Accounting and Payroll OA for cxc students
- 2. POEM Accounts and finance, learn with me, Roles and functions, soon you'll see. Payroll, credit, collect accounts, Debit, credit notes we bounce, Audit prep, it's all in sight, Accounts office shines so bright. Current, savings, fixed deposit, Bank accounts, now you know it. Clerks write cheques and reconcile, Ledger entries all the while, Statements, cash books, final too, Journaling and billing do. 2 Filing, equipment operate, These tasks we don't underrate. Integrity's our guiding star, Confidential, that's who we are. Reliable and honest too, Attributes we bring to you. CCOUNTS and FINANCE, now we know, All the things that help us grow!
- 3. Hello! Lets Discuss Key Documents in Accounting and Payroll 3
- 4. 1. Payslip • Gross pay • Allowances • Income tax deductions • Net pay
- 5. Definition: List of employees and their due payments for a period Frequency: Weekly, bi-weekly, or monthly Key formulae: • Gross pay = Basic Earnings + Overtime + Bonus/Commission • Net Pay = Gross pay – Total deductions 5
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- 9. 9 ● Payroll for hourly workers – To calculate the pay of hourly workers, a few documents such as a timecard or timesheet are required. Timecard or timesheet is a piece of relevant information for payroll calculation as it contains the required details of hours worked by an employee or worker. To calculate the payroll based on hourly requirements, the organization also needs the rate assigned to the various classes of employees or workers. For example: if the worker has worked 38 hrs. A week and the payment schedule is for weekly payments with a rate of $12 an hour; the calculation would be 38 hrs. * 1 week * $12 per hour = $146. ● Payroll Calculation for Salaried Workers – The U.S Department of Labor states that employees with a fixed salary are paid in terms of salary as a fixed amount. Generally, the fixed pay receiver is not entitled to overtime bonuses. Also, the DOL( Dept. of Labor) has specified criteria for calculating overtime payments, so it is better to comply with the criteria laid by DOL and work out the salary payments. For example, an employee has an annual salary of $84000 and is being paid semi-monthly. Calculate the pay per salary for that particular person. $84,000 / 24 = $3500.
- 10. Information needed for gross pay: • Basic salary/wage rate • Hours worked • Overtime hours and rate • Bonuses or commissions Information needed for net pay: • Gross pay • Tax deductions • Other deductions (e.g., insurance, pension) 10 Net pay is the amount of money you receive from your employer after taxes and other deductions have been taken out Gross pay is the total amount of money an employee earns for time worked, before any taxes or deductions
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- 12. Example Get out your books and lets begin 12
- 13. 13 Tony is employed in a grocery store in the U.S and gets a salary of $10.50 per hour. First, calculate the total amount to be deducted and withheld under the payroll formula. The health insurance rate is every week. Next, calculate the Net amount receivable to Tony; we need to make certain adjustments for taxes and other deductions.
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- 16. 16 · =$33.92 + $14.36 + $37.91 + $79.00 + $110 · =$275.19 - $399 · =$123.81 It indicates that out of total earnings or gross pay of $399, only $123.81 would be received by Tony after all deductions. Question : What is Tony’s Gross wage? What is his NET wage?
- 17. 3. Currency Memorandum Definition: Document to record disbursement of money for wages Purpose: To track cash distribution from largest to smallest denominations
- 18. EXAMPLE 18 Date Payee Name Description/ Purchase details Amount Transaction Type Transaction No. Dr. Cr. MM/ DD/ YYYY ABC Machine Q $500 0 $500 0 Check XXXXXXXXXX MM/ DD/ YYYY XYZ Equipment R $900 0 $900 0 ETF XXXXXXXXXX
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- 22. 5. Credit Note Definition: Document used to correct overcharge on an invoice Purpose: To adjust billing errors in favor of the customer
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- 24. 6. Debit Note ● Definition: Document made by seller when customer is undercharged ● Purpose: To correct undercharging or add additional charges
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- 26. How to calculate debit and credit notes 26