Introduction:

Payroll administration is a critical function in any organization, ensuring employees are compensated accurately and on time while adhering to legal and tax requirements. This 5-day course is designed to provide office administrators, HR professionals, and payroll staff with foundational knowledge of payroll systems, processes, and compliance. Participants will learn how to calculate wages, manage deductions, understand payroll taxes, and maintain accurate records. By the end of the course, participants will have the skills needed to manage payroll administration effectively and ensure that employees are paid accurately and in compliance with relevant laws.

Objectives:

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

1. Understand the key functions and responsibilities of payroll administration.
2. Calculate gross pay, deductions, and net pay for employees.
3. Understand different types of compensation and benefits that affect payroll.
4. Comply with payroll tax laws, including federal, state, and local regulations.
5. Maintain accurate payroll records and ensure confidentiality.
6. Prepare and file payroll-related reports, such as tax filings and benefit contributions.
7. Address common payroll issues, such as discrepancies and errors, and resolve them effectively.

Who Should Attend?

This course is ideal for:

• Office administrators and HR assistants involved in payroll processing
• Payroll clerks, specialists, or managers who need foundational training
• Supervisors or managers responsible for managing compensation and benefits
• Small business owners or individuals new to payroll administration
• Anyone interested in understanding payroll processes and compliance

Day 1: Introduction to Payroll Administration and Payroll Systems

Morning Session:

• Overview of Payroll Administration

  • Importance of payroll administration in an organization
  • Key responsibilities and functions of payroll departments
  • The payroll process: From employee hire to paycheck distribution
  • The role of payroll in employee satisfaction and compliance

• Understanding Payroll Systems

  • Types of payroll systems: Manual vs. automated (software options)
  • Key components of a payroll system (employee data, compensation, deductions)
  • How payroll software works and its benefits

Afternoon Session:

• Types of Payrolls

  • Frequency of payroll: Weekly, bi-weekly, semi-monthly, and monthly
  • Salaried vs. hourly employees
  • Payroll classifications: Exempt vs. non-exempt employees

• Setting Up Employee Information for Payroll

  • Gathering and maintaining essential employee data (personal, tax, and benefit information)
  • Employee tax forms: W-4, I-9, and other required documents
  • The importance of accuracy in employee data collection

• Interactive Exercise:

  • Setting up an employee profile with basic payroll information in a payroll system

Day 2: Calculating Wages and Deductions

Morning Session:

• Calculating Gross Pay

  • How to calculate hourly wages and overtime (FLSA rules)
  • Calculating salaried employee compensation
  • Handling bonuses, commissions, and other forms of variable compensation

• Understanding Payroll Deductions

  • Mandatory deductions: Federal and state income tax, Social Security, Medicare
  • Voluntary deductions: Health insurance, retirement plans, garnishments
  • Pre-tax vs. post-tax deductions

Afternoon Session:

• Net Pay and Payroll Calculations

  • How to calculate net pay after deductions
  • Handling different types of benefits and allowances
  • Understanding pay stubs and how to read them

• Interactive Exercise:

  • Participants will work through payroll calculation examples, calculating gross pay, deductions, and net pay for different types of employees

Day 3: Payroll Taxes and Compliance

Morning Session:

• Overview of Payroll Taxes

  • Federal vs. state vs. local tax jurisdictions
  • Understanding FICA (Federal Insurance Contributions Act) taxes: Social Security and Medicare
  • Unemployment taxes (FUTA and SUTA)

• Tax Withholding and Reporting

  • How tax withholding works based on employee W-4 forms
  • The role of the IRS and state tax authorities in payroll tax compliance
  • Understanding tax tables and applying them to payroll

Afternoon Session:

• Compliance with Employment Laws

  • Fair Labor Standards Act (FLSA) and its impact on payroll
  • Wage and hour laws, including overtime and minimum wage regulations
  • Garnishment and child support order compliance

• Filing Payroll Taxes

  • Payroll tax forms: 941, 940, W-2, and W-3
  • Deadlines for tax filings and submissions
  • Penalties for non-compliance and late filings

• Interactive Exercise:

  • Calculating payroll tax withholdings and filling out tax forms based on provided scenarios

Day 4: Managing Payroll Records and Reporting

Morning Session:

• Maintaining Payroll Records

  • Recordkeeping requirements under federal and state law
  • How long to retain payroll records and why
  • Confidentiality and security of payroll information

• Reporting Payroll Information

  • Payroll reporting requirements for internal and external use
  • Creating and maintaining employee earnings reports, tax filings, and year-end reports
  • Understanding the role of payroll in financial reporting (balancing accounts, profit and loss)

Afternoon Session:

• Payroll Audits and Error Management

  • Conducting internal payroll audits to ensure accuracy and compliance
  • Common payroll errors and how to prevent them
  • Correcting payroll mistakes: Adjustments, corrections, and retroactive payments

• Interactive Exercise:

  • Participants will review a set of payroll records to identify discrepancies and correct errors

Day 5: Advanced Payroll Topics and Best Practices

Morning Session:

• Handling Special Payroll Scenarios

  • Payroll for contractors and freelancers (1099 employees vs. W-2 employees)
  • International payroll considerations for global employees
  • Handling tips, shift differentials, and other non-standard compensations

• Payroll Best Practices

  • Establishing a payroll calendar and workflow
  • Automating payroll and reducing manual errors
  • Maintaining transparency and communication with employees about their pay

Afternoon Session:

• Staying Up-to-Date with Payroll Regulations

  • Keeping up with changes in payroll laws and tax regulations
  • Resources for payroll professionals (IRS, state agencies, and payroll associations)
  • Continuous improvement and professional development in payroll

• Interactive Exercise:

  • Developing a payroll process checklist and best practices guide for ongoing payroll operations

Wrap-Up and Certification

• Final Review and Q&A Session

  • Recap of key payroll concepts learned throughout the course
  • Address any final questions or clarifications

• Certification of Completion

  • Final assessment to test participants’ knowledge of payroll administration concepts
  • Awarding certificates to participants who pass the assessment
  • Closing remarks and providing additional resources for further learning in payroll administration