Appendices F - Payroll accounting. After studying this chapter, you should be able to: Record the payroll for a pay period, record employer payroll taxes, discuss the objectives of internal control for payroll. | F PAYROLL ACCOUNTING Accounting, Fifth Edition After studying this chapter, you should be able to: Compute and record the payroll for a pay period. Describe and record employer payroll taxes. Discuss the objectives of internal control for payroll. Learning Objectives “Payroll” pertains to both: Salaries - managerial, administrative, and sales personnel (monthly or yearly rate). Wages - store clerks, factory employees, and manual laborers (rate per hour). Determining the payroll involves computing three amounts: (1) gross earnings, (2) payroll deductions, and (3) net pay Accounting for Payroll LO 1 Compute and record the payroll for a pay period. Total compensation earned by an employee (wages or salaries, plus any bonuses and commissions). LO 1 Compute and record the payroll for a pay period. Illustration F-1 Determining the Payroll Gross Earnings Mandatory: FICA tax Federal income tax State and City income tax Payroll Deductions LO 1 Compute and record the payroll for a pay period. Voluntary: Charity Insurance and Pensions Determining the Payroll Other: Union dues Payroll Deductions LO 1 Compute and record the payroll for a pay period. Social Security taxes Supplemental retirement, employment disability, and medical benefits. In 2012, the rate was ( Social Security plus Medicare) on the first $110,100 of gross earnings for each employee. Determining the Payroll Mandatory: FICA tax Federal income tax State and City income tax Payroll Deductions LO 1 Compute and record the payroll for a pay period. Employers are required to withhold income taxes from employees pay. Withholding amounts are based on gross earnings, number of allowances claimed, and length of pay period. Determining the Payroll Mandatory: FICA tax Federal income tax State and City income tax Employee must complete an Employee’s Withholding Allowance Certificate (Form W-4). LO 1 Compute and record the payroll for a pay period. Illustration F-5 Determining the Payroll Payroll Deductions | F PAYROLL ACCOUNTING Accounting, Fifth Edition After studying this chapter, you should be able to: Compute and record the payroll for a pay period. Describe and record employer payroll taxes. Discuss the objectives of internal control for payroll. Learning Objectives “Payroll” pertains to both: Salaries - managerial, administrative, and sales personnel (monthly or yearly rate). Wages - store clerks, factory employees, and manual laborers (rate per hour). Determining the payroll involves computing three amounts: (1) gross earnings, (2) payroll deductions, and (3) net pay Accounting for Payroll LO 1 Compute and record the payroll for a pay period. Total compensation earned by an employee (wages or salaries, plus any bonuses and commissions). LO 1 Compute and record the payroll for a pay period. Illustration F-1 Determining the Payroll Gross Earnings Mandatory: FICA tax Federal income tax State and City income tax Payroll Deductions LO 1 Compute and record the payroll for a pay period.
