Inasmuch as the president, sales manager, sales representatives, and supervisors do not ring in and out on the time clock, their records are not included in the time clerks report, but their salaries must be included in the payroll. 38 and 39 from the time cards used by the employees for these workweeks. The time clerk prepared Time Clerk's Report Nos. The information needed and the sequence of steps that are completed for the payroll are presented in the following discussion. Compute the wages by multiplying the number of hours worked during the pay period by the employee's hourly rate. Plant workers ( Bonno and Ryan), other than supervisors, are employed on an hourly basis. The following schedule shows the weekly and hourly wage rates of the salaried employees: If hours are missed but no pay is deducted, include those hours in the Time Record columns on the payroll register. If time lost is to be deducted from a salaried employee's pay, the employee's pay must be determined by multiplying the actual hours worked for that week by the hourly rate. For any partial week, compute the earnings for that week by multiplying the hours worked by the hourly rate of pay. In the case of an employee who begins work during a pay period, compute the earnings by paying the employees their weekly rate for any full week worked. If an employee works less than a full day, show the actual hours for which the employee will be paid. In completing the time record columns of the payroll register for all workers, you should place an 8 in the day column for each full day worked. If the time lost by an employee is not to be deducted, the time clerk will make a notation to that effect on the Time Clerk's Report. Time lost that exceeds 15 minutes is rounded to the nearest quarter-hour and deducted. Observe the following rules in computing earnings each pay period:ĭo not make any deduction from an employee's earnings if the employee loses less than 15 minutes of time in any day. When the bank on which they are drawn receives such checks, they will be charged against the payroll cash account. Wages and salaries are paid by issuing special payroll checks. By reviewing the calculations of the wages and deductions in the payroll register and the posting of the information to the employees' earnings records, you can see the procedure to be followed each payday. This payroll transaction has been entered for you in the payroll register, the employees' earnings records, the general journal, and the general ledger. 1 The first payroll in October covered the two workweeks that ended on September 26 and October 3.

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