ACNT 1329 Payroll and Business Tax Accounting Computer Information Technology Total training hours per semester 64 Course Level Introductory Prerequisites/Co-requisites Math Level 2 Principles of Accounting I WECM/ACGM Course Description A study of payroll procedures, taxing entities, and reporting requirements of local, state, and federal taxing authorities in a manual and computerized environment. WECM/ACGM Learning Outcomes Develop personnel and payroll records that provide the information required under current laws and process payroll data and tax data and prepare reports. Course Goals/Essence Comprehension of human resource and payroll procedures and laws will train the students to successfully prepare payrolls and the required reports that accompany them. This working knowledge of payroll and business tax accounting will guide the students through human resource situations in the workplace. Learning Outcomes A. Develop personnel and payroll records that provide the information required under current laws and process payroll data and tax data and prepare reports The student will: Identify various laws that affect employers and payroll operations Create various personnel records used by businesses and know the type of information shown on each form Identify the payroll register and the employee’s earnings record and discuss the uses of each Apply the current tax rates and wage base for purposes of the Federal Insurance Compensation Act and Self-Employment Tax Act Compute and prepare in a report the amount of federal income tax withholding on supplementary wage payments such as vacation pay, bonuses, commissions, dismissal pay, and tips B. Compute gross pay, applying the provisions of the Fair Labor Standards Act as they apply to payroll The student will: Explain the major provisions of the Fair Labor Standards Act as they affect minimum wages, equal pay for equal work, overtime pay, and child labor Describe and use the main types of records used to collect payroll data Convert weekly wages to hourly rates Convert monthly, bi-monthly, semi-monthly, and annual salary rates to hourly rates Compute regular and overtime earnings to determine total gross earnings Apply two different methods to calculate overtime payments for pieceworkers Compute earnings under incentive and commission plans Explain how wages are paid using (a) cash, (b) check, and (c) electronic transfer of funds C. Calculate social security taxes, applying current rates and taxable limits, and prepare required governmental forms while complying with due dates The student will: Identify, for social security purposes, those persons covered under the law, those services that constitute employment, and the kinds of compensation that are defined as wages Describe the different requirements and procedures for depositing FICA taxes and income taxes withheld from employees’ wages Accurately complete Form 941, the Employer’s Quarterly Federal Tax Return, and Form 8109, the Federal Tax Deposit Coupon Discuss that, as collection agents for the government, employers may be subject to civil and criminal penalties if they fail to carry out their duties, and compute the related penalties for such failure D. Calculate and process income taxes withheld, demonstrating the various methods used, while complying with payroll laws The student will: Determine coverage under the federal income tax law by examining (a) the employer-employee relationship, (b) the kinds of payments defined as wages, and (c) the kinds of employment excluded under the law Complete Forms W-2 and W-4 and be familiar with other wage and tax statements Calculate the amount of federal income tax to be withheld using (a) the percentage method and (b) the wage-bracket method Explain how employees may receive Advance Earned Income Credit and compute the amount of the advance Explain preparation of Form 941and Form 8109 Describe the major types of information returns Explain the impact of state and local income taxes on the payroll accounting process E. Calculate federal and state unemployment taxes, applying current rates and taxable limits, and prepare required governmental forms while complying with due dates The student will: Describe the employer-employee relationship as defined by the Federal Unemployment Tax Act Identify generally what is defined as taxable wages by the Federal Unemployment Tax Act Compute the federal unemployment tax and the credit against this tax Describe how an experience-rating system is used to determine employers’ contribution to state unemployment compensation funds Compute state unemployment tax Complete the reports required by both federal and state unemployment laws, including Form 940 List the factors that determine eligibility for unemployment compensation benefits F. Record the various journal entries associated with payroll accounting The student will: Record payrolls in payroll registers and post to employees’ earnings records Journalize the entries to record the payroll, employers’ payroll taxes, and payment of payroll-related liabilities Post to the general ledger accounts that are used to accumulate information from the payroll entries Calculate and record payroll tax deposits Explain the need for and calculate end-of-period adjustments Identify the general ledger accounts used to record payroll transactions G. Calculate state and local sales taxes and state franchise tax, applying current rates to the taxable base, and prepare required governmental forms while complying with due dates The student will: Determine transactions subject to sales tax, i.e. taxable sales and taxable services Compute sales tax due Determine which corporations are subject to the franchise tax Calculate the franchise tax due Use the state comptroller’s web site to research sales and franchise tax and print forms Accurately complete the required governmental sales tax and franchise tax forms H. Build employability skills such as critical thinking and work ethic The student will: Use critical thinking skills to prepare payroll registers Use integrity skills to maintain employees’ earnings records Use critical thinking skills to journalize and post payroll and payroll tax entries Use critical thinking skills to complete federal, state, and city tax deposit forms and journalize the transactions Use critical thinking skills to prepare various quarter-end and year-end payroll tax forms Use integrity skills to make the accrual entries for the payroll at the end of a year Students may vary in their competency levels on these abilities. You can expect to acquire these abilities only if you honor all course policies, attend classes regularly, complete all assigned work in good faith and on time, and meet all other course expectations of you as a student.
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