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Overview

Student managers will prepare time cardsbefore the biweekly payroll register is

completed.Except for Pettisville Bank, every business will

hire a new employee during July and makeentries on the new employees time card each

day.

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Business Forms

1. Federal Tax Deposit Cards

2. Notice of employment forms

3. Payroll registers4. Time cards

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Manager Tip

All student managers make $1,352.00 biweeklyand claim zero exemptions.

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Business Ethics

If you ask a coworker to punch your time card,you can expect to be terminated from your job

immediately.

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HelpingManagers

Errors made on payroll registers most oftenoriginate from new employee time cards.

Calculating overtime rates, listing daily hoursworked and computing total hours worked arecommon mistakes.

You should show your instructor the new

employees time card before completing thebiweekly payroll register.

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Manager Tip

Because of the size of their businesses, TheDenim Maker, Pettisville Bank, and United

Communications each have 11 or 12 employeetime cards.

The remaining businesses have 5 or 6 timecards.

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When you are finished with your payroll, bringit to your instructor.

At this point your instructor will initial in the

upper right-hand corner of the form.Managers will write one check for Cash to pay

their employees.

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Two businesses do not write checks for payroll.

The Post Office mails its payroll register to thePostal Data Center for payment

The Denim Maker uses electronic funds transferat Pettisville Bank. Although The Denim Makerdoes not write a check for payroll, the manager

should deduct the gross pay from the checkregister and the cashbook.

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The value of employee benefits often addsthousands of dollars a year to the totalcompensation package for an employee.

If there are two managers working at onebusiness, take turns preparing payroll. Payrollis prepared on July 16 and July 30.

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Businesses normally write separate paychecksfor each employee of the company. Sincewriting checks for every employee in this

simulation would be a cumbersome task, youare asked to write one check for cash.

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Employee Compensation

Commission a percentage of a sale.

Piecerate fixed amount paid for each piece

assembled. Salary a fixed amount paid for a period of time

worked

Wage a fixed amount paid for each hour worked.

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Manager Tips

FICA or Federal Insurance ContributionsActconsists of two taxes

Social Security

Medicare

In the model business community, PettisvilleBank is a depository for the InternalRevenue Service.

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FICA

This number is multiplied by2.

The employer and the employee share the cost.

When an employee is hired, it costs thecompany far more than just the employeeswages.

Employers must pay both FICA and FUTA whichis unemployment taxes on employees.

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CAREER PATHS

Accountant

Accounting clerk

Payroll clerk

Timekeeping clerk