Accounting and Payroll OA for cxc students

office administration cxc

1. ACCOUNTING
OFFICE

2. POEM
Accounts and finance, learn with me,
Roles and functions, soon you'll see.
Payroll, credit, collect accounts,
Debit, credit notes we bounce,
Audit prep, it's all in sight,
Accounts office shines so bright.
Current, savings, fixed deposit,
Bank accounts, now you know it.
Clerks write cheques and reconcile,
Ledger entries all the while,
Statements, cash books, final too,
Journaling and billing do.

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Filing, equipment operate,
These tasks we don't underrate.
Integrity's our guiding star,
Confidential, that's who we are.
Reliable and honest too,
Attributes we bring to you.
CCOUNTS and FINANCE, now we know,
All the things that help us grow!

3. Hello!
Lets Discuss
Key Documents in Accounting and Payroll
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4. 1. Payslip
• Gross pay • Allowances • Income tax deductions • Net pay

5. Definition: List of employees and their due
payments for a period
Frequency: Weekly, bi-weekly, or monthly
Key formulae: • Gross pay = Basic Earnings +
Overtime + Bonus/Commission • Net Pay =
Gross pay – Total deductions

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8. 2. Payroll Calculations

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●Payroll for hourly workers – To calculate the pay of hourly workers, a few documents such
as a timecard or timesheet are required. Timecard or timesheet is a piece of relevant
information for payroll calculation as it contains the required details of hours worked by an
employee or worker. To calculate the payroll based on hourly requirements, the
organization also needs the rate assigned to the various classes of employees or workers.
For example: if the worker has worked 38 hrs. A week and the payment schedule is for
weekly payments with a rate of $12 an hour; the calculation would be 38 hrs. * 1 week *
$12 per hour = $146.

●Payroll Calculation for Salaried Workers – The U.S Department of Labor states that
employees with a fixed salary are paid in terms of salary as a fixed amount. Generally, the
fixed pay receiver is not entitled to overtime bonuses. Also, the DOL( Dept. of Labor) has
specified criteria for calculating overtime payments, so it is better to comply with the
criteria laid by DOL and work out the salary payments. For example, an employee has an
annual salary of $84000 and is being paid semi-monthly. Calculate the pay per salary for
that particular person. $84,000 / 24 = $3500.

10. Information needed for gross pay:
• Basic salary/wage rate • Hours worked •
Overtime hours and rate • Bonuses or
commissions
Information needed for net pay: • Gross
pay • Tax deductions • Other deductions
(e.g., insurance, pension)
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Net pay is the amount of money you receive
from your employer after taxes and other
deductions have been taken out Gross pay is
the total amount of money an employee earns
for time worked, before any taxes or deductions

11. This is a slide title
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12. Example
Get out your books and lets begin
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Tony is employed in a grocery store in the U.S
and gets a salary of $10.50 per hour. First,
calculate the total amount to be deducted and
withheld under the payroll formula. The health
insurance rate is every week. Next, calculate
the Net amount receivable to Tony; we need to
make certain adjustments for taxes and other
deductions.

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· =$33.92 + $14.36 + $37.91 + $79.00 + $110
· =$275.19 - $399
· =$123.81
It indicates that out of total earnings or gross pay of $399, only $123.81 would be received by Tony after all
deductions.

Question :
What is Tony’s Gross wage?
What is his NET wage?

17. 3. Currency Memorandum
Definition: Document to record disbursement of money for
wages
Purpose: To track cash distribution from largest to smallest
denominations

18. EXAMPLE
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Date Payee
Name
Description/ Purchase
details
Amount Transaction
Type
Transaction
No.
Dr. Cr.
MM/ DD/
YYYY
ABC Machine Q $500
0
$500
0
Check XXXXXXXXXX
MM/ DD/
YYYY
XYZ Equipment R $900
0
$900
0
ETF XXXXXXXXXX

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21. Lets Continue
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22. 5. Credit Note
Definition: Document used to correct overcharge on an invoice
Purpose: To adjust billing errors in favor of the customer

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24. 6. Debit Note

●Definition: Document made by seller when customer is
undercharged
●Purpose: To correct undercharging or add additional
charges

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26. How to calculate debit and credit
notes
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27. THANKS FOR
LISTENING!