|
|
|
| Liz Van Handel - Ch.14
Chapter
14 – Payroll Accounting, Taxes and Reports
Before Each Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
for the Unit
¨ Lesson Plan, textbook, working papers and keys. ¨ Overhead transparencies, handouts and test. ¨ Sign up for computer lab time. ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨ Gradebook Ch. 14 Unit
Objectives
1. Define accounting terms related to payroll accounting, taxes and reports. 2. Identify accounting concepts and practices related to payroll accounting, taxes and reports. 3. Analyze payroll transactions and record a payroll. 4. Record and prepare payroll taxes and reports. 5. Pay and record withholding and payroll taxes. Assumptions: A
50 minute class period and students bring textbook, working papers and
calculator to class each day. 5 Day Lesson Plan – continued
page 2
Day 1 – Ch. 14 Payroll Accounting, Taxes and Reports
Before Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
¨ Lesson Plan, textbook, working papers and key. ¨ Overhead transparencies and handouts (see below). ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨ Gradebook 1.
Introduction to Chapter 14
Time Estimate: 20 minutes Purpose: To introduce Payroll Accounting, Taxes and Reports.
Visuals/Materials: Textbook, Overheads – Payroll Taxes, Employer Paid Payroll Taxes, Calculating Employer Paid Taxes, Journalizing Payment of
Employee and Employer Taxes and blank T accounts & Journal page and
Handout - Calculating Employer Paid Taxes. “I’d like to start out the class by asking a few questions - 1) How many of you work? 2) How many of you are paid by payroll check and receive a check stub? 3) How many of you know what information is on your check stub?” (Using overhead, generate a list of items that the students think is on
their check stubs). “All of the items that we listed are deductions that are withheld from your pay checks – some are voluntary and as we learned in the last chapter, the government requires each employee to pay taxes which are mandatory - FICA. The government also requires employers to pay taxes on their employees – and that is what Chapter 14 is about – Payroll Accounting, Taxes and Reports.” (Put the “Payroll Taxes and Deductions” transparency on the
overhead). “Some payroll taxes and deductions that are paid by the employee are – Federal Income Tax Social Security Tax Medicare Tax Health Insurance Deduction Other Deduction – such as United Way or U. S. Savings Bonds.” 5 Day Lesson Plan
– continued
page 3 “There are 4 typical employer paid payroll taxes – can anyone take a guess at what they might be? Social Security Tax Medicare Tax Federal Unemployment Tax State Unemployment Tax As you can tell on the chart, Social Security Tax and Medicare Tax are paid both by employee and employer.” (Pointing to the overhead – state) “Federal Income Tax, Social Security Tax, Medicare Tax (employee side) and Unemployment Tax – State and Federal (employer side) are liabilities of the company to the government. Health Insurance is a liability owed to the Insurance Company as well as the other deductions are liabilities to United Way and U.S. Savings Bonds. Since these items are liabilities - something the company owes. And the normal balance of a liability is? (credit). Payroll taxes are a business expense of the company – and expenses have a normal balance of? (debit).” (Put the “Employer Paid Payroll Taxes” transparency on the
overhead). “The 4 main employer paid payroll taxes are: (read definitions aloud) 1. Social Security Tax 2. Medicare Tax 3. Federal Unemployment Tax 4. State Unemployment Tax” “So, we know that employees and employers have to pay taxes to the government, HOW and WHERE do we record payroll taxes information? ü Payroll information for each pay period is recorded in the Payroll Register. ü Each employee’s individual payroll information is recorded in the Employees Earnings Record. ü Separate Payroll accounts for each employee are NOT kept in the general ledger. The General Ledger contains accounts that summarize total earnings and deductions for all employees. ü Thus, using Payroll Register and Employee Earnings Record will enable you to prepare payroll and payroll taxes.” “Open your books to page 332. You’ll see an example of a Payroll Register, which includes: ¨ Pay period timeframe ¨ Employee number and name, Marital Status and Number of Allowances ¨ Earnings Information is shown in Columns 1-3 ¨ Deductions are shown in Columns 4-9 (state each) ¨ Net Pay is in Column 10 ¨ Check number.” 5 Day Lesson Plan – continued page 4 (put transparency “Blank T and Journal page” on the overhead) “If we analyzed this payroll, using T accounts – who can tell me what we’d debit and credit?” (record response). “And to make a Journal entry, what would we do?” (record response). (Hand out “Calculating Employer Paid Taxes” Worksheet and put
“Employer Paid Payroll Taxes” transparency on overhead). “Using the information given on the overhead, calculate the employer paid taxes that are needed.” (When students have completed the worksheet, put “Calculating Employer Paid Taxes” transparency on overhead and fill in answers from class). (put transparency “Blank T and Journal page” on the overhead and
record) “If we analyzed the employer paid taxes, using T accounts – we’ll debit - Payroll Taxes Expense for $315.72 and credit – Soc. Sec. Tax Payable for $247.26 Medicare Tax Payable for $57.07 Unemployment Tax Payable-Federal for $1.47 Unemployment Tax Payable-State for $9.92” “And to make the
Journal entry, we would (ask for a
volunteer and record the response).” “So far, we’ve recorded the
employees tax liability and we’ve recorded the employers tax liability.
