Terms Preview
- Salary-The money paid for employee.
- Pay period-The period covered by a salary payment.
- Payroll-The total amount earned by all employees for a pay period.
- Total Earnings-The total pay due for a pay period before deductions.
- Payroll Taxes-Taxes based on the payroll of a business.
- Withholding Allowance-An deduction from total earnings for each person legally supported by taxpayer, including the employee.
- Social Security Tax-A federal tax paid for old-age, survivors, and disability insurance.
- Medicare Tax-A federal tax paid for hospital insurance.
- Tax Base-The maximum amount of earnings on which a tax is calculated.
- Payroll Register-A business form used to record payroll information.
- Net Pay-The total earnings paid to an employee after payroll taxes and other deductions.
- Employee Earnings Record-A business form used to record details affecting payments made to an employee.
Preparing an Employee's withholding Allowance Certificate
- Write the employee's name and address.
- Writen the employee's social security number.
- Check appropiate marital status block.
- Write the total number of withholding allowances claimed.
- Employee signs and dates.
Preparing a payroll register
- Enter the last date of the semimonthly payroll period.
- enter the date of payment.
- For each employee, enter employee number, name, marital status, and number allowances.
- Enter regular earnings, overtime earnings, and total earnings for each employee in columns of the payroll register.
- Enter in column the federal income tax witheld from each employee.