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Simple Payroll... |
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| Syllabus | Class Sessions | Links | Grading | Assignments | ||
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Compensation, Payroll and Deductions |
| Simple Payroll Deductions | |||
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It costs money to hire and pay your employees.
Additionally, you have issues around employees involving
Employees earn money as Salaries, Hourly Wages,
Bonuses and Commissions Earned. An employer must withhold and pay money
for the employee to various government agencies to which the employee
owes money. This is basically a service to the employee. Formulas: Total Income - exclusions = Gross Earnings Gross Earnings - deductions = Net Taxable Earnings |
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| Deductions | Employee | Employer | Paid To |
| F.I.T. | W-4 chart | Federal | |
| S.I.T. | W-4 chart | State | |
| FICA | |||
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S. S.
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6.2% 1st $53,400 |
6.2% matched |
Federal |
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Medicare
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1.45% 1st $125,000 | 1.45% matched |
Federal |
| SDI | 1.25% on $31,767 |
1.25% matched |
State |
| FUTA (6.2%) | .8% 1st $7,000 |
Federal (assume 5.4% state credit) |
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| SUTA (1.3-5.4%) |
5.4% 1st $7,000 |
State | |
| Others | |||
| Union Dues | $ paid | Union | |
| Benefits | $ paid | contribution | Business |
| Retirement | $ paid | contribution | Bus/Bank |
| Pensions | $ paid | contribution | Bus/Bank |
| Charities | $ paid | optional |
not-for-profit |