Chapter 7, EMPLOYEES & PAYROLL Module - Sage 50

Question 1

EMPLOYEES & PAYROLL Module

Answer 1

is used to record money earned by employees in a company during a calendar year.

Question 2

EMPLOYEES Ledger

Answer 2

is used to record employees’ personal information & payroll information such as hourly rates of pay & additional deductions.

Question 3

Paycheques & Payroll Cheque Run journals

Answer 3

calculate the gross pay, & subtract government deductions (CPP, EI, Income Tax) & other deductions;

e.g. safety shoes, insurance, dental plans, charitable donations & other benefits, to arrive at Net Pay.

Question 4

Hourly Rate

Answer 4

The rate the employee earns per hour for regular work.

Question 5

Differential Rate

Answer 5

Extra rate the employee earns per hour for working shifts, higher job classifications, etc.

Question 6

Income

Answer 6

Used to pay employees for regular work.

Question 7

Benefit

Answer 7

Used for taxable employee benefits such as car allowance;

paying employees for using their own vehicle for the business, or life insurance, etc., where the company pays the cost on the employee’s behalf.

Question 8

Benefit (Que)

Answer 8

Used for taxable employee benefits in Quebec.

Question 9

Reimbursement

Answer 9

Used when an employee is being repaid for money they paid out for the company. e.g. travelling expenses.

Using the PAYROLL module method will allow you to charge only one account for the reimbursement.

In most situations, there are two accounts being charged, the Expense or Purchase account & an HST Paid account.

Many companies use the PAYABLES module (Make Other Payment option) to reimburse the employee.

Question 10

Piece Work

Answer 10

Employees can be paid based on the number of items (pieces) they can produce during the time they work.

If the Piece Rate was chosen, then the Unit of Measure column would change to item.