Chapter 11
Payroll
335
Payroll register
Since businesses usually have multiple employees, a payroll register is often used rather than
preparing individual entries. A payroll register will list every employee along with their gross pay,
deductions and net pay.The bottom of the payroll register will calculate totals that can be used to
complete the journal entries. Computer software will have a similar tool for creating paycheques
for multiple employees at one time.
Figure 11.9 shows a sample payroll register.The first person listed is our example of earning $4,500
gross pay per month as a salary.The rest of the employees are paid various hourly wages and work
a different number of hours. We will assume all employees must pay monthly union dues of $50
and monthly health insurance of $15. The monthly health insurance premiums are actually $30
per person, but the business pays half. By completing the rest of the payroll information for all the
employees, we can use the totals to create our journal entries.
Payroll PerioD January 1 to January 31, 2015
name
Hourly
Wage Hours
gross
earnings
Booth, Glen
160
4,500.00
Dickens, Charlie
$18.00
170
3,060.00
Smith, Adam
$18.56
160
2,969.60
Wood, Amy
$19.23
175
3,365.25
Totals
$13,894.85
Payroll register
Deductions
gross
earnings
cPP
ei
income
tax
union
Dues
Health
insurance
total
Deductions net Pay
4,500.00
208.31
84.60
802.90
50.00
15.00
1,160.81 $3,339.19
3,060.00
137.03
57.53
403.25
50.00
15.00
662.81 $2,397.19
2,969.60
132.56
55.83
387.55
50.00
15.00
640.94 $2,328.66
3,365.25
152.14
63.27
469.90
50.00
15.00
750.31 $2,614.94
$13,894.85 $630.04 $261.23 $2,063.60 $200.00
$60.00 $3,214.81 $10,679.98
______________
FIGURE 11.9
