Finances Accounting plays an important role in any business. Why do you think it is important for a business to keep track of its expenses?. Lesson Objective Complete a payroll register. Content Vocabulary. payroll register
Accounting plays an important role in any business.
Why do you think it is important for a business to keep track of its expenses?
Complete a payroll register.
A record of the gross income, deductions, and net income of a company’s employees.
Natural Foods Center pays its employees weekly.
Mary Clark prepares the payroll register for the center’s five employees from the following information.
Clark has prepared the payroll register for the week of March 2.
Step: Find the net pay for the week.
Ajani Samuel is a printer employed by Kwik Copy. He is single and claims no allowances. Determine his net pay for a week when his gross pay was $285. Medicare is 1.45 percent of gross, Social Security is 6.2 percent of gross, and city tax is 1.5 percent of gross. Use the tables on pages 788-791 for federal income tax (FIT).
Step: Find the net pay.
Medicare: (0.0145 × $285) = $ 4.13
Social Security: (0.062 × $285) = 17.67
City tax: (0.015 × $285) = 4.28
$285.00 – ($4.13 + $17.67 + $4.28 + $29.00) =
$285.00 – $54.08 = $230.92
Find the total net pay.
Gross pay: $399.70
Federal income tax: $10
State income tax: $6.40
Social security: 6.2 percent of gross
Medicare: 1.45 percent of gross
Health insurance: $65
Find the net pay.
Total gross pay: $24,600
Total deductions: $9,930