Payroll Records and Procedures

by Haddock, M. David; Cohen, Sherry

• ISBN13: 9780072982435
• ISBN10: 0072982438
• Edition: 5th
• Format: Paperback
• Copyright: 2005-04-26
• Publisher: McGraw-Hill Education

Summary

Payroll Records and Procedures, 5e, by Haddock/Cohen consists of a student text-workbook, and practice set. The program presents payroll activities and related materials as a single unit and includes a comprehensive practice set that is available separately or shrink-wrapped with the text-workbook. The easy-to-read presentation of topics helps students develop efficient working procedures. Numerous illustrations and examples using federal and state forms support content.

Table of Contents

Payroll Laws and Regulations	1	(16)
Federal Income Tax Laws	1	(1)
State and Local Income Tax Laws	2	(1)
Social Security Laws	2	(2)
Required Payroll Records	4	(1)
Federal Unemployment Tax Act and State Unemployment Tax Acts	4	(1)
The Fair Labor Standards Act	5	(1)
State Minimum Wage Laws	6	(1)
Other Laws Affecting Wages	7	(1)
Workers' Compensation Insurance	7	(1)
State Disability Benefit Laws	8	(1)
Fair Employment Laws	8	(1)
Pension Security Laws	9	(1)
The Immigration Reform Act	9	(1)
New Hire Reporting	9	(1)
Summary	10	(1)
Study Questions	10	(1)
Discussion Questions	11	(2)
Learning Through Practice Exercises	13	(2)
Alternate Learning Through Practice Exercises	15	(2)
New Employee Records	17	(37)
Ingram Heating and Cooling	17	(1)
A New Employee Joins the Company	18	(4)
The Personnel File	22	(1)
The Social Security Number	22	(2)
Employment Eligibility Verification	24	(3)
The Withholding Allowance Certificate	27	(3)
New Hire Reporting to the States	30	(1)
The Employee Earnings Record	31	(1)
Confidentiality	32	(1)
Summary	33	(1)
Study Questions	33	(1)
Discussion Questions	33	(1)
Review Exercises	34	(1)
Learning Through Practice Exercises	35	(10)
Alternate Learning Through Practice Exercises	45	(9)
Time and Work Records	54	(24)
Payroll Periods	54	(1)
The Need for Time Records	55	(1)
Timekeeping Devices and Systems	56	(1)
Time Clocks and Time Cards	56	(1)
Computing Time Worked	57	(3)
Time Sheets	58	(2)
Filing Time Records	60	(1)
Dealing with Lateness to Work	60	(2)
Finding a Solution	61	(1)
Work-at-Home Arrangements	61	(1)
Flextime Systems	61	(1)
Work Records	62	(2)
Production Records	62	(1)
Sales Records	62	(1)
Labor Distribution	62	(2)
Other Kinds of Workers	64	(2)
Temporary Workers	64	(1)
Contract Workers	65	(1)
Summary	66	(1)
Study Questions	66	(1)
Review Exercises	67	(4)
Learning Through Practice Exercises	71	(4)
Alternate Learning Through Practice Exercises	75	(3)
Determining Gross Earnings	78	(22)
Computing Gross Earnings	78	(1)
The Hourly Rate Plan	79	(1)
Handling Overtime Payments	79	(2)
Night Bonus	81	(1)
Meal Break	82	(1)
The Salary Plan	82	(2)
Adjusting the Pay of Salaried Employees	82	(1)
Biweekly, Semimonthly, and Monthly Salaries	83	(1)
The Piece-Rate Plan	84	(1)
Meeting FLSA Minimum Wage Requirements	85	(1)
The Commission Plan	86	(1)
The Salary-Plus-Commission Plan	87	(1)
Bonuses and Profit-Sharing Payments	88	(1)
Bonuses	88	(1)
Profit-Sharing Payments	88	(1)
Tips	89	(1)
Accuracy in Payroll Work	89	(1)
Summary	90	(1)
Study Questions	90	(1)
Review Exercises	91	(1)
Problems	91	(2)
Learning Through Practice Exercises	93	(4)
Alternate Learning Through Practice Exercises	97	(3)
Determining Payroll Deductions	100	(27)
Determining Federal Income Tax	101	(2)
The Wage-Bracket Method	101	(2)
Other Systems for Determining Withholding Tax	103	(1)
Reading the Wage-Bracket Tables Properly	103	(3)
