Course Name (short): Fund. of Payroll Accounting
School: Business
Program(s): Business Admin Accounting, Business General
Program Coordinator(s): Tba, Lorraine Cipparrone
Course Leader or Contact: Monika Lebrecht
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version: 3.0
Status: Approved (APPR)

Calendar Description
Students are introduced to payroll preparation practices and procedures and study the applicable government payroll related legislation. This course serves as the basis for more advanced studies in payroll management or for a better understanding of related concepts in the areas of accounting, taxation and human resources. Students learn to identify taxable earnings and benefits, determine statutory and non-statutory deductions, calculate net pay, prepare accounting payroll data and complete the prescribed forms and remittances required to be submitted by employers. Using lectures, demonstrations and problem solving activities, students learn the steps of the payroll cycle that result in accurate payroll solutions for both internal and external stakeholders.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: N/A

Detailed Description
Students are introduced to payroll preparation practices and procedures and study the applicable government payroll related legislation. This course serves as the basis for more advanced studies in payroll management or for a better understanding of related concepts in the areas of accounting, taxation and human resources. Students learn to identify taxable earnings and benefits, determine statutory and non-statutory deductions, calculate net pay, prepare accounting payroll data and complete the prescribed forms and remittances required to be submitted by employers. Using lectures, demonstrations and problem solving activities, students learn the steps of the payroll cycle that result in accurate payroll solutions for both internal and external stakeholders.

Program Context

 By the end of this course, students will demonstrate the ability to
complete an entire (annual) payroll cycle, in compliance with Canada 
Revenue Agency's legislation and the requirements of its regulatory 
bodies.

1. Apply provisions of the Employment Standards Act to ensure  
   employers meet minimum requirements, mandated by the Province of 
   Ontario.
2. Distinguish employment income by evaluating cash earnings, 
   allowances, expenses and fringe benefits.
3. Calculate statutory deductions (Canada Pension Plan, Employment 
   Insurance & Income Taxes) using both Canada Revenue Agency   
   payroll tables and the on-line calculator.
4. Identify various non-statutory deductions for the purpose of 
   calculating net pay.
5. Complete an earnings record, by computing insurable/pensionable 
   earnings and gross/net taxable income.
6. Prepare government remittances using prescribed forms.
7. Create a year-end payroll register, to finalize the payroll cycle 
   and report T4 slips and a T4 summary.
8. Determine Employer Health Tax and Workers Safety & Insurance Board 
   levies, in obligation of Provincial requirements.
9. Construct payroll accounting journal entries and accruals.
10.Administer employee terminations, by determining final payments
   owing and filing a Record of Employment. 

Test 1 (Lessons 1 to 5)               25%  
Assignment 1 (Web Research)           15%
Class Work (Quizzes & Activities)     20%
Assignment 2 (Payroll Cycle)          10%
Test 2 (Comprehensive)                30%

Total                                100%

Instructor to provide mobile computing information available on SLATE.

Additional information pertaining to class quizzes, activities, 
assignments and tests will be provided in SLATE via the Course 
Schedule/Calendar.

Module 1; Payroll Compliance (Introduction & LO #1)

Lesson 1 - The Payroll Environment

Students are provided with an overview of the payroll function and 
the importance of employer compliance. An exploration of relevant 
Federal & Provincial Legislation, Regulatory Agencies and 
Jurisdiction provides a framework for payroll concepts covered in 
the remainder of the course.  

Module 2; Payroll Fundamentals (LO's #2 - 6)

Lesson 2 - Income from Employment

Students begin to differentiate income from employment, including 
cash earnings, allowances & expenses and fringe benefits. Taxable 
vs. non-taxable income is evaluated and emphasis is put on which
statutory deductions are applicable to various types of taxable 
income.  

Lesson 3 - Statutory Deductions

Students extend their knowledge, by beginning to calculate Canada
Pension Plan contributions (CPP), Employment Insurance premiums (EI) 
& Income Tax withholding's manually, using Payroll Deduction Tables 
and
electronically, using Canada Revenue Agency¿s On-line Calculator
(PDOC). TD-1 Forms & Worksheets are also explained, providing 
insight as to how employers determine how much income tax to 
withhold from an employees pay.

Lesson 4 - Non-Statutory Deductions

Students understanding of deductions is further expanded, as
non-statutory deduction are introduced. Both compulsory and 
voluntary
deductions are detailed and exampled, in preparation for a more
comprehensive computation of net pay.    

Lesson 5 - Calculating Net Pay

Students are now in position to apply an important payroll model,
which aids in determining Insurable/Pensionable Earnings and 
Gross/Net Taxable Income. Mastering this model, allows for the 
seamless and accurate calculation of gross earnings and statutory 
deductions. In addition, a structured approach to computing net pay 
is demonstrated,by creating employee earnings records.

Module 3; Year-End Procedures (LO's #6 - 8)

Lesson 6 - Remittances & T-Slips

Students are exposed to Federal Government reporting requirements,
including a PD7A Statement (used for statutory remittances) and
year-end T-slips (T4 & T4 Summary). In conjunction with these
obligations, the significance of the payroll register is sampled, as 
a primary source document, utilized for payroll reporting purposes. 

Lesson 7 - Other Payroll Levies

Students are introduced to additional Provincially mandated payroll
levies, including Employer Health Tax and the Workers Safety 
Insurance Board. General administration and filing of annual returns 
are explored. 


Module 4; Completing the Payroll Cycle (LO's #8 - 10)

Lessons 8 - Payroll Accounting & Controls

Students conclude the payroll cycle, synthesizing the payroll
function's reliance on the accounting function. By constructing
appropriate journal entries and accruals, expenses and liabilities 
are identified, elaborating the concept of employer payroll costs. 
As part of the payroll/accounting processes, internal controls are 
also discussed, bringing awareness to the risks employers can face, 
with regard to payroll fraud.

Lesson 9 - Employee Terminations  

Students learn how to identify an interruption of earnings and the
types of payments owing to employees who experience a loss of
employment. Terminations are evaluated for the purpose of filing a
Record of Employment and Employment Standards Act legislation is
revisited, to ensure minimum requirements are met.

Module 5; Course Overview (LO's #1 - 10)

Lesson 10 - Comprehensive Review

Students continue to practice and apply their knowledge with
comprehensive workshop exercises, in preparation for the final exam.