ACCT 1400 - Payroll Accounting

Credit Hours: 3.00

Objectives:

Describe Payroll Practices and System Fundamentals

1. Analyze Payroll System Procedures
2. Account For Gross Pay Computations
3. Account For Fringe Benefits and Voluntary Deductions

Outcome 2: Upon completion of this course, students will be able to summarize payroll accounting information used to make business decisions.

Objectives:

1. Compute Employee Net Pay and Pay Methods
2. Compute Employer Payroll Taxes and Labor Planning
3. Explain The Payroll Register, Employee Earnings Record, and Accounting System Entries

• Communication: The graduate can communicate effectively for the intended purpose and audience.
• Critical Thinking: The graduate can make informed decisions after analyzing information or evidence related to the issue.
• Global Literacy: The graduate can analyze human behavior or experiences through cultural, social, political, or economic perspectives.
• Information Literacy: The graduate can responsibly use information gathered from a variety of formats in order to complete a task.
• Quantitative Reasoning: The graduate can apply quantitative methods or evidence to solve problems or make judgments.
• Scientific Literacy: The graduate can produce or interpret scientific information presented in a variety of formats.

1. Identify legislation that pertains to payroll and business
2. Discuss the legal framework specific to payroll accounting
3. Discuss the ethical guidelines for payroll accounting
4. Identify contemporary payroll practices
5. Compare payroll processing options for different businesses

Payroll System Procedures: Chapter 2

1. Identify important payroll procedures and pay cycles
2. Prepare required employee documentation
3. C Differentiate between exempt and nonexempt workers
4. Explain pay records and employee file maintenance
5. Describe internal controls and record retention for a payroll system
6. Discuss employee termination and documentation destruction procedures

Gross Pay Computation: Chapter 3

1. Analyze minimum wage pay for nonexempt workers
2. Compute gross pay for different pay bases
3. Calculate pay based on hours and fractions of hours
4. Calculate overtime in various situations
5. Create a payroll register
6. Apply combination pay methods
7. Explain special pay situations

Fringe Benefits and Voluntary Deductions: Chapter 4

1. Define fringe benefits within the context of payroll
2. Interpret cafeteria plan types
3. Describe fringe benefit exclusion rules
4. Explain fringe benefit valuation rules
5. Differentiate between pre-tax and post-tax deductions
6. Apply rules for withholding, depositing, and reporting benefits

Employee Net Pay and Pay Methods: Chapter 5

1. Compute employee net pay
2. Determine federal income tax withholding amounts
3. Compute social security and medicare tax withholding
4. Calculate state and local income taxes
5. Apply post-tax deductions
6. Discuss employee pay methods

Employer Payroll Taxes and Labor Planning: Chapter 6

1. List employer-paid and employee-paid obligations
2. Discuss reporting periods and requirements for employer tax deposits
3. Prepare mid-year and year-end employer tax reporting and deposits
4. Describe payroll within the context of business expenses
5. Relate labor expenses to company profitability
6. Complete benefit analysis as a function of payroll

The Payroll Register, Employee Earnings Record, and Accounting System Entries: Chapter 7

1. Connect the payroll register to the employees’ earning records
2. Describe financial accounting concepts
3. Complete payroll-related general journal entries
4. Generate payroll-related general ledger entries
5. Describe payroll effects on the accounting system
6. Explain payroll entries in accounting reports