I. General Information

1. Course Title:
Payroll Accounting

2. Course Prefix & Number:
ACCT 2114

3. Course Credits and Contact Hours:

Credits: 3

Lecture Hours: 3

4. Course Description:

This course is designed to develop an understanding of the various federal and state payroll laws applicable to business concerns. Through the study and preparation of employment records, payroll registers, employee earning records, and state and federal forms, students learn to maintain payroll records and payroll reports.

5. Placement Tests Required:

6. Prerequisite Courses:

There are no prerequisites for this course.

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

1. Course Equivalency - similar course from other regional institutions:

2. Transfer - regional institutions with which this course has a written articulation agreement:

III. Course Purpose

1. Program-Applicable Courses – This course fulfills a requirement for the following program(s):

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Analyze and follow a sequence of operations	Generate periodic payroll, create payroll register, and update employees' earnings records.
Apply abstract ideas to concrete situations	Prepare and file federal and state payroll tax returns and deposits.
Utilize appropriate technology	Research labor and payroll laws and regulations using the internet.

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• Determine the various federal and state laws, record-keeping and record retention requirements that affect employers in their payroll operations.
• Research labor and payroll laws and regulations using the internet.
• Calculate regular and overtime pay.
• Calculate employee withholdings and employer payroll taxes.
• Generate periodic payroll; create payroll register; and update employees' earnings records.
• Journalize the payroll entries.
• Prepare and file federal and state payroll tax returns and deposits.
• Prepare annual information returns.
• Differentiate between employees and other compensated individuals.

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. The Need for Payroll and Personnel Records
• The payroll profession
• Fair Labor Standards Act
• Federal Insurance Contributions Act
• Income tax withholding laws
• Unemployment tax acts
• Recordkeeping requirements
• Fair employment laws
• Other federal laws affecting the need for payroll and personnel records
• Other state laws affecting the need for payroll and personnel records
• Human resources and payroll accounting systems
• Human resources system
• Payroll accounting system
2. Computing Wages and Salaries
• The Fair Labor Standards Act
• Determining employee's work time
• Records used for timekeeping
• Methods of computing wages and salaries
3. Social Security Taxes
• Coverage under FICA
• A self-employed person
• Employer identification number
• Employee's application for social security card (Form SS-5)
• Returns required for social security purposes
• Preparing Form 941 (Employer's Quarterly Federal Tax Return)
• Failure-to-comply penalties
4. Income Tax Withholding
• Coverage under federal income tax withholding laws
• Tax-deferred retirement accounts
• Withholding allowances
• Federal income tax withholding
• Other methods of withholding
• Supplemental wage payments
• Wage and tax statements
• Returns employers must complete
• Information returns
• Independent contractor payments
• Backup withholding
• Electronic filing form W-2 and information returns
• Withholding state income tax
5. Unemployment Compensation Taxes
• Coverage under FUTA and SUTA
• Unemployment compensation taxes and credits
• Unemployment compensation reports required of the employer
6. Analyzing and Journalizing Payroll Transactions
• The payroll register
• The employee's earnings record
• Recording the gross payroll and withholdings
• Methods of paying wages and salaries
• Recording payroll taxes
• Recording workers' compensation insurance expense
• Recording the deposit or payment of payroll taxes
• Recording end-of-period adjustments
• Summary of accounts used in recording payroll transactions
7. MN Unit
• MN employment laws
• MN withholding
• MN unemployment taxes
8. Comprehensive payroll project

2. Laboratory/Studio Sessions