Active Outline

General Information

Course ID (CB01A and CB01B)
ACCTD064.
Course Title (CB02)
Payroll and Business Tax Accounting
Course Credit Status
Credit - Degree Applicable
Effective Term
Fall 2023
Course Description
Fundamentals of payroll accounting using manual and computerized accounting systems. Theoretical and practical aspects of payroll accounting and reporting. Course includes Federal and California payroll tax rules and forms.
Faculty Requirements
Course Family
Not Applicable

Course Justification

This course belongs on the Accounting A.A. Degree and is a CSU transferable undergraduate course. Payroll is an indispensable function in virtually all organizations with employees. This course will help to prepare students to perform payroll calculations and prepare payroll tax reports in compliance with federal and state laws.

Foothill Equivalency

Does the course have a Foothill equivalent?
Yes
Foothill Course ID
ACTG F065.

Course Philosophy

Formerly Statement

Course Development Options

Basic Skill Status (CB08)
Course is not a basic skills course.
Grade Options
  • Letter Grade
  • Pass/No Pass
Repeat Limit
0

Transferability & Gen. Ed. Options

Transferability
Transferable to CSU only

Units and Hours

Summary

Minimum Credit Units
4.0
Maximum Credit Units
4.0

Weekly Student Hours

TypeIn ClassOut of Class
Lecture Hours4.08.0
Laboratory Hours0.00.0

Course Student Hours

Course Duration (Weeks)
12.0
Hours per unit divisor
36.0
Course In-Class (Contact) Hours
Lecture
48.0
Laboratory
0.0
Total
48.0
Course Out-of-Class Hours
Lecture
96.0
Laboratory
0.0
NA
0.0
Total
96.0

Prerequisite(s)

ACCT D001A or ACCT D01AH

Corequisite(s)

Advisory(ies)

  • ESL D261. and ESL D265., or ESL D461. and ESL D465., or eligibility for EWRT D001A or EWRT D01AH or ESL D005.
  • Elementary algebra or equivalent (or higher), or appropriate placement beyond elementary algebra

Limitation(s) on Enrollment

Entrance Skill(s)

General Course Statement(s)

Methods of Instruction

Lecture and visual aids

Discussion of assigned reading

In-class discussion and problem-solving

In-class quiz and examination review

Homework, cases and extended projects

Collaborative projects, cases and small group exercises

Assignments

  1. Reading from assigned text and prepared materials
  2. Written homework assignments
  3. Computer lab assignments using electronic spreadsheet and payroll software
  4. Computer lab assignments using the Internet to research payroll tax regulations

Methods of Evaluation

  1. Written quizzes, midterm, and final exams that assess comprehension and require synthesis and application of course material
  2. Homework assignments and problems demonstrating critical thinking regarding the application of payroll tax regulations, as well as comprehension of payroll concepts
  3. Manual and/or computerized payroll accounting projects to evaluate the ability to critically analyze, apply, and synthesize course materials

Essential Student Materials/Essential College Facilities

Essential Student Materials: 
  • None.
Essential College Facilities:
  • None.

Examples of Primary Texts and References

AuthorTitlePublisherDate/EditionISBN
Beig, Bernard J., Toland, Judith A., Payroll Accounting. 27th ed. Mason, OH: South-Western Cengage Learning, 2017.
Appropriate accounting software including spreadsheet, payroll, and Internet software.
California Resources: DE44-California Employer's Guide and DE45-Completed Forms Sample Book: State of California Employment Development Department publications, current year.

Examples of Supporting Texts and References

AuthorTitlePublisher
None.

Learning Outcomes and Objectives

Course Objectives

  • Apply basic Federal rules regarding payroll tax.
  • Compare and contrast record keeping systems that accumulate information for payroll tax reporting; including manual systems, electronic spreadsheets, specialized payroll accounting software and other commercial options.
  • Research Federal payroll information and download tax forms from the Internet
  • Prepare quarterly and annual payroll tax returns for Federal reporting purposes
  • Evaluate the relationship of payroll and financial accounting systems, including the preparation of journal entries to summarize and record payroll transactions.
  • Compare and contrast California payroll accounting and reporting with Federal requirements

CSLOs

  • Research payroll tax laws and evaluate accounting options to comply with these laws.

  • Produce payroll tax reports and related journal entries.

Outline

  1. Apply basic Federal rules regarding payroll tax.
    1. Employee vs. Independent Contractor
    2. Special issues: expatriate issues, relationship of payroll to business entity (i.e. sole proprietorship, partnership, corporation, and others), tip reporting, cafeteria plans, 401(k) and similar plans, medical reimbursement plans, backup withholding, etc.
    3. Computation of gross wages
    4. Employee deductions versus employer payroll taxes
    5. Federal income tax withholding
    6. Federal Social Security and Medicare Health Insurance
    7. Federal unemployment taxes
  2. Compare and contrast record keeping systems that accumulate information for payroll tax reporting; including manual systems, electronic spreadsheets, specialized payroll accounting software and other commercial options.
    1. Review manual accounting systems including timecards, employee compensation records, payroll registers, and paychecks
    2. Use an electronic spreadsheet to automate the above manual system as much as practical.
      1. Emphasis on transferable spreadsheet skills, such as opening and saving files, backup, and isolating input variables in one section of the sheet rather than "hard coding" variables into cell formulas
      2. Automatic calculation of gross and net amounts for each employee and summarized totals for all employees
      3. Automatic calculation of withholding amounts through the use of spreadsheet features such as nested =IF statements and look up functions
    3. Use special-purpose payroll accounting software to record transactions and print reports
  3. Research Federal payroll information and download tax forms from the Internet
    1. Identify payroll issues and research rules by going to sites such as www.irs.gov for information
    2. Download tax forms from IRS websites and demonstrate proper reporting techniques
  4. Prepare quarterly and annual payroll tax returns for Federal reporting purposes
    1. Quarterly forms
    2. Annual forms
    3. Survey other relevant forms and payroll tax deposit requirements
  5. Evaluate the relationship of payroll and financial accounting systems, including the preparation of journal entries to summarize and record payroll transactions.
    1. Preparation of journal entries
    2. Internal controls related to payroll and computerized payroll
  6. Compare and contrast California payroll accounting and reporting with Federal requirements
    1. General differences between California and Federal payroll tax rules
    2. Differences between California and Federal rules for calculating gross income, deductions, and net income
    3. Differences between California and Federal rules for reporting; including California forms, deadlines, and procedures
    4. Impact of California rules on payroll accounting systems, journal entries, and internal controls
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