LESSON 12 2 Determining Payroll Tax Withholding Payroll

LESSON 12 -2 Determining Payroll Tax Withholding ØPayroll taxes ØEmployee’s withholding allowance certificate ØEmployee’s income tax withholding ØEmployee social security and Medicare tax CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2 Competency: Implementing Payroll and Payroll Tax Procedures n Objectives: n 82 Describe methods to determine gross earnings (e. g. , piece/rate, hourly, salary, commission, overtime, bonuses) n 83 Explain the purposes of withholdings and other deductions n 84 Computer employee gross earnings, deductions, and net pay on a payroll register n 85 Journalize payroll transactions n 86 Maintain employee earnings records n 87 Generate payroll checks n 88 Identify source documents required for adding and deleting employees from payroll n 89 Describe record-organization-retention schedule procedures for payroll and payroll taxes CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

3 EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE 3 page 346 2 1 4 5 1. 2. 3. 4. 5. Write the employee’s name and address Write the employee’s social security number. Check the appropriate marital status block. Write the total number of withholding allowances claimed. The employee signs and dates the form. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

4 EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS page 348 1 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 LESSON 12 -2

5 TERMS REVIEW n n n page 350 payroll taxes withholding allowance social security tax Medicare tax base CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2