Small Business Payroll Course

Lesson 1 • Key Payroll Terminology

Introduces essential vocabulary used throughout payroll processing. Precise terminology prevents misinterpretation of pay stubs, reports, and regulations.

Lesson 2 • Employer Obligations Overview

Outlines the core responsibilities employers carry when hiring and paying workers. Connects legal duties to practical payroll tasks performed each pay cycle.

Lesson 3 • What Payroll Is and Why It Matters

Defines payroll as a business function and its financial and legal significance. Establishes the stakes of accurate payroll for employer compliance and employee trust.

Lesson 1 • Contractor Agreements and Payment Records

Details the documentation needed when engaging independent contractors for payment. Proper records support year-end information reporting and audit defence.

Lesson 2 • New-Hire Documentation and Onboarding

Covers required forms and verification steps completed before the first payslip. Accurate onboarding data feeds directly into payroll calculations and tax filings.

Lesson 3 • Employee vs. Independent Contractor

Explains the behavioural, financial, and relationship tests used to classify workers. Misclassification triggers back taxes and penalties, making this a critical first step.

Lesson 1 • Paid Time Off and Leave Pay

Explains how holiday, sick, and public holiday pay are calculated and recorded in payroll.

Lesson 2 • Overtime Rules and Calculations

Covers the standard overtime threshold and the premium rate applied to qualifying hours. Students apply the regular rate of pay concept to avoid wage-law exposure.

Lesson 3 • Salaried Employee Pay

Explains how annual salaries are divided across pay periods and adjusted for partial periods. Consistent methodology avoids over- or underpayment when schedules change.

Lesson 4 • Bonuses, Commissions, and Tips

Addresses variable compensation types and their effect on gross pay and overtime calculations. Each pay type has distinct tax and overtime implications that must be handled correctly.

Lesson 1 • Employer Tax Deposit Requirements

Explains deposit schedules, lookback periods, and the consequences of late or incorrect deposits. Consistent on-time deposits are the single most important compliance habit.

Lesson 2 • Unemployment Insurance Taxes

Distinguishes federal and state unemployment tax obligations and how experience ratings affect rates. Timely deposits and accurate wage reporting keep rates low.

Lesson 3 • Social Insurance Tax Calculations

Covers the employee and employer shares of social insurance taxes on wages up to applicable wage bases. Students calculate both sides of the tax for each payroll run.

Lesson 4 • State and Local Tax Withholding

Addresses the variety of state income, local income, and other jurisdiction-specific taxes employers must withhold. Multi-state situations require careful nexus analysis.

Lesson 1 • Pre-Tax Benefit Deductions

Covers health insurance, flexible spending, and similar deductions that reduce taxable wages before withholding. Correct sequencing of deductions maximises tax savings for both parties.

Lesson 2 • Retirement Plan Contributions

Explains employee elective deferrals and employer contributions to common small business retirement plans. Contribution limits and timing rules must be followed to preserve plan tax status.

Lesson 3 • Post-Tax Deductions and Garnishments

Addresses deductions taken after tax, including Roth contributions, union dues, and court-ordered garnishments. Garnishment priority rules and disposable income limits must be strictly followed.

Lesson 1 • Using Payroll Software Efficiently

Demonstrates how to enter data, run calculations, and review outputs in a typical payroll application. Software reduces errors but requires correct setup and periodic audits.

Lesson 2 • Handling Off-Cycle and Correction Payrolls

Addresses situations requiring payroll runs outside the normal schedule, such as terminations or error corrections. Prompt correction limits legal exposure and maintains employee trust.

Lesson 3 • Manual Payroll Calculation Workflow

Walks through the step-by-step arithmetic of a complete manual payroll for a small team. Understanding manual calculation builds the conceptual foundation for using payroll software.

Lesson 4 • Direct Deposit and Cheque Distribution

Explains the mechanics of electronic fund transfers and physical cheque issuance for employee payment. Timing and security controls protect both employer funds and employee data.

Lesson 1 • Contractor Information Returns

Covers the annual information returns filed for independent contractors paid above the reporting threshold. Timely and accurate filing avoids backup withholding obligations.

Lesson 2 • Annual Federal Payroll Tax Returns

Explains the annual unemployment tax return and the annual reconciliation of federal income tax withholding. These filings close out the tax year and confirm deposit accuracy.

Lesson 3 • Quarterly Payroll Tax Returns

Covers the preparation of the employer's quarterly federal tax return reconciling wages, withholding, and deposits. Accurate quarterly filings prevent discrepancies that trigger audits.

Lesson 4 • Employee Wage Statements

Details the preparation and distribution of annual wage and tax statements provided to each employee. Errors on wage statements cause employee tax problems and employer penalties.

Lesson 1 • Wage and Hour Compliance

Reviews minimum wage, overtime, and recordkeeping requirements under wage-and-hour law. Proactive compliance audits catch violations before regulators or employees do.

Lesson 2 • Responding to Tax Notices and Audits

Prepares students to interpret agency notices, gather documentation, and respond within required timeframes. A calm, organised response minimises penalties and resolution time.

Lesson 3 • Payroll Policy Documentation

Guides creation of written payroll policies that standardise processes and communicate rules to staff. Documented policies reduce inconsistency and support compliance during staff transitions.

Lesson 4 • Required Payroll Records and Retention

Identifies which payroll documents must be kept, in what format, and for how long under federal and state rules. Proper retention protects the business in wage disputes and tax audits.