Learn the basics of Payroll for free!
Welcome to the Bookkeeping Master's free payroll training!
You will learn...
1. the basics of payroll accounting
2. payroll journal fundamentals
To start the online course, please use the links below...
This course is FREE and no registration is required!
FREE trial on Payroll Software?
The FREE Online Payroll Course
The Complete Payroll Process - how to do payroll - click here
Wages Journals - how to do payroll accounting - click here
Gain a Payroll Qualification / Certification - click here
Payroll Basics Course - Part 1
The Payroll Process
Payroll Basics Course - Part 2
Gross Pay Journal
Employers NI Journal
Net Payment Journal
Tax Payment Journal
Payroll - Key Points
What is payroll?
Payroll is the accounting of employees wages and salaries. It includes accounting for gross wages, net wages, bonuses, commissions, tax deductions, student loan deductions, national insurance payments (social security), benefits-in-kind and other important information. Payroll accounting also includes reporting to governmental bodies, such as HMRC.
Why does payroll need to be done?
Employees need to be paid. Accurate payroll accounting ensures that these payments are correct and that necessary deductions and tax payments are made and reported.
What's involved in payroll accounting?
The payroll process can be broken into five main steps...
1. Collection of data. This includes collecting data regarding employees; employee name, employee address, identification number, etc, etc. This also includes collecting data on how much employees have earned i.e. A fixed salary, hours worked, commissions earned, etc, etc.
2. Processing payroll. This is completed using payroll software. A major part of this step is to enter wage data into the software, which will then produce payslips for each employee. This step can also include creating year end reports for employees, such as P60's.
3. Submission of data. Once all data has been entered into payroll software, the information needs submitting to the appropriate governmental bodies. There are usually submission deadlines - so ensure everything is submitted in time!
4. Wages journals. All wages, salaries, deductions, and payments must be accounted for in the financial accounts. This is usually done through a series of journals, that reflect the expense and liabilities caused by the payroll process.
5. Make payment. Any monies owed to employees and governmental bodies are paid.
Ready to take accounting more seriously?
Take bookkeeping and accounting to the next level by enrolling in the Bookkeeping Master's Ultimate Bookkeeping Course
Gain a certificate of completion
Learn bookkeeping and accounting for limited companies
Learn how to create year-end accounts
Learn advanced accounting principles