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Completing Departmental Payroll Records in Accounting

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  • 0:03 Payroll Records
  • 0:59 Data Needed
  • 1:25 Entering Information
  • 3:10 Issuing Paychecks
  • 3:33 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

Entering payroll information correctly into your accounting system is extremely important so your financial records are accurate. An accurate financial record may be in less danger of being audited.

Payroll Records

Business owners know and understand the importance of keeping accurate financial records. Come tax time, an accurate financial report makes it that much easier to put in the required numbers. Also, an accurate financial report also keeps you, as a business owner, more likely to be safe from IRS audits. And even if you do get audited, your accurate financial records are there to back up your tax filings.

Part of your accurate financial records are your payroll records. Your payroll records are your records of your employees and how much you have paid them and when. In this lesson, we'll see how you can enter your payroll records properly in your accounting system. Yes, there are different types of accounting systems, but regardless of the type of system you use, you still need to record certain pieces of information. This process is also a necessary part of making sure your employees are paid accurately and reimbursed appropriately for time worked.

Data Needed

The data that you need in order to complete your payroll records in accounting are the following:

  • Employee name
  • Employee address
  • Pay period
  • Amount employee worked
  • Pay rate
  • Gross pay
  • Tax withholding
  • Health deductions
  • Other deductions
  • Retirement deductions
  • Net pay

Once you have all this information, you can then enter all this information into your accounting system.

Entering Information

Let's look at an example of how this information is entered into an accounting system.

Here is the information you have gathered for one particular employee:

  • Employee name: Amber Shrader
  • Employee address: 123 State St., Valley High, CA 00444
  • Pay period: May 2, 2016 - May 15, 2016
  • Amount employee worked: 80 hours
  • Pay rate: $24.12
  • Gross pay: $1,929.60
  • Tax withholding: $432.32
  • Health deductions: $80.00
  • Dental & vision deductions: $45.00
  • Retirement deductions: $250.00
  • Net pay: $1,122.28

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