So far, the model has represented the real-world phenomena of Benefits, Compensation Payments, and the like. Now we have to link this to the accounting system, described in Chapter 11. This is shown in Figure 13-12.
As we’ve seen, a paycheck transaction has four components:
1. The gross amount, less deductions, that produces a net amount paid to the employee. (In the Table 13-3, that’s $908.05.)
2. Deductions collected by the employer and passed to either the government (for Social Security in the United States) or to a fund for the employee’s retirement. (In the example, the portion collected from the employee is $91.05)
3. Amounts paid by the employer, either to the government ...