Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo

Payroll
While many aspects of accounting vary between companies, there is one constant
- if your company has employees, it will need to account for these employees'
payroll.

Payroll is one of the areas of accounting which small business owners find

especially difficult, and as such is often dealt with by an external firm of
accountants.

Accountants working in payroll face many challenges associated with the accurate
and timely processing of employee compensation, which is often
the single largest expense of an organization and as such must
be rigorously controlled.

The first challenge can come with the collection of input data. In small companies,
this may be as simple as an email from the boss stating how much overtime each
employee worked or the basic salaries, but in large companies collecting this data
may require liaising with multiple department heads to find out the level
of bonuses, commissions and other fringe benefits due to each employee. As
well as details of any new starters and leavers in that financial period. To make
things more complicated, you will also need to have the requisite documentation
for these people showing their earnings to date, tax code etc.

In some companies, the payroll clerk may also be responsible for paying
independent contractors whose work duties could classify them as employees.
These are paid, as invoices rather than directly through payroll as it curbs payroll
tax and limits benefits.

Providing you have managed to collect all the required information, you can start
processing the payroll. Although this aspect has been greatly simplified since the
advent of computerized payroll software, current programs are lacking in the more
complex functions needed to calculate the salaries of senior employees whose
salaries are tied to company performance, or return on
investments. Reimbursement of business expenses also needs to be worked

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
out at this point, providing of course the employees seeking reimbursement are
eligible and can produce the correct receipts.

If this doesn't sound bad enough, you will also be faced with a variety of  ad
hoc tasks such as calculating statutory sick or maternity pay, pension
contributions, as well as a whole host of garnishments.

Having entered all data into the system, it is always a good idea to check for any
abnormalities - as a misplaced comma, could result in employees either not
receiving what they should or worse still receiving more than they should. If
everything appears as it should, you can move onto submission. Firstly, the tax
and insurance contributions, which have been calculated for both the employer and
the employee, and finally the salaries of the workers which are usually paid by
either transfer or check.

Then, it is a case of waiting, waiting for the unavoidable string of queries from
workers as to why they paid more tax than in the previous month, why the pay rise
they had been promised wasn't actioned, why their commission wasn't paid, along
with a thousand and one other questions.

The thing which makes payroll such a demanding role, is the fact that this entire
process is repeated on a monthly or even weekly, in the case of wages, basis - so
you are constantly racing to complete the current periods payroll before the cutoff.
What's more, payroll is one of the more changeable areas of accounting from the
legal perspective, so in your free time you will need to keep up to date on
constantly changing legislation and benefits.

So, the next time you come into contact with your payroll clerk, take a moment to
express your gratitude for their hard work and dedication.

This is the end of the reading!

The word it in line 2 refers to? _______________________________

The word this in line 12 refers to? ___________________________

The word these in line 21 refers to? _________________________

The word them in line 20 refers to? _________________________

The word they in line 36 refers to? __________________________

The word their in line 52 refers to? _____________________________

Mg. Jaime Pardo May the 14th,
2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
The word they in line 42 refers to? _____________________________

The word their in line 43 refers to? _______________________________

Discussion Questions:

What would you find hardest about working in payroll? Why?

What are the benefits of using a computerized payroll system?

In what way are working relationships important for a payroll clerk?

Paraprase (2 Mech/ 2 Cons.)

1.

Original text

Payroll is one of the areas of accounting which small business owners find

especially difficult, and as such is often dealt with by an external firm of
accountants.

Mechanical Paraphrase

Payroll is one of the areas of accounting which small companies owners find

especially hard, and as such is often dealt with by an external firm of accountants.

2.

Original text

To make things more complicated, you will also need to have the requisite

documentation for these people showing their earnings to date, tax code etc.

Mechanical Paraphrase

To make things more complicated, you will also need to have the necessary

documentation for these people presenting their earnings to date, tax code etc.

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
3.

Original text

In some companies, the payroll clerk may also be responsible for paying
independent contractors whose work duties could classify them as employees.

