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Payroll Accounting: Laws, Calculations, and Journal Entries

Name: Payroll Accounting: Laws, Calculations, and Journal Entries
Rating: 4.4 (2386 reviews)

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

Created byRobert (Bob) Steele

Last updated 6/2023

English

English [Auto],

What you'll 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.

Course content

24 sections • 208 lectures • 22h 29m total length

Introduction8:52
Explore how the payroll accounting course uses sections, videos, PDFs, and Excel worksheets to teach payroll calculations, journal entries, and payroll forms.
PDF - 10 Introduction0:08
Access a downloadable pdf that complements the instructional video, providing a supplement to the lecture.
10 Payroll Introduction6:01
Learn payroll basics, including journal entries, withholdings, and payroll taxes. Explore internal controls, data protection, and the growing payroll specialty across federal, state, and international laws.
Accounting Comic Break0:13
Enjoy a lighthearted comic break while revisiting payroll accounting concepts such as laws, calculations, and journal entries.

2 Payroll Legislation1:30
Explore payroll legislation and its overlap with laws, including minimum wage and exempt or non-exempt statuses. Identify how these laws affect net income, net pay, and payroll records.
PDF - 20 Payroll Legislation0:08
Access the downloadable pdf as a supplement to the instructional video, supporting the payroll legislation lesson.
20 Payroll Legislation7:52
Explore how payroll legislation shapes tax withholding, journal entries, and internal controls across federal and state law, including FICA, FLSA, FUTA, SUTA, COBRA, and the Civil Rights Act.
PDF - 310 Minimum Wage & Nonexempt Employees0:08
A downloadable pdf accompanies the instructional video, providing a supplementary resource for payroll topics such as minimum wage and nonexempt employees.
310 Minimum Wage & Nonexempt Employees5:32
PDF - 410 Fringe Benefits0:08
Access a downloadable PDF supplement to the instructional video, reinforcing payroll accounting concepts including fringe benefits.
410 Fringe Benefits6:07
Examine fringe benefits as non-cash compensation and determine when they are wages for federal and state taxes, payroll taxes, de minimis benefits, and education assistance.
Accounting Comic Break0:15
Experience a lighthearted accounting comic break while reinforcing payroll accounting fundamentals, including laws, calculations, and journal entries.

3 Payroll Forms and Time-Frames1:25
Explore key payroll forms and time frames, including quarterly forms, 941, 940 for FUTA, and the W-2 form, plus pay period options like weekly, semi-weekly, and monthly.
20 Payroll Consideration and Tax Forms16:17
Explore how payroll frequency, payment methods, and tax forms shape payroll processing for different employers; manage withholdings, deductions, and earnings records for accurate reporting.
PDF - 80 Payroll Periods and Time Frames0:08
80 Payroll Periods and Time Frames7:03
Examine payroll periods and time frames across monthly, weekly, biweekly, and semi monthly pay cycles. Learn how 12, 24, 26, and 52 pay periods inform payroll calculations.
PDF - 90 New Employee Tax Form & Contractor vs Employee0:08
Download a pdf supplement that accompanies the instructional video, covering a 90 new employee tax form and the contractor vs employee distinction.
90 New Employee Tax Forms & Contractor vs Employee17:14
Analyze new employee tax forms, especially the W-4, and the contractor versus employee relationship with respect to withholdings. See how the W-4 data informs payroll systems and 1040 reporting.
Accounting Comic Break0:13
Engage with payroll accounting concepts through an accounting comic break that clarifies payroll laws, calculations, and journal entries.

4 Payroll Register & Earnings Record1:55
Explore how the payroll register and earnings record capture pay period data and employee year-to-date totals to compute gross pay, withholdings, and net pay.
PDF - 330 Payroll Register0:08
Access a downloadable pdf payroll register that supplements the instructional video, reinforcing payroll calculations and journal-entry concepts.
330 Payroll Register9:40
Build the payroll register step by step, calculating regular and overtime pay, gross pay, deductions, and net pay while applying federal, state, and other withholdings.
Excel Download0:05
Download the Excel worksheet included in the next payroll accounting presentation to access a downloadable resource for this course.
25 Worksheet - Earnings Record6:50
Enter data from the payroll register into the earnings record for December, detailing four employees' regular pay, overtime, net pay, and year-to-date totals.
10 Discussion Question - Payroll
10 Discussion Question - Payroll9:03
Explore key payroll forms and employer obligations, including w-4, 941, 940, w-2 and w-3, and the basics of withholdings, social security, medicare, and futa reporting.
Accounting Comic Break0:14
Explore payroll accounting laws, calculations, and journal entries, presented with an engaging accounting comic break to reinforce core concepts.

