LESSON 12 1 Preparing Payroll Time Cards CENTURY

LESSON 12 -1 Preparing Payroll Time Cards CENTURY 21 ACCOUNTING © Thomson/South-Western

Vocabulary n Salary n Pay period n Payroll n Total Earnings n Payroll Taxes n Withholding Allowance n Social Security Tax CENTURY 21 ACCOUNTING © Thomson/South-Western n Medicare Tax n Tax base n Net Pay n Payroll Register n Net Pay n Employee Earnings Record

Preparing Payroll Timecards n Read Paying Employees – p. 340 n Payroll = one of largest expenses for businesses n Salary– money paid for services n Pay Period – period covered by salary payments n Weekly, Bi-weekly, Semimonthly, Monthly n Payroll- total amount earned by all employees n Read FYI p. 340 CENTURY 21 ACCOUNTING © Thomson/South-Western

Keeping Time Records Discussion: 1. What different ways can businesses keep time records? 2. What types of systems due your employers use? 3. What happens if you are late to the job? (few minutes) 4. How do they record overtime? 5. Do you have to record time away from job – break? CENTURY 21 ACCOUNTING © Thomson/South-Western

5 ANALYZING A PAYROLL TIME CARD CENTURY 21 ACCOUNTING © Thomson/South-Western page 341 LESSON 12 -1

6 CALCULATING EMPLOYEE HOURS WORKED 1 2 page 342 1. Calculate the number of regular hours for each day and enter the amounts. 2. Calculate the number of overtime hours and enter the amounts. 3. Add Hours Reg and Hours OT columns and enter the totals. 4. Add the Hours column. 3 4 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12 -1

7 CALCULATING EMPLOYEE TOTAL EARNINGS 1 3 CENTURY 21 ACCOUNTING © Thomson/South-Western page 343 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. 2 4 5 LESSON 12 -1

8 TERMS REVIEW n n page 344 salary pay period payroll total earnings CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12 -1