This preview shows page 1. Sign up to view the full content.
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
Actual Time Recorded
4:18 p.m. Nearest Quarter Hour
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...
View Full Document