Chapter 12 - Payroll Accounting

Salary

a fixed amount of money paid to an employee for each pay period

Payroll Register

a from that summarizes information about employees' earnings for each pay period

Payroll

a list of employees of a business and the payments due to each employee for a specific pay period

Timecard

a record of the arrival time, departure time, and total number of hours worked each day for an employee

401(k)

a type of account that allows employees to defer paying taxes until retirement

Commission

an amount paid to an employee based on a percentage of the employee's sales

Deduction

an amount subtracted from an employee's gross earnings

Net Pay

the amount of money left after all deductions are subtracted from the gross earnings paid to an employee

Pay Period

the amount of time for which an employee is paid

Direct Deposit

the employer's deposit of net pay in an employee's personal bank account

Payroll Clerk

the person who is responsible for preparing the payroll

Gross Earnings

the total amount earned by an employee in a pay period

Accumulated Earnings

the year-to-date gross earnings of an employee

Exemption

An allowance claimed by a taxpayer that reduces the amount of taxes that must be paid

Overtime Rate

is 1 1/2 times an employee's regular hourly rate of pay and is paid for all hours worked over 40 per work week

Wage

is an amount of money paid to an employee at a specific rate per hour worked

Allowance

reduces the amount of income tax to be withheld