Đang tải... (xem toàn văn)
Chapter 9 – Payroll. In this chapter, the learning objectives are: Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods; calculate gross pay with overtime on the basis of time; calculate gross pay for piecework, differential pay schedule, straight commission with draw, variable commission scale, and salary plus commission.
Chapter 9 Payroll McGrawHill/Irwin ©2011 The McGrawHill Companies, All Rights Reserved #9 Payroll Learning Unit Objectives Calculating Various Types of Employees’ LU9.1 Gross Pay Define, compare, and contrast weekly, biweekly, semimonthly, and monthly pay periods Calculate gross pay with overtime on the basis of time Calculate gross pay for piecework, differential 92 pay schedule, straight commission with draw, variable commission scale and salary plus commission #9 Payroll Learning Unit Objectives LU9.2 Computing Payroll Deductions for Employees’ Pay; Employers’ Responsibilities Prepare and explain the parts of a payroll register Explain and calculate federal and state unemployment taxes 93 Payroll Cycles Salary Paid 94 Period (based on a year) Earning per period Weekly 52 times (once a week) $961.54 ($50,000/52) Biweekly 26 times (every two weeks) $1,923.08 ($50,000/26) Semimonthly 24 times (twice a month) $2,083.33 ($50,000/24) Monthly $4,166.67 ($50,000/12) 12 times (once a month) Hourly Rate of Pay; Calculation of Overtime Gross pay = Hours Employee worked x Rate per hour Hourly overtime pay rate = Regular hourly pay rate x 1.5 Gross pay = Earnings for 40 hours + Earnings at timeandahalf rate 95 Hourly Rate of Pay; Calculation of Overtime Employee M T W Th F S Total R Valdez 13 8.5 10 11.25 10.75 61.5 Rate is $9.00 per hour Hourly overtime pay rate = Regular hourly pay rate x 1.5 Gross pay = Earnings for 40 hours + Earnings at timeandahalf rate 61.5 – 40 = 21.5 overtime hours $9 x 1.5 = 13.50 overtime rate (40 hours x $9) + (21.5 hours x 13.5) $360 + $290.25 = $650.25 96 Straight Piece Rate Pay Straight Piece Rate Pay Gross pay = Number of units produced x Rate per unit Ryan Foss produced 900 dolls. He is paid $.96 per doll. Calculate his gross pay 900 x $.96 = $864 97 Differential Pay Schedule Differential Pay Schedule Gross pay = Number of units produced x Various rates per unit Logan Company pays Abby Rogers on the basis of the following schedule: Units produced 150 51150 151200 Over 200 Amount per unit $ .50 .62 .75 1.25 Last week Abby produced 300 dolls. What is Abby’s gross pay? 98 (50 x $.50) +(100 x $.62)+(50 x $.75) + (100 x $1.25) = $249.50 Straight Commission with Draw Commission is a certain percentage of the amount a salesperson sells Draw is an advance on the salesperson’s commission 99 Logan Company pays Jackie Okamoto a straight commission of 15% on her net sales (net sales are total sales less sales returns). In May, Jackie had net sales of $56,000. Logan gave Jackie a $600 draw in May. What is Jackie’s gross pay? ($56,000 x .15) = $8,400 600 $7,800 Variable Commission Scale Different commission rates for different levels of net sales Up to $35,000 4% Excess of $35,000 to $45,000 6% Over $45,000 8% Last month Jane Ring’s net sales were $160,000. What is Jane’s gross pay based on the schedule? ($35,000 x .04) + ($10,000 x .06) + ($115,000 x .08) = $11,200 910 Salary Plus Commission Gross Pay = Salary + Commission Logan Company pays Joe Roy a $3,000 monthly salary plus a 4% commission for sales over $20,000. Last month Joe’s net sales were $50,000. Calculate Joe’s gross pay $3,000 + ($30,000 x .04) = $4,200 911 Payroll Register GLO COMPANY Payroll Register Week #41 Allowance & Employee marital Cum Name status earnings Rey, Allice M-2 96,750 A B 912 Salary per week 2,250 C FICA Taxable Earnings Earnings Reg 2,250 Ovt D Cum Gross earnings 2,250 99,000 E S.S 750 F Med 2,250 G Deductions FICA S.S 46.5 H Med 32.63 I FIT 356 J SIT 135 K Rate Base Social Security 6.20% $97,500 Medicare 1.45 No Base Health Ins 100 L Net Pay 1,579.91 M Federal Income Tax Withholding (FIT) 1. Percentage Method 913 Table 91,92 Percentage method income tax withholding tables One Payroll Period Weekly Bi weekly Semimonthly Monthly Quarterly SemiAnnually Daily or miscellaneous (each day of the payroll period) Withholding Allowance $ 70.19 140.38 152.08 304.17 912.50 1825.00 14.04 (b) MARRIED person 914 if the amount of wages (after subtracting withholding allowances) is: Not over $154 Over But not over $154 $461 $461 $1,455 $1,455 $2,785 $2,785 $4,165 $4,165 $7,321 $7,321…… The amount of income tax to withhold is: $0 of excess over 10% $154 $30.70 plus 15% $461 $179.80 plus 25% $1,455 $512.30 plus 28% $2,785 $898.70 plus 33% $4,165 $1940.18 plus 35% $7,321 Partial Percentage Method 1) Locate one withholding allowance and multiply by the number of allowances employee claims 2) Subtract step 1 from employees pay 3) In table 9.2 locate appropriate table and compute income tax 915 $70.19 x 2 = $140.38 $2,250.00 140.38 $2,109.62 $2,109.62 1,455.00 $ 654.62 Tax $179.80 + .25 ($654.62) $179.80 + 163.66 = $343.46 Employers’ Responsibilities Federal Unemployment Tax Act (FUTA) 6.2% tax on the first $7,000 paid to employees as wages during the calendar year *State Unemployment Tax Act (SUTA) 5.4% tax on the first $7,000 paid to employees as wages during the calendar year 6.2% FUTA 5.4% SUTA credit .8% FUTA tax *Can be credited against the 6.2% federal rate Assume a company has total wages of $20,000 and $4,000 of the wages are exempt from SUTA. What are the company’s SUTA and FUTA taxes if the company’s SUTA rate is 5.8% due to a poor employment record? 916 $20,000 4,000 (exempt wages) = $16,000 SUTA = $16,000 x .054 = $928, FUTA = $16,000 x .008 = $128 ... 3) In table 9. 2 locate appropriate table and compute income tax 9 15 $70. 19 x 2 = $140.38 $2,250.00 140.38 $2,1 09. 62 $2,1 09. 62 1,455.00 $ 654.62 Tax $1 79. 80 + .25 ($654.62) $1 79. 80 + 163.66 = $343.46... 2,250 99 ,000 E S.S 750 F Med 2,250 G Deductions FICA S.S 46.5 H Med 32.63 I FIT 356 J SIT 135 K Rate Base Social Security 6.20% $97 ,500 Medicare 1.45 No Base Health Ins 100 L Net Pay 1,5 79. 91 M... Gross pay = Number of units produced x Rate per unit Ryan Foss produced 90 0 dolls. He is paid $ .96 per doll. Calculate his gross pay 90 0 x $ .96 = $864 9 7 Differential Pay Schedule Differential Pay Schedule