Payroll Accounting: Laws, Calculations, and Journal Entries

Master the complex world of payroll with practical examples, legislation insights, and comprehensive problems.

Created by: Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI

What Will I Learn?

• Identify the key federal payroll laws and regulations that govern payroll processing.
• Calculate regular pay and overtime pay accurately based on predetermined formulas and guidelines.
• Apply the appropriate formulas to determine both employer and employee social security and Medicare contributions.
• Calculate employee federal income tax withholdings based on relevant tax brackets and allowances.
• Determine employer federal unemployment tax (FUTA) liability and calculate the corresponding amounts accurately.
• Analyze various payroll deductions and their implications on employee net pay.
• Prepare comprehensive payroll journal entries, considering the impact on financial accounts and the accounting equation.
• Post payroll journal entries accurately to the general ledger for proper recording and reporting.
• Complete payroll tax forms, such as Form 941, Form 940, Form W-2, Form W-3, and Form W-4, following applicable guidelines and requirements.
• Solve comprehensive payroll problems, integrating knowledge of payroll legislation, calculations, and journal entries.
• Apply payroll concepts within the context of the accounting cycle to gain a comprehensive understanding of payroll's role in financial reporting.
• Define and explain key payroll-related terms and concepts for effective communication and comprehension in the field.

Requirements

• There are no specific prerequisites for this course. However, a basic understanding of accounting principles and concepts would be beneficial. Familiarity with financial statements, general ledger, and basic mathematical calculations will also be helpful in grasping the payroll concepts covered in the course.

Target audience

• Accounting professionals who want to expand their knowledge and skills in payroll accounting.
• Small business owners who handle payroll responsibilities.
• HR professionals who need to understand payroll processes and regulations.
• Payroll administrators and managers seeking to enhance their expertise.
• Students pursuing a career in accounting or HR.
• Individuals interested in gaining a comprehensive understanding of payroll accounting for personal or professional purposes.
• Bookkeepers and financial professionals involved in payroll-related tasks.
• Professionals looking to advance their career prospects by acquiring payroll accounting proficiency.
• Anyone responsible for payroll processing or seeking to improve their payroll management abilities.