as part of the compensation system, most businesses provide _____ like insurance, vacation time, sick leave, personal time off, retirement plans and education assistance
benefits
businesses must prepare and maintain tax records, as well as sent required ____ to the government on time
payments
an employee's payroll records include the amount of ____ pay, withholding and deductions, and net pay for each pay period. a year to date balance for each item is maintained as well.
gross pay
calculate the amount of employee withholding for social security (6.2%) and medicare (1.45%) for the following employee then calculate the net pay
Marjorie Elder $865.00
- Social security: $865 x .062 = 53.63
- Medicare: $865 x .0145 = 12.54
- Net pay: 865 - 53.63 - 12.54 = $798.83
the financial record of employee compensation, deductions and net pay
payroll
employers must withhold ____ from employee wages and salaries as well as make their own required contributions
taxes
payroll records can be maintained using paper or _____
electronically/computerized
each time payroll is processed the payroll records are ____
updated
one of the most important financial duties of a business is maintaining a _____
payroll
what is unemployment tax?
- Federal Unemployment Tax (FUTA)
- amount owed is based on total employees wages
what is income tax?
- required by federal, state and local governments to be withheld from employees pay
- amount withheld is based on the wages or salary paid and nubmer of employee dependents
the financial record of employee compensation, deductions and net pay is known as
- compensation
- payroll
- earnings report
- paycheck
payroll
gross pay is _____ taxes and deductions are taken out
BEFORE
an actual paycheck only shows _____
net pay amount
what do personnel records include?
- personal info
- employment history
- performance evaluations
- compensation records (how much they get paid)
- other info needed by the company
maintains info on each employee to be able to calculate the company's payroll and to make the necessary payments to each employee
payroll system
the earnings report is often called ____
pay stub
documentation used to process earning payments and record each employee's pay history
payroll records
the electronic transfer of net pay into an emploee's bank account is known as
- tax withholding
- FICA
- direct deposit
- an automated payroll system
direct deposit
most businesses pay every employee on a weekly, bi-weekly or ____ basis
monthly
the payroll records for each employee contain all the info needed by the employer in order to ____ the worker
pay
a _____ system is a cental location for all information the company maintains on all employees from the time they are hired until well after they no longer work for the business
personnel
most info in personnel files is _____
confidential
what are the different kinds of payroll taxes
income taxes
social security
medicare
unemployement taxes
in the past, paychecks were calculated by hand. today, ____ personnel records systems make the payroll process more efficient and accurate
computerized
a business must keep _____ of employee benefits earned and used
records
net pay is the amount _____ all taxes and deductions are taken out
AFTER
businesses are responsible for making required federal and state tax _____ for each employee
payments
Most employees in many businesses ereceive an hourly wage, managers and professional positions receive a weekly or monthly _____
salary
true or false
businesses are responsible for making required federal and state payments for each employee
true
true or false
payroll records need to be maintained for all full time employees, but ot for part time employees
false
needs to be maintained for full time and part time
easy to use software is used today to collect employee time and production records each work period. when paychecks need to be prepared, the information on benefits and deductions is determined and each employee's pay is ______
calculated
what is direct deposit
- the employer transfers net pay electronically into the employee's bank account,
- employee does not recieve a printed paycheck
- employee does receive an earnings report or pay stub
each employee's pay ____ is maintained int he payroll records
history
what are social security and medicare?
- often referred to as FICA (federal insurance contributions act)
- required to be withheld by the government
- employees and employers must pay a certain amount
the info in maintained in the ____ records is used to process payroll
payroll
what info is included in payroll records?
