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# Finances Accounting plays an important role in any business.

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

## Finances Accounting plays an important role in any business.

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1. 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?

2. Lesson Objective Complete a payroll register. Content Vocabulary payroll register A record of the gross income, deductions, and net income of a company’s employees. • Payroll register

3. Example 1 Natural Foods Center pays its employees weekly. Mary Clark prepares the payroll register for the center’s five employees from the following information.

4. Example 1 (cont.) Clark has prepared the payroll register for the week of March 2.

5. Example 1 Answer Step: Find the net pay for the week.

6. Example 2 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).

7. 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 FIT: 28.00 \$285.00 – (\$4.13 + \$17.67 + \$4.28 + \$29.00) = \$285.00 – \$54.08 = \$230.92

8. Practice 1 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