ACC1120 PAYROLL ACCOUNTING
2 Credit Hours
Student Level:
This course is open to students on the college level in either the freshman or sophomore year.
Catalog Description:
ACC1120 - Payroll Accounting (2 hrs.)
Payroll accounting will provide practice in all payroll operations both manually and through the use of computerized payroll software. The course will cover topics, including the preparation of employee earnings records, payroll registers, and federal and state reports. A basic payroll accounting system will be used to introduce calculations and recording of earnings and taxes.
Course Classification:
Lecture
Prerequisites:
Basic knowledge of accounting with minimum grade of C in ACC1111 Fundamentals of Accounting or equivalent.
Controlling Purpose:
This course is designed to introduce the laws and regulations affecting payroll. Students will become familiar with the necessary records and reports and proper procedures for preparing and accounting for payroll.
Learner Outcomes:
Payroll Accounting provides students with an understanding of the application the payroll tax laws, necessary records and reports, and proper procedures for preparing, correcting, and accounting for payroll. Emphasis will be placed on the liabilities, records, and control requirements of payroll accounting. Students will be able to describe the basic accounting systems involved with payroll accounting in both a manual and computerized format.
Units Outcomes and Criterion Based Evaluation Key for Core Content:
The following defines the minimum core content, not including the final examination period. Instructors may add other content as time allows.
UNIT 1: Payroll and Personnel Records
Outcomes: Upon completion of this unit, the students will be able to identify payroll laws regarding employment and the basics of the payroll system.
- Identify the various laws that affect employees in their payroll operations
- Explain the payroll recordkeeping required by payroll laws and the importance of thorough recordkeeping system
- Describe employment procedures followed in a Human Resource Department
- Recognize the various personnel records used by businesses and know the type of information shown on each form
- Identify payroll register and employee’s earnings record
UNIT 2: Computing and Paying Wages and Salaries
Outcomes: Upon completion of this unit, the students will be able to explain the Fair Labor Standards Act and how to compute payroll.
- Explain the major provisions of the Fair Labor Standards Act and define hours worked
- Describe main types of records used to collect payroll data
- Perform payroll computations for hourly and salaried employees, including regular pay and overtime
- Identify distinctive compensation plans
UNIT 3: Social Security Taxes
Outcomes: Upon completion of this unit, the students will be able to apply current tax rates and wages for FICA and SECA.
- Identify for social security purposes those persons covered under law and those services that make up employment
- Identify the types of compensation that are defined as wages
- Apply current tax rates and wage bases for FICA and SECA purposes
- Describe procedure for depositing FICA taxes and income taxes
- Complete federal forms associated with payroll
UNIT 4: Income Tax Withholdings
Outcomes: Upon completion of this unit, the students will be able discuss withholding allowances and the various forms used in the preparation of taxes.
- Explain types of withholding allowances that may be claimed by employees for income tax withholding
- Explain purpose of W-4 form and list proper procedures for using both the percentage method and the wage bracket method
- Compute the amount of federal tax to be withheld using both the percentage method and the wage bracket method
- Describe how employees may receive the advance earned income credit and how the employer computes the amount of the advance
- Complete W-2 form and other types of informational returns
UNIT 5: Unemployment Compensation Taxes
Outcomes: Upon completion of this unit, the students will be able to discuss and calculate federal and state unemployment taxes and complete various forms associated with them.
- Describe the basic requirements for an individual to be classified as an employer or an employee under the Federal Unemployment Tax Act
- Describe the basic requirements for an individual to be classified as an employer or an employee under the Federal Unemployment Tax Act
- Identify taxable wages as defined by Federal Unemployment Tax Act
- Compute federal and state unemployment tax
- Describe how an experience-rating system is used in determining employers’ contributions to state unemployment compensation funds
- Complete required reports under federal and state unemployment compensation laws
- Describe the types of information reports under the various state unemployment compensation laws
UNIT 6: Analyzing and Journalizing Payroll Transactions
Outcomes: Upon completion of this unit, the students will be able to analyze and journalize payroll transactions.
- Record payroll in payroll registers and post to employees earnings records
- Journalize entries for payroll, payroll taxes, and payment of payroll-related liabilities
- Post journal entries to general ledger accounts
- Prepare end-of-month adjustments for payroll
UNIT 7: Computerized Payroll Accounting
Outcomes: Upon completion of this unit, the students will be able to apply their knowledge of payroll accounting using a computerized payroll accounting format.
- Identify the components and procedures of a computerized payroll system
- Maintain employee earnings records through the use of the computer
- Enter and correct payroll transactions
- Generate payroll and employer’s payroll taxes journal entries
- Display and describe computerized payroll reports
Projects Required:
As assigned in class.
Textbook:
Contact Bookstore for current textbook.
Materials/Equipment Required:
Calculator
Storage Media Devices (such as a flash drive, etc.)
Attendance Policy:
Students should adhere to the attendance policy outlined by the instructor in the course syllabus.
Grading Policy:
The grading policy will be outlined by the instructor in the course syllabus.
Maximum class size:
Based on classroom occupancy
Course Time Frame:
The U.S. Department of Education, Higher Learning Commission and the Kansas Board of Regents, define credit hour and have specific regulations that the college must follow when developing, teaching and assessing the educational aspects of the college. A credit hour is an amount of work represented in intended learning outcomes and verified by evidence of student achievement that is an institutionally-established equivalency that reasonably approximates not less than one hour of classroom or direct faculty instruction and a minimum of two hours of out-of-class student work for approximately fifteen weeks for one semester hour of credit or an equivalent amount of work over a different amount of time. The number of semester hours of credit allowed for each distance education or blended hybrid courses shall be assigned by the college based on the amount of time needed to achieve the same course outcomes in a purely face-to-face format.
Refer to the following policies:
402.00 Academic Code of Conduct
263.00 Student Appeal of Course Grades
403.00 Student Code of Conduct
Disability Services Program:
Cowley College, in recognition of state and federal laws, will accommodate a student with a documented disability. If a student has a disability, which may impact work in this class, which requires accommodations, contact the Disability Services Coordinator.
DISCLAIMER: THIS INFORMATION IS SUBJECT TO CHANGE. FOR THE OFFICIAL COURSE PROCEDURE CONTACT ACADEMIC AFFAIRS.
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