LESSON 3-1

Completing Payroll Records for Employee Earnings and Deductions

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAYROLL DEDUCTIONS 2 page 61 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1

CALCULATING EMPLOYEE EARNINGS page 62 Regular Hours 80   Regular Rate $7.00 per hour = = Regular Earnings $560.00

Overtime Hours 5   Regular Rate $7.00

  Regular Earnings $560.00

+ + Overtime Earnings $52.50

= = 1.5

1.5

Total Earnings $612.50

= = Overtime Earnings $52.50

3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-1

COMMISSIONS RECORD

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 4 page 63

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LESSON 3-1

3

PREPARING A PAYROLL REGISTER

1 4

pages 64-65

2

5

5 9

1. Payroll period ending date 2. Date of payment 3. Employee information 4. Hours and earnings 5. Total earnings by department 6. Payroll deductions 7. Total deductions 8. Net pay 9. Totals CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

6 7 8 9

LESSON 3-1

USING THE FEDERAL INCOME TAX WITHHOLDING TABLE 6 page 66

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

2

PREPARING AN EMPLOYEE EARNINGS RECORD

1

7 page 67

6 3 4 5

1. Write last day of quarter.

2. Enter heading information.

3. Record beginning accumulated earnings.

4. Write ending day of pay period.

5. Enter total earnings, deductions, and net pay.

6. Calculate and record accumulated earnings.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 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 8 page 68 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 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 9 page 68 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

JOURNALIZING PAYMENT OF A PAYROLL 11 page 71

1 2 3 5 4 6 7

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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-2

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

JOURNALIZING EMPLOYER PAYROLL TAXES 13 page 73

1 2 3 5 4 6

1. Write the date.

2. Write expense account titles.

3. Write the source document.

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 14 page 74

1 3 2 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

5

LESSON 3-2

15 JOURNALIZING PAYMENT OF FEDERAL UNEMPLOYMENT TAX LIABILITY page 75

1 2 3 4

1. Write the date.

2. Enter the liability accounts.

3. Write the check numbers.

4. Enter the liability amounts.

5. Record the amounts paid.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

5

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 16 page 76 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 3-2