Page 23 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
EXHIBIT 1.1
Overtime Trend Report

Name Jan Feb Mar Apr May Jun

Ashford, Mary 0 14.5 0 0 11.5 0
Grammatic, John 13.5 28.2 20.5 29.0 31.5 29.0

Lepsos, Harry 0 18.0 0 0 12.0 0

Morway, Alice 0 20.0 0 0 15.2 0
Zephyr, Horace 0 10.9 0 0 10.5 0

6. Calculate applicable taxes. The payroll staff must either use IRS-
supplied tax tables to manually calculate tax withholdings or have
a computerized system or a supplier determine this information.

Taxes will vary not only by wage levels and tax allowances taken,
but also by the amount of wages that have already been earned for
the year-to-date (see Chapter 7,“Payroll Taxes and Remittances”).

7. Calculate applicable wage deductions. There are both voluntary and
involuntary deductions.Voluntary deductions include payments
into pension and medical plans; involuntary ones include garnish-
ments and union dues.These can be made in regular amounts for
each paycheck, once a month, in arrears, or prospectively. The
payroll staff must also track goal amounts for some deductions,
such as loans or garnishments, in order to know when to stop

making deductions when required totals have been reached (see
Chapter 8,“Payroll Deductions”).
8. Account for separate manual payments. Inevitably there will be cases

where the payroll staff has issued manual paychecks to employees
between payrolls. This may have been done to rectify an incorrect

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