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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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