5 Regular Pay & Overtime Pay Calculation0:58
Calculate regular pay and overtime pay using a guided video and worksheet, determine overtime rate (time and a half), and compute total earnings for later deductions.
PDF - 10 Regular & Overtime Pay0:08
Access a downloadable pdf that supplements the instructional video on regular and overtime pay, reinforcing payroll accounting concepts of laws, calculations, and journal entries.
10 Regular & Overtime Pay Calculation5:10
Calculate regular and overtime pay for an hourly worker by applying weekly overtime rules, daily thresholds if applicable, and the time and a half rate to determine total pay.
Excel Download0:05
Explore a downloadable Excel worksheet in the next presentation, aligning with the payroll accounting course and enabling hands-on review of Excel-based tasks.
10 Worksheet - Regular & Overtime Pay7:06
Calculate regular and overtime pay for hourly and salaried employees within a payroll register, using the W-4 data and time‑and‑a‑half overtime rules. Determine total earnings and payroll totals.
PDF - 315 Payroll Calculations0:08
Access a downloadable pdf supplement for the payroll calculations lecture to accompany the instructional video.
315 Payroll Calculations6:12
Convert a $50,000 annual salary to an hourly rate using 52 weeks and 40 hours, then compare commission, pay by units produced, and minimum wage considerations.
PDF - 320 Overtime Calculation0:08
Access a downloadable pdf that supplements the instructional video on overtime calculation within payroll accounting.
320 Overtime Calculation9:26
Learn to calculate overtime by converting minutes to hours, applying time and a half, and using daily or weekly rules with 8-hour and 40-hour thresholds, plus 15-minute rounding.
20 Discussion Question - Payroll
20 Discussion Question - Payroll6:06
Explain how to calculate payroll tax withholdings, including federal income tax, Social Security, and Medicare, using W-4 data and payroll tables, and report net pay on 1040, W-2, and 941.
Accounting Comic Break0:14
Explore payroll accounting fundamentals through an engaging comic break, highlighting laws, calculations, and journal entries within payroll processes.

6 Federal Income Tax & Retirement Plans1:42
Explore how federal income tax withholdings are calculated, how retirement plans affect withholding under a progressive federal tax, and the methods used to compute payroll taxes for employees.
PDF - 510 Federal Income Tax (FIT)0:08
Access a downloadable pdf that supplements the instructional video, reinforcing the federal income tax (FIT) content covered in payroll accounting.
510 Federal Income Tax (FIT)14:46
Learn to calculate federal income tax withholdings for payroll using pay frequency, marital status, allowances, and taxable income, via Circular E tables; tie to the 1040 and W-2.
Excel Download0:05
Preview an upcoming Excel worksheet download to practice payroll accounting calculations and journal entries as part of the next presentation.
20 Worksheet - Federal Income Tax Withholding FIT4:15
Calculate FIT wages by subtracting cafeteria plan and retirement plan from total earnings, then determine FIT withholding using Circular E weekly tables for single one exemption.
PDF - 415 Deductions From Gross Pay0:08
Explore deductions from gross pay with a downloadable pdf supplement that accompanies the instructional video.
415 Deductions From Gross Pay6:21
Explore how gross pay becomes net pay through mandatory deductions like federal and state taxes, Social Security, and Medicare, plus voluntary pretax health care under section 125 plans.
PDF - 420 Retirement Plans0:08
Access a downloadable pdf that serves as a supplement to the instructional video on payroll accounting, with a focus on retirement plans.
420 Retirement Plans9:14
Explore defined benefit and defined contribution retirement plans, their tax-deferral advantages, and common options like 401(k), IRA, Simple IRA, SEP, and 403(b).
PDF - 20 Federal Income Tax FIT - Tables0:08
Access a downloadable PDF file that serves as a supplement to the instructional video, featuring federal income tax tables to support payroll accounting lessons.
20 Federal Income Tax FIT7:13
Calculate federal income tax (FIT) from payroll data using tax tables, determine fit wages by subtracting cafeteria and retirement amounts, and set weekly withholdings to reflect 1040 outcomes.
PDF - 25 Federal Income Tax FIT - Percent Method0:08
Access a downloadable pdf that supplements the instructional video, reinforcing payroll accounting concepts and federal income tax methods, including the percent method.
25 Federal Income Tax FIT - Percent Method7:42
Learn how to compute federal income tax using the percentage method, including FIT wages, allowances, cafeteria and 401k adjustments, and progressive brackets via circular E.
Excel Download0:05
Download the Excel worksheet in the upcoming presentation to practice payroll calculations and journal entries.
25 Worksheet - Federal Income Tax - Percentage Method6:50
Calculate federal income tax withholding using the percentage method, adjusting fit wages for cafeteria and retirement plans, then use Circular E publication 15 tables for weekly, married, four allowances.
30 Discussion Question - Payroll
30 Discussion Question - Payroll6:10
Examine the split between employee and employer payroll taxes, including federal income tax, Social Security, Medicare, FUTA, and SUTA, and how to record them.
Accounting Comic Break0:14
Delve into payroll accounting, covering laws, calculations, and journal entries, highlighted by an accounting comic break to keep concepts engaging.

