Payroll Computation and Bookkeeping Course

Lesson 1 • The Payroll Function in Business

Defines payroll's role within organisational finance and HR. Connects payroll outputs to financial reporting and compliance obligations.

Lesson 2 • Core Bookkeeping Concepts

Introduces double-entry bookkeeping, the accounting equation, and chart of accounts. Provides the accounting foundation required for recording payroll transactions.

Lesson 3 • Types of Employee Compensation

Distinguishes salary, hourly wages, commissions, bonuses, and non-cash benefits. Clarifies how each compensation type affects gross pay calculations.

Lesson 4 • Introduction to Payroll Records

Identifies essential payroll documents and their retention requirements. Establishes record-keeping habits that support audit readiness and compliance.

Lesson 1 • New Hire Paperwork and Onboarding

Walks through required new-hire forms, identity verification, and data entry into payroll systems. Accurate setup prevents downstream payroll errors.

Lesson 2 • Pay Rate Changes and Employment Events

Covers mid-period rate changes, promotions, demotions, and terminations. Proper handling of these events maintains payroll accuracy and legal compliance.

Lesson 3 • Employee vs. Independent Contractor

Applies behavioural, financial, and relationship tests to classify workers correctly. Misclassification consequences and corrective procedures are examined.

Lesson 1 • Commissions, Bonuses, and Incentive Pay

Calculates draw-against-commission, flat bonuses, and performance-based incentives. Explains how supplemental wages affect gross pay and withholding.

Lesson 2 • Calculating Hourly and Salaried Gross Pay

Applies formulas for regular hourly pay and prorated salary calculations. Builds computational accuracy before introducing overtime and special pay.

Lesson 3 • Overtime Pay Rules and Calculations

Covers standard overtime, double-time, and fluctuating-workweek methods. Correct overtime maths prevents underpayment claims and regulatory penalties.

Lesson 4 • Special Pay Situations

Addresses holiday pay, shift differentials, on-call pay, and reporting-time pay. Each scenario is mapped to its gross pay impact.

Lesson 1 • Unemployment Insurance Taxes

Calculates federal and state unemployment tax obligations, experience ratings, and wage bases. Explains how timely state payments reduce federal liability.

Lesson 2 • State and Local Income Tax Withholding

Explains multi-state withholding obligations for employees working across jurisdictions. Covers reciprocity agreements and local tax layering.

Lesson 3 • Social Insurance and Medicare Taxes

Computes employee and employer shares of social insurance and Medicare taxes, including additional surtax thresholds. Covers wage base limits and their tracking.

Lesson 4 • Income Tax Withholding Methods

Applies wage-bracket and percentage methods to compute federal income tax withholding. Withholding accuracy directly affects employee net pay and year-end reconciliation.

Lesson 1 • Pre-Tax Voluntary Deductions

Calculates deductions for retirement plans, health premiums, and flexible spending accounts that reduce taxable wages. Explains plan limits and employer contribution matching.

Lesson 2 • Pay Stub Preparation and Disclosure

Designs compliant pay stubs that clearly communicate earnings, deductions, and year-to-date totals. Proper disclosure reduces employee disputes and supports transparency.

Lesson 3 • Net Pay Computation and Verification

Assembles gross pay, taxes, and deductions into a verified net pay figure. Introduces reconciliation checks to catch computational errors before disbursement.

Lesson 4 • Compulsory Deductions Overview

Covers court-ordered garnishments, child support, and tax levies as legally required deductions. Establishes priority rules when multiple garnishments compete.

Lesson 1 • Recording Benefit and Deduction Liabilities

Captures employer benefit contributions and voluntary deduction liabilities in the ledger. Ensures all payroll-related obligations appear on the statement of financial position.

Lesson 2 • Payroll Cash Disbursement Entries

Records the payment of net wages, tax deposits, and benefit remittances to clear liability accounts. Proper disbursement entries maintain balanced ledger accounts.

Lesson 3 • Accrued Payroll and Period-End Adjustments

Accrues wages earned but unpaid at period end and reverses accruals in the next period. Correct accruals align expense recognition with the matching principle.

Lesson 4 • Recording Employer Payroll Tax Expense

Journalises employer-side social insurance, Medicare, and unemployment tax obligations. Separates employer tax expense from employee withholding in the ledger.

Lesson 1 • Employee Wage and Tax Statements

Produces accurate annual wage and tax statements for all employees by the statutory deadline. Covers corrections, void procedures, and electronic filing thresholds.

Lesson 2 • Quarterly Payroll Tax Returns

Completes the employer's quarterly federal tax return reconciling wages, withholding, and deposits. Identifies common errors that trigger notices and how to avoid them.

Lesson 3 • Contractor Payment Reporting

Prepares annual information returns for non-employee compensation paid to independent contractors. Explains backup withholding triggers and reporting thresholds.

Lesson 4 • Annual Federal Unemployment Tax Return

Prepares the annual federal unemployment tax return and calculates the net tax after state credits. Covers payment deadlines and credit reduction adjustments.

Lesson 1 • Internal Controls for Payroll

Establishes segregation of duties, authorisation hierarchies, and access controls specific to payroll. Effective controls prevent unauthorised payments and data manipulation.

Lesson 2 • Responding to External Payroll Audits

Prepares staff to respond to government payroll audits with organised documentation and clear communication. Proper preparation minimises audit duration and adverse findings.

Lesson 3 • Ongoing Compliance Monitoring

Establishes processes for tracking regulatory changes, updating procedures, and training staff continuously. Proactive compliance monitoring prevents costly retroactive corrections.

Lesson 4 • Payroll Fraud Detection and Prevention

Identifies ghost employee schemes, buddy punching, and falsified hours as common fraud types. Analytical and procedural controls are matched to each fraud risk.