Learning Objectives

1. Explain the major federal laws relating to employee earnings and withholding.
2. Compute gross earnings of employees.
3. Determine employee deductions for social security tax.
4. Determine employee deductions for Medicare tax.
5. Determine employee deductions for income tax.
6. Enter gross earnings, deductions, and net pay in the payroll register.
7. Journalize payroll transactions in the general journal.
8. Maintain an earnings record for each employee.
9. Define the accounting terms new to this chapter.