Nashville State Community College Payroll Accounting - ACCT 2200

Instructor Information:
Name: E-mail: Phone: Office Location: Cathy Gray cathy.gray@nscc.edu 353-3420 C-202F Monday: Tuesday: Wednesday: Thursday: Friday: 12:00-3:00 p.m. 12:00-2:00 p.m. 12:00-2:00 p.m. 12:00-1:00 p.m. 9:00-11:00 a.m.

Office Hours:

Course Description and Prerequisites or Co-Requisites:

ACCT 2200 is an upper division course designed to cover the payroll procedures and laws that affect payroll operations and employment practices. Students are required to complete all payroll operations for a business including payroll tax returns. Students will also complete a payroll project using payroll software. Prerequisites: ACCT 1104 and AIS 1181 with a grade of "C" or higher Because payroll accounting is an area that requires knowledge of payroll tax laws and the critical need for accurate information, you will not receive a passing grade in this course unless you can demonstrate mastery of the tax laws and demonstrate that you can accurately calculate payroll amounts and correctly complete payroll tax forms.

Textbook and Other Required Materials:

2011 Payroll Accounting by Bernard J. Bieg/ Judith A. Toland, South-Western Cengage Learning, bundled with CengageNow Homework Grader Software. The ISBN for the bundle is as follows: ISBN-111170449X. It is suggested that you purchase this text bundle NEW through the NSCC Bookstore. When you purchase the bundle through our bookstore, you are receiving a large discount on the access code to CengageNow, the homework grader software. You will not be able to complete your homework assignments without this access code. If you have a used book or if you rent a book, you will have to purchase this access code separately, and you will not receive the benefit of buying them as a bundle. The access code will be quite expensive to purchase alone. Also, please note that a new edition of this textbook is printed at the beginning of each year. Buying the book new from the NSCC Bookstore will ensure that you have the most current edition. The Payroll Accounting software for the computerized payroll project will be packaged with the book as a CD. Again, to make sure you have the most current software, you should purchase your book at the campus bookstore.

Mission of the Division of Business and Applied Arts:

To help our students become ethical and competent professionals in their chosen fields by providing a learner-centered environment. The Business and Applied Arts Division provides programs of study consistent with students goals which are intended to develop appropriate skills that our faculty and advisory committees have identified as critical to success. To accomplish this we focus on academic excellence, best practices in teaching and learning, technological competence, and the practical application of disciplinespecific principles.

Mission of the Computer Accounting Program:

The mission of the Computer Accounting Program is to provide a quality education in computerized accounting that enables students to succeed in a career now and in the future.

Course Outcomes:
Upon successful completion of this course, students should be able to: 1. Identify the various state and federal laws that affect payroll operations, describe and utilize records used to collect payroll data. 2. Calculate regular and overtime rates of pay using various acceptable methods. 3. Know the FICA tax laws and be able to define wages, apply current FICA and SECA tax rates, know FICA reporting requirements, and prepare Form 941 and Form 8109. 4. Know the state and federal income tax withholding laws and reporting requirements; be able to compute FIT using percentage and wage bracket methods for various payroll periods; be able to complete Form 941, Form W2, and other information returns. 5. Know the FUTA tax laws, be able compute the FUTA tax and credits against the tax; be able to calculate and apply an experience-rating system to determine tax rates; be able to complete Form 940 and state unemployment tax returns. 6. Calculate and record payrolls in registers, post to employees earnings records; journalize all payroll and payroll liability transactions and post to the general ledger; understand and prepare end-of-period adjustments.

Course Competencies:
The following are detailed course competencies intended to support the course outcomes: 1. Without the use of notes or other materials, identify the various laws that affect employers in their payroll operations and know the recordkeeping requirements of these laws. 2. Without the use of notes or other materials, describe employment procedures followed by the Human Resources Department and recognize the various personnel records used by businesses. 3. Without the use of notes or other materials, identify the major provisions of the Fair Labor Standards Act and be able to distinguish between employees principal activities and their preliminary and postliminary activities.

