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 2 LESSON 3-1 PAYROLL DEDUCTIONS page 61

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 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

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 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

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 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

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 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

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 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

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 3-1 TERMS REVIEW Salary – money paid for employee services pay period – period covered by salary payment Payroll - total amount earned by all employees for a pay period payroll taxes – taxes based on the payroll of a business withholding allowance – Deduction from total earnings for each person legally supported by the taxpayer page 68

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 3-1 TERMS REVIEW tax base – the maximum amount of earnings on which a tax is calculated payroll register – business form used to record payroll information employee earnings record – business form used to record details affecting payments made to an employee page 68

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

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 3-2 1.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 71 1 3 7 2 5 4 6

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 3-2 Audio Department Payroll Taxes Expense CALCULATING EMPLOYER PAYROLL TAXES page 72

13. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON 3-2 1.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 73 13 2 56 4

14. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 3-2 1.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 74 1 2 3 4 5

15. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 3-2 5.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 75 1 2345

16. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 16 LESSON 3-2 TERMS REVIEW automatic check deposit – depositing employee’s payroll check directly into their savings or checking account electronic funds transfer (EFT) – computerized cash payment system that transfers funds without checks, currency or other paper documents page 76