Transcript LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 PAYROLL DEDUCTIONS CENTURY 21 ACCOUNTING © 2009 South-Western,

LESSON 3-1
Completing Payroll
Records for Employee
Earnings and Deductions
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
PAYROLL DEDUCTIONS
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 61
LESSON 3-1
3
CALCULATING EMPLOYEE EARNINGS
Regular Hours
80


Overtime Hours 

5
Regular Rate =
$7.00 per hour =
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Regular Earnings
$560.00
Regular Rate
$7.00


1.5
1.5
Regular
Earnings
+
Overtime
Earnings
=
Total
Earnings
$560.00
+
$52.50
=
$612.50
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
=
=
Overtime Earnings
$52.50
LESSON 3-1
4
COMMISSIONS RECORD
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1
2
1. Record heading
information.
2. Obtain amounts and calculate totals.
3. Calculate commission on net sales.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 3-1
5
PREPARING A PAYROLL REGISTER
1
pages 64-65
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4
3
5
9
1.
2.
3.
4.
5.
6.
7.
8.
9.
Payroll period ending date
Date of payment
Employee information
Hours and earnings
Total earnings by
department
Payroll deductions
Total deductions
Net pay
Totals
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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7
8
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LESSON 3-1
6
USING THE FEDERAL INCOME TAX
WITHHOLDING TABLE
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2
1
3
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
1. Locate the range
containing the
total earnings.
2. Find the column
with the correct
number of
withholding
allowances.
3. Find the
intersection of the
row and column.
LESSON 3-1
7
PREPARING AN EMPLOYEE
EARNINGS RECORD
2
page 67
1
3
4
1.
2.
3.
4.
5.
6.
5
6
Write last day of quarter.
Enter heading information.
Record beginning accumulated earnings.
Write ending day of pay period.
Enter total earnings, deductions, and net pay.
Calculate and record accumulated earnings.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
8
TERMS REVIEW

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


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

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salary
pay period
payroll
payroll taxes
withholding allowance
tax base
payroll register
employee earnings record
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-1
LESSON 3-2
Recording a Payroll and
Payroll Taxes
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
10
JOURNALIZING PAYMENT OF A
PAYROLL
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2
1
3
4
5
1.
2.
3.
4.
Write the date.
Record the salary expense accounts.
Enter the check number.
Write the salary expense amounts.
7
6
5. Enter the liability accounts.
6. Record the liability amounts.
7. Write the net pay.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2
11
CALCULATING EMPLOYER PAYROLL
TAXES
page 72
Audio Department
Payroll Taxes Expense
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2
12
JOURNALIZING EMPLOYER
PAYROLL TAXES
1
2
4
3
5
1. Write the date.
2. Write expense account titles.
3. Write the source document.
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4. Record the amount of payroll taxes.
5. Write the liability account titles.
6. Enter the liability amounts.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2
JOURNALIZING PAYMENT OF FEDERAL
INCOME TAX, SOCIAL SECURITY TAX, AND
MEDICARE TAX LIABILITY
13
page 74
1
3
2
5
4
1. Write the date.
2. Enter the liability accounts.
3. Write the check number.
4. Enter the liability amounts.
5. Record the amount paid.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2
14
JOURNALIZING PAYMENT OF FEDERAL
UNEMPLOYMENT TAX LIABILITY
page 75
1
2
1.
2.
3.
4.
5.
3
4
5
Write the date.
Enter the liability accounts.
Write the check numbers.
Enter the liability amounts.
Record the amounts paid.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2
15
TERMS REVIEW
page 76
 automatic check deposit
 electronic funds transfer (EFT)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 3-2