Payroll
Where’s My Money???
Ingram, S.
Ingram, S.
Time Card/Time Sheet
• Used to keep a record of the
total hours worked by an
employee paid on a time basis.
Ingram, S.
Gross Pay
• Equals the number of
hours worked times the
given hourly rate.
• The total amount
• Janet Parsons is paid
earned before any
$5.40 an hour. Find her
payroll deductions are
gross pay for a week in
made.
which she worked 40
• It is the amount on
hours.
which the employee’s • Gross pay = 40 X $5.40 =
taxes are based.
$216.00
Ingram, S.
Net Pay
• Equals the gross pay minus
all deductions.
• Janet Parsons’ gross pay is
$216.00. She must pay
$23.76 in Federal Income
• Equals the amount to
Tax, $15.12 in State Income
be paid to the
Tax, $13.40 in FICA-Social
employees after all
Security, and $3.14 in
required and
FICA-Medicare. Find her
authorized deductions
net pay for this week.
have been subtracted • Net pay = $216.00 - $23.76
from the gross pay.
- $15.12 - $13.40 - $3.14 =
$160.58
Ingram, S.
Federal Income Taxes
• Used to provide for
national programs
such as defense,
community
development, and
law enforcement.
• These taxes are paid
by the employee and
matched by the
employer.
• The amount withheld
depends on the
number of allowances
on the Form W-4
(2011).
Ingram, S.
State Income Taxes
• Used to provide for
state programs such as
community
development and law
enforcement.
• These taxes are also
paid by the employee
and matched by the
employer.
• Again, the amount
withheld depends on
the number of
allowances on the MO
W-4.
Ingram, S.
FICA-Social Security
• Provides for a system
of old age, survivors,
and disability
insurance.
• The employee tax rate
for Social Security is
6.2% (amount
withheld). For the
year 2003, the wage
base is $87,000.00.
Ingram, S.
FICA-Medicare
• Provides for a system
of health insurance.
• The employee tax rate
for Medicare is 1.45%
(amount withheld).
There is no wage base
limit for Medicare tax;
all covered wages are
subject to Medicare
tax.
Ingram, S.
• The purpose of this form is to document that
each new employee (both citizen and
noncitizen) hired after Nov. 6, 1986, is
authorized to work in the United States.
Provides Employment
employees hired and working in the U.S.
Eligibility Verification. • All
must complete Form I-9
• The following items are part of the list of
acceptable documents:
I-9 Form
•
LIST A
1.
U.S. Passport
2.
Permanent Resident Card or Alien Registration Receipt Card
3.
Foreign passport that contains a temporary I-551 stamp
LIST B
1.
Driver’s License
2.
ID card issued by federal, state or local government agencies
3.
School ID card w/ photograph
4.
Voter’s registration card
5.
U.S. Military Card
LIST C
1.
Social Security Card
2.
Birth Certificate
3.
Native American Tribal Document
4.
U.S. Citizen ID Card