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

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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.

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3 WHY ARE PAYROLL RECORDS IMPORTANT? TTwo purposes of payroll system: CCollect and procedure all information necessary to prepare and problem payroll checks. GGenerate payroll records required for bookkeeping objectives and also for reporting to federal government agencies, management, etc. IInaccuracies in payroll records can cost a organization countless dollars.

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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

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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.

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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.

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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

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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

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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

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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

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11 WORK TOGETHER PROBLEM  Complete Work Together 12-1  Begin worksheet on earlier of notes  Begin Application Problem 12-1

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12 HOMEWORK  Complete Application Problem 12-1  Worksheet on ago of notes  Begin working on Study Guide 13

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