Page 258 - Essentials of Payroll: Management and Accounting

EXHIBIT 9.3 Payments to Employees
Stamp for Pay Envelope

Employee Name Wilbur Smythe
Pay Period Beginning Date May 8
Pay Period Ending Date May 15

Hours Worked Regular: 40 Overtime: 5
Hourly Rate Regular: $ 10 Overtime: $ 15

Earnings Regular: $ 400 Overtime: $ 75
Total Earnings $ 475

Pay Deductions

Social Security Tax $ 29
Federal Income Tax $ 100
Medicare Tax $ 12

State Income Tax $ 47
Total Deductions $ 188
Net Pay $ 287

of which is shown in Exhibit 9.4. This receipt allows you to

manually list the name of each employee and the amount of
money paid. Each employee must sign this document at the time
of cash receipt. It is also useful to have them enter the date on
which they received the cash, as evidence against claims that
monies were paid out later than the state-mandated date.

The main problem with the form shown in Exhibit 9.4 is that each
employee signing the receipt can see the net amount paid to every
other employee on the list, which breaches the confidentiality of

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