Accounting 1
Tuesday, March 22, 2016
1. What are the total gross earnings for one week?
Pay Rate = $7.50 per hour
Hours worked = 46 in one week
2. Find the gross earnings for a person that gets
paid an hourly wage, overtime is time and a
half, plus 6% commission on total sales.
Hours Worked
Hourly Wage
Total Sales
Gross Earnings
48
$9.00
$4,332.74
???
Susan Rucker
March 22, 2016
Bellwork
$7.50 x 1.5 or 150% = $11.25 for overtime rate
$11.25 x 6 = $67.50
$7.50 x 40 = $300.00
$300.00 + $67.50 = $367.50
Gross earnings = $367.50
$9.00 x 1.5 or 150% = $13.50 Over Time
$9.00 x 40 hours = $360
$13.50 x 8 hours = $108
$4332.74 x .06 or 6% commission = $259. 96
$259.96
+$468.00
$727.96 Gross Earnings
Accounting 1
Tuesday, March 22, 2016
• Grade Ch12-2 H.W.
• Continue with Ch12-3 Lecture and
Assignment.
Problems 12-2 & 12-3
40 Points Possible
40 Points
Possible
Section 3 Payroll Records
What You’ll Learn
 The purpose of a payroll register.
 How to prepare a payroll register.
 How to prepare a payroll check.
 The purpose of an employee’s
earnings record.
 How to prepare an employee’s
earnings record.
Section 3 Payroll Records (con’t.)
Why It’s Important
To comply with federal and state
laws, payroll records must be kept
accurately.
Key Terms
 payroll register
 net pay
 direct deposit
 employee’s earnings record
 accumulated earnings
Section 3 Payroll Records (con’t.)
Completing the Payroll Register
The payroll register is a form that
summarizes information about employees’
earnings for each pay period.
Section 3 Payroll Records (con’t.)
Completing the Payroll Register con’t.
Net pay is the amount of money left
after total deductions are subtracted from
gross earnings.
• Notice the difference in gross pay and net pay.
Section 3 Payroll Records (con’t.)
Preparing Payroll Checks
The payroll register is the source of
information for preparing the payroll
checks.
•Along with a payroll check, each employee is
given a written or printed explanation showing
how the employee’s net pay is calculated.
Section 3 Payroll Records (con’t.)
The Employee’s Earnings
Record
•An employer must keep an employee’s
earnings record. This record contains
all of the payroll information related to
an employee.
•Accumulated earnings are the
employee’s year-to-date gross
earnings, or the employee’s gross
earnings from the beginning of the year
through the end of each pay period.
Section 3 Payroll Records (con’t.)
The Employee’s Earnings Record
(con’t.)
This amount was carried forward from
the previous quarter’s record.
Accumulated Earnings for Pay Period Just Completed. This amount
will be carried forward to the next quarter’s record.
Demonstration Problem
12-5
April 18, 0220.15 13.65
37 5.95 220.15
42 6.40 256.-- 19.20 275.20 17.06
207.-- 12.83
36 5.75 207.--
3.19 18.-3.99 7.-3.-- 23.--
683.15 19.20 702.35 43.54
10.18 48.--
4.40
5.50
4.14
5.25 C 15.-- 59.49 160.66
8.-41.55 233.65
5.25 C 10.-- 58.22 148.78
14.04 18.50
25.-- 159.26 543.09
Section 3 Payroll Records (con’t.)
Check Your Understanding p304
ALL
•Thinking Critically 1&2
•Analyzing Accounting
•Problem 12-4
You will need to read this section so
as not to miss any details on taxes.
I am sure I did not cover
everything.