Objectives

Upon completion of this course, participants will be able to:

• Design and implement an efficient, compliant end-to-end payroll cycle.
• Calculate gross pay accurately, factoring in complex issues like overtime, bonuses, and commissions.
• Apply correct statutory deductions, including income tax, social security, and health contributions.
• Manage various non-statutory deductions and employee benefits (e.g., retirement plans, insurance).
• Ensure compliance with key employment, labor, and wage-hour laws.
• Handle multi-jurisdictional payroll challenges and remote worker considerations.
• Master best practices for payroll data management, security, and internal controls.
• Prepare and reconcile essential payroll reports for management and statutory bodies.
• Identify and mitigate common payroll risks and implement effective audit procedures.
• Utilize payroll technology and systems for process automation and accuracy.

Target Audience

• Payroll Administrators and Specialists
• HR Managers and Professionals involved in compensation and benefits
• Financial Accountants and Controllers
• Internal and External Auditors
• Small Business Owners and Office Managers
• Finance professionals responsible for cost control and budgeting
• Compliance Officers and Risk Managers

• Practical calculation workshops using realistic scenarios and data sets
• Case studies focusing on compliance failures and their organizational impact
• Group discussions on interpreting and applying current labor and tax laws
• Individual exercises on configuring hypothetical payroll systems
• Review and critique of sample payroll policy manuals and control frameworks
• Expert-led demonstrations of payroll software and reporting tools

Unit 1: The Foundations of Payroll Administration

• Overview of the payroll flow from hire to termination
• Defining the various types of employee status (full-time, part-time, contractor)
• Understanding compensation structures: salary, hourly, commission, piece rate
• Time and attendance management best practices and integration
• Key components of a robust payroll system
• Introduction to labor laws affecting working hours and pay

• Calculation of regular hours and various overtime premiums
• Handling different pay periods (weekly, bi-weekly, monthly)
• Processing bonuses, commissions, and severance payments
• Managing paid time off (PTO), sick leave, and vacation accruals
• Calculation for statutory and non-statutory leave types
• Dealing with shift differentials and hazard pay

Unit 2: Statutory Deductions and Compliance

• Principles of income tax withholding and tax tables application
• Managing employee tax declarations and allowances
• Calculating and remitting local, state, and federal taxes
• Reconciling tax payments with periodic returns
• Year-end payroll procedures and filing requirements (e.g., W-2s, T4s)
• Impact of tax law changes on payroll calculations

• Calculation of employer and employee contributions (Social Security, Medicare)
• Understanding limits and ceilings on contributions
• Handling unemployment insurance (UI) contributions and reporting
• Compliance with mandated health or pension schemes
• Reporting requirements for statutory contributions
• Interaction of payroll with worker's compensation insurance

Unit 3: Benefits, Deductions, and Special Situations

• Administration of retirement plans (e.g., 401(k), defined benefit/contribution)
• Managing deductions for health, dental, and life insurance premiums
• Processing garnishments, levies, and child support orders
• Handling flexible spending accounts (FSAs) and health savings accounts (HSAs)
• Tax implications of various employee benefits (taxable vs. non-taxable)
• Managing employee loans and repayment schedules

• Determining the correct taxation jurisdiction for remote workers
• Compliance for expatriate and inpatriate employees
• Dealing with foreign currency payroll and exchange rate risks
• Overview of major global payroll models (centralized, decentralized, outsourced)
• Tax equalization and protection policies for international transfers
• Compliance with international data privacy laws (e.g., GDPR)

Unit 4: Controls, Auditing, and Risk Management

• Designing strong internal controls to prevent fraud and errors
• Segregation of duties in the payroll department
• Best practices for securing sensitive employee and payroll data
• Disaster recovery and business continuity planning for payroll
• Implementing audit trails and change management protocols
• Reconciliation of payroll register to the General Ledger

• Conducting internal payroll audits and compliance reviews
• Responding to external audits by tax and labor authorities
• Identifying and correcting common payroll calculation errors
• Managing unclaimed wages and final pay compliance
• Documentation requirements and record retention policies
• Analyzing payroll cost variances and budget adherence