Chapter-19-Paying-Taxes.ppt

19-1Paying Taxes CHAPTER 19CHAPTER 1919-2Learning objectivesl1.Be able to collect and deposit employee taxes.l2.Be able to tally up the employers share of Social Security and Medicare.l3.Be able to file and pay unemployment taxes.19-3PAYING TAXESEmployee payroll and taxes1Employer-paid taxes219-4Employee payroll and taxes Pay Periods Deciding on Wages and Salaries Employee Taxes 19-5Pay PeriodsYou may decide to use one of these pay periods,and you can even choose to use more than one type.WEEKLYBIWEEKLYSEMIMONTHLYMONTHLYWhatever you choose,conduct a consistent pay period policy and be sure to make it clear to employees when theyre hired.19-6Deciding on Wages and SalariesExempt employees Nonexempt employees EMPLOYEES 19-7Exempt employees exempt from the Fair Labor Standards Act(FLSA),These high-paid employees are exempt employees.They often work well over 40 hours per week without extra pay.Executives,administrative personnel,professionals,computer specialists,outside salespeople and managers,19-8Nonexempt employees FLSA companies must pay nonexempt employees a minimum wage Police,firefighters,paramedics and other first responders 19-9Employee Taxes Employee Taxes Social Security Tax Medicare taxes 19-10Social Security Taxan employee who earns$500 per pay period EMPLOYEE EMPLOYER$500*0.062=$31$500*0.062=$3119-11Medicare taxesan employee who earns$500 per pay period$500*0.0145=$7.25EMPLOYEE EMPLOYER$500*0.0145=$7.2519-12Employer-paid taxes Social Security and Medicare Unemployment Taxes 19-13 Social Security and Medicare Number of employees Total of wages,tips,and other compensation Total tax from wages,tips and other compensationTaxable Social Security and Medicare wagesTotal paid out to employees in sick pay Adjustments for tips and group-term life insurance Amount of income tax withholding19-14 Unemployment Taxes Benefit ratio formula Benefit wage formula Payroll decline ratio formula Reserve ratio formula Unemployment Taxes19-15WE ARE SAILING RIGHT ALONG!