This preview shows page 1. Sign up to view the full content.
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
Proper Names Not all countries use
the “first name-last
name” style that is
used in the United
States. For example,
Latin America, the
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...
View Full Document