Payroll - Employment and Earnings Record
Purpose: Calculate and record payroll
earnings
Master List File Name: PAYRECRD and PAYRECD2
Format: 2 Pages, 1 Part
Once you have employees in your shop, a whole new multitude
of new government record keeping and reporting becomes necessary. This form is ideally
suited to record and maintain the information you will need for the US government, as well
as to calculate payroll checks
Use: The job of this form is actually
twofold. It acts first as a record of earnings for payroll and reporting purposes, but it
also serves as a brief employment history of the employee. The top section contains name,
address and social security information. It also has spaces for salary history, starting
date, withholding status (number of exemptions chosen on the governments W-4 form) and a
small amount of termination data for employees who are no longer with the company. As you
end one year and start another, be certain to create a new form for each employee,
verifying all information and transferring start date, social security number, etc to the
next form. Most people do not print this form with the pages back to back, but instead use
two separate pages because you are writing weekly or at least twice monthly on either side
of the form. If you do print it back-to-back, use a heavier paper stock.
To use the form, start by filling out the employee's personal
information, and marking the year for which this form serves. The form has separate
sections for each quarter of the year. When performing payroll calculations for an
employee, create a new line in the appropriate quarter, and enter the date that the
payroll period ended, and the gross pay you have calculated from the employees time card. In the deductions area, calculate the employee's
portion of social security and Medicare taxes by multiplying the gross payroll by the
current government figure for each tax.
Federal and State deductions are usually calculated using
state and federal tax tables, locating the proper withholding status on the table, and
entering the withholding amount corresponding to the gross pay. An other column is
provided which may be customized for use with additional withholdings. Add all the
deductions together for this line, and enter that figure in the total deductions column.
Net pay is then calculated by subtracting total deductions from gross pay.
At the end of each quarter, add up the amounts in all
columns, and enter those figures in the "Total" row of the quarter. Also, enter
those same figures in the appropriate columns of the "Record of Annual Earnings"
section on the second page. At the end of each quarter, these totals will supply the
information you need to supply on state and federal government reports. At the end of the
year, you can add up the columns in the "Record of Annual Earnings" section to
obtain the data you need for end of the year reporting.
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