Presentation on theme: "PAYROLL ACCOUNTING. WHAT IS PAYROLL? Payroll – total amount earned by all employees for a pay duration. Pay Period – an amount of time over which an."— Presentation transcript:
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1 PAYROLL ACCOUNTING
2 WHAT IS PAYROLL? Payroll – full amount earned by all employees for a pay duration. Pay Period – an amount of time over which an employee is phelp. Payroll is regularly one of the biggest prices of a service.
3 WHY ARE PAYROLL RECORDS IMPORTANT? TTwo purposes of payroll system: CCollect and procedure all information necessary to prepare and problem payroll checks. GGenerate payroll records required for bookkeeping objectives and also for reporting to federal government agencies, management, etc. IInaccuracies in payroll records can cost a organization countless dollars.
4 HOW DO I CALCULATE GROSS EARNING? Gross earnings – full amount of money an employee earns in a pay period before deductions (a.k.a. complete earnings). Depends on basis of payment Salary Hourly wage Commission Salary plus commission or bonus Overtime pay
5 SALARY Fixed amount of money phelp to an employee for each pay duration. Same amount regardless of hours worked. Usually supplied for managers or supervisors.
6 HOURLY WAGE An amount of money paid to an employee at a specified price per hour functioned. Time card is offered to keep track of hrs operated (might be electronic or manual) Time is rounded to the nearemainder quarter hour. Hours operated times hourly wage amounts to gross earnings.
7 HOURLY WAGE (CONT.) 1.Calculate consistent hours. 2.Calculate overtime hours. 3.Add Hours Reg and also Hours OT columns and also enter totals. 4.Add Hours column. 3 4 2 1 Leskid 13-1, web page 313
8 COMMISSION An amount passist to an employee based on a percentage of the employee’s sales. Often offered to encourage salesworld to rise their sales. Example: Joyce Torrez is phelp a 5% commission on all her sales. Last week Joyce’s complete sales were $8,254. What was Joyce’s gross earnings? $8.254 x.05 = $412.70
9 SALARY PLUS COMMISSION OR BONUS Some saleshuman being earn a base salary plus a commission or bonus on the amount of their sales. Example: Juan Espito is phelp a salary of $200 per week plus a commission of 3% of his sales. Juan’s sales were $4,810 last week. What was Juan’s gross earnings? $200 + ($4,810 x.03) = $344.30
10 OVERTIME PAY State and also federal legislations regulate hrs worked. Typically overtime is phelp for employees who occupational more than 40 hrs per week. Overtime price is 1 ½ times consistent hourly price. Example: Jesse Dubow functioned 43 hrs last week.
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Jesse’s hourly rate is $6.60. What is Jesse’s gross earnings? Regular earnings:40x$6.60=$264.00 Overtime earnings:3x9.90=29.70 Gross Earnings:$293.70
11 WORK TOGETHER PROBLEM Complete Work Together 12-1 Begin worksheet on earlier of notes Begin Application Problem 12-1
12 HOMEWORK Complete Application Problem 12-1 Worksheet on ago of notes Begin working on Study Guide 13