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Flow Chart for Payroll
Payroll
A full service payroll processing company called Payroll Paid Promptly (PPP) processes payroll. PPP charges a fee of 10% of the gross payroll for the payroll service. PPP calculates the payroll, creates and mails the checks to the employees and remits all payroll taxes and other withholdings to the appropriate locations. PPP drafts the cash needed for payroll disbursements and their fee directly from Mary’s Pool checking account. They send Mary a report once per month reflecting the transactions made on behalf of Mary’s Pool. Mary prepares a journal entry to reflect the payroll and updates the general ledger.
The employees, who are paid once a month, are as follows:
Lauren Allen, a salesperson at the showroom
Paul Barton and Ernest Callahan, traveling salesmen
Fred and Ted Hill, twins who work at the distribution center
students who study accounting are expected to be aware of current events that impact upon the profession and be able to
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