Certain voluntary deductions taken by many employees

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Unformatted text preview: aced in a column titled Other. In the illustration these deductions include credit union, union dues, savings bonds, and charitable contributions. Finally, a column is provided for the total deductions of each employee. AS YOU Look at the deductions for Garo Terzian, employee 14. Garo’s deductions include the taxes required by law. He also has two voluntary deductions, $3.20 for hospital insurance and $10.00, shown in the Other column, for U.S. Savings Bonds. The total deductions for Garo are $62.60 as shown in the Total column. 5. Net Pay Column. Net pay is the amount left after total deductions have been subtracted from gross earnings. The net pay for Garo Terzian is $200.65. READ In Your Own Words Net Pay “Net pay is the amount left after total deductions are subtracted.” What does this mean? Section 3 Payroll Records 308-337_CH12_868829.indd 321 321 9/15/05 11:45:52 AM CULTURAL Diversity Diversity Proper Names Not all countries use the “first name-last name” style that is used in the United States. For example, in Spanish-speaking Latin America, the surname includes the mother and father’s last names. The father’s name comes first and is the only one used in conversation. 6. Check Number Column. Most employees are paid by check. The payroll check numbers are recorded in this column. 7. Column Totals. Each amount column is totaled, and the totals are entered on the last line of the payroll register. To ensure that there are no mathematical errors, subtract the Total Deductions column total from Total Earnings column total. The result should equal the Net Pay column total. Paying Employees How Are Employees Paid? Once the accuracy of the payroll register has been verified, a payroll check is prepared for each employee. Most businesses pay their employees by check as a means of cash control. When a company has only a few employees, payroll checks are written from the company’s regular checking account. Companies with many employees have a separate checking account for payroll. When a separate payroll...
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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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