Unformatted text preview: of money actually received by the employee. Gross Pay Total Payroll Deductions Net Pay 5. A payroll register summarizes information for all employees in a single pay period. A pay period is
the amount of time over which employees are paid (for example, once a week or twice a month).
The payroll register includes
• total hours;
rate of pay;
regular earnings, overtime earnings, and total earnings;
payroll check number; and
totals. 6. Payroll funds can be distributed to employees by check or by direct deposit through electronic
7. The employee’s earnings record contains all information for a single employee. This record is
kept quarterly to make it easier for the business to complete reports and forms required by
The earnings record has the same amount columns that appear on the payroll register plus
an additional column for accumulated earnings. These are the employee’s earnings from the
beginning of the year through the pay period just completed. Key Terms
accumulated earnings (p. 323) pay period (p. 310) commission (p. 313) payroll (p. 310) deduction (p. 315) payroll clerk (p. 310) direct deposit (p. 323) payroll register (p. 320) electronic badge readers (p. 312) piece rate (p. 313) employee’s earnings record (p. 323) salary (p. 311) 401(k) plan (p. 318) time card (p. 312) gross earnings (p. 311) wage (p. 312) net pay (p. 321) withholding allowance (p. 315) overtime rate (p. 313) Chapter 12 Summary 308-337_CH12_868829.indd 327 327 4/6/06 5:57:37 PM CHAPTER 12
YOU Review and Activities READ Check Your Understanding
1. 2. 3. 4. 5. 6. 7. Payroll Records
a. What are two goals of a payroll system?
b. List five tasks that an effective payroll system performs.
a. List and describe five employee bases or categories used to compute gross pay.
b. Define overtime rate.
a. List the three federal taxes that businesses are required to withhold from employees’ wages.
b. What th...
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