Chapter 4: Chapter 4: EmployeesEmployees

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

EmployeesEmployees

In Chapter 4, you learn how Peachtree In Chapter 4, you learn how Peachtree processes payroll. Once default and processes payroll. Once default and employee maintenance information is set employee maintenance information is set up, payroll is a simple process.up, payroll is a simple process.

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Set up Employee Defaults

Select employees

Enter tax information and define payroll fields

Employees

Employee Maintenance

Record transaction

Select employees/sales reps Select payroll entry

Set up employee rates and special deductions

Enter employee paycheck information for a specific pay period

Peachtree’s Payroll System

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Peachtree TipsPeachtree Tips

All work in Chapters 1, 2, and 3, including the All work in Chapters 1, 2, and 3, including the end-of-chapter exercises, should be completed end-of-chapter exercises, should be completed before starting Chapter 4.before starting Chapter 4.When you are ready to print paychecks, you When you are ready to print paychecks, you pick a form to print. The paycheck form selected pick a form to print. The paycheck form selected is tied to the kind of printer you are using. The is tied to the kind of printer you are using. The paychecks shown on pp. 161 and 162 are OCR paychecks shown on pp. 161 and 162 are OCR Multi-Purpose PR Laser. Depending on the kind Multi-Purpose PR Laser. Depending on the kind of printer being used, you may need to make a of printer being used, you may need to make a different selection for printing forms.different selection for printing forms.

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Peachtree TipsPeachtree Tips

In Chapter 15, Employees, Payroll and Account In Chapter 15, Employees, Payroll and Account Reconciliation, you learn more about Peachtree’s Reconciliation, you learn more about Peachtree’s payroll defaults. For example, each employee and payroll defaults. For example, each employee and employer deduction will be set for individual liability employer deduction will be set for individual liability accounts and expense accounts. accounts and expense accounts.

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Backing Up Chapter 4Backing Up Chapter 4

Backup NameBackup Name

Excel ReportExcel Report KBKB Page Nos.Page Nos.

Chapter 4.ptbChapter 4.ptb 3,778 KB3,778 KB 163-164163-164

Exercise 4-2.ptbExercise 4-2.ptb 3,794 KB3,794 KB 168168

Exercise 4-2_Payroll Check Exercise 4-2_Payroll Check Register.xlsxRegister.xlsx

13 KB13 KB 168168

In Chapter 4, you make two backups. The Chapter 4.ptb backup is made on pages 163-164 and the Exercise 4-2.ptb backup is made on page 168. For all the backups made in Part 1 (Chapters 1-8), refer to the chart shown on page 2 in the textbook.

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Employee Defaults window, pp. 149-150Employee Defaults window, pp. 149-150

From the Navigation Bar, select ; From the Navigation Bar, select ;

click , Set Up Employees Defaults.click , Set Up Employees Defaults.

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EmployeEmployeee Fields, p. 150 Fields, p. 150After selecting the EmployeAfter selecting the Employeee Fields tab, this Fields tab, this window is shown.window is shown.

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CompanCompanyy Fields, pp. 151-152 Fields, pp. 151-152Read the information on pp. 151-152. After Read the information on pp. 151-152. After selecting the Companselecting the Companyy Fields tab, this Fields tab, this window is shown.window is shown.

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Maintain Employees/Sales Reps, pp. 152-153Maintain Employees/Sales Reps, pp. 152-153Complete steps 1 and 2 on pages 152-153. Complete steps 1 and 2 on pages 152-153. The Maintain Employees & Sales Reps The Maintain Employees & Sales Reps window appears as shown on p. 153.window appears as shown on p. 153.

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Maintain Employees/Sales Reps, p. 153Maintain Employees/Sales Reps, p. 153Click on the Pay Info tab. Pay information for Brandee M. Click on the Pay Info tab. Pay information for Brandee M. Nunnley appears below step 3.Nunnley appears below step 3.

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Payroll Entry for salaried employee, pp. 156-158Payroll Entry for salaried employee, pp. 156-158

The completed Payroll Entry on page 158 is shown The completed Payroll Entry on page 158 is shown below.below.

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Payroll Entry for hourly employee, pp.158-159Payroll Entry for hourly employee, pp.158-159

The completed Payroll Entry on page 159 is shown The completed Payroll Entry on page 159 is shown below. (Three overtime hours are added.)below. (Three overtime hours are added.)

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Journal Entry for Payroll, p. 163Journal Entry for Payroll, p. 163Account Description Account Description DebitDebit CreditCredit

Wages Expense (Regular Hours)Wages Expense (Regular Hours) 720.00720.00

Wages Expense (Overtime Hours)Wages Expense (Overtime Hours) 40.5040.50

Federal Payroll Taxes Payable (Fed_Income)Federal Payroll Taxes Payable (Fed_Income) 84.0884.08

Social Security (Soc_Sec, Employee)Social Security (Soc_Sec, Employee) 47.1547.15

Medicare (Medicare, Employee)Medicare (Medicare, Employee) 11.0311.03

State Payroll Taxes Payable (State)State Payroll Taxes Payable (State) 33.0133.01

Payroll Checking AccountPayroll Checking Account 585.23585.23

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Chapter 4, Internet Activity, p. 164Chapter 4, Internet Activity, p. 164

11 From your Internet browser, go to the book’s website at From your Internet browser, go to the book’s website at www.mhhe.com/yacht2011.

22 Link to Student Edition. Link to Student Edition.

33 In the Choose a Chapter field, select Chapter 4. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link Internet Activities; then link to Part 1 Internet Activities for Chapter 1-8. Select Open or Save.

44 If necessary, scroll down to the AMERICAN INSTITUTE OF CPAs If necessary, scroll down to the AMERICAN INSTITUTE OF CPAs – Chapter 4. Complete steps 1-3. – Chapter 4. Complete steps 1-3.

55 Using a word processing program, write a summary about the sites Using a word processing program, write a summary about the sites you selected. Remember to include the website address(es) of you selected. Remember to include the website address(es) of each link. Your summary should be no more than 75 words or less each link. Your summary should be no more than 75 words or less than 50 words.than 50 words.

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Going to the Net, p. 164-165Going to the Net, p. 164-165Access the SmartPros website at Access the SmartPros website at http://accounting.smartpros.com. Move your cursor over . Move your cursor over Career CenterCareer Center. From the Career Center list, select . From the Career Center list, select Career Resources, then link to “Effective Salary Career Resources, then link to “Effective Salary Negotiation (Negotiation (http://accounting.smartpros.com/x28536.xml).” ).” Read the “Effective Salary Negotiation” article. Read the “Effective Salary Negotiation” article. Answer the following questions.Answer the following questions.

1.1. What skills should you objectively evaluate?What skills should you objectively evaluate?

2.2. List three factors that affect starting salary.List three factors that affect starting salary.

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Assessment Rubric, p. 169Assessment Rubric, p. 169

Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

3/29 Record paycheck information for Derrick P. Gross.

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Analysis Questions, p. 169Analysis Questions, p. 169

1.1. What pay methods does Bellwether What pay methods does Bellwether Garden Supply use to pay employees? Garden Supply use to pay employees? Briefly explain how you determine Briefly explain how you determine Bellwether’s pay method.Bellwether’s pay method.

2.2. Are all employees paid the same way; for Are all employees paid the same way; for example, bi-weekly? Explain how to example, bi-weekly? Explain how to determine the frequency with which an determine the frequency with which an employee is paid.employee is paid.

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