Preparing Payroll Records

2
Salary
– money paid for employee services
Pay period – period covered by a salary payment
Payroll
– total amount earned by all employees for a pay period
Total earnings – total pay due for a pay period before deductions (gross earnings/pay)

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4
CALCULATING EMPLOYEE HOURS WORKED page 342
1
2
1. Calculate the number of regular hours for each day and enter the amounts.
2. Calculate the number of overtime hours and enter the amounts.
3. Add Hours Reg and
Hours OT columns and enter the totals.
4. Add the Hours column.
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LESSON 12-1

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1
3
LESSON 12-1
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.
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4
5

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Payroll taxes
– taxes based on the payroll of a business
Withholding allowance – a deduction from total earnings for each person legally supported by a taxpayer, including the employee

EMPLOYEE’S WITHHOLDING ALLOWANCE page 346 CERTIFICATE
3 2
1
4
5
1.
Write the employee’s name and address
2.
Write the employee’s social security number.
3. Check the appropriate marital status block.
4. Write the total number of withholding allowances claimed.
5. The employee signs and dates the form.
6 LESSON 12-2

1
EMPLOYEE’S INCOME TAX WITHHOLDING – page 348 MARRIED PERSONS
2 3
1. Select the appropriate table.
2.
Locate the employee’s total earnings.
3. Intersection of wages and number of allowances column.
7 LESSON 12-2

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Social security tax
– a federal tax paid for old-age, survivors, and disability insurance
Medicare tax – a federal tax paid for hospital insurance
Tax base
– the maximum amount of earnings on which a tax is calculated

9
Payroll register
– a business form used to record payroll information
Net pay – total earnings paid to an employee after payroll taxes and other deductions
Employee earnings record
– a business form used to record details affecting payments made to an employee

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4 5 6
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7 8 9 10
11 page 351
2
1. Pay period date
2. Payment date
3. Employee personal data
4. Earnings
5. Federal income tax withheld
6. Social security tax withheld
7. Medicare tax withheld
10 LESSON 12-3
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8. Health insurance premium deductions
9. Other employee payroll deductions
10. Total deductions
11. Net pay
12. Total, prove, and rule
13. Check number
13

1. Last day of quarter
2. Employee personal data
3. Beginning accumulated earnings
4. Pay period
2
5. Earnings, deductions, net pay
6. Updated accumulated earnings
7. Total and prove
11
4
LESSON 12-3
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1
3
7
6

12

1 2 page 356
1. Prepare the check stub.
2. Prepare the check.
13 LESSON 12-4

page 357
1 2
1.
Prepare the check stub of each employee’s payroll check.
2.
Prepare each employee’s payroll check.
14 LESSON 12-4