ACC 161 - Payroll Accounting

Credits: 3
Lecture Hours: 3
Lab Hours: 0
Practicum Hours: 0
Work Experience: 0
Course Type: Voc/Tech

Covers payroll laws, state and federal withholding taxes, state and federal forms, salary deductions including cafeteria insurance plans and pension plans, and computerized payroll software packages.
Competencies

Understand the assumptions and concepts of generally accepted accounting principles governing payroll transactions
1. Discuss the rules for payroll transactions
2. Identify the accounting rules, employment laws and tax laws that affect payroll accounting and administration
Describe the general job duties of the payroll professional
1. List the steps of the payroll cycle
2. Identify the four standards of payroll professionalism
Explain the process of hiring employees
1. Apply the laws governing the hiring practices of employers
2. Understand the Equal Employment Opportunity Act
3. Understand the mandatory Form W-4
4. Understand record retention requirements
Describe the main types of time records
1. Identify the manual time-keeping function of time sheets and time cards
2. Describe the mechanical and computerized time recording systems in use today
Calculate gross pay
1. Computer regular earnings and overtime earnings to arrive at total gross earnings
2. Convert weekly wage rates to hourly rates
3. Calculate earnings under incentive and commission plans
4. Classify employees for overtime purposes
Calculate Social Security taxes
1. Discuss FICA’s history
2. Understand the concept of the FICA earnings limit
3. Calculate FICA wages
Calculate federal and state income taxes
1. Discuss the role of the W-4 form
2. Describe the relationship between the Form 1040 and employee withholding
3. Calculate the federal income tax using the wage bracket
4. Calculate the federal income tax using the percentage method
5. Understand state income tax withholding
6. Calculate the state income tax using the wage bracket
7. Calculate the state income tax using the percentage method
8. Fulfill the employer reporting requirements for income taxes withheld
Assess employee deductions and benefits
1. Analyze the 401(k) salary reduction plan
2. Appraise the 125 cafeteria plan
3. Identify the various types of employee benefits
4. Explain the roles of trustees and administrators
Apply the laws affecting payroll accounting
1. Discuss the historical background of federal employment law
2. Explain the Age Discrimination in Employment Act
3. Explain the American with Disabilities Act
4. Explain the Federal Personal Responsibility and Work Opportunity Reconciliation Act
5. Explain the Immigration Reform and Control Act of 1986
6. Explain the VII of the civil rights act
7. Explain the Family and Medical Leave act
8. Explain the Uniformes Services Employment and Reemployment Rights Act
9. Explain the Employee Retirement Income Security Act
10. Explain the Vocational Rehabilitation Act
11. Understand the Vietnam Era Vetrans Readjustment Act
12. Explain the Occupational Safety and Health Act
13. Explain the basic principles of the Social Security Act of 1935
14. Apply the Fair Labor Standards Act of 1938
15. Understand the basis for reasonable accommodations for emplyees based on health, religious and other needs
16. Communicate the importance of accommodation for diversity in the workplace based upon laws and ethics
Account for payroll transactions
1. Discuss the process of recording payroll activities
2. Understand the process of issuing paychecks
3. Demonstrate the use of the payroll register in entering and tracking payroll activities
4. Enter and track payroll activities with using the employee earnings record
Assess payroll tax deposits
1. Identify the employer’s responsibilities for payroll taxes
2. Describe the deposit rules for Form 941 taxes
3. Describe the deposit rules for Form 940 taxes
4. Apply the deposit procedures for Form 8109
5. Understand the deposit rules for state taxes
Determine unemployment taxes
1. Discuss the history of unemployment insurance
2. Calculate federal unemployment taxes
3. Understand federal reporting requirements
4. Calculate state unemployment taxes
5. Describe state reporting requirements
Account for payroll transactions
1. Discuss the theory behind accounting activities
2. Prepare journal entries for payroll
3. Prepare journal entries for employee deductions
Complete payroll tax Form 940-EZ
1. Discuss the purpose of the 940-EZ
2. Describe the relationship among the general ledger, employees’ earnings records and Form 940-EZ
3. Complete Form 940-EZ
4. Explain the filing requirements for Form 940-EZ
5. Identify various state unemployment tax returns and their filing requirements
Complete payroll tax Form 941
1. Discuss the purpose of the Form 941
2. Understand the relationship among the general ledger, the payroll, the employees’ earnings records and the Form 941
3. List the steps necessary to properly prepare the Form 941
4. Explain the filing requirements for Form 941
Fulfill the requirements for reporting employee earnings
1. Discuss the use and purpose of Form W-2
2. Prepare Form W-2
3. Discuss the use and purpose of Form W-3
4. Prepare Form W-3
5. Apply the procedures for submitting W-2 forms to the government
6. Apply the procedures for submitting W-3 forms to the government
7. Discuss state reporting requirements for employee earnings
Appraise special payroll accounting situations
1. Define earned income credit
2. Distinguish the Advanced Earned Income Credit (AEIC)
3. List the differences between self-employed individuals and employees
4. Outline the procedures that the self-employed individual must follow in paying federal, income, and social security taxes
5. Discuss the unique payroll accounting practices for food and beverage businesses
Complete a computerized payroll practice set
1. Identify common payroll software packages
2. Complete data input sheets
3. Interpret computer payroll printouts
4. Discuss common internal control procedures for payroll

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