yo yo yo what's happening everybody welcome back once again I know that was
a little presumptuous but I am CPA strength I am the strongest licensed CPA
in the state of Florida and what do you do I teach the world accounting by the
basics building block by building blocks by building blocks now before we get
into this special episode of the classic series episode 51 accounting for
beginners number 51 and beat over 51 we all talk about payroll
what about payroll for this one and maybe next couple couple videos we're
gonna do payroll we're gonna switch gears with we'll switch up the gears
we're just going to go payroll the 50 is going to be payroll anyway look up here
this is the best the best barn on playlist in the world it happens to be
an accounting playlist and they'll make all your dreams come true whatever they
are so just hit play right here thank you very much I was thinking now what
can I do now what account after the big 50 the big 50 celebration right now what
do I do now I was trying to I want to get 50 well and I'll go I'll go to peril
I haven't touched on payroll I know I have got a couple questions if I could
touch on payroll some put some payroll caveats this one is do this one is a
weekly paycheck weekly paycheck weekly employee paycheck there sorry jump cut
back here boy for you or any of these accounting
problems and I do think you have to put a hat on you know put your hat on
meaning like are you the employer or the employee are you both
and then on this and these circumstances and you're the employee put your
employee hat on so I wanted to start with this one for payroll because I
think a lot of people have gotten a paycheck before with taxes taken out and
that would be payroll now a lot of people I understand oh I ran payroll
well they just they just wrote a check from their business account to
themselves so it's not payroll that's a what is that you know was it drop it to
drop that's our seller distribution it's not
payroll it's not payroll in my opinion unless you have taxes taken out so I
don't want to make this one too long or too dicey or too much Oh another caveat
I did want to make about the payroll is that well I've gotten paychecks before
huh Java had for a few years worked under a CPA actually did payroll
manually like you know I did the payroll and I did that for a year and so I know
I know what payrolls about for companies I did it for probably I think six or
seven companies I used to cut checks every week for some people yeah I wasn't
real free ice that was stack of checks like 80 checks that come up to like
$30,000 I'd like smell the checks and stuff I just print them on my printer of
QuickBooks but and now when I started my business two years ago that was some of
my very first clients I do their payroll for them and so this is also this is
like a the payroll I think is like a real life you know I teach the basics
but these payrolls are going to be real life whether you have a payroll question
in one of your classes this you know that's good you will have some of those
but I think this is more for real life but anyways
if you know payroll and it doesn't change which is good
like someone says I'm paying someone so $400 this weekend payroll great great I
can do that like you go do your things and that's fine then you know conversely
non-payroll you have a person that says oh oh I didn't know I have to make more
expenses what no that's no a it's always like an argument of it's an expense for
the business or not you know anyways let's get going on this
one I was trying to I was trying to tell you that if you can keep your master the
payroll you can do you can you can you know get some clientele when you don't
have that much experience because you don't need much experience to the
payroll I think you just have to be very precise and no one want no one wants to
learn this that they own their own business so it's a good that's a great
skill to have in my opinion currently I kind of I have about I think now I have
eight eight eight clients I do payroll for varying degrees at mostly weeklies
and I run through a company called gusto so I pay gusto a little cut and they do
all I just tell them I'll run run this amount run this amount so they get a
little cut of it and then the client gives me no more than I give those don't
I make some money for running payroll which is basically the start of this now
this is good I talk so much I'm sorry this is that five minutes now people
that were just going to start talking payroll all right
let's go let's go let's get this in monster I better ourselves let's do this
let's better ourselves come on good juice you over here let's go let's go
okay 51 here we're doing payroll we're doing a weekly paycheck where we're in
our employee hats or an employee where we're just a regular Joe regular Jane
Main Street Joe Mainstreet Jane get enough working hard putting in 40 hours
a week at $10 an hour I think that's one 2017
yeah I guess you know that's a job so so then what are you doing what happens
with that think would be don't be like would command sake with me you know what
happens when you get that gear for C your check for $4 - no I wish with taxes
taken out how does that work because for 40 hours time times $10 dollars $400
you're going to have $400 that's going to be your gross wages and
clubs like this these gross wages is what's reported on your tax return yeah
not you're not your net pay down here we'll get to that when you run payrolls
every time they're going to they're going to take out 6.2 percent of the
$400 6.2 percent of $4 for Social Security all right out of every photo
every paycheck so that's here we and you guys have gotten paychecks before right
somebody's paid taxes in this world so if it's a that comes out of the $4 also
coming out of the four more dollars is one point four five percent of Medicare
tax that comes out to 5.8 5.8 dollars all right now these are l these two are
set a Social Security Medicare six point two plus one point four five is let's
see is seven point six five percent of your money's coming out in taxes that's
off the rim there are some limitations but for our purpose here that's out rip
okay every for every week you you were four dollars they're taking out this is
like third $30 taking $30 out of your $400 off rip you're not getting that
back you're not getting a refund off that when you turn 65 or whatever you
show you get that later so they're taking that up rip okay so I want I
wanted to turn the I need there to be a distinction between two this is half
this is happening around every this is payroll this is happening every time you
run a paid a paycheck with the federal government here in the u.s. we're trying
to arrest let's go I just put I just took this at random this this does not
have to be the federal holdings of 44.4 I just plugged I put the number in to
make a nice net pay this you have this could be zero you could pay more we will
get into what happens to this at the end of the year but this is a this this
dependent like in the United States you fill out w-4 form when you are hired a
job and they ask you Oh like how many exemptions do you want are you married
because they're trying to figure out their what they're trying to do with
those questions is they're trying to figure out how much to take out of your
federal holding so you'll though so so they'll take out a little bit too much
and you'll get a refund at the end of the year and you don't think that's
great when it's just your money but this is a paycheck this is a payroll
you start out with gross $400 - Social Security of 24.80 - number $400 1.45 of
Medicare tax nowThis is 7.65 that's seven forever every single dollar you
you make all right there take the government taking seven cents out of
that all right $300 you every $1 in tripperz you make we're taking seven
seven dollars and sixty-five cents out of your pay guide of your paid $100
seven dollars and sixty-five cents on one dollars okay and and it's been
determined or you want to or you I've done it they they take out forty four
dollars and forty cents a week of federal withholdings and this gets added
up every every week so at the end of the year at times 52 if you make if you put
$44.40 in every week for federal Holdings this accumulates on your tax
return through the year your personal tax return your 1040 leaving you with
three twenty-five see how it was four hundred this is what you have to tell
the iron the year you made four hundred well you really only took home 325 and
you get a chance to get 40 of that back and 30m is gone
thanks for playing anyway this is net pen is 325 look the 400 is gross wages
okay the 325 is a net pay net peg or or you could call the 325 your take-home
pay or you could call the 325 here tripperz and get your chippers up okay
or you could call the 325 your chip what's a check out right or you can call
your 325 a direct deposit I don't even and what happened to that
$75 is my employer keeping that does he is to keep that I don't know what do you
think happens to the see that's how much you make I tell what you're reporting to
make you have to report you make this you know you just work you just work for
your boss some dude some dudes your boss and then he says I'll pay 10 bucks an
hour you say great 400 then he gives you a check at the end of the week for $325
you like we're said 75 chief is it all taxes you're like okay so okay until
next time man this one's fun right $75 what happened to $75 did your boss keep
it as your bus is your bus getting some margaritas with his girlfriend as you
get a little Applebee's two for 20 like three days that week anyways my shits
about old anyways my camera is about to die I love doing these accounting for
beginners things for your support if you've watched if you watch this long
give it a like share comment subscribe do all the stuff I'll see you next time
deuces