroll Records
Chapter 12 Terms
Preparing Payroll Records

2. 12-1 Preparing Payroll Time Cards
Terms:
Salary-Money paid for employee services.
Pay period- Period covered by a salary payment.
Payroll- Total amount earned by all employees for a pay period.
Total Earnings- Total pay due for a pay period before deductions.

3. 12-2 Determining Payroll Tax Withholding
Payroll Taxes- Taxes based on the payroll of a business.
Withholding Allowance- Deduction from total earnings for each person legally supported by a taxpayer, including the employee.
Social Security Tax- Federal tax paid for old-age, survivors, and disability insurance. (6.2%) (.062)
Medicare Tax- Federal tax paid for hospital insurance. (1.45%) (.0145)
Tax Base-Maximum amount of earnings on which a tax is calculated. Only for S.S. 87,000

4. 12-3 Preparing Payroll Records
Terms:
Payroll Register- Business form used to record payroll information.
Net Pay- Total earnings paid to an employee after payroll taxes and other deductions.
Employee Earnings Record- Business form used to record details affecting payments to an employee.

5. 12-4 Preparing Payroll Checks
No Terms!!!
Finished!!!