Unformatted text preview: ree factors determine the amount of federal income tax withheld from an employee’s
earnings each period?
a. How is net pay calculated?
b. Does an individual’s net pay appear on the payroll register, the employee’s earnings record, or
a. What information does the payroll register contain?
b. Each page of the payroll register covers a period of time. What time period does it cover?
Payroll Funds Distribution
a. Explain how direct deposit of earnings works.
b. How does an employee who receives a payroll check know how the amount of net pay was
Employee’s Earnings Record
a. What is the purpose of the employee’s earnings record?
b. What information does the Accumulated Earnings column on the employee’s earnings record
contain? Apply Key Terms
You are the payroll clerk for Wild West
Amusement Park. The new sales manager for
the Western region, Will Klein, called and
asked you to explain the items on his payroll
check, dated January 31, 20--. He also asked
you to explain any relevant company payroll
procedures. Use these key terms in your
written explanation. Use your imagination! 328 accumulated earnings
electronic badge readers
net pay overtime rate
withholding allowance Chapter 12 Review and Activities 308-337_CH12_868829.indd 328 4/6/06 5:57:39 PM Computerized Accounting CHAPTER 12 Preparing the Payroll
Making the Transition from a Manual to a Computerized System
process payroll. Manual Methods
• Calculate employee gross earnings
based on time cards or salary
• Calculate required and voluntary
deductions for each employee.
• Complete the payroll register.
• Prepare payroll checks.
• Update employee earnings records.
• Prepare journal entries.
• Post journal entries to the general
ledger. Computerized Methods
• Set up informati...
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