Preface | p. vii |
Introduction | p. 1 |
The Nature of Payroll Work | p. 1 |
Payroll Systems | p. 1 |
The People Who Do Payroll Work | p. 1 |
Payroll Laws and Regulations | p. 3 |
Federal Income Tax Laws | p. 3 |
State and Local Income Tax Laws | p. 4 |
Social Security Laws | p. 4 |
The Fair Labor Standards Act | p. 4 |
State Minimum Wage Laws | p. 5 |
Other Laws Affecting Wages | p. 5 |
Worker's Compensation Laws | p. 5 |
State Disability Benefit Laws | p. 5 |
Fair Employment Laws | p. 6 |
Pension Security Laws | p. 6 |
It's a Fact/The Immigration Reform Act | p. 6 |
Study Questions | p. 7 |
Discussion Questions | p. 7 |
New Employee Records | p. 8 |
The Job Application Form | p. 8 |
The Personnel File | p. 9 |
The Social Security Number | p. 9 |
It's a Fact/Now Even Children Can Apply | p. 13 |
The Withholding Allowance Certificate | p. 13 |
The Employee Earnings Record | p. 16 |
The Need for Confidentiality/The Case of the Payroll Leak That Became a Flood | p. 17 |
Study Questions | p. 18 |
Discussion Questions | p. 18 |
Review Exercises | p. 19 |
Time and Work Records | p. 20 |
Payroll Periods | p. 20 |
Time Records | p. 20 |
Time Cards | |
Computing Time Worked | |
Time Sheets | |
Filing Time Records | |
It's a Fact/Living...and Working...at Home | p. 23 |
Work Records | p. 24 |
Production Records | |
Sales Records | |
Labor Distribution | p. 26 |
The Need for Efficiency/The Case of the Late Time Cards | p. 26 |
Study Questions | p. 27 |
Review Exercises | p. 28 |
Determining Gross Earnings | p. 31 |
The Hourly-Rate Plan | p. 31 |
It's a Fact/Big Business or Small, You Still Get Paid | p. 33 |
The Salary Plan | p. 33 |
The Piece-Rate Plan | p. 35 |
The Commission Plan | p. 38 |
The Salary-Commission Plan | p. 38 |
It's a Fact/Flex-Time for Flex-Needs | p. 39 |
Bonuses and Profit-Sharing Payments | p. 40 |
Bonuses | |
Profit-Sharing Payments | |
Tips | p. 40 |
Developing Efficient Working Procedures/The Use of the Electronic Calculator in Payroll Work | p. 41 |
Study Questions | p. 42 |
Review Exercises | p. 43 |
Problems | p. 43 |
Determining Payroll Deductions | p. 46 |
Deductions Required by Law | p. 46 |
Federal Income Tax | |
Social Security (FICA) Tax | |
State and Local Income Taxes | |
State Disability Insurance Tax | |
State Unemployment Compensation Tax | |
Garnishments | |
Developing Efficient Working Procedures/The Use of Tax Tables | p. 49 |
It's a Fact/Publishing Tax Tables Is Big Business--For Business | p. 54 |
Treatment of Tips for Federal Withholding Taxes | p. 56 |
Deductions Required by Union Contracts | p. 56 |
Voluntary Deductions | p. 57 |
Insurance | |
Pension Plans | |
Savings Plans | |
Charitable Contributions | |
Changes in Payroll Deductions | p. 59 |
Computing Net Pay | p. 59 |
The Need for Clear Communication/The Case of the Withholding Allowance That Disappeared | p. 60 |
Study Questions | p. 61 |
Review Exercises | p. 61 |
Problems | p. 64 |
The Payroll Register | p. 67 |
The Format of the Payroll Register | p. 67 |
Making Entries in the Payroll Register | p. 67 |
Totaling and Proving the Payroll Register | p. 70 |
Developing Efficient Working Procedures/Checking Payroll Computations for Accuracy | p. 72 |
Using the Payroll Register | p. 73 |
The Need for Clear Writing/The Case of the Payroll Register That No One Could Read | p. 74 |
Study Questions | p. 75 |
Review Exercises | p. 75 |
Problems | p. 77 |
Employee Earnings Records | p. 79 |
The Format of the Employee Earnings Record | p. 79 |
Making Entries in the Employee Earnings Records | p. 81 |
Totaling the Employee Earnings Records | p. 82 |
Using Employee Earnings Records | p. 84 |
Authorization to Make Payroll Changes | p. 84 |
Retention of Payroll Records | p. 85 |