The Zero Allowance Column	103	(2)
The Wage-Bracket Lines	105	(1)
Using a Guide to Read the Wage-Bracket Lines	105	(1)
Determining Social Security Tax	106	(1)
Computing Social Security Tax	106	(1)
Maximum Social Security Tax	107	(1)
Determining Medicare Tax	107	(1)
Earnings Not Subject to Social Security and Medicare Taxes	108	(1)
State and Local Income Taxes	108	(2)
Computing State Withholding Tax	108	(1)
State Disability Insurance Tax	109	(1)
State Unemployment Compensation Tax	110	(1)
Garnishments	110	(1)
Treatment of Tips for Federal Withholding Taxes	110	(1)
Deductions Required by Union Contracts	110	(2)
Voluntary Deductions	112	(2)
Insurance	113	(1)
Pension Plans	113	(1)
Savings Plans	114	(1)
Charitable Contributions	114	(1)
Computing Net Pay	114	(1)
Summary	115	(1)
Study Questions	116	(1)
Review Exercises	116	(2)
Problems	118	(5)
Learning Through Practice Exercises	123	(2)
Alternate Learning Through Practice Exercises	125	(2)
The Payroll Register	127	(28)
Using the Percentage Method with the Wage-Bracket Tables	127	(3)
Computing California Income Tax when Earnings Exceed the Wage Brackets	130	(1)
Format of the Payroll Register	130	(7)
Making Entries in the Payroll Register	130	(1)
Recording Hours Worked	131	(2)
Entering Employee Earnings	133	(1)
Dealing With Different Payroll Needs	133	(1)
Payroll Deductions	134	(1)
Computing and Recording Net Pay	135	(1)
Totaling and Proving the Payroll Register	135	(1)
Proving the Payroll Register	135	(2)
Checking Payroll Computations for Accuracy	137	(1)
Reading the Payroll Register	137	(1)
Using the Payroll Register	138	(1)
Summary	139	(1)
Study Questions	139	(1)
Review Exercises	140	(1)
Problems	141	(6)
Learning Through Practice Exercises	147	(4)
Alternate Learning Through Practice Exercises	151	(4)
Employee Earnings Records	155	(17)
The Format of the Employee Earnings Record	156	(2)
Making Entries in the Employee Earnings Records	158	(1)
Nearing Maximum Taxes	159	(1)
Care in Making Entries	159	(1)
Totaling the Employee Earnings Records	159	(2)
Using Employee Earnings Records	161	(1)
Internal Control of Payroll Records	161	(1)
Retention of Payroll Records	162	(1)
Summary	162	(1)
Study Questions	162	(1)
Discussion Questions	162	(1)
Review Exercises	163	(1)
Problems	164	(3)
Learning Through Practice Exercises	167	(2)
Alternate Learning Through Practice Exercises	169	(3)
Paying Employees	172	(22)
Paying in Cash	172	(2)
Employee Receipts	173	(1)
The Risks of Paying in Cash	174	(1)
Paying by Check	174	(2)
The Use of a Special Payroll Account	176	(1)
Preparing Payroll Checks	176	(1)
Writing Checks by Hand	176	(1)
Typing Checks	176	(1)
Voiding Checks	176	(1)
Verifying the Accuracy of Checks	177	(1)
Paying by Direct Deposit in Employee Checking Accounts	177	(1)
Employee Pay Statements	177	(1)
Payroll Processing by Service Bureaus	177	(2)
A Service Bureau Client	178	(1)
Computerized Payroll Procedures	179	(1)
A Computerized Payroll System in a Small Business	179	(2)
Computerized Payroll Accounting	181	(1)
Internal Control	182	(1)
Summary	183	(1)
Study Questions	183	(1)
Discussion Questions	183	(1)
Review Exercises	184	(1)
Problems	185	(2)
Learning Through Practice Exercises	187	(4)
Alternate Learning Through Practice Exercises	191	(3)
Federal Payroll Taxes and Tax Returns	194	(40)
The Employer's Share of Social Security and Medicare Taxes	195	(1)
Computing the Tax	195	(1)
Social Security and Medicare Taxes on Tips	196	(1)
Depositing Social Security and Medicare Taxes and Federal Income Taxes	196	(1)
When to Deposit	196	(1)
The Lookback Period	197	(1)
