Presentation is loading. Please wait.

Presentation is loading. Please wait.

Home.

Published byBeatriz Hucke Modified over 9 years ago

Similar presentations

Presentation on theme: "Home."— Presentation transcript:

1 Home

2 Gross earnings is the total amount an employee earns in a pay period
Gross earnings is the total amount an employee earns in a pay period. Payroll deductions are amounts withheld from an employee’s gross earnings. Home Glencoe Accounting Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3 Explain the importance of accurate payroll records.
Compute gross pay using different methods. Explain and compute employee-paid withholdings. Compute net pay. Prepare payroll registers. Explain the methods of distributing payroll funds. Prepare an employee’s earnings record. Home Glencoe Accounting Glencoe Accounting Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4 Key Terms payroll pay period payroll clerk gross earnings salary wage
Calculating Gross Earnings Section 12.1 Key Terms payroll pay period payroll clerk gross earnings salary wage time card electronic badge reader commission piece rate overtime rate Home Glencoe Accounting

5 Using a Payroll System Payroll
Calculating Gross Earnings Section 12.1 Payroll The collection and processing of all information needed to prepare and issue payroll checks The generation of payroll records needed for accounting purposes and for reporting to government agencies, management, and others payroll A list of the employees and the payments due to each employee for a specific pay period. Home Glencoe Accounting

6 Most Pay Periods Are Either:
Using a Payroll System Calculating Gross Earnings Section 12.1 Weekly Most Pay Periods Are Either: Biweekly Semimonthly Monthly pay period The amount of time over which an employee is paid. Home Glencoe Accounting

7 Responsibilities of a Payroll Clerk
Using a Payroll System Calculating Gross Earnings Section 12.1 Responsibilities of a Payroll Clerk Makes sure employees are paid on time Makes sure each employee is paid the correct amount Completes payroll records Submits payroll reports Pays payroll taxes payroll clerk An employee responsible for preparing the payroll. Home Glencoe Accounting

8 Computing Gross Pay Pay Categories That Help Determine Gross Earnings
Calculating Gross Earnings Section 12.1 Pay Categories That Help Determine Gross Earnings Salary Hourly Wage Commission Salary plus Commission or Bonus Piece Rate gross earnings The total amount of money an employee earns in a pay period; also called gross pay. Home Glencoe Accounting

9 Computing Gross Pay Pay Categories That Help Determine Gross Earnings
Calculating Gross Earnings Section 12.1 Pay Categories That Help Determine Gross Earnings Salary Hourly Wage Commission Salary plus Commission or Bonus Piece Rate salary A fixed amount of money paid to an employee for each pay period. Home Glencoe Accounting

10 Computing Gross Pay Pay Categories That Help Determine Gross Earnings
Calculating Gross Earnings Section 12.1 Pay Categories That Help Determine Gross Earnings Salary Hourly Wage Commission Salary plus Commission or Bonus Piece Rate wage An amount of money paid to an employee at a specified rate per hour worked. Home Glencoe Accounting

11 Computing Gross Pay Pay Categories That Help Determine Gross Earnings
Calculating Gross Earnings Section 12.1 Pay Categories That Help Determine Gross Earnings Salary Hourly Wage Commission Salary plus Commission or Bonus Piece Rate piece rate A rate of pay based on the number of items produced. Home Glencoe Accounting

12 Two methods of measuring hours worked Electronic Badge Reader
Computing Gross Pay Calculating Gross Earnings Section 12.1 Time Card Two methods of measuring hours worked Electronic Badge Reader time card A record of the time an employee arrives at work, leaves work, and the total number of hours worked each day. Home Glencoe Accounting

13 Two methods of measuring hours worked Electronic Badge Reader
Computing Gross Pay Calculating Gross Earnings Section 12.1 Time Card Two methods of measuring hours worked Electronic Badge Reader electronic badge reader An electronic device that scans the magnetic strip containing employee information on an employee’s identification badge and then transfers the information directly to a computer. Home Glencoe Accounting

14 Computing Gross Pay Calculating Gross Earnings Section 12.1 Sales employees are often paid a commission. Some sales employees are paid salary plus commission. commission An amount paid to an employee based on a percentage of the employee’s sales. Home Glencoe Accounting

