Payroll and Tax Fundamentals
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What you'll learn
Explain how your earnings, taxes, and deductions work together to determine your take-home pay
Read and interpret your pay statement and key tax documents such as the W-2
Identify paycheck deductions, understand their impact, and recognize potential errors in your pay
Skills you'll gain
Details to know
See how employees at top companies are mastering in-demand skills
There are 3 modules in this course
If you receive a paycheck and want to understand how your earnings, taxes, and deductions work, this employee-focused course helps you clearly interpret your pay and avoid costly mistakes. Designed for employees, early-career professionals, and anyone new to the workforce, it helps you understand how your pay is calculated and where your money goes.
You will use your pay statement as a roadmap to explore earnings, taxes, and deductions in a clear, practical way. Learn how tax withholdings affect your take-home pay, how benefits impact net income, and how to read and verify your pay statement. Unlike courses for payroll or HR professionals, this course focuses on what employees need to make informed financial decisions. By the end, you will interpret pay statements, understand tax documents, and identify potential issues. Whether starting a new job or building confidence, you will gain practical knowledge you can use immediately.
Understand how your employee classification affects your pay and taxes. Learn the basics of pay frequency, minimum wage, and overtime so you know what to expect in your paycheck.
What's included
11 videos4 readings8 assignments2 discussion prompts
11 videos•Total 50 minutes
- Classifying Workers: Employee or Independent Contractor•8 minutes
- The Common Law Test and the ABC Test•7 minutes
- Exceptions to the Common Law Test•6 minutes
- Fair Labor Standards A(FLSA) and Overtimes•3 minutes
- White Collar Exemptions•3 minutes
- Minimum Wage•3 minutes
- Form I-9: Employment Eligibility Verification•4 minutes
- Form W-4: Employee’s Withholding Certificate•5 minutes
- When a New Form W-4 is needed•2 minutes
- Payroll Related Dates and Pay Frequencies•5 minutes
- Scenario: Payroll Related Dates•3 minutes
4 readings•Total 6 minutes
- About This Course•2 minutes
- Payroll Differences•1 minute
- Rules and Exemptions - Resources•2 minutes
- Form Resources•1 minute
8 assignments•Total 45 minutes
- Types of Workers•5 minutes
- Federal or State? Which overtime rule should you follow?•8 minutes
- Form I-9 for Identity & Eligibility to Work•5 minutes
- Acceptable Documents Activity•5 minutes
- Important Points on Form W-4•3 minutes
- Payroll Related Dates•3 minutes
- Pay Frequency and Pay Calculations•8 minutes
- Calculating Overtime Hours Activity•8 minutes
2 discussion prompts•Total 4 minutes
- Introduce Yourself!•1 minute
- Let's Discuss•3 minutes
Explore how earnings, taxes, and deductions are calculated. Learn how gross pay is determined, how taxes are applied, and how deductions affect your take-home pay.
What's included
7 videos5 readings12 assignments
7 videos•Total 43 minutes
- Common Earnings•3 minutes
- Methods for Calculating Overtime Pay•10 minutes
- Overtime and Overtime Premium Pay•5 minutes
- FIT and FICA Explained•12 minutes
- Common Deductions•3 minutes
- Deduction Calculations•5 minutes
- Pre-tax and Post-tax Deductions•6 minutes
5 readings•Total 21 minutes
- Resources•2 minutes
- Another Look: Calculating Overtime Pay•4 minutes
- A Closer Look at Payroll Taxes•4 minutes
- Social Security and Medicare•3 minutes
- Examples: Pre-tax and Post-tax Deductions•8 minutes
12 assignments•Total 78 minutes
- Earnings: Exempt / Non-exempt•5 minutes
- Review: FLSA Overtime Rules•3 minutes
- Calculating Overtime Hours•12 minutes
- Calculating Gross Pay•12 minutes
- Appropriate Tax Rate•5 minutes
- Social Security Tax Activity•5 minutes
- Calculate Taxable Wages and Deductions•5 minutes
- Deductions are Statutory or Non-statutory•7 minutes
- Common Deductions Taxability Review•10 minutes
- Earning Types•4 minutes
- Calculate Social Security and Medicare•5 minutes
- Calculating Deductions•5 minutes
Learn how to read your pay statement and understand your net pay. Identify key components, see how benefits affect your pay, and connect your paycheck to your year-end tax documents.
What's included
6 videos2 readings7 assignments1 discussion prompt1 plugin
6 videos•Total 29 minutes
- Calculating Net Pay•2 minutes
- Types of Payment Methods•3 minutes
- Common Benefits•14 minutes
- Pay Statement Requirements•3 minutes
- All About Form W-2•3 minutes
- Key Connections: Your Last Pay Statement and Your Annual Form W-2•4 minutes
2 readings•Total 13 minutes
- Annual Limits•3 minutes
- Wrap-up!•10 minutes
7 assignments•Total 55 minutes
- Net Pay•4 minutes
- Payment Methods 1/2•4 minutes
- Payment Methods 2/2•5 minutes
- Benefits•2 minutes
- Form W-2 •5 minutes
- Calculate the Form W-2 Amounts•5 minutes
- Payroll and Taxes - You're the Employee!•30 minutes
1 discussion prompt•Total 2 minutes
- Share your thoughts!•2 minutes
1 plugin•Total 15 minutes
- Explore and Review a Pay Statement•15 minutes
Instructor
Explore more from Leadership and Management
- Status: Free Trial
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- Status: Free Trial
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- Status: Free TrialA
Automatic Data Processing, Inc. (ADP)
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- Status: Free TrialJ
John Wiley & Sons
Course
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Reviewed on May 7, 2025
Overall, I feel more confident in my understanding of payroll processes and tax regulations. Thank you for providing such a valuable learning experience!
Reviewed on Apr 29, 2024
I really enjoyed this course. All concepts and explanations are helpful!
Reviewed on Feb 12, 2025
This course has very detailed information and is explained very well any beginner with No prior experience can Easly understand.
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