Chapter 12 Flashcards
payroll
a list of the employees and the payments due to each employee for a specific pay period
pay period
the amount of time over which an employee is paid
payroll clerk
an employee responsible for preparing the payroll
gross earnings
the amount of money an employee earns in a pay period; also called gross payed
salary
a fixed amount of money paid to an employee for each pay period
wage
an amount of money paid an employee at a specified rate per hour worked
piece rate
a rate of pay based on the number of items produced
electronic badge reader
an electronic device that scans the magnetic strip containing employee information on an employee’s identification badge and then transfers the information directly to a computer
commission
an amount paid to an employee based on a percentage of the employee’s sales
overtime rate
pay rate employees are required to pay certain employees covered by the state and federal laws; the Fair Labor Standard Act of 1938 sets the rate at 1.5 times the regular hourly rate after 40 hours per week
deduction
an amount that is subtracted from an employee’s gross earnings
withholding allowance
an allowance an individual claims on a Form W-4; it is used to calculate the amounted income tax withheld from an employee’s paycheck
401(k) Plan
a voluntary payroll deduction from gross earnings; the employee does not pay income tax on the amount contributed until the money is withdrawn from the plan, usually after age 59 1/2
payroll register
a form that summarizes the information about employees’ earnings for each pay period
net pay
the amount left after total deductions have been subtracted from gross earnings
direct deposit
depositing net pay directly into an employee’s personal bank account through electronic funds transfer
employee’s earning record
a record prepared for each employee that contains all payroll information related to the employee; it is kept on a quarterly basis
accumulated earnings
the employee’s year to date gross earnings
types of pay periods
weekly
biweekly
semimonthly
monthly
responsibilities of a payroll clerk
- makes sure employees are paid on time
- makes sure each employee is paid the correct amount
- completes payroll records
- submits payroll reports
- pays payroll taxes
pay categories that help determine gross earnings
- salary
- hourly wage
- commission
- salary plus commission or bonus
- piece rate
3 required deductions by law
- federal income tax
- social security tax
- city and state income tax
seven parts of the payroll register
- total hours column
- rate column
- earnings section
- deductions section
- net pay column
- check number column
- column totals
how many parts are there to an employee’s check and what are they
2
- check
- check stub