4. Given the total number of hours worked in one pay period, be able to calculate regular and overtime pay. 5. Given salary amounts for weekly, biweekly, semimonthly, or monthly pay periods be able to convert to hourly rates, calculate the overtime rate, and calculate total gross earnings for each of the pay periods. 6. Given overtime piece rates and number of pieces produced, compute overtime payments for pieceworkers using two different methods. 7. Given sales and percentage incentive rates, compute earnings under incentive and commission plans. 8. Without the use of notes or other materials, identify persons covered under social security and services that constitute employment for social security purposes. 9. Without the use of notes or other materials, identify the types of compensation that are defined as wages. 10. Given the current wage base and tax rates, apply the rates and wage base to calculate the amount of social security taxes to be deducted from gross wages. 11. Without the use of notes or other materials, describe how to obtain an Employer Identification Number and what it is used for. 12. Without the use of notes or other materials, describe how to obtain and the importance of obtaining an employees Social Security Number. 13. Given selected payroll data, calculate the amount of the FICA tax deposit and describe the different procedures for depositing the FICA tax liability. 14. Given selected payroll data, complete Form 941, Employers Quarterly Federal Tax Return and Form 8109, Federal Tax Deposit Coupon. 15. Given selected payroll deposit and liability data, identify the types of civil and criminal penalties that employers may be subject to and calculate the amount of penalty and interest if in violation. 16. Without the use of notes or other materials, identify who and what types of remuneration are covered under the federal income tax withholding laws. 17. Without the use of notes or other materials, identify the types of withholding allowances that may be claimed by employees for income tax withholding purposes. 18. Without the use of notes or other materials, explain the purpose of Form W-4 and list the proper procedures for using the information on the form. 19. Given selected payroll data and tax tables, compute the amount of federal income tax to be withheld using the percentage method and the wage-bracket method. 20. Given selected payroll data and tax tables, compute the amount of federal income tax using alternative methods such as quarterly averaging and annualizing of wages. 21. Given selected payroll data and supplemental payment data, compute FIT on supplementary wage payments using the acceptable methods. 22. Without the use of notes or other materials, explain what advance earned income credit is and given payroll data, tax tables and taxable wages, compute the amount of EIC. 23. Given year-to-date data on employees, complete Form W-2 forms, and be able to prepare other wage and tax statements. 24. Without the use of notes or other materials, describe the major types of information returns. 25. Given selected payroll data and tax rates, compute state and local income taxes to be withheld and identify reporting requirements for these taxes.

26. Without the use of notes or other materials, identify what is defined as taxable wages by the Federal Unemployment Tax Act and who is covered. 27. Given selected payroll data, compute the federal unemployment tax and the credit against this tax. 28. Given selected payroll data and an experience rating table, compute the contribution rate for an employer for the next year, compute the amount of additional contribution that could be made to lower the rate, and calculate the savings to the employer if the contribution is made. 29. Given selected payroll data, complete the Form 940, Employer Annual Federal Unemployment Tax Return. 30. Given selected payroll data, complete a state unemployment tax return. 31. Given selected payroll data, record payrolls in payroll registers and post to employees earnings records. 32. Given selected payroll data, journalize the entries to record the payroll, payroll taxes, and payment of payroll-related liabilities; post the entries to the various general ledger payroll accounts. 33. Given selected year-end payroll adjustment data, explain the need for end-of-period adjustments and record the journal entry for the adjustment. The following are general education competencies intended to support the course outcomes: 34. Given an accounting problem or project, locate, evaluate, and use multiple sources of information to determine and substantiate your decision. 35. Given an accounting problem, apply basic mathematical concepts to arrive at a solution to the problem. 36. Given a business accounting problem, apply critical thinking skills to determine and support a solution. 37. Given a business or accounting assignment, use and adapt current technologies to increase efficiency and effectiveness in performing routine business applications. 38. Given a business or accounting problem, apply scientific thought processes to a range of situations.