7 Federal Income Contributions Act Social Security1:01
Explore ficca Social Security within the federal income contributions act, then learn to calculate Social Security wages and tax, using video-led instructions and preformatted Excel worksheets for step-by-step practice.
PDF - 30 Federal Income Contributions Act (FICA)0:08
Access a downloadable pdf file that supplements the instructional video on Federal income contributions act (FICA) in payroll accounting.
30 Federal Income Contributions Act (FICA)8:04
Learn how fica funds Social Security and Medicare, including withholdings, employer contributions, and how these payroll taxes flow into journal entries.
PDF - 515 Social Security0:08
Access a downloadable pdf that serves as a supplement to the instructional video for the payroll accounting lecture.
515 Social Security11:33
Examine the social security component of the FICA taxes, including the employer and employee 6.2% contributions up to the cap. Learn how OASDI, the cap, and withholding affect net pay.
PDF - 30 OASDI Calculation0:08
30 Social Security Tax Calculation6:08
Illustrates calculating Social Security tax (SDI) from total earnings, considering caps and cafeteria plan deductions, using payroll registers and earnings records; shows employee and employer portions at 6.2%.
Excel Download0:05
Access a downloadable excel worksheet in the next presentation to support payroll accounting calculations and streamline your workflow.
30 Worksheet - OASDI6:29
Determine whether the Social Security cap is reached and calculate SDI wages, then compute employer and employee OASDI taxes at 6.2%.
40 Discussion Question - Payroll
40 Discussion Question - Payroll8:38
Explore how federal income tax withholding uses a progressive system with tables or the percentage method. See how marital status, allowances, pay period, and W-2 reporting affect Form 1040 calculations.
Accounting Comic Break0:13
Master payroll accounting concepts within laws, calculations, and journal entries, and enjoy an accounting comic break that reinforces key ideas in an engaging way.