15 Manufacturers often pay a piece rate.
Computing Gross Pay Calculating Gross Earnings Section 12.1 Manufacturers often pay a piece rate. piece rate A rate of pay based on the number of items produced. Home Glencoe Accounting

16 The overtime rate was set by the Fair Labor Standards Act of 1938.
Computing Gross Pay Calculating Gross Earnings Section 12.1 The overtime rate was set by the Fair Labor Standards Act of 1938. overtime rate Pay rate employers are required to pay certain employees covered by state and federal laws; the Fair Labor Standards Act of 1938 sets the rate at 1.5 times the regular hourly rate after 40 hours per week. Home Glencoe Accounting

17 Key Terms deduction withholding allowance 401 (k) plan Section 12.2
Payroll Deductions Key Terms deduction withholding allowance 401 (k) plan Home Glencoe Accounting

18 Deductions Required by Law
Section 12.2 Payroll Deductions Deductions Required by Law Federal Income Tax Social Security Tax City and State Income Tax deduction An amount that is subtracted from an employee’s gross earnings. Home Glencoe Accounting

19 Deductions Required by Law
Section 12.2 Payroll Deductions What Is a withholding allowance? withholding allowance An allowance an individual claims on a Form W-4; it is used to calculate the amount of income tax withheld from an employee’s paycheck. Home Glencoe Accounting

20 Deductions Required by Law
Section 12.2 Payroll Deductions Too much money withheld Refund from the IRS Employer withholds federal income tax Too little money withheld Amount Due to the IRS Home Glencoe Accounting

21 Deductions Required by Law
Section 12.2 Payroll Deductions The employee’s marital status (found on Form W-4) The amount of income tax withheld depends on: Number of allowances claimed (found on Form W-4) The employee’s gross earnings Home Glencoe Accounting

22 Deductions Required by Law
Section 12.2 Payroll Deductions See page 319 Home Glencoe Accounting

23 Deductions Required by Law
Section 12.2 Payroll Deductions The Federal Insurance Contributions Act (FICA) established social security taxes in Two components of FICA are: Social security–provided as old age and disability insurance and survivors’ benefits Medicare–provides health insurance for people who are elderly or disabled Home Glencoe Accounting

24 Voluntary Deductions Examples of Voluntary Deductions Union Dues
Section 12.2 Payroll Deductions Examples of Voluntary Deductions Union Dues Health Insurance Payments Life Insurance Payments U.S. Savings Bonds Charitable Contributions Pensions Credit Union Deposits and Payments Home Glencoe Accounting

25 The 401(k) plan is a popular voluntary payroll deduction.
Voluntary Deductions Section 12.2 Payroll Deductions The 401(k) plan is a popular voluntary payroll deduction. 401(k) plan A voluntary payroll deduction from gross earnings; the employee does not pay income tax on the amount contributed until the money is withdrawn from the plan, usually after age 59½. Home Glencoe Accounting

26 Key Terms payroll register net pay direct deposit
Section 12.3 Payroll Records Key Terms payroll register net pay direct deposit employee’s earnings record accumulated earnings Home Glencoe Accounting

27 Preparing the Payroll Register
Section 12.3 Payroll Records payroll register A form that summarizes information about employees’ earnings for each pay period. Seven Parts of the Payroll Register 1. Total Hours Column 2. Rate Column 3. Earnings Section 4. Deductions Section net pay The amount left after total deductions have been subtracted from gross earnings. 5. Net Pay Column 6. Check Number Column 7. Column Totals Home Glencoe Accounting

28 Preparing the Payroll Register
Section 12.3 Payroll Records See page 323 Total Hours Column Rate Column Earnings Section Deductions Section Net Pay Column Check Number Column Column Totals Home Glencoe Accounting

29 Methods of Paying Employees
Section 12.3 Payroll Records Check Methods of Paying Employees Direct Deposit direct deposit Depositing net pay directly into an employee’s personal bank account through electronic funds transfer. Home Glencoe Accounting