Topics to Be Covered:
Chapter 1: Laws that affect employers in their payroll operations, recordkeeping for these laws, employment procedures followed by Human Resources Department, personnel records used, procedures employed in a typical payroll accounting system, payroll register and employee's earnings record Chapter 2: Fair Labor Standards Act; types of records used to collect payroll data; calculation of regular and overtime pay; conversion of weekly, monthly and annual salary rates to hourly rates; calculation of regular and overtime payments for piecework, calculation of earnings under incentive and commission plans Chapter 3: Federal Insurance Contributions Act and persons and services covered under the law, types of compensation defined as wages, application of current tax rates and wage base for FICA and SECA purposes, employer's identification and employee's identification numbers, completion of Form 941 and Form 8109, civil and criminal penalties for noncompliance

Chapter 4: Federal income tax withholding law, withholding allowances, Form W-4, computation of federal income tax to be withheld from regular and supplementary payments, advance earned income credit, Form W-2, completion of Form 941 and information returns, impact of state and local incomes taxes Chapter 5: Federal Unemployment Tax Act (FUTA), coverage of interstate employees, definition of wages, computation of FUTA tax and credits against the tax, experience-rating system and employer's contributions, completion of Form 940, reporting for state unemployment Chapter 6: Completing payroll registers and posting to employees' earnings records; journalizing entries to record the payroll, payroll taxes, and payment of payroll-related liabilities; posting to general ledger accounts, payment and recording of the payroll tax deposits; general ledger accounts for payroll transactions; end-of-period payroll adjusting entries Chapter 7: A simulation for payroll accounting that will apply the knowledge acquired in the previous chapters to practical payroll situations using Microsoft Excel Chapter 8: A simulation for payroll accounting that will apply the knowledge acquired in the previous chapters to practical payroll situations using a computerized payroll package that is supplied with the textbook

Grading Criteria:
Grading Scale: A 90 - 100 B C F 80 - 89 70 - 79 under 70 Evaluation: Homework Projects Examinations Total 10% 30% 60% 100%

Attendance and Make-up Exam Policy Traditional Class Meetings:

Students are expected to attend each class session, to arrive on time, and to remain for the entire class period. Students are also responsible for explaining absences and lateness directly to the instructor. Instructors may lower the students grade for excessive absences or lateness. Excessive absence is more than four hours of missed class time. If the student is absent, it is the students responsibility to find out about missed work and class announcements, etc. during their absence.

Attendance in this course is critical to success. There are specific due dates set for homework assignments and exams. Homework due dates and test dates will be strictly adhered to and will not be extended. Failure to complete homework and exams by the due dates will result in a grade of zero for that assessment. For students that have attended during the semester, if the student does not have an average of 70 or greater, a grade of F will be assigned. A student that stops attending during the semester and does not withdraw will be assigned a grade of FA. FA means failure, attendance related. A student that never attends class and does not withdraw will be assigned a grade of FN. FN means failure, never attended class (unofficial withdrawal).

Attendance and Make-up Exam Policy for Web Sections:

Students are expected to log into the online course at least twice per week. Students are expected to submit homework, quizzes, exams, and online discussions by the due date. Attendance for this course is based on the student logging in to the course, reviewing the current lesson, and completing lessons and exams as scheduled. A successful outcome to this course requires students to complete and submit assignments and exams as outlined by the instructor. Late work will not be accepted. Since web students have a great amount of flexibility in scheduling their work, make-up exams are usually not given. Exams may be taken early but must be taken no later than the exam deadline. Students are expected to manage their schedules in order to be prepared for the exam by the exam deadline.

ADA Policy:
Nashville State complies with the Americans with Disabilities Act. If you require any accommodation(s) for this class, please notify Student Disabilities Services as soon as possible. The Student Disability Services office is located in D-26 and their phone is 353-3721. Notify the instructor about the accommodation that you seek.

Academic Dishonesty and Classroom Conduct Policy:

Cheating is prohibited and will result in a grade of zero for homework or tests where a student is determined to have cheated. Cheating includes, but is not limited to copying information from a solutions manual, another student or purchasing material to be presented as ones own work, taking an exam for another student or copying an exam of another student, providing others with information and/or answers regarding exams, quizzes, homework, or other classroom assignments unless explicitly authorized by the instructor. If a student is caught cheating on an exam, the student will be asked to turn in the exam, leave the room, and a grade of -0- will be recorded for that exam. No one will be allowed to leave the room during an exam until the exam is turned in to the instructor. Plagiarism, cheating, and other forms of academic dishonestly are prohibited. Students guilty of academic dishonesty, either directly or indirectly through participation or assistance, are immediately responsible to the instructor of the class. In addition to other possible disciplinary sanctions that may be imposed through the regular institutional procedures as result of academic misconduct, the instructor has the authority to assign an "F" or a "zero" for the exercise or examination or to assign an "F" in the course. Please see Student Handbook. For information about plagiarism, please see http://www.nscc.edu/library/help.html Disruptive behavior in the classroom is prohibited and may be defined as, but not limited to, behavior that obstructs or disrupts the learning environment (e.g., offensive language, offensive body odor, harassment of students and instructors, repeated outbursts from a student which disrupt the flow of