Study Questions | p. 86 |
Problems | p. 86 |
Paying the Payroll | p. 88 |
Payment in Cash | p. 88 |
Payroll Change Sheet | |
Payroll Requisition for the Bank | |
Pay Envelopes for Employees | |
Employee Receipts | |
Payment by Check | p. 92 |
Payroll Checks | |
The Use of a Special Payroll Account | |
Developing Efficient Working Procedures/Preparing Payroll Checks | p. 94 |
Payment by Direct Deposit in Employee Checking Accounts | p. 96 |
The Bank Transfer Form | |
Employee Statements | |
It's a Fact/Checkless Payments | p. 98 |
The Need for Accuracy/The Case of the Little Error That Grew and Grew | p. 99 |
Study Questions | p. 100 |
Discussion Questions | p. 100 |
Problems | p. 101 |
Federal Payroll Taxes and Tax Returns | p. 102 |
The Employer's Share of the FICA Tax | p. 102 |
Computing the Tax | |
FICA Tax on Tips | |
Depositing FICA Taxes and Federal Income Taxes | |
Federal Tax Deposit, Form 8109 | |
Reporting FICA Taxes and Federal Income Taxes | |
Employer's Quarterly Federal Tax Return, Form 941 | |
Wage and Tax Statement, Form W-2 | |
Transmittal of Income and Tax Statements, Form W-3 | |
It's a Fact/Financing the Federal Government | p. 111 |
Federal Unemployment Compensation Tax | p. 111 |
The Unemployment Insurance System | |
Computing the FUTA Tax | |
Depositing the FUTA Tax | |
Using Form 8109 for Quarterly FUTA Deposits | |
Reporting the FUTA Tax | |
Employer's Annual Federal Unemployment Tax Return, Form 940 | |
The Need for Orderly Procedures/The Case of the Forgotten Tax Payment | p. 116 |
Study Questions | p. 117 |
Review Exercises | p. 117 |
Problems | p. 120 |
State Payroll Taxes and Tax Returns | p. 121 |
State Unemployment Compensation Tax | p. 121 |
Computing the SUTA Tax | |
Responding to Unemployment Benefit Claims | |
State Disability Insurance Tax | p. 123 |
Worker's Compensation Insurance | p. 123 |
State Income Tax | p. 124 |
Obtaining Information About State Income Tax | |
Reporting and Paying State Payroll Taxes | p. 125 |
Reporting and Paying the SUTA Tax | |
Reporting and Paying State Disability Insurance and Income Taxes | p. 127 |
Issuing Wage and Tax Statements | p. 128 |
Local Income Tax | p. 129 |
Developing Efficient Working Procedures/Setting Up a Tax Calendar | p. 131 |
Study Questions | p. 132 |
Discussion Questions | p. 132 |
Review Exercises | p. 133 |
Payroll Systems | p. 135 |
Manual Payroll Systems | p. 135 |
Standard Payroll Forms | |
Custom-Made Payroll Forms | |
Pegboard System | |
Electronic Aids | |
Computerized Payroll Systems | p. 138 |
Computer Components | |
Input Devices | |
Central Processing Unit | |
External Storage Devices | |
Output Devices | |
Types of Computers | |
Mainframe Computers | |
Minicomputers | |
Microcomputers | |
Payroll Processing by Service Bureaus | |
Computerized Payroll Procedures | |
Flowcharts | |
It's a Fact/Smart Clocks Make Better Payroll Records | p. 146 |
Illustrative Case/A Computerized Payroll System in a Large Business | p. 146 |
Illustrative Case/A Computerized Payroll System in a Small Business | p. 148 |
Study Questions | p. 149 |
Discussion Questions | p. 149 |
Review Exercises | p. 150 |
Accounting for Payroll | p. 151 |
Accounting Records for Payroll | p. 151 |
Effects of Payroll Transactions on the Ledger Accounts | p. 152 |
Payroll Entries | p. 155 |
Recording the Payroll | |
Recording the Employer's Payroll Taxes | |
Recording Payment of the Payroll | |
Recording Deposits of Payroll Taxes | |
Recording Payment of Amounts Withheld for Voluntary Deductions | |
Study Questions | p. 162 |
Review Exercises | p. 163 |
Problems | p. 163 |
Tax Tables | p. 237 |
Glossary | p. 247 |
Index | p. 251 |
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