8 Federal Income Contribution Act (FICA) -Medicare1:14
Explore Medicare payroll calculations and taxes under the FICA framework, covering Medicare wages, employee and employer portions, with video tutorials and Excel worksheets to practice formulas and entries.
PDF - 520 Medicare Tax0:08
Utilize a downloadable pdf as a supplement to the instructional video for payroll accounting, highlighting Medicare tax within the laws, calculations, and journal entries framework.
520 Medicare Tax6:00
Explore how Medicare under FICA is calculated, including 1.45% employer and employee shares, no cap, and a 9.9% tax on wages over 200,000, with payroll tax implications.
PDF - 40 HI Calculation0:08
A downloadable pdf accompanies the instructional video, serving as a supplement to payroll accounting content on laws, calculations, and journal entries.
40 Medicare Tax Calculation3:29
Explore how to compute the Medicare tax for payroll, distinguishing Medicare wages from total earnings, applying cafeteria plan adjustments, and calculating employer and employee portions at 1.45% with no cap.
Excel Download0:05
Download a practical excel worksheet in the next presentation to practice payroll accounting calculations and journal entries.
40 Worksheet HI4:48
Calculate Medicare taxes by adjusting earnings for cafeteria plans and caps, deriving fit wages, SDI wages, and high wages; compute employee and employer portions at 1.45% in payroll journal entries.
50 Discussion Question - Payroll
50 Discussion Question - Payroll10:11
Explain quarterly payroll tax reporting with Form 941, distinguish it from Form 940, and outline federal income tax, Social Security, and Medicare liabilities and deposits across four quarters.
Accounting Comic Break0:14
Featuring an accounting comic break, the lecture reinforces payroll laws, calculations, and journal entries in an engaging, approachable way.

9 Federal Unemployment Tax Act (FUTA)0:39
Explore the federal unemployment tax act (FUTA), what it is, and how to calculate the federal unemployment tax, with Excel worksheets and instructional videos.
PDF - 40 FUTA SUTA Workers Compensation0:08
Access a downloadable pdf that serves as a supplement to the instructional video, covering payroll accounting topics including futa, suta, and workers compensation.
40 FUTA, SUTA Workers Compensation4:52
Explore FUTA and SUTA—federal and state unemployment taxes paid by employers, their interplay, wage caps, and how workers' compensation insurance protects employees, with state differences and journal entry implications.
PDF - 615 Federal & State Unemployment Tax0:08
Access the downloadable pdf to supplement the instructional video on federal and state unemployment tax.
615 Federal & State Unemployment Tax9:17
Assess federal and state unemployment taxes, highlighting futa as an employer tax with no employee deduction and an effective 0.6% rate on the first $7,000 per employee.
PDF - 50 FUTA0:08
Access a downloadable pdf file that supplements the instructional video for payroll accounting lessons on laws, calculations, and journal entries.
50 Federal Unemployment Tax Act Calculation3:42
Calculate FUTA using the $7,000 wage cap and earnings records to determine taxable FUTA wages, noting cafeteria plans and other adjustments that affect the rate for two employees.
Excel Download0:05
Download the Excel worksheet featured in the next presentation to practice payroll accounting calculations and journal entries.
50 Worksheet FUTA6:38
Calculate futa and ceuta taxes using the 7000 cap on futa wages, adjust for cafeteria or retirement plans, and apply 0.6% futa and 5.4% ceuta as employer taxes.
10 Multiple Choice – Payroll7:04
Explore payroll-focused multiple-choice questions, detailing acronym reasoning for Cobra, Fica, and related benefits, with elimination strategies to identify correct answers.
60 Discussion Question - Payroll
60 Discussion Question - Payroll11:08
Learn to prepare annual payroll tax reporting with form 940, separate from 941, and summarize W-2 and W-3 data, including FUTA up to a $7,000 cap and SUTA considerations.
Accounting Comic Break0:14
Explore payroll accounting concepts through an accounting comic break, reinforcing payroll laws, calculations, and journal entries with engaging, accessible explanations.

10 Other Deductions0:30
Explore other deductions in payroll accounting, detailing items withheld from gross pay to arrive at net pay and how these deductions reduce employee earnings.
PDF - 425 Post Tax Deductions0:08
Access a downloadable pdf that serves as a supplementary resource to the instructional video on payroll accounting.
425 Post Tax Deductions5:40
Explore post-tax deductions that shape the net paycheck from gross wages, including mandatory union dues and garnishments and voluntary charitable or investment deductions, which do not reduce federal tax calculations.
PDF - 525 Other Deductions & Payment Methods0:08
Access a downloadable pdf that accompanies the instructional video as a supplement. Use the pdf to reinforce key concepts from the lecture on payroll accounting.
525 Other Deductions & Payment Methods8:06
Analyze other deductions and payment methods, including state tax variations, post-tax deductions, garnishments, and union dues, and compare cheque and direct deposit with check stub details and net pay clarity.
20 Multiple Choice – Payroll5:55
analyze payroll concepts via multiple-choice questions on exempt versus nonexempt workers under the fair labor standards act, and identify payroll file essentials such as occupation.
70 Discussion Question - Payroll
70 Discussion Question - Payroll6:36
Explain how to record payroll and payroll taxes, including employee withholdings and employer taxes for FICA, Social Security, Medicare, and FUTA, with related debits and credits.
Accounting Comic Break0:14
Explore a lighthearted accounting comic break that reinforces payroll accounting concepts, including laws, calculations, and journal entries, to enhance practical understanding.

