As a result some companies round arrival and

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Unformatted text preview: and departure times to the nearest quarter hour. Employees, therefore, are paid for working to the nearest quarter hour. Look at Figure 12–2. The times appearing on the time card for Emily Kardos for Monday will be rounded to the nearest quarter hour as follows: Actual Time Recorded 7:58 a.m. 12:25 p.m. 1:32 p.m. 4:18 p.m. Nearest Quarter Hour 8:00 a.m. 12:30 p.m. 1:30 p.m. 4:15 p.m. Emily will be paid for working on Monday from 8:00 a.m. to 12:30 p.m. (4½ hours) and from 1:30 p.m. to 4:15 p.m. (2¾ hours) for a total of 7¼ hours. Some businesses use computer technology to track employee arrival and departure times. One method uses electronic badge readers . The employee has an identification badge with a magnetic strip that contains employee information. The employee inserts the identification badge into a reader, which scans the magnetic strip and transfers the following information directly to the computer: the employee’s name, the department or area where the employee works, and the arrival or departure time. This electronic equipment makes it fast and easy to prepare a daily printout of employee work hours. Regardless of how employee work hours are recorded (manually, time clock, or electronic reader), business owners and supervisors check the accuracy of the hours reported and analyze the labor costs for every pay period. Chapter 12 Payroll Accounting 308-337_CH12_868829.indd 312 9/15/05 11:43:43 AM Commission A c ommission i s an amount paid to an employee based on a percentage of the employee’s sales. Sales employees are often paid a commission to encourage them to increase their sales. For example, Joyce Torrez is paid a 5% commission on all her sales. Last week Joyce’s total sales were $8,254. Joyce ’s gross earnings for the week are $412.70 ($8,254 .05). Salary Plus Commission or Bonus Some salespeople earn a base salary plus a commission or a bonus on the amount of their sales. For example, Juan Espito, who works at a car stereo shop, is paid a salary of $200 per week plus a commission of 3% of his sales. Juan’s sales were $4,810 l...
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This note was uploaded on 01/16/2014 for the course BUSINESS Accounting taught by Professor Dr.stevenhall during the Fall '13 term at Del Mar College.

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