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.
Example 1 (cont.)
Clark has prepared the payroll register for the week of March 2.
Example 1 Answer
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).
Example 2 Answer
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
Practice 1 Answer
Find the net pay.
Total gross pay: $24,600
Total deductions: $9,930
Practice 2 Answer