LESSON 3-1

1. LESSON 3-1 Completing Payroll Records for Employee Earnings and Deductions

2. PAYROLL DEDUCTIONS page 61 LESSON 3-1

3. Regular Hours Regular Rate Regular Earnings ´ = 80 ´ $7.00 per hour = $560.00 Overtime Hours ´ Regular Rate ´ 1.5 = Overtime Earnings 5 ´ $7.00 ´ 1.5 = $52.50 RegularEarnings + OvertimeEarnings = TotalEarnings $560.00 + $52.50 = $612.50 CALCULATING EMPLOYEE EARNINGS page 62 LESSON 3-1

4. COMMISSIONS RECORD page 63 1 2 3 1. Record heading information. 2. Obtain amounts and calculate totals. 3. Calculate commission on net sales. LESSON 3-1

5. 4 9 9 PREPARING A PAYROLL REGISTER pages 64-65 1 2 3 5 1. Payroll period ending date 6 7 8 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 LESSON 3-1

6. 2 3 1 USING THE FEDERAL INCOME TAX WITHHOLDING TABLE page 66 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

7. 5 PREPARING AN EMPLOYEE EARNINGS RECORD page 67 2 1 3 4 6 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. LESSON 3-1

8. TERMS REVIEW page 68 • salary • pay period • payroll • payroll taxes • withholding allowance • tax base • payroll register • employee earnings record LESSON 3-1

9. LESSON 3-2 Recording a Payroll and Payroll Taxes

10. 2 4 5 6 JOURNALIZING PAYMENT OF A PAYROLL page 71 1 3 7 1. Write the date. 5. Enter the liability accounts. 2. Record the salary expense accounts. 6. Record the liability amounts. 3. Enter the check number. 7. Write the net pay. 4. Write the salary expense amounts. LESSON 3-2

11. Audio Department Payroll Taxes Expense CALCULATING EMPLOYER PAYROLL TAXES page 72 LESSON 3-2

12. 4 2 5 6 JOURNALIZING EMPLOYER PAYROLL TAXES page 73 1 3 1. Write the date. 4. Record the amount of payroll taxes. 2. Write expense account titles. 5. Write the liability account titles. 3. Write the source document. 6. Enter the liability amounts. LESSON 3-2

13. JOURNALIZING PAYMENT OF FEDERAL INCOME TAX, SOCIAL SECURITY TAX, AND MEDICARE TAX LIABILITY page 74 1 3 5 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. LESSON 3-2

14. JOURNALIZING PAYMENT OF FEDERAL UNEMPLOYMENT TAX LIABILITY page 75 1 2 3 4 5 1. Write the date. 2. Enter the liability accounts. 3. Write the check numbers. 4. Enter the liability amounts. 5. Record the amounts paid. LESSON 3-2

15. TERMS REVIEW page 76 • automatic check deposit • electronic funds transfer (EFT) LESSON 3-2