CIP CODE AREA: 52.0301 (Accounting)

COURSE LEVEL: Introductory (Freshman Level)

COURSE NUMBER: ACNT 1329 (Common Course)

COURSE TITLE: Payroll and Business Tax Accounting



METHOD OF PRESENTATION: Two hours lecture/discussion each week and two lab hours each week.

CATALOG DESCRIPTION: ACNT 1329 PAYROLL AND BUSINESS TAX ACCOUNTING (3-2-2). A study of payroll tax procedures, taxing entities, and reporting requirements of local, state and federal taxing authorities in a manual and computerized environment. Skills: R Prerequisites: ACNT 1404 Course Type: W

TEXTBOOK: Payroll Accounting 201X, XXth edition, Bieg and Toland, 512 pages (9781285862071)

COURSE REQUIREMENTS: See specific Instructor's First Day Class Handout.

OTHER: _____________________________________________________________________________________

Course Rationale:

The goals and objectives of this course prepare students for (1) obtaining or improving job skills, (2) qualifying for a business or accounting job, (3) achieving job advancement, (4) working as an entrepreneur, (5) completing degree requirements and/or (6) fulfilling personal goals.

Scans Competencies:

Competency must be shown in the following three areas:

1.       Manage time

a.       Uses class and lab time efficiently to accomplish required assignments

b.       Focuses efforts toward accomplishing class-related goals

c.        Prioritizes activities based on deadlines and level of importance

d.       Stays on target with class syllabus and planned lab activities

2.       Use computers to process information

a.       Uses lab computers and text to acquire and organize financial information for

b.       the completion of lab assignments using QuickBooks software

c.        Analyzes information necessary to complete and accounting cycle and prepare statements using an automated system

d.       Communicates financial information through the processing and production of financial statements

3.       Student exhibits responsibility

a.       Meets established deadlines for homework and lab assignments

b.       Attends class/lab on a regular basis

c.        Takes exams on time

d.       Seeks assistance from instructor and/or tutors when necessary

e.        Prepares for classes

Scholastic Dishonesty:

The following statement on scholastic dishonesty must be included: Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework.

Students with Disabilities:

The following statement on students with disabilities must also be included: Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester.

Course Evaluation/Grading System, How to Reach the Instructor, and Course Outline/Calendar:

Refer to the Instructor’s syllabus for this course.


Upon successful completion of this course, students should be able to:

Chapter 1

Identify various laws that affect employers in their payroll operations.

Examine the recordkeeping requirements of these laws.

Describe employment procedures generally followed in a Human Resources Department.

Recognize the various personnel records used by businesses and outline the type of information shown on each form.

Identify the payroll register and the employee’s earnings record.

Chapter 2

Explain the major provisions of the Fair Labor Standards Act.

Define hours worked.

Describe the main types of records used to collect payroll data.

Calculate regular and overtime pay.

Identify distinctive compensation plans.

Chapter 3

Identify, for social security purposes, those persons covered under the law and those services that make up employment.

Identify the types of compensation that are defined as wages.

Apply the current tax rates and wage base for FICA and SECA purposes.

Describe the different requirements and procedures for depositing FICA and income taxes withheld from employees’ wages.

Complete Form 941, Employer’s Quarterly Federal Tax Return.

Chapter 4

Explain coverage under the Federal Income Tax (FIT) Withholding Law by determining: (a) the employer-employee relationship, (b) the kinds of payments defined as wages, and (c) the kinds of pretax salary reductions.

Explain: (a) the types of withholding allowances that may be claimed by employees for income tax withholding and (b) the purpose and use of Form W-4.

Compute the amount of federal income tax to be withheld using: (a) the percentage method; (b) the wage-bracket method; (c) alternative methods such as quarterly averaging, annualizing of wages, and part-year employment; and (d) withholding of federal income taxes on supplementary wage payments.

Explain: (a) Form W-2, (b) the completion of Form 941, Employer’s Quarterly Federal Tax Return, (c) major types of information returns, and (d) the impact of state and local income taxes on the payroll accounting process.

Chapter 5

Describe the basic requirements for an individual to be an employer or an employee under Federal Unemployment Tax Act.

Identify generally what is defined as taxable wages by the Federal Unemployment Tax Act.

Compute the federal unemployment tax, the credit against the tax, and any credit reductions that might apply.

Describe how an experience-rating system is used in determining employers’ contributions to state unemployment compensation funds.

Complete the reports required by Federal Unemployment Tax Act.

Describe the types of information reports required under the various unemployment compensation laws.

Chapter 6

Record payrolls in payroll registers and post to employee’s earnings records.

Understand the various deductions – both voluntary and involuntary (taxes and garnishments) – that are taken out of employees’ gross pay.

Journalize entries to record the payroll and payroll taxes.

Post to the various general ledger accounts that are used to accumulate information from the payroll entries.

Explain the recording of payroll tax deposits.

Understand need for end-of-period adjustments.