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Payroll

A full service payroll processing company called Payroll Paid Promptly (PPP) processes payroll.PPP calculates the payroll, creates and mails the checks to the employees and remits all payroll taxes and other withholdings to the appropriate locations.They send Mary a report once per month reflecting the transactions made on behalf of PPP.Mary prepares a journal entry to reflect the payroll and updates the general ledger.PPP charges a fee of 10% of the gross payroll for the payroll service.Mary prepares the check for these services once per month.

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