By Ross Maynard, Director

An Introduction to Payroll Accounting

Language: English
All Levels

Course description

Welcome to an Introduction to Payroll Accounting. This course provides an overview of payroll accounting. It is aimed at accountants and business managers and owners new to payroll accounting and looking for straightforward coverage of the key elements and features of payroll.

In this course we will cover the core elements of payroll; how gross pay is calculated; and issues when dealing with tips and benefits in kind. We’ll also look at tax-exempt deductions and the statutory deductions from pay. We’ll review the main elements of payroll taxation and social security contributions including the terminology used in the United States, Canada and the United Kingdom. And we’ll cover the calculation of Net Pay – that is the amount that the employee actually receives in their bank account. Finally we’ll explore the main journal entries required in the accounts.

The principles and structure of payroll accounting are common across many jurisdictions, and the learning in this course applies in many countries of the world. For this reason, the course does not go into the detail of any country-specific legislation or regulations, and does not cover the particular tax rates, tax bands or deduction rates that apply in different jurisdictions.

This course provides a grounding in the principles and structure of payroll accounting whatever your country of operation. I hope you enjoy it. On completion of the course, delegates will be able to: • Describe the main components of payroll including allowances, taxes and deductions. • Explain the terms Gross Pay, Taxable Pay and Net Pay • Identify the statutory taxes and deductions applicable in the United States, Canada and the United Kingdom • Complete the main Journal Entries required to process payroll • Describe the elements recorded in a Payroll Register

Related Skills

Course overview - 9

  • First Principles in Payroll Accounting

  • Getting to Gross Pay

  • Allowances and Deductions

  • Income Taxes and Social Security Contributions

  • The Calculation of Net Pay

  • Specific Payroll Terminology for the United States, Canada and the United Kingdom

  • Payroll Journal Entries

  • Final Thoughts on Payroll Accounting

  • The Payroll Register

Meet your instructor

Ross Maynard
Ross MaynardDirector
I am a Fellow of the Chartered Institute of Management Accountants in the UK, and director of Ideas2Action Process Excellence Ltd.  I have 30 years’ experience as a process improvement consultant and facilitator, combining strong analytical skills, with 30 years’ experience of process analysis and improvement, and organisational transformation. I have supported improvement projects with some of the world's leading organisations including Boeing, Rolls Royce, Thermofisher Scientific, Royal Bank of Scotland, Parker Hannifin, Watlow Electric, Bosch, the NHS, and many others.  I have spoken at conferences and seminars in the UK, Denmark, Russia, Italy and Australia; and had many articles published in business journals. As well as process improvement consultancy and facilitation, I am a professional author of online business courses, and regularly delivers live webinars for the ACCA and other professional organisations. I live in Scotland with my wife and daughter.