Now we need to pay the tax liability to the government.
(put transparency “Journalizing Payment of Employee and Employer
Taxes” – read aloud and record entries). Before proceeding, visually scan the room to see if everyone’s on track and ask for any questions/clarification before moving on. Check and record time: ______ 2.
“Work Together”
Discussion
Time Estimate: 5 minutes Purpose: To expand on each section of the Chapter to the students.
Visuals/Materials: Textbook.
Using the textbook, read aloud and walk through each of the “Work Together” found in Chapter 14 – 14-1 on page 335 14-2 on page 340
Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5 Day Lesson Plan – continued page 5 3.
Seat Work
Time Estimate: 20 minutes Purpose: To allow students to read, comprehend and ask questions about thechapter.
Visuals/Materials: Textbook and working papers. Instruct to the students that they have time to start reading the chapter. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 4.
Assignment
Time Estimate: 5
minutes Purpose: To assign and clarify homework.
Visuals/Materials: Chalkboard. Write on the chalkboard the assignment that is due tomorrow and read aloud: ü Read Chapter 14 ü Do each of the “Audit Your Understanding” – 14-1 thru 14-2. ü Do each of the “On Your Own” problems - 14-1 thru 14-2. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ Evaluation
Date: __________________________ Class size: _______________
Record actual time of each: 1. Introduction to Chapter 14 _______ minutes. 2. Work Together _______ minutes. 3. Seat Work _______ minutes. 4. Assignment _______ minutes. What worked? What didn’t? _________________________________
What changes or improvements should be made? _________________
5 Day Lesson Plan – continued page 6 Day 2 – Ch. 14 Lesson Plan
Before Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
¨ Lesson Plan, textbook, working papers and key. ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨
Gradebook 1.
Review
Homework
Time Estimate: 5 minutes Purpose: To review, correct and answer questions.
Visuals/Materials: Textbook and working papers. Review answers to each section: ü “Audit Your Understanding” – 14-1 thru 14-2. ü “On Your Own” problems - 14-1 thru 14-2. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 2.
Question & Answer
Time Estimate: 5 minutes Purpose: To allow the students an opportunity to ask questions.
Visuals/Materials: Textbook and
working papers.
With the discussion generated by the homework, determine where they are having problems and clarify the correct answers/procedures. Also, allow the students time to ask their own questions about the chapter.
Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5 Day Lesson Plan – continued page 7 3.
Lecture
Time Estimate: 10 minutes Purpose: To introduce Reporting Withholding and Payroll Taxes (14-3).
