Gross pay, each withholding, net pay and the taxes the employer adds on top, cross-footed and then journalized twice, fill the completed AC116 Unit 7 payroll register exercise. Searches like "ac 116 unit 7 assignment example", "ac116 unit 7 sample" and "ac116 unit 7 example" land here.
What a finished AC116 Unit 7 payroll register exercise looks like
A wide register, one row per employee and one column per figure. Reading left to right: employee, hours worked, regular pay, overtime pay at time and a half for hours beyond forty, and gross pay. The deduction columns follow: federal income tax withheld from the table the problem supplies, Social Security and Medicare at the stated rates, state tax where given, and voluntary items such as a health premium or a retirement contribution. Net pay closes the row. A totals line runs along the bottom, and a proof beneath it shows gross pay minus total deductions equals total net pay. A second, smaller table computes the employer's share: its matching Social Security and Medicare, plus federal and state unemployment tax on wages below each ceiling the problem states.
How a AC116 Unit 7 example is structured
The register comes first because both journal entries draw their amounts from its totals line, so every figure in an entry can be found by looking straight up. Columns run in the order the arithmetic happens, earnings before deductions before net pay, so each row reads as a small calculation. The first entry records the pay run from the employee's side: wages expense for gross pay, a liability for each withholding, and wages payable for net pay. The second entry records what the employer owes beyond gross pay, debiting payroll tax expense and crediting separate liabilities for its matching share and for each unemployment tax. A short paragraph after the entries adds the two expenses together to show the full cost of employing the staff for the period, which is the figure a manager actually budgets.
Earnings columns
Hours, regular pay, overtime at time and a half beyond forty hours, and gross pay. Each overtime figure shows the premium hours and rate beside it.
Withholdings, statutory and voluntary
Income taxes from the supplied table, Social Security and Medicare at the stated percentages, then the health premium and retirement deferral each employee elected.
Totals and the net pay proof
Every column footed, then gross less deductions set against net pay on its own line. A register that fails this proof has an error in some row above it.
Entry one, the employees' side
Wages expense for gross pay; a liability for each amount withheld; wages payable for net. The debit equals the gross pay total exactly.
Entry two, the employer's side
Payroll tax expense against the employer's matching share and each unemployment tax, with the wage ceilings applied to anyone who crossed one this period.
What the staff really cost
Gross pay plus employer taxes, stated as one figure with a sentence on why that total, not gross pay, belongs in a staffing budget.
Where marks go in AC116 Unit 7
Registers lose the most when the employer's matching tax is deducted from the employee's pay, which double-counts one tax and understates net pay. Graders catch it by comparing the employee and employer tables line by line. Overtime computed at the regular rate, or at time and a half on all hours rather than only those beyond forty, is the next deduction. Unemployment taxes applied to an employee's full wages after that person has passed the ceiling cost points in problems built to test the ceiling. A first entry that credits Cash instead of Wages Payable, when the problem says the pay run is recorded before payment, is marked wrong in most sections. Missing column totals or a failed net pay proof cost smaller but steady amounts.
Get a AC116 Unit 7 example written to your instructions
Hours, pay rates, year-to-date earnings, withholding elections and any wage ceilings from your Unit 7 roster are the inputs; send them with the rubric and whatever the instructions say about remittance. The register and both entries come back inside 24-48h, proof line included, with no fee on a first custom sample.
AC116 Unit 7 questions, answered
Why is the employer's share not on the employee's row?
Because the employee never sees it deducted. Social Security and Medicare are paid twice, once withheld from the worker and once matched by the employer, and unemployment taxes fall on the employer alone. Keeping the employer's amounts in a separate table keeps net pay correct and makes the second journal entry easy to trace. Most AC116 problems are built to test that separation.
Do I need year-to-date earnings for this exercise?
When a problem mentions wage ceilings, yes. An employee who has already earned past the unemployment ceiling owes nothing further for the year on those taxes, and year-to-date totals are how the register shows it. AC116 problems often include one such employee on purpose. If the problem gives no year-to-date figures, the sample assumes nobody has crossed a ceiling and says so.
Should the rates in the sample match current law?
They match the problem. Textbook problems often use rounded or dated percentages so the arithmetic stays clean, and graders mark against the rates stated in the facts, not against this year's figures. The sample cites each rate from the problem in a note under the register so any difference from current law is visibly deliberate.