You will be completing the Payroll Project Short Version on pg 7-16 on your textbook. It is also found in Appendix A of your text. In either event you are picking up a project midway through a quarter and will want to read the background for the company given at the beginning of Chapter 7. Appendix A walks you through the preceding Nov 20th payroll in Excel so you can see how the entries work. Some personal info changes at the end of November that will change wage calculations in the first December payroll (promotions, etc).
An Excel template is available at your text’s website. The Report forms are found onpgs7-49 to 7-66 in the textbook. A copyof the exceltemplateis posted below. Tips for completing project are in the folder.
Note: To edit the excel spreadsheet, you must enable editing once opened.
The project will be due in phases:
Week 5: Dec 4th payroll register, earnings records, journal, general ledger (60pts)
Week 6: Dec 18thpayroll register, earnings records, journal, general ledger and the end of year adjustments through February (75pts) and Audit Tests
Week 7: Reporting forms (75pts) pp 7-49 through 7-66
Assignment Submission instructions: Submit assignment as LAST NAME_Payroll Project PT 1
If you have any problems arriving at thecheckfigures, send the excel doc to me and I'll highlight what is incorrect. Just give me 24 hours to respond. If you work earlier on the project, you will be able to receive more assistance.
Grading Rubric for the project (Total 225pts):
Journal Entries………………… 50 points
General Ledger……… 20 points
Payroll Register……………… 50 points
Employees Earnings Records … 15 points
Reporting Forms ..................... 75 points
Audit Tests............................... 15 points
Tips on the December 4th payroll.
1. Make sure you read the entries before the payroll period begins as you will see some employees received promotions, some changed their allowances or marital statuses for this new pay period. The individual employee Earnings Record has been updated to reflect those changes but the payroll register has not.
2. Every employee who makes a SIMPLE plan contribution will have his/her FIT calculated onGross pay - SIMPLE contributionas employee retirement contributions are made with pre-tax dollars. (this only applies to the income tax)
3. Write the gross pay each employee for the employer side of the payroll taxes. The calculation made for the employer tax is the total gross earnings (underneath any caps) of all employees x the correct percentage (OASDI, HI, FUTA, SUTA). It is NOT made on an individual's gross pay but the total gross pay. Sometimes you will be off a few cents from the employee-side of the tax calculation.
4. Read the time sheetscarefully as they will indicate whether an absence is paid or unpaid.
5. When calculating a non-exempt salaried person's pay who does NOT work a standard workweek:
Gross pay= Regular salary for the week worked for the standard number of hours + hours worked in other weekx $ regular hourly rate. Both figures are found in the earnings record for each individual. Make sure all OT is in the OT column.
You can email me your excel sheet if you cannot get the check figures and I'll be happy to help, look it over and explain where mistakes are. Give me 24 hours at minimum to respond. I do not want you to spend hours getting it to balance if I can help you find the error (s) faster.