30 The Employee’s Earnings Record
Section 12.3 Payroll Records An employer must also keep an employee’s earning record, which includes accumulated earnings information. employee’s earning record A record prepared for each employee that contains all payroll information related to the employee; it is kept on a quarterly basis. accumulated earnings The employee’s year-to-date gross earnings. Home Glencoe Accounting

31 Managerial Implications for Payroll Accounting
Section 12.3 Payroll Records How Payroll Information Can Be Used To determine if overtime is justified. To compare actual amounts to budgeted amounts to reveal unplanned overtime. Home Glencoe Accounting

32 Question 1 Wayne Hanson is paid $9 per hour. He worked 44 hours last week. In addition, he receives time and one-half for overtime. Calculate his gross pay for the week. Step 1: Multiply his regular pay by the number of hours worked ($9.00 x 40 = $360.00). Step 2: Calculate the overtime rate by multiplying the regular hourly wage by 1.5 ($9.00 x 1.5 = $13.50). Step 3: Multiply the number of overtime hours by the overtime rate ( = 4 hours of overtime; 4 x $13.50 = $54.00). Step 4: Add the regular pay and the overtime pay ($ $54.00 = $414.00). Home Glencoe Accounting

33 Question 2 What are at least three pieces of information you can learn from your weekly payroll check? Among the important facts you can find from your weekly payroll check are these: The time period in which the work was performed. The total number of regular hours. The total number of overtime hours. Total gross pay. Amount of Medicare tax withheld. Amount of social security tax withheld. Amount of federal income tax withheld. Amount of state income tax withheld. Any voluntary deductions withheld. Total net pay. 10. Home Glencoe Accounting

34 End of Home

Download ppt "Home."

Similar presentations

Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-1.

Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 6-1.
10-1 © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

10-1 © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
LESSON 12-1 Preparing Payroll Time Cards Did you know… Payroll is one of the largest expenses to a business?

LESSON 12-1 Preparing Payroll Time Cards Did you know… Payroll is one of the largest expenses to a business?
Chapter 8 Income and Taxes.

Chapter 8 Income and Taxes.
Calculating Gross Earnings

Calculating Gross Earnings
Preparing Payroll Records

Preparing Payroll Records
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Thursday, May 3, 2012 Good morning Moment of silence/Pledge/Announcements Bell Ringer Chapter.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Thursday, May 3, 2012 Good morning Moment of silence/Pledge/Announcements Bell Ringer Chapter.
H-1. H-2 Learning Objectives Record the payroll for a pay period. 1 Record employer payroll taxes. 2 Discuss the objectives of internal control for payroll.

H-1. H-2 Learning Objectives Record the payroll for a pay period. 1 Record employer payroll taxes. 2 Discuss the objectives of internal control for payroll.
Payroll Accounting Chapter 12.

Payroll Accounting Chapter 12.
Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.

Payroll Accounting Making Accounting Relevant Businesses issue payroll checks to their employees to compensate them for work performed. Making Accounting.
Chapter 21: managing payroll and inventory

Chapter 21: managing payroll and inventory
Chapter Eight Employee Earnings and Deductions Accounting Is Fun! 8 - 2 Performance Objectives 1.Calculate total earnings based on an hourly, piece-rate,

Chapter Eight Employee Earnings and Deductions Accounting Is Fun! Performance Objectives 1.Calculate total earnings based on an hourly, piece-rate,
With pay and benefits comes Taxes

With pay and benefits comes Taxes
Payroll Concepts and Procedures – Employee Taxes

Payroll Concepts and Procedures – Employee Taxes
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 9 Employee Earnings, Deductions, and Payroll.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 9 Employee Earnings, Deductions, and Payroll.
10–1 1-1 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

10–1 1-1 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Business Accounting Chapter 12. Importance of Payroll Records Required by law – keep accurate payroll records – report employee earnings – pay payroll.

Business Accounting Chapter 12. Importance of Payroll Records Required by law – keep accurate payroll records – report employee earnings – pay payroll.
LESSON 12-2 Determining Payroll Tax Withholding

LESSON 12-2 Determining Payroll Tax Withholding

Similar presentations

Ads by Google