ACCG20009
Fundamentals of Payroll Accounting		 Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 

Land Acknowledgement

Sheridan College resides on land that has been, and still is, the traditional territory of several Indigenous nations, including the Anishinaabe, the Haudenosaunee Confederacy, the Wendat, and the Mississaugas of the Credit First Nation. We recognize this territory is covered by the Dish with One Spoon treaty and the Two Row Wampum treaty, which emphasize the importance of joint stewardship, peace, and respectful relationships.

As an institution of higher learning Sheridan embraces the critical role that education must play in facilitating real transformational change. We continue our collective efforts to recognize Canada's colonial history and to take steps to meaningful Truth and Reconciliation.
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Fall 2022
Prerequisites: APPL30275
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Admin. Accounting
Program Coordinator(s): Orlando Brown
Course Leader or Contact: Monika Lebrecht
Version: 20220906_00
Status: Approved (APPR)

Section I Notes: N/A
 
 
Section II: Course Details

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

 
Business Admin. Accounting Program Coordinator(s): Orlando Brown
This course is an optional elective in the three-year Business Administration Accounting program.


Course Critical Performance and Learning Outcomes

  Critical Performance:
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.
 
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  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.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS
 Quizzes (4 x 5%)20.0%
 Case Work (2 x 10%)20.0%
 Mid-Term Project25.0%
 Comprehensive Final Exam35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
Assessments are either completed online, outside of class time or in class. Failure to complete assessments by the due date will result in a grade of zero. No makeups or extensions are available without authorization from the professor, prior to due dates. Students may be required to complete assessments using Word, Excel and Respondus Lockdown Browser

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:

 

Essential Employability Skills
Essential Employability Skills emphasized in the course:

  • Communication Skills - Communicate clearly, concisely and correctly in the written, spoken, visual form that fulfills the purpose and meets the needs of the audience.
  • Communication Skills - Respond to written, spoken, or visual messages in a manner that ensures effective communication.
  • Numeracy - Execute mathematical operations accurately.
  • Critical Thinking & Problem Solving Skills - Use a variety of thinking skills to anticipate and solve problems.
  • Critical Thinking & Problem Solving - Apply a systematic approach to solve problems.
  • Information Management Skills - Analyze, evaluate, and apply relevant information from a variety of sources.
  • Information Management - Locate, select, organize and document information using appropriate technology and information systems.
  • Interpersonal Skills - Show respect for the diverse opinions, values, belief systems, and contributions of others.
  • Interpersonal Skills - Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.
  • Personal Skills - Manage the use of time and other resources to complete projects.
  • Personal Skills - Take responsibility for one's own actions, decisions, and consequences.

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar
Students may apply to receive credit by demonstrating achievement of the course learning outcomes through previous relevant work/life experience, service, self-study and training on the job. This course is eligible for challenge through the following method(s):

  • Challenge Exam
    Notes:  
 
 
Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-Class
Professor: Multiple Professors
Resource(s):
 TypeDescription
OptionalOtherInstructor to provide mobile computing information available on SLATE.

Applicable student group(s): Business Administration Accounting
Course Details:

Module 1: Payroll Compliance

The Payroll Environment

  • Overview of the payroll function and the importance of employer compliance.
  • Explore relevant Federal &Provincial Legislation, Regulatory Agencies and Jurisdiction.
  • Develop the framework for the payroll cycle.

Learning Outcome: 1


Module 2: Payroll Fundamentals

Income from Employment:

  • 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 compensation.

Statutory Deductions:

  • 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 exampled, providing insight as to how employers determine the amount of income tax to withhold from an employees pay.


Non-Statutory Deductions:

  • Deductions are further expanded, as non-statutory (compulsory and voluntary) deductions are introduced in preparation for a comprehensive computation of net pay.


Calculating Net Pay:

  • Apply payroll models, which aid in determining Insurable/Pensionable Earnings and Gross/Net Taxable Income.
  • Accurately calculate net pay by creating detailed employee earnings records.

Learning Outcomes: 1-6
Assessments: Quiz #1 (5%), Quiz #2 (5%), Case Work #1 (10%), Mid-Term Project (25%)



Module 3: Year-End Procedures

Remittances &T-Slips:

  • Produce Federal Government reporting requirements, including a PD7A Statement (used for statutory remittances) and year-end T-slips (T4 &T4 Summary).
  • Construct a payroll register, as a primary source document, utilized for payroll reporting purposes.


Other Payroll Levies:

  • Calculate Provincially mandated payroll levies, including Employer Health Tax (EHT) and Workers Safety Insurance Board premiums (WSIB).
  • Populate forms used for general administration and filing of annual returns for EHT & WSIB.

Learning Outcomes: 6-8
Assessment: Quiz #3 (5%)



Module 4: Completing the Payroll Cycle

Payroll Accounting &Controls:

  • Conclude the payroll cycle, synthesizing the payroll function's reliance on the accounting function.
  • Generate journal entries and period-end accruals, identify payroll costs and disburse of remittance liabilities.
  • Discuss internal controls, bringing awareness to the risks employers may face with regard to payroll fraud.


Employee Terminations:

  • 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 legal requirements are met.


Learning Outcomes: 6-10
Assessments: Quiz #4 (5%), Case Work #2 (10%)


 Module 5: Course Overview

Comprehensive Review

  • Practice and apply knowledge with workshop activities, in preparation for the final exam.


Learning Outcomes: 1-10
Assessment: Comprehensive Final Exam (35%)

 

Sheridan Policies

It is recommended that students read the following policies in relation to course outlines:

  • Academic Integrity
  • Copyright
  • Intellectual Property
  • Respectful Behaviour
  • Accessible Learning
All Sheridan policies can be viewed on the Sheridan policy website.

Appropriate use of generative Artificial Intelligence tools: In alignment with Sheridan's Academic Integrity Policy, students should consult with their professors and/or refer to evaluation instructions regarding the appropriate use, or prohibition, of generative Artificial Intelligence (AI) tools for coursework. Turnitin AI detection software may be used by faculty members to screen assignment submissions or exams for unauthorized use of artificial intelligence.

Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.
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