Monthly Deposit Example	197	(1)
Semiweekly Deposit Examples	198	(1)
Deposits Made by Electronic Funds Transfer and by Check	198	(2)
IRS Ruling Reduces Number of Deposits by Small Businesses	200	(1)
Reporting Social Security, Medicare, and Federal Income Taxes	200	(5)
Schedule B of Form 941, Employer's Record of Federal Tax Liability	200	(1)
Form 941, Employer's Quarterly Federal Tax Return	200	(4)
Form 941-V, Payment Voucher	204	(1)
Form 8109, Federal Tax Deposit Coupon	204	(1)
Completing Form 8109	205	(1)
Deposit Exceptions	205	(1)
Deposits on Banking Days	205	(1)
Authorized Depositaries	205	(1)
Forms W-2 and W-3	206	(4)
Form W-2, Wage and Tax Statement	206	(2)
Form W-3, Transmittal of Wage and Tax Statements	208	(2)
Federal Unemployment Compensation Tax	210	(5)
The Unemployment Insurance System	210	(1)
Computing the FUTA Tax	210	(1)
Depositing the FUTA Tax	211	(1)
Reporting the FUTA Tax	211	(1)
Completing Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return	212	(3)
Summary	215	(1)
Study Questions	215	(1)
Review Exercises	216	(1)
Problems	217	(2)
Learning Through Practice Exercises	219	(8)
Alternate Learning Through Practice Exercises	227	(7)
State Payroll Taxes and Tax Reports	234	(29)
Reporting Newly Hired Employees	234	(1)
State Unemployment Compensation Tax	235	(3)
Computing the SUTA Tax	235	(2)
Responding to Unemployment Benefit Claims	237	(1)
State Disability Insurance Tax	237	(1)
Workers' Compensation Insurance	238	(1)
An Example of Workers' Compensation Insurance	238	(1)
Special State Payroll Taxes	239	(1)
State Income Tax	239	(3)
Obtaining Information About State Income Tax	239	(1)
Depositing and Reporting State Withholding and Payroll Taxes	240	(1)
Due Dates for Depositing State Withholding and Payroll Taxes	241	(1)
Quarterly Wage and Withholding Report	242	(1)
Annual Reconciliation Statement	242	(1)
Wage and Tax Statements	242	(1)
Local Income Tax	243	(2)
Setting Up a Payroll Calendar	245	(2)
Summary	247	(1)
Study Questions	247	(1)
Discussion Questions	247	(1)
Review Exercises	248	(1)
Problems	249	(2)
Learning Through Practice Exercises	251	(6)
Alternate Learning Through Practice Exercises	257	(6)
Accounting for Payroll	263	(36)
The Subsidiary Payroll Module Within the Accounting System	263	(1)
Accounting Records for Payroll	264	(1)
Double-Entry Accounting	264	(2)
Chart of Accounts	266	(1)
Understanding the Ledger Accounts	267	(3)
Salaries and Wages	268	(1)
Amounts Withheld from Salaries and Wages	268	(2)
The Employer's Payroll Taxes	270	(1)
Journalizing and Posting Entries for Payroll	270	(5)
Recording Employee Earnings and Deductions	271	(1)
Computing the Employer's Payroll Taxes	271	(1)
Social Security and Medicare Taxes	271	(1)
Federal and State Unemployment Taxes	272	(2)
Other Employer Taxes	274	(1)
Recording the Employer's Payroll Taxes	274	(1)
Journalizing and Posting Payment of the Payroll	275	(1)
Journalizing and Posting Deposits of Payroll Taxes	276	(3)
Frequency of Tax Deposits	276	(1)
Remitting Federal Withholding Taxes	276	(1)
Remitting State Withholding Taxes	277	(1)
Remitting Federal Unemployment Tax	277	(1)
Remitting State Unemployment Tax and ETT Tax	278	(1)
Journalizing and Posting Payment of Amounts Withheld for Voluntary Deductions	279	(1)
Accounting for Employee Bonus Payments	280	(1)
Summary	280	(1)
Study Questions	281	(1)
Review Exercises	281	(1)
Problems	282	(5)
Learning Through Practice Exercises	287	(6)
Alternate Learning Through Practice Exercises	293	(6)
Appendix	299	(9)
Tax Tables
Glossary of Payroll Terms	308	(3)
Index	311