Description

An Introduction to Payroll Accounting

Course Description

Copyright Ross Maynard 2021

Course Description

Welcome to an Introduction to Payroll Accounting.

This course provides an overview of payroll accounting. It is aimed at accountants and business managers and owners new to payroll accounting and looking for straightforward coverage of the key elements and features of payroll.

In this course we will cover the core elements of payroll; how gross pay is calculated; and issues when dealing with tips and benefits in kind. We’ll also look at tax-exempt deductions and the statutory deductions from pay.

We’ll review the main elements of payroll taxation and social security contributions including the terminology used in the United States, Canada and the United Kingdom.

And we’ll cover the calculation of Net Pay – that is the amount that the employee actually receives in their bank account. Finally we’ll explore the main journal entries required in the accounts.

The principles and structure of payroll accounting are common across many jurisdictions, and the learning in this course applies in many countries of the world. For this reason, the course does not go into the detail of any country-specific legislation or regulations, and does not cover the particular tax rates, tax bands or deduction rates that apply in different jurisdictions.

This course provides a grounding in the principles and structure of payroll accounting whatever your country of operation. I hope you enjoy it.

Key Learning Points 

On completion of the course, delegates will be able to:

• Describe the main components of payroll including allowances, taxes and deductions.
• Explain the terms Gross Pay, Taxable Pay and Net Pay
• Identify the statutory taxes and deductions applicable in the United States, Canada and the United Kingdom
• Complete the main Journal Entries required to process payroll 
• Describe the elements recorded in a Payroll Register 

Curriculum

Lesson 1: First Principles in Payroll Accounting

Lesson 2: Getting to Gross Pay

Lesson 3: Allowances and Deductions

Lesson 4: Income Taxes and Social Security Contributions

Lesson 5: The Calculation of Net Pay

Lesson 6: Specific Payroll Terminology for the United States, Canada and the United Kingdom

Lesson 7: Payroll Journal Entries

Lesson 8: Final Thoughts on Payroll Accounting

Appendix: The Payroll Register

Pre-Course Requirements

There are no pre-course requirements

Additional Resources

None

Course Tutor

Your tutor is Ross Maynard. Ross is a Fellow of the Chartered Institute of Management Accountants in the UK and has 30 years’ experience as a process improvement consultant specialising in business processes and organisation development. Ross is also a professional author of online training courses.

Ross lives in Scotland with his wife, daughter and Cocker Spaniel