Payroll Accounting Essentials

About the course:

“Payroll Accounting Essentials” offers a practical introduction to how organizations calculate, record, and report employee compensation. This course demystifies key payroll concepts such as gross pay, deductions, employer contributions, taxes, and payroll liabilities. Participants learn how payroll interacts with the general ledger, labor costs, and compliance requirements. Through simple examples, learners explore common payroll transactions, journal entries, documentation practices, and internal controls. By the end, participants will understand how accurate payroll accounting supports financial integrity, employee satisfaction, and regulatory compliance.

Course Objectives:

By the end of this course, learners will be able to:

• Define core payroll accounting concepts, terminology, and process flow.
• Distinguish between gross pay, net pay, voluntary deductions, and employer obligations.
• Explain statutory withholding requirements at a high level (e.g., taxes, benefits).
• Record basic payroll journal entries and understand how payroll affects financial statements.
• Identify common payroll liabilities and how they are settled.
• Recognize the importance of documentation, accuracy, and internal controls.
• Understand labor cost allocation (departments, projects, cost centers).
• Describe common payroll reporting outputs for auditors and management.

Who Is the Target Audience?

This course is ideal for:

• New payroll clerks, HR coordinators, and accounting support staff.
• Office managers are involved in employee compensation administration.
• Junior accountants or bookkeepers expanding into payroll responsibilities.
• Small business owners who process payroll in-house.
• Anyone seeking foundational knowledge of payroll’s financial impact.

Basic Knowledge:

• Basic understanding of accounting terms (assets, expenses, liabilities) is helpful, not required.
• Familiarity with spreadsheets and simple calculations.