Calculating and Recording Departmental Payroll Data

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Chapter 3

• Calculating and Recording Departmental Payroll
  Data

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Terms that you need to know.

• Salary Money paid for employee services
• Pay period the period covered by a salary
  payment
• Payroll the total amount earned by all
  employees for a pay period
• Payroll Taxes Taxes based on the payroll of a
  business

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Most important slide today!!!!!

• Benefits payments to employees for nonworking
  hours and to insurance and retirement programs.
• Vacation Time 4 hours for each pay period
• Sick Leave 1 hour for each pay period
• Total of 80 hours
• Personal leave 1 hour for each pay period
• Not to exceed 24 hours
• Please make sure you look at page 64

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This is the benefits for one person, and
accumulates over a period of time.
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More terms you need to know

• Withholding Allowances
• A deduction from total earning for each person
  legally supported by a taxpayer.
• Remember this is based on married or single and
  how many dependents you have.
• Tax Base
• The maximum amount of earning son which a tax is
  calculated.
• Each person has a tax base. You make up to a
  certain amount of money a year your are put into
  a certain tax base.

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Payroll Register
Please look at page 73 for the payroll
register!!!!
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• Remember from last year when we recorded payroll
  for our business we recorded two major entries.
• Employees and all of their taxes
• Employers and all of their taxes.

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Remember from last year how we recorded Employee
payroll taxes.
This is the Gross Pay Total amount owed by the
business to employee
This is what your employees check says
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Journalizing Payment of Payroll for Employees
Notice that this almost the same except it is
broken down into departments
These numbers come from the Payroll Register
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Taxes that are paid by the employer
FICA
Same Amounts Paid by employees
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Now that the employer has collected all of the
taxes he needs to pay the government every
quarter what he owes.This is a total of what he
owes and what he has held on to from the
employees.
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Problems

• 3-1,2,3,4,5,6,7,
• On Computer 3-8