Visuals/Materials: Textbook. “Turn to page 341 in your textbook. Shown is a picture of a W-2 Wage and Tax Statement. A W-2 shows the employees earnings and withholdings, such as Federal Income tax, Social Security and Medicare taxes for the year. A W-2 needs to be prepared for each employee of the company by January 31 of the following year. There are 4 parts to the W-2 that the employee uses for tax purposes. Also, the employer sends a copy to the Social Security Administration and keeps another copy for their own business records.” “Turn to page 342. Here you will see a Employer’s Quarterly Federal Tax Return. Employers are required by law to periodically report the payroll taxes that are withheld form employees and the employer payroll taxes that are due to the government (either quarterly or annually). The quarterly Federal Tax Return Form 941 shows the amounts of the Federal Income tax, Social Security tax, and Medicare tax that are due to the government. Form 941 must be filed before the last day of the month following the end of the quarter. The quarter dates are March 31, June 30, September 30 and December 31, when are the due dates? (April 30, July 31, October 31 and January 31). In order to prepare Form 941, information form the Employees Earnings Record is used. “Looking at the example on page 342 – #1 – is the Company name and address #2 – the number of employees #3 – the total quarterly earnings of all employees #4 – is the total amount of income tax withheld from employees for the quarter #5 – the Employee and Employer Social Security and Medicare taxes. Can anyone tell me the tax rate for Social Security? (6.5%). And the tax rate for Medicare? (1.5%). One line 6A - we see 13% for Social Security tax and on line 7A – we see 3% for Medicare tax. Why do you think they have these tax rates? (ask for response). For Social Security – there’s the employees 6.5% that was withheld and then the employers 6.5%, which equals 13%. Similarly, for Medicare tax, there’s the employees 1.5% that was withheld and then the employers 1.5%, which equals 3%. #6 – we add together the Social Security and Medicare taxes. #7 – total taxes due to the government (Federal Income, Soc. Sec. & Medicare) #8 – the total taxes for each month #9 – total taxes due to the government for this quarter. Read aloud and walk through Work Together 14-3 on page 345. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5 Day Lesson Plan – continued page 8 4.
Application Problems
/Seat Work
Time Estimate: 25 minutes Purpose: To allow students to work on application problems and ask forassistance.
Visuals/Materials: Textbook and working papers. Instruct students to start working on Audit Your Understanding and On Your Own 14-3 on page 345 and Application Problems 1-3 on pages 353-354. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5.
Assignment
Time Estimate: 5
minutes Purpose: To assign and clarify homework.
Visuals/Materials: Chalkboard. Write on the chalkboard the assignment that is due tomorrow and read aloud: ü Audit Your Understanding – 14-3 ü On Your Own – 14-3 ü Application Problems – 1-3. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ Evaluation
Date: __________________________ Class size: _______________
Record actual time of each: 1. Review Homework _______ minutes. 2. Question & Answer _______ minutes. 3. Lecture _______ minutes. 4. Application Problem/Seat work _______ minutes. 5. Assignment _______ minutes. What worked? What didn’t? _________________________________
What changes or improvements should be made? _________________
5 Day Lesson Plan – continued page 9 Day 3 – Ch. 14 Lesson Plan
Before Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
¨ Lesson Plan, textbook, working papers, key and overhead. ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨ Gradebook 1.
Review
Homework
Time Estimate: 15 minutes Purpose: To review, correct and answer questions.
Visuals/Materials: Textbook and working papers. Review answers to: Audit Your Understanding & On Your Own 14-3 and Application Problems 1-3. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 2.
Lecture
Time Estimate: 10 minutes Purpose: To reintroduce Paying Withholding and Payroll Taxes (14-4).
Visuals/Materials: Textbook and overhead – Journalizing Payment of Employee and
Employer Taxes. “Employers must pay federal, state and local payroll taxes. The frequency of payments is determined by the amount of the liability owed (usually monthly or semiweekly). The Monthly Schedule Depositor must pay the total amount due by the 15th of the following month on Form 8109 – Federal Tax Deposit Coupon as shown on page 347. Similarly, federal unemployment tax is due by the end of the month following the quarter if over $100. This is also paid to the government with Form 8109 on page 349. How do they differ? (ask for response and compare the two). “So far in the journal, we’ve recorded the employees tax liability and we’ve recorded the employers tax liability. Now we need to record the payment of the tax liability to the government (put transparency “Journalizing Payment of Employee and Employer Taxes” – read aloud and record entries). Read aloud and walk through Work Together 14-4 on page 351.” Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5 Day Lesson Plan – continued page 10 3.
Application Problem
Time Estimate: 20 minutes Purpose: To reinforce information learned.