instruction or prevent concentration on the subject taught, failure to cooperate in maintaining classroom decorum, etc.), and the continued use of any electronic or other noise or light emitting device which disrupts others (e.g., noises from beepers, cell phones, palm pilots, lap-top computers, games, etc.).

Student Resources:
Nashville State offers several additional resources which may be of benefit to you, including accounting tutoring. Contact the Learning Center at 353-3551, or their website at http://www.nscc.edu/lc/index.html for additional information.

Study Plan:
To learn accounting, it is very important that you immerse yourself in the subject. This course does require a lot of work for successful completion. Do not get behind in the work assigned. It is extremely difficult to catch up on back work at the same time current work needs to be completed. Successful students: Read materials and prepare for the course. Ask questions and actively participate in the course. Complete all assignments prior to due dates. Are self-motivated and take responsibility for their own level of success. Recognize the power of determination and hard work. Allow the instructor to help them become better students. Set goals and stick to them. Carefully manage time and priorities. Carefully follow written instructions. Never think about cheating.

ACCT 2200 Payroll Accounting Chapters and Assignments

Specific course competencies that expand on the overall course outcomes are given at the beginning of each chapter and also on the instruction sheet for each Lesson. The outcomes and competencies should be read before beginning each chapter.

Chapter 1 - The Need for Payroll and Personnel Records

Assignment: Questions for Review 1 through 20 (create Word document and submit through NSOnline)

Chapter 2 - Computing Wages and Salaries

Assignment: Complete the assignment for Chapter 2 in CengageNow. The problems assigned in CengageNow correspond with the following A-problems in your book: 2-1, 2-2, 2-4, 2-5, 2-6, 2-7, 2-8, 2-9, 2-10, 2-12, 2-13, 2-15, 2-16,2-17, 2-18, 2-19, 2-20

Test on Chapters 1 and 2 Chapter 3 - Social Security Taxes

Assignment: Complete the assignment for Chapter 3 in CengageNow. The problems assigned in CengageNow correspond with the following A-problems in your book: 3-2, 3-4, 3-5, 3-6, 3-8, 3-10, 3-13, 3-14, 3-15, 3-16, 3-17

Chapter 4 - Income Tax Withholding

Assignment: Complete the assignment for Chapter 4 in CengageNow. The problems assigned in CengageNow correspond with the following A-problems in your book: 4-1, 4-3, 4-6, 4-7, 4-8, 4-10, 4-11, 4-12, 4-13

Test on Chapters 3 and 4 Chapter 5 - Unemployment Compensation Taxes

Assignment: Complete the assignment for Chapter 5 in CengageNow. The problems assigned in CengageNow correspond with the following A-problems in your book: 5-3, 5-4, 5-6, 5-7, 5-8, 5-9, 5-10, 5-11, 5-12, 5-13, 5-15, 5-16, 5-17

Chapter 6 - Analyzing and Journalizing Payroll Transactions

Assignment: Complete the assignment for Chapter 6 in CengageNow. The problems assigned in CengageNow correspond with the following A-problems in your book: 6-1, 6-2, 6-5, 6-7, 6-8, 6-9, 6-10, 6-11, 6-12, 6-13, 6-14, 6-15, 6-16

Test on Chapters 5 and 6 Chapter 7 - Payroll Project

Chapter 7 is a last quarter payroll project that should be completed prior to the deadline established by the instructor. Students will complete the project manually with the assistance of Excel spreadsheets. (This project will be 20% of the final grade.) Due date will be established by the instructor and published on the Assignment Due Dates form.

Appendix A Computerized Payroll Project

Students will complete the same project as in Chapter 7, but using the payroll software that comes packaged with the text. (This project will be 10% of the final grade.) Due date will be established by the instructor and published on the Assignment Due Dates form.

Final Exam
The final exam will be comprehensive and will be included on the list of due dates.