Constructive Paraphrase

There are companies in which the payroll employee is also responsible for making
payments to independent external workers, who due to their work activities can be
considered as employees.

4.

Original text

Having entered all data into the system, it is always a good idea to check for any
abnormalities - as a misplaced comma, could result in employees either not
receiving what they should or worse still receiving more than they should. If
everything appears as it should, you can move onto submission.

Constructive Paraphrase

After registering all the data in the accounting program, it is good to verify any
irregularities, because a wrong data can cause workers to receive the wrong
amount of money in their payment.

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
Multiple Choice Questions
Select the best definition of the word.

'commission'

an amount of money that is paid every week to an employee for their work for each hour
worked.

a system of payment based on a percentage of the value of sales, business generated.

needed for a particular purpose or result.

'tied to'

'curb'

'requisite'

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
ad hoc'

worked out'

'compensation'

'check'

an amount of money that is paid every week to an employee for their work for each
hour worked.

a system of payment based on a percentage of the value of sales, business generated.

a printed form, used instead of money to make payments from a bank account.

'reimbursement'

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
state'

'statutory'

'garnishment'

deduction of income or property from someone who owes a debt.

time worked in addition to your usual job hours.

a system of payment based on a percentage of the value of sales, business generated

'cutoff'

tax code'

a fixed point, date or level at which you stop including things.

the combination of payments and other benefits which employees receive.

A set of numbers and letters used to show the amount of income tax that an individual
should pay.

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo

rigorous'

overtime'

A set of numbers and letters used to show the amount of income tax that an individual
should pay.

the act of paying back money which is owed

time worked in addition to your usual job hours.

'wages'

an amount of money that is paid every week to an employee for their work for each
hour worked.

an extra thing which is given to you by an employer.

a printed form, used instead of money to make payments from a bank account

salary'

A fixed amount of money agreed every year as pay for an employee.

A set of numbers and letters used to show the amount of income tax that an individual
should pay.

an amount of money that is paid every week to an employee for their work for each
hour worked

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
ROI' or 'return on investment'

The yearly, monthly profit on an activity when compared to the invested capital.

A set of numbers and letters used to show the amount of income tax that an individual
should pay.

the act of paying back money which is owed

fringe benefits'

Spelling and Recognition Questions

Type the correct word into the space provided. The first letter is given as a hint.

an extra thing which is given to you by an employer.

Answer: F_________________________

reduce or limit.
Answer: C_________________________

The yearly, monthly profit on an activity when compared to the invested capital.
Answer: R_____________________________

closely connected with, or reliant on.

Answer: T________________________________

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
decided, controlled or required by law.
Answer: S__________________

needed for a particular purpose or result.

Answer: R____________________

an amount of money that is paid every week to an employee for their work for each
hour worked.
Answer: W______________________

a fixed point, date or level at which you stop including things.

Answer: C_____________________

the combination of payments and other benefits which employees receive.

Answer: C__________________________

to say or write something officially.

Answer: S_________________________

A set of numbers and letters used to show the amount of income tax that an
individual should pay.
Answer: T_______________________________

for a particular purpose or need

Answer: A____________________

Detailed and careful.

Answer: R_____________________

a printed form, used instead of money to make payments from a bank account.
Answer: C__________________________

time worked in addition to your usual job hours.

Answer: O_______________________

Mg. Jaime Pardo May the 14th,

2015
Reading comprehension III Accounting

Jazmin Buitrago
Kathleen Valeria Giron 1859840
Geraldine Paramo
deduction of income or property from someone who owes a debt.
Answer: G_______________________

A fixed amount of money agreed every year as pay for an employee.

Answer: S__________________________

a system of payment based on a percentage of the value of sales, business

generated.
Answer: C____________________

the act of paying back money which is owed

Answer: R______________________

calculated, found the answer to.

Answer: W___________________

Mg. Jaime Pardo May the 14th,

2015