Glencoe Accounting

Unit 3: Accounting for a Payroll System

WebQuest Internet Project

You’re the Boss

TEACHER NOTES

In this project, students will investigate the benefits of working at five major U.S. companies. They will explore benefits packages, perks, and average salary ranges for employees who work for these companies. In addition, students will become familiar with motivational techniques used by employers. Reports prepared by students will also include information on employment taxes and tax forms.

The Guidance section of this WebQuest project contains questions that would be applicable for a whole-class discussion and for generating interdisciplinary connections. If you prefer, have each student research only one of the questions and add the information he or she finds to the final presentation of their WebQuest.

Several Web sites are included in the project to help students complete the WebQuest project. Encourage students to find additional sites and to share those sites with other students.

ANSWERS

  • Research indicates that gains in profits and productivity can be linked to satisfied employees. Turnover rates are lower and thus retraining costs are decreased.
  • Voluntary deductions might include life insurance payments, charitable contributions, union dues, health insurance payments, retirement contributions, or payments for U.S. Savings bonds.
  • Accurate payroll records aid management in controlling expenses and identifying where and how labor dollars are spent. Expenditures for overtime can be itemized and analyzed to pinpoint inefficiencies.
  • Employees receive a Form W-2 for each calendar year. The form contains gross earnings, federal tax withheld, FICA taxes withheld, and state and local income taxes withheld. It also contains the employee’s name, social security, and address, along with the employer’s name, address, and employer ID number.
  • $245,358.00 x 15.3% = $37,539.77

CHAPTER ANSWERS

Chapter 12

A business transaction in which the team issues a check for an amount owed to a creditor for the purchase of training equipment would decrease Accounts Payable and decrease Cash in Bank.

Chapter 13

  1. Federal income tax, social security tax, Medicare tax, and state or local taxes (if applicable) are withheld from an employee’s gross earnings.
  2. The employer is responsible for paying employer’s FICA taxes, federal unemployment tax, and the state unemployment tax.
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