Visuals/Materials: Textbook and
working papers.
Instruct students to start working on On Your Own 14-4 on page 351 and Application Problem 14-4 on page 354.
Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 4.
Assignment
Time Estimate: 5
minutes Purpose: To assign and clarify homework.
Visuals/Materials: Chalkboard.
Write on the chalkboard the assignment that is due tomorrow and read aloud: ü On Your Own 14-4 ü Application Problem 14-4. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ Evaluation
Date: __________________________ Class size: _______________
Record actual time of each: 1. Review Homework _______ minutes. 2. Lecture _______ minutes. 3. Application Problem _______ minutes. 4. Assignment _______ minutes. What worked? What didn’t? _________________________________
What changes or improvements should be made? _________________
5 Day Lesson Plan – continued page 11 Day 4 – Ch. 14 Lesson Plan
Before Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
¨ Lesson Plan, textbook, working papers and key. ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨ Gradebook 1.
Review
Homework
Time Estimate: 10 minutes Purpose: To review, correct and answer questions.
Visuals/Materials: Textbook and working papers. Review answers to On Your Own 14-4 and Application Problem 14-4. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 2.
Application
Problem
Time Estimate: 20 minutes Purpose: To reinforce information learned.
Visuals/Materials: Textbook and
working papers.
Instruct students to complete Mastery Problem 14-5 on page 354. When all students are finished, go over the answer.
Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 3.
Review for Test
Time Estimate: 20 minutes Purpose: To review and clarify.
Visuals/Materials: Textbook and
working papers.
Allow for final question and answer time period about Ch. 14 in preparation for the unit test.
Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ 5 Day Lesson Plan – continued page 12 Evaluation
Date: __________________________ Class size: _______________
Record actual time of each: 1. Review Homework _______ minutes. 2. Application Problem _______ minutes. 3. Review for Test _______ minutes. What worked? What didn’t? _________________________________
What changes or improvements should be made? _________________
5 Day Lesson Plan – continued page 13 Day 5 – Ch. 14 Lesson Plan
Before Class
Starts
ü Bring materials needed (see below) ü Check the placement and working order of the overhead projector. Materials Needed
¨ Lesson Plan, textbook, working papers and key. ¨ Test ¨ Chalk, markers, pens and pencils. ¨ Daily Attendance sheet and seating chart. ¨ Gradebook 1.
Test
Time Estimate: 50 minutes Purpose: To measure student learning.
Visuals/Materials: Test. Administer the test. I chose test version 14-A because it was a better measure of student performance than test version 14-B. Before proceeding, visually scan the room to see if everyone’s on
track and ask for any questions/clarification before moving on.
Check and record time: ______ Evaluation
Date: __________________________ Class size: _______________
Record actual time of each: 1. Test _______ minutes. What worked? What didn’t? _________________________________
What changes or improvements should be made? _________________
Journalizing Payment of Employee and Employer Payroll
Taxes January 15: Paid
cash for liability for employee income tax, $542.00;
social security tax, $985.40; and Medicare tax, $227.42; total, $1,754.82. Check No. 330. January 31: Paid
cash for federal unemployment tax liability for quarter
ended December 31, $8.40. Check
No. 343. January 31: Paid
cash for state unemployment tax liability for quarter
ended December 31, $56.70. Check
No. 344. Payroll Taxes and Deductions
Employee Paid
Employer Paid
Federal Income Tax
Health Insurance
Unemploy. Tax – Federal
Other -
Unemploy. Tax – State
United Way
Savings Bonds Employer Paid Payroll Taxes 1) Social Security Tax* – 6.5% of earnings up to a maximum of $65,400 in
each calendar year. 2)
Medicare Tax* – 1.5% of total employee earnings. 3)
Federal Unemployment Tax – .8% of the first $7,000 earned by each employee for each calendar year. 4)
State Unemployment Tax –
5.4% of the first $7,000 earned by
each employee
for each calendar year.
*
= paid by employee and employer Frequency and
method of payment of these taxes that are due to the government are determined
by the total amount of tax paid each year (quarterly, monthly, semiweekly or
daily).
Calculating Employer Paid Taxes
|
