20 terms

Payroll Setup- QuickBooks 2014 Certification Part. 1

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Terms in this set (...)

Payroll
*Total amount required to pay workers and employees during a week, month or other period.
*The total amount earned by all employees for a pay period.
Payroll System
A payroll system involves everything that has to do with the payment of employees and the filing of employment taxes. This includes keeping track (or a record) of hours, calculating wages, withholding taxes and other deductions, printing and delivering checks and paying employment taxes to the government.
W-4
A W-4 form is a form completed by an employee to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck.
Pay period
The number of days or weeks of work covered by an employees paycheck.
Weekly
Employees are paid every week, 52 times a year.
Biweekly
Employees are paid every two weeks, 26 times a year.
Semimonthly
Employees are paid twice a month, 24 times a year.
Overtime
Pay earned for working more that 40 hours a week.
Overtime (x1.5)
Is payment to a worker (or workers) at 1.5 times their usual hourly rate.
Overtime $22.50
If you get paid $15 an hour and worked over 40 hours in a week, the extra hours will be paid to you at 1.5 x $15 = $22.50.
Wage
The amount paid to an employee for every hour worked.
Salary
A fixed annual(yearly) sum of money divided among equal pay periods.

For example, Mr. Johnson is an accountant and he gets paid a salary of $65,000 a year.
Commission
A method of paying an employee based on the amount of sales the employee generates. Commissions are normally calculated as a percent of employee sales.
$500
If you sell $5,000 worth of items and earn a 10% commission, how much money would you make?
Employee deductions
Money the company deducts from employees earnings to pay for medical insurance benefits, retirement plan savings, federal and state taxes, etc.
QuickBooks Option 1- Basic Payroll
You can prepare your own Payroll in-house using QuickBooks Basic Payroll. This option is recommended for users who want a cost-effective (cheap) way to maintain control and flexibility of their Payroll process. Basic Payroll utilizes up-to-date tax tables that automatically calculate Employee deductions, and fills out the company's federal tax forms.
QuickBooks Option 2 - Enhanced Payroll
This option is recommended for users who need a comprehensive in-house Payroll solution that offers all the features of Basic Payroll plus additional features like state Payroll forms, workers' compensation tracking, and one-step net-to-gross calculations. Like the Basic Payroll option, Enhanced Payroll utilizes up-to-date tax tables that automatically calculate Employee deductions, and fills out the company's federal tax forms.
QuickBooks Option 3 - Assisted Payroll
This option is recommended for users who want all the flexibility of processing their own Payroll found in Enhanced Payroll, but would like Intuit (the company that makes QuickBooks) to complete all of their tax filings, deposits, and W-2s.
QuickBooks Option 4 - Full Service
Intuit handles all aspects of payroll.
Payroll Setup Interview
In QuickBooks, "The Payroll Setup Interview" is a set of windows that walks you through the setup of payroll.