Full Description

This course is designed to introduce individuals, entrepreneurs and small businesses to the cost of labor and its related payroll taxes. In some companies, payroll costs represent more than one-third of the operating costs. The employer is liable for meeting reporting requirements and for the money withheld from employees’ wages or salaries and for payroll taxes. This course will focus on the liabilities, the records and control requirements of payroll accounting. Some basic knowledge of Accounting is recommended.

Outcomes:

The student’s performance will be assessed by the following methods:

1. By performing satisfactorily on periodic tests
2. Ability to complete payroll process

Assessment:

Upon completion of this course, students will be able to:

A. Calculate employee gross pay, deductions and net pay

B. Determine the employer’s liabilities for payroll, including liabilities arising from employee earnings and deductions from earnings.

C. Prepare Employer’s Quarterly Federal Tax Return (941)

D. Record payroll and payroll taxes

Week 1 - Liabilities for Employee Compensation
In the first week, we will explore the employer’s liabilities for employee compensation and payroll withholdings. The employer is liable to employees for wages and salaries. The amount paid to employees is generally less than the wages they earned because the employer is required by law to withhold certain amounts and send them to government agencies to pay taxes owed by the employees. The course policy, procedure and homework assignment schedule will also be addressed during the initial week.

Week 2 - Determining Employee’s Net Pay, and Recording the Payroll
The federal government, most state governments, and even some city governments require that employees act as collection agents for employee taxes that are deducted from employee checks. We will be studying the difference between gross pay and net pay. We will also learn how to calculate net pay and record payroll entries.

Week 3 - Other Deductions, Employer’s Quarterly Federal Tax Return (941), and Payroll Accounting Software
We will be looking at other deductions, such as retirement or pension plans, and insurance and savings plans. Students will be given the opportunity to complete an Employer’s Quarterly Federal Tax Return (941) and a comprehensive payroll problem. We will cover various popular software programs and learn how to download tax forms and other information from the IRS website. In this day and age of technology, payroll and payroll tax form preparation can be done at the touch of a computer key.