Do Now
● What information should you use from an
employee’s earnings record when preparing
an employee’s payroll check?
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 1
Lesson 12-4
Payroll Bank Account
Check for total
net pay for all
employees
written
LO8
Deposited in
payroll checking
account, separate
from general
checking account
● A voucher check has a detachable check stub,
or voucher, that contains detailed information
about the cash payment.
● Original check with voucher attached is mailed to
vendor and copy is filed
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 2
Lesson 12-4
Payroll Bank Account
LO8
Date
Payee
Description
Amount
1. Prepare the check
stub.
2. Prepare the check
from the information
on the check stub.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 3
On the Overhead
● 12-4 Work Together, Part 1 Only
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 4
Lesson 12-4
Employee’s Payroll Check
1. Enter earnings information
from the payroll register and
the employee’s time card.
2. Enter the YTD Total Earnings
from the employee earnings
record.
3. Enter the employee’s current
deductions from the payroll
register and record the total.
4. Add each current deduction
amount to the YTD amount
reported on the employee’s
prior check stub and record
the total.
5. Total the Current and YTD
deductions columns. Calculate
and enter the amounts for
Current and YTD net pay.
LO9
3
4
1
5
2
6
6. Prepare each employee’s payroll check payable for the
amount of net pay.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 5
Give me a Visual
● With a partner, draw a picture or chart
illustrating the relationship among the
following:
● W-4 forms
● Time cards
● Federal income tax withholding table
● Payroll register
● Employee earnings records
● Employee check
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 6
Lesson 12-4
Electronic Funds Transfer
LO9
● The payment of an employee’s net pay using
electronic funds transfer is called direct
deposit. (ETF)
● Bank deducts total amount of employees’ net
pay from business’ payroll checking account,
then to be deposited in his/her bank account
● Each employee receives electronic statement
of earnings
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 7
Electronic Funds Transfer
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 8
Working Papers…for the last time?
● 12-4 WT, part 2 on Overhead
● 12-4 OYO actually On-Your-Own
● Chapter 12 Application Problems
● HW: Finish Application Problems
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 9
Lesson 12-4
Lesson 12-4 Audit Your Understanding
1. Why does ThreeGreen have a separate checking
account for payroll checks?
ANSWER
1. A separate checking account is used to help
protect and control payroll payments.
2. Payroll checks require space to record
earnings and deduction information.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 10
Lesson 12-4
Lesson 12-4 Audit Your Understanding
2. What is the source of the information that is
recorded on each employee’s payroll check
voucher?
ANSWER
The payroll register, employee earnings record,
and prior pay period paycheck stub
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 11
Lesson 12-4
Lesson 12-4 Audit Your Understanding
3. How do payroll procedures differ for employees who
request direct deposit of their pay?
ANSWER
Each employee’s net pay is deposited to his or
her bank account. Individual checks are not
written and do not have to be distributed.
However, each direct deposit employee will
receive a printed or electronic statement of
earnings and deductions that supports the
amount deposited.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 12
Closure
● Red, Yellow, Green
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 13