century 21 accounting © 2009 south-western, cengage learning thursday, may 3, 2012 good morning...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Thursday, May 3, 2012
Good morning Moment of silence/Pledge/Announcements
Bell RingerChapter 12: Preparing Payroll Records
Define the twelve terms from Chapter 12
in your notebooks
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 12-1and LESSON 12-2
Preparing Payroll Time CardsCalculate Employee Total Earnings
Determining Payroll Tax Withholding Calculate Federal, Social Security,
and Medicare Tax
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
PAYING EMPLOYESS
Pay employees weekly, biweekly, semimonthly, monthly
Money paid hourly to employees referred to as wages
Fixed amount paid per period is referred to as Salary
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
ANALYZING A PAYROLL TIME CARD page 341
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
4. Add the Hours column.
CALCULATING EMPLOYEE HOURS WORKED page 342
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2
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3. Add Hours Reg and Hours OT columns and enter the totals.
2. Calculate the number of overtime hours and enter the amounts.
1. Calculate the number of regular hours for each day and enter the amounts.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
CALCULATING EMPLOYEE TOTAL EARNINGS page 343
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1. Enter the rate for regular time in the Rate column.
2. Calculate the regular earnings. Enter the amount.
3. Enter the rate for overtime.
4. Calculate the overtime earnings. Enter the amount.
5. Add the Amount column to calculate total earnings. Enter the amount of total earnings.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Worksheet
Calculate Employees Total Earnings
Employee # 1
Regular Earnings $
Overtime Earnings $
Total Earnings
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
TERMS REVIEW
salary pay period payroll total earnings
page 344
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 12-2
Businesses are required by law to withhold payroll taxes.
Accurate and Detailed records must be maintained.
Payroll taxes are a liability for the employer until they are paid.
Determining Payroll Tax Withholding
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 12-2
Federal Income Tax withheld must be paid periodically to the federal government
Employers in many states are
also required to withhold state,
city, and/or county income taxes from employees
earnings.
Determining Payroll Tax Withholding
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-2
EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE
123
4
5
page 346
1. Write the employee’s name and address2. Write the employee’s social security number.3. Check the appropriate marital status block.4. Write the total number of withholding allowances claimed.5. The employee signs and dates the form.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-2
EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS page 348
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2 3
1. Select the appropriate table.
2. Locate the employee’s total earnings.
3. Intersection of wages and number of allowances column.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
Other Federal Taxes
Social Security Tax Medicare TaxA federal tax paid for old-
age, survivors, and disability insurance
A federal tax for hospital insurance
Paid by both Employer and Employee
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
Other Federal Taxes
Medicare TaxSocial Security Tax
A federal tax paid for old-age, survivors, and disability insurance
A federal tax for hospital insurance
Employers are required to withhold and deposit the Employees part of the taxes and pay a matching amount.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
SOCIAL SECURITY TAX
Social Security Tax is calculated on employee earnings up to a maximum paid in a calendar year.
The maximum amount on which a tax is paid is called a tax base
Social Security has a tax base,Medicare does not have a taxbase
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
SOCIAL SECURITY TAX
Calculate Social Security Tax
2012 Tax Rate
Total Earnings
Social Security
Rate
Social Security
Tax Deduction
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
MEDICARE TAX
Calculate Medicare Tax
Total Earnings
Medicare TaxRate
MedicareTax
Deduction
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-2
TERMS REVIEW
payroll taxes withholding allowance social security tax Medicare tax tax base
page 350
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 12-1
ASSIGNMENT
WORKSHEET: Drill 12-D2
Extra Credit: APLIAAPPLICATION PROBLEM 12-
2(maximum 12 points)