Payroll register 1 18 burns janice total hours allow

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Unformatted text preview: TAL 335 40 SOC. SEC. MEDICARE TAX TAX 20 79 4 86 FED. INC. TAX 35 00 STATE INC. TAX 6 71 HOSP. INS. 4 10 OTHER TOTAL 71 46 NET PAY 263 94 79 2 1 2 Section 3 Payroll Records 308-337_CH12_868829.indd 325 CK. NO. 325 9/15/05 2:23:41 PM Summary CHAPTER 12 Key Concepts 1. Federal and state laws require employers to keep accurate records of all payroll information. Most employers use a payroll system to ensure that employees are paid on time and that their payroll checks and records are accurate. A well-designed payroll system achieves two goals: • To collect and process all information needed to prepare and issue payroll checks. • To generate payroll records needed for accounting purposes and for reporting to government agencies, management, and others. A computerized system does the following: • • • • Performs all payroll calculations Prepares and prints a payroll register Prints the payroll checks and stubs Maintains employee’s earnings records 2. Gross pay is the amount an employee earns before deductions. It may be calculated by various methods including • • • • • • salary, hourly wage, commission, salary plus commission or bonus, piece rate, or a combination of these methods. Some employees who work more than 40 hours in a week are paid overtime. The overtime rate is usually 1½ times the regular rate of pay. Regular Hourly Rate $8.20 1.5 Overtime Hourly Rate $12.30 3. Withholdings from gross earnings are called deductions. Some deductions are required by law. Other deductions are voluntary. Deductions Required By Law • federal income tax: determined by Form W-4 and tax tables • social security tax: 6.2% of total gross earnings up to $90,000 • Medicare tax: 1.45% of total gross earnings • state or local tax: determined by the state or city 326 Chapter 12 Summary 308-337_CH12_868829.indd 326 9/15/05 11:46:27 AM Summary CHAPTER 12 Voluntary Deductions • union dues • insurance payments • charitable contributions • 401(k) plans • other retirement-related contributions 4. Net pay is the amount...
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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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