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.

Description

This comprehensive payroll accounting course covers many aspects of payroll, providing in-depth knowledge of payroll legislation, calculations, and journal entries. Led by an experienced CPA, this course offers practical examples and valuable insights into the intricacies of payroll processing.

In this course, we will thoroughly explore payroll legislation, including a wide range of laws that impact payroll operations. We will focus on the laws related to payroll calculations and withholdings, ensuring compliance with legal requirements.

Understanding the importance of accurate calculations, we will dive into the generation of payroll registers and earnings reports, which serve as vital tools in calculating payroll accurately. Through practical exercises, you will develop proficiency in calculating payroll tax withholdings, such as federal income tax (FIT), social security, and Medicare. We will guide you through the process of determining net pay from gross pay, equipping you with the necessary skills to handle payroll calculations effectively.

One key aspect often overlooked in payroll courses is the recording of payroll transactions. In this course, we will thoroughly cover payroll journal entries, providing a comprehensive understanding of their complexity. By examining the impact of these entries on financial accounts and the accounting equation, you will gain practical knowledge of payroll accounting and its correlation with debits and credits.

Moreover, we will address the crucial process of completing payroll tax forms, including Form 941, Form 940, Form W-2, Form W-3, and Form W-4. Through step-by-step guidance, you will learn how to accurately fill out these forms, ensuring compliance with reporting requirements.

To enhance your learning experience, this course offers valuable resources, including downloadable PDF files for offline reference, preformatted Excel practice files to reinforce your Excel skills, multiple-choice and short calculation practice questions to sharpen your problem-solving abilities, and stimulating discussion questions to facilitate interactive learning and knowledge sharing.

You will have the privilege of learning from a highly qualified instructor who holds CPA, CGMA, and Master of Science in Taxation credentials. With their extensive experience in accounting concepts, QuickBooks software, and curriculum development, you can trust in their expertise to provide comprehensive instruction and guidance.

Content Includes:

In-depth coverage of payroll laws and their impact on payroll processing
Detailed explanations and calculations of regular pay and overtime pay
Comprehensive understanding of employer and employee social security and Medicare calculations
Thorough examination of employee federal income tax calculations
Detailed insights into employer federal unemployment tax (FUTA) calculations
Exploration of other payroll deductions and their significance in payroll accounting
Extensive guidance on payroll journal entries and their proper posting to the general ledger
Step-by-step instructions for accurately completing payroll tax forms (Form 941, Form 940, Form W-2, Form W-3, Form W-4)
Practical application through comprehensive payroll and accounting cycle problems
Comprehensive coverage of key payroll definitions and terminology for a thorough understanding

Enroll now in this comprehensive payroll accounting course and gain the skills and knowledge to excel in managing payroll operations effectively and with confidence.

Who this course is for:

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.

Payroll Accounting: Laws, Calculations, and Journal Entries

What you'll learn

Explore related topics

Course content

Introduction4 lectures • 15min

Payroll Legislation8 lectures • 22min

Payroll Forms and Time-Frames7 lectures • 42min

Payroll Register & Earning Record7 lectures • 28min

Regular Pay & Overtime Pay Calculation11 lectures • 36min

Federal Income Tax & Retirement Plans17 lectures • 1hr 5min

Federal Income Contributions Act Social Security11 lectures • 43min

Federal Income Contribution Act Medicare9 lectures • 26min

Federal Unemployment Tax Act (FUTA)12 lectures • 44min

Other Deductions8 lectures • 27min

Requirements

Description

Who this course is for: