This document provides an overview of key concepts and steps for preparing payroll records and payments. It defines terms like salary, pay period, payroll, earnings and taxes. It describes how to calculate employee hours, earnings and tax deductions. It explains the purpose and components of forms like payroll registers, earnings records and withholding allowance certificates. Finally, it outlines the process for preparing payroll checks and maintaining a payroll bank account.

1. Accounting IAccounting I
Chapter 13 – Preparing
Payroll Records

2. TTERMS REVIEWERMS REVIEW
salary
pay period
payroll
total earnings
Lesson 13-1, page 307Lesson 13-1, page 307

3. TTERMS REVIEWERMS REVIEW
SalarySalary
The money paid for employee
services.
Lesson 13-1, page 302Lesson 13-1, page 302

4. TTERMS REVIEWERMS REVIEW
Pay PeriodPay Period
The period covered by a salary
payment.
Lesson 13-1, page 302Lesson 13-1, page 302

5. TTERMS REVIEWERMS REVIEW
PayrollPayroll
The total amount earned by all
employees for a pay period.
Lesson 13-1, page 302Lesson 13-1, page 302

6. TTERMS REVIEWERMS REVIEW
Total EarningsTotal Earnings
The total pay due for a pay period
before deductions.
Lesson 13-1, page 306Lesson 13-1, page 306

7. ANALYZING A PAYROLL TIME CARDANALYZING A PAYROLL TIME CARD
Lesson 13-1, page 304Lesson 13-1, page 304

8. CALCULATING EMPLOYEE HOURS WORKEDCALCULATING EMPLOYEE HOURS WORKED
1. Calculate regular hours.
2. Calculate overtime hours.
3. Add Hours Reg and
Hours OT columns and
enter totals.
4. Add Hours column.
3
4
2
1
Lesson 13-1, page 305Lesson 13-1, page 305

9. CALCULATING EMPLOYEE TOTAL EARNINGSCALCULATING EMPLOYEE TOTAL EARNINGS
Lesson 13-1, page 306Lesson 13-1, page 306
5
1 2
43
3. Enter the rate for overtime.
1. Enter the rate for regular time.
4. Calculate overtime earnings.
2. Calculate regular earnings.
5. Calculate total earnings.

10. Work Together &Work Together &
On Your Own –On Your Own –
Page 307Page 307

11. TTERMS REVIEWERMS REVIEW
payroll taxes
withholding allowance
social security tax
Medicare tax
tax base
Lesson 13-2, page 313Lesson 13-2, page 313

12. TTERMS REVIEWERMS REVIEW
Payroll TaxesPayroll Taxes
Taxes based on the payroll of a
business.
Lesson 13-2, page 308Lesson 13-2, page 308

13. TTERMS REVIEWERMS REVIEW
Withholding AllowanceWithholding Allowance
A deduction from total earnings
for each person legally supported
by a taxpayer, including the
employee.
Lesson 13-2, page 309Lesson 13-2, page 309

14. TTERMS REVIEWERMS REVIEW
Social Security TaxSocial Security Tax
A federal tax paid for old-age,
survivors, and disability
insurance.
Lesson 13-2, page 312Lesson 13-2, page 312

15. TTERMS REVIEWERMS REVIEW
Medicare TaxMedicare Tax
A federal tax paid for hospital
insurance.
Lesson 13-2, page 312Lesson 13-2, page 312

16. TTERMS REVIEWERMS REVIEW
Tax BaseTax Base
The maximum amount of
earnings on which a tax is
calculated.
Lesson 13-2, page 312Lesson 13-2, page 312

17. EMPLOYEE’S WITHHOLDING ALLOWANCEEMPLOYEE’S WITHHOLDING ALLOWANCE
CERTIFICATECERTIFICATE
Lesson 13-2, page 309Lesson 13-2, page 309
5
1 3
4
2
3. Marital Status
1. Name and Address 4. Withholding Allowances
2. Social Security Number 5. Signature and Date

18. At least But Less than
1,120 1,140
EMPLOYEE’S INCOME TAX WITHHOLDING—SINGLEEMPLOYEE’S INCOME TAX WITHHOLDING—SINGLE
PERSONSPERSONS
87
Lesson 13-2, page 310Lesson 13-2, page 310

19. EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIEDEMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED
PERSONSPERSONS
63
At least But Less than
1,120 1,140

20. EMPLOYEE SOCIAL SECURITY AND MEDICARE TAXEMPLOYEE SOCIAL SECURITY AND MEDICARE TAX
Total Social Security Social Security
Earnings × Tax Rate = Tax Deduction
Total Medicare Medicare
Earnings × Tax Rate = Tax Deduction
++++ −−−−
÷÷÷÷ ××××
Calculate Social Security Tax Deduction
++++ −−−−
÷÷÷÷ ××××
Calculate Medicare Tax Deduction
$1,137.00 × 6.5% = $73.91
$1,137.00 × 1.5% = $17.06
Lesson 13-2, page 312Lesson 13-2, page 312

21. Work Together &Work Together &
On Your Own –On Your Own –
Page 313Page 313

22. TTERMS REVIEWERMS REVIEW
payroll register
net pay
employee earnings record
Lesson 13-3, page 318Lesson 13-3, page 318

23. TTERMS REVIEWERMS REVIEW
Payroll RegisterPayroll Register
A business form used to record
payroll information.
Lesson 13-3, page 314Lesson 13-3, page 314

24. TTERMS REVIEWERMS REVIEW
Net PayNet Pay
The total earnings paid to an
employee after payroll taxes and
other deductions.
Lesson 13-3, page 315Lesson 13-3, page 315

25. TTERMS REVIEWERMS REVIEW
Employee Earnings RecordEmployee Earnings Record
A business form used to record
details affecting payments made
to an employee.
Lesson 13-3, page 316Lesson 13-3, page 316

26. PAYROLL REGISTERPAYROLL REGISTER
Lesson 13-3, page 314Lesson 13-3, page 314
5
1
3
4
2
3. Employee Personal Data
1. Pay Period Date
4. Earnings
2. Payment Date
5. Federal Income Tax
106 8 97
6. Social Security Tax
11 13
12
10. Total Deductions
8. Health Insurance
11. Net Pay
9. Other Deductions
12. Total, Prove, and Rule
7. Medicare Tax
13. Check Number

27. EMPLOYEE EARNINGS RECORDSEMPLOYEE EARNINGS RECORDS
Lesson 13-3, page 316Lesson 13-3, page 316
1
3
4
2
3. Beginning
Accumulated
Earnings
1. Last day of
Quarter
4. Pay
Period
5. Earnings, Deductions, Net Pay
6
7
6. Updated Accumulated Earnings
7. Total and Prove
2. Employee
Personal
Data
5

28. Work Together &Work Together &
On Your Own –On Your Own –
Page 317Page 317

29. PAYROLL BANK ACCOUNTPAYROLL BANK ACCOUNT
1
2
1. Prepare the check stub.
2. Prepare the check.
Lesson 13-4, page 319Lesson 13-4, page 319

30. EMPLOYEE’S PAYROLL CHECKEMPLOYEE’S PAYROLL CHECK
1
2
1. Enter on check stub information from payroll register.
2. Prepare employee’s payroll check for net amount of earnings.
Lesson 13-4, page 320Lesson 13-4, page 320

31. Work Together &Work Together &
On Your Own –On Your Own –
Page 321Page 321