Day 24 - Review for Ch 12 Payroll Quiz

Importance

• Law
• Employees
• Huge Expense

Gross Earnings

• Wage (hrs x rate)
• Overtime (hrs > 40 x rate x 1.5)
• Fair Labor Standards Act of 1938
• Salary
• Commission
• Bonus

Pay Periods

• weekly 52
• bi-weekly 26 (every other Friday)
• semi-monthly (1st and 15th of the month
• monthly

Deductions

• Required
• Federal Income Tax  (if not exempt)
• State Income Tax  (if not exempt)
• FICA (Federal Insurance Contribution Act of 1935)
• Social Security Tax ( if not above income threshhold of $118,000
• Medicare Tax (more for high earners)
• Voluntary
• 401(k)
• Insurance Premiums
• Union Dues
• Charity
• Direct Deposit

Journal Entry

• Salary & Wage Expense
•    Fed. Inc. Tax Payable
•    State Inc. Tax Payable
•    Soc. Sec. Tax Payable
•    Medicare Tax Payable
•    401(k) Payable
•    Medical Insurance Premium Payable
•    Union Dues Payable
•    Charitable Donation Payable
•    Cash in Bank
•           Payroll Register

Forms

• Payroll Register
• all employees
• one pay period
• Employee's Earnings Record
• one employee
• all pay periods