The Payroll Process, 2024 edition updates and adds new content to the popular prior edition. Uniquely, the book provides step-by-step coverage for both the Department of Labor's FLSA rules and calculations as well as the many IRS compliance requirements. The broad scope of the process, with clear explanations, numerous examples, practical advice, and references for further study address the variety of user needs.
For those wanting to achieve Certified Payroll Practitioner status, there are multiple practice exams containing over 500 questions, each question with its solution and page reference to the explanation and examples in the book.
Payroll staff, HR staff, managers, owners, start-ups, and interested professionals can follow a mapping of all process steps with procedures and compliance explained clearly in each step. For employees, the discussion of employee rights and benefits will be of vital interest. Instructors and students will appreciate the clear explanations, many examples, and scope of topics.
Content Summary:
Employment law and methods: Searching and hiring; initial documentation; eligibility verification; employer misrepresentation and negligence; at-will employment; employee vs. independent contractor and related penalties; the ABC test; employee rights compliance; fair employment laws; monitoring and updating employment status; hiring and termination checklists; joint employers; payroll department systems and management guidelines; outsourcing pros and cons; using a staffing agency.
Gross wages and withholding: The Fair Labor Standards Act; minimum wage rules and calculations; conversions to required weekly periods; overtime principles and proper calculation examples - hourly non-exempt, salaried non-exempt, exempt, commission employees, tipped employees, retail sales employees, piecework, hospital and residential care employees, comp. time, deferred pay, and other pay arrangements, including daily overtime states; selecting a payroll period; FICA withholding; income tax withholding methods; self-employment tax; FUTA and other employer payroll expenses.
Employee benefits: Principles and overview; tax-exempt benefit types and limits; tax-deferred (retirement) benefit types and limits; managing benefits, ERISA.
Accounting / recording payroll: An accounting primer; the payroll register illustrated; journal entries - gross pay and related accounts; employer payroll tax expenses, benefits, end of period accruals, vacation pay, sick leave and PTO; employee earnings records; summary of account types used.
Making payments: Payments on accruals; reversing entries and payment; manual paychecks; deposits to taxing authorities; deposit penalty waiver; garnishment; "grossing up" payment types.
Forms, reports, and audits: Quarterly and annual reporting; summary and examples of common forms used; making corrections; IRS penalties; IRS penalty reduction options; DOL penalty reduction; preparing for and dealing with audits; reports to management.
Employment of non-U.S. persons and expats: General procedures; resident aliens; non-resident aliens; dual-status aliens; employer form filing requirements; undocumented workers.
Internal control protection for payroll: Summary; special considerations; internal control checklist.
CPP practice tests: Covers all sections.
Gregory R. Mostyn, CPA, MBA, and College Instructor, is the author of prior editions of this book. He is also the author of a two volume set - Basic Accounting, Concepts, Principles, and Procedures, reviewed in Choice magazine, Issues in Accounting Education journal, and Kirkus magazine. He has worked both in public accounting and education as an instructor.
