Acc 250 Week 4 Dq's

Week 4 Discussion Questions

DQ #1: When entering information into any accounting system, it is important to enter hourly and salary employees correctly because if the information is entered incorrectly, not only will the employee’s check will be incorrect, tax and withholding amounts that will be affected. Also, if an employee has worked overtime, he or she will not get proper pay if they are labeled salary. Again, this causes a major problem for the employee. The same goes if the employee is hourly and is paid on a salary basis but does not complete the required hours. The company loses time and money. Neither is something a company wants to do!

If an employee’s payroll information is entered incorrectly, it could result in a loss of money for the company as well as legal troubles from the IRS for the company as well as the employee. A company could potentially face fines and penalties from their respective states if tax information is reported incorrectly. Also, an employee could be over paid and a company always has difficulty getting money back from an employee if they are overpaid.

DQ #2: I have actually set up a payroll system for a few employees, so there were a few things that were familiar. However, I did face a few challenges since I am very new to Peachtree. The first challenge I faced was the defaults. This was one area I was very careful to check and make sure everything was in place. I did not want to make the terrible mistake of not taking a deduction out of an employee’s check.

Another task I found challenging was the employee maintenance for an hourly employee. A salaried employee was very simple. Just put in the amount they would make bi-weekly or monthly. An hour employee was a little different. I calculated several times to make sure the overtime for an employee was 1.5 times their normal pay. A error here could result in over or underpayment for the employee.

While doing payroll, I just had to make sure that all numbers...