1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Preparing Payroll Time Cards  Paying employees  Analyzing a payroll time card  Calculating employee hours worked  Calculating employee total earnings

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Implementing Payroll and Payroll Tax Procedures 2 LESSON 12-1 Objectives: 82 Describe methods to determine gross earnings (e.g., piece/rate, hourly, salary, commission, overtime, bonuses) 83 Explain the purposes of withholdings and other deductions 84 Computer employee gross earnings, deductions, and net pay on a payroll register 85 Journalize payroll transactions 86 Maintain employee earnings records 87 Generate payroll checks 88 Identify source documents required for adding and deleting employees from payroll 89 Describe record-organization-retention schedule procedures for payroll and payroll taxes

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 12-1 ANALYZING A PAYROLL TIME CARD page 341

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 12-1 4.Add the Hours column. CALCULATING EMPLOYEE HOURS WORKED page 342 1 2 3 4 3.Add Hours Reg and Hours OT columns and enter the totals. 2.Calculate the number of overtime hours and enter the amounts. 1.Calculate the number of regular hours for each day and enter the amounts.

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 12-1 CALCULATING EMPLOYEE TOTAL EARNINGS page 343 3 1 2 4 5 1.Enter the rate for regular time in the Rate column. 2.Calculate the regular earnings. Enter the amount. 3.Enter the rate for overtime. 4.Calculate the overtime earnings. Enter the amount. 5.Add the Amount column to calculate total earnings. Enter the amount of total earnings.

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 12-1 TERMS REVIEW salary pay period payroll total earnings page 344