COMPUTERIZED PAYROLL ACCOUNTING
Upon completion of this appendix, you will be able to:
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Identify the components and procedures of a computerized payroll system.
Perform system start-up procedures.
Add, change, and delete employees from the payroll.
Enter and correct payroll transactions.
Generate payroll and employer’s payroll taxes journal entries.
Enter, correct, and find journal entries.
Display payroll reports.
Access the on-screen calculator and use Help information.
Introduction
Payroll is an application that lends itself well to the computer because of its repetitive procedures and calculations. Computerized payroll systems perform the same basic functions as those performed manually by payroll clerks. The important differences are the computer’s speed, accuracy, reliability, and ability to easily generate reports.
In a computerized payroll system, the computer stores data such as an employee’s name, address, social security number, marital status, number of withholding allowances, pay rate, and voluntary deductions. At the end of each pay period, the operator enters all payroll transactions data, such as regular and overtime hours for each employee, deductions, etc., into the computer. The computer calculates all withholding taxes and other deductions and accumulates and updates the earnings and withholdings.
After entering payroll transaction data for the current pay period, a payroll report may be displayed to verify the earnings and withholdings for the month, quarter, and year. Next, the current payroll and employer’s payroll salary expense, payroll taxes expense, and withholding liabilities journal entries are automatically generated and posted to the general ledger. A general journal report and general ledger report are displayed. At the end of the quarter, and at the end of the year, the taxable earnings report is displayed, from which the appropriate reports (e.g., quarterly reports and W-2 statements) may be prepared.
The material that follows provides detailed operational information for running the enclosed software in the Windows 95, Windows 98, Windows ME, Windows NT,
Windows 2000, and Windows XP environments. If you are familiar with any of these user interfaces, you may go directly to the payroll project beginning on page A-00 immediately after software installation.
Software Program Overview
To complete the payroll project in this text-workbook, you will be using the Payroll software that is included in the Integrated Accounting Version 5.0 software. This software uses a standard user interface with pull-down menus, movable overlapping windows, mouse support, list windows, and help windows. This standard interface resembles the interface used in many other software applications. Most of the techniques you will learn can be applied to many other software packages. The following material will cover only those features of the software that you will need to complete the payroll project.
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Computerized Payroll Accounting User’s Guide
INSTALLATION AND MEMORY REQUIREMENTS
The Integrated Accounting for Payroll software contained in this package comes complete on a standard CD (compact disk). To use the software, you need a processor running in the
Windows 95, Windows 98, Windows ME, Windows NT, Windows 2000, or Windows XP environment. In addition, a hard disk drive with at least 15 megabytes of available disk space and a CD drive is required for installation. A printer is optional but highly recommended. The installation CD included in the software package contains compressed Integrated
Accounting program files and the opening balance payroll accounting file required to complete the payroll project in this text-workbook. During the installation process, all of the compressed files are expanded into an executable format onto your computer’s hard disk. The
