Critical areas of responsibility for a bookkeeper to be engaged with are the management and recording of payroll as well as business expenditures.  Payroll is a high risk area that impacts not only the company but also the employees, while expenditures are a pivotal component of how the organization operates and can manage its profits. 

First, this course reviews the many processes involved in payroll management including timekeeping, payroll withholdings, and calculating and executing pay.  An employer, regardless of number of workers, must maintain all records pertaining to payroll taxes (income tax withholding, social security tax and federal unemployment tax). Twenty different kinds of employment records must be kept just to satisfy federal requirements.  As you can see, this is a critical and complex area for the bookkeeper.

Next, this course covers the concept of expense management and the many categories of expense including fixed, variable and periodic. Business expenses are costs incurred in the ordinary course of business. They apply to companies of all sizes. On the income statement, business expenses are subtracted from revenue to arrive at a business's taxable net income. It is important to ensure that expenses incurred are “valid” business expenses to be deductible for tax purposes.

This course compliments the other Bookkeeping Basic courses on the Illumeo.com platform.  

Whether you are a business owner or want to develop the skill of bookkeeping to begin a career, there are critical accounting and bookkeeping concepts that are important to learn. These courses have been developed by a CPA who has both small and large business accounting experience and background. The full curriculum of bookkeeping courses will provide you with the ultimate foundation to a career as a bookkeeper.  

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper. 

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Learning Objectives
  • Explore the payroll process.
  • Discover types of payroll taxes and methods of calculation.
  • Identify payroll risks to avoid.
  • Explore business expenses and deductibility.
Last updated/reviewed: August 26, 2023

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesProfessional Bookkeeping Certification

  1. Bookkeeping: Terminology and Process Execution
  2. Bookkeeping: Debits And Credits
  3. Bookkeeping: Cash vs. Accrual
  4. Bookkeeping: Payroll And Expenses
  5. Bookkeeping: Legal Entity And Chart Of Accounts
  6. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  7. Bookkeeping: Responsibilities
  8. Bookkeeping: Fixed assets and inventory
  9. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  10. Management Internal Control Essentials
  11. GAAP Principles, Assumptions and Considerations
  12. GAAP Presentation of Financial Statements
  13. Bookkeeping Basics – Case Study Scenario
  14. Useful Bookkeeping Tools

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Not-for-Profit Entities
  2. Introduction to Accounting for Not-For-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities
  15. Not-For-Profit Accountability and Responsibility
71 Reviews (301 ratings)

Reviews

5
Anonymous Author
This is an invaluable resource for anyone seeking to master bookkeeping, particularly payroll and expenses. Whether you're a small business owner, aspiring accountant, or finance professional, this course offers a wealth of knowledge that will undoubtedly yield long-term benefits. I wholeheartedly endorse this course and commend the author for creating such a valuable learning resource.

5
Member's Profile
I learned a lot from this course about the payroll related bookkeeping and the deductible business expenses. I also learned the FICA and FUTA, and other withholding a business owner is responsible, such as the federal and state income tax withholding, worker's compensation, and the employee contribution to the health insurance premium and the retirement plan.

5
Anonymous Author
As an Accountant, the expense portion of the course was very familiar. The payroll section was interesting and informative. Lynn always does a great job! Whether you work in Payroll or receive a paycheck, this is a great course in understanding the payroll process your how your paycheck is calculated.

5
Anonymous Author
This course was a really good review AND it introduced new information for me. I really appreciated the list of different employment records that should be maintained as well as coverage of risks. The typo of "FUTU" instead of FUTA may be confusing to someone new to the material.

5
Anonymous Author
This section was very informative both the payroll and allowable expenses. I also like the fact that it is honest about the varying areas and to check with a professional for additional information. Real honest and smart process

4
Anonymous Author
A couple of mistakes in the presentation e.g. In the overtime explanation she changed the base wage from $20 / hr to $10. So the answer of $950 should have been $1100. Easy to understand and a decent base course.

5
Member's Profile
This course on payroll and expenses was pretty thorough for the time allotted. It really brought home the point of making sure you understand tax effects as it relates to payroll and expenses.

5
Member's Profile
Understanding of taxes and expenses was achieved in this course. the importance of keeping good records. But I know that i would rather have my clients hire a payroll agency for sure!!

4
Anonymous Author
Had all of the necessary information, but may not have been completely accurate, also in the review questions it is supposed to say "FUTA" not "FUTU" - it only confused me for a second.

4
Member's Profile
Very good and engaging course on a subject that is not easy to teach or learn. I know it is a challenge to keep up with the latest information on IRS and state rulings on this topic.

5
Anonymous Author
Payroll and taxes can be very dry subjects, but the instructor kept it interesting and very informative. I needed this course as a refresher for starting working with payroll again.

5
Anonymous Author
Though payroll was a very heavy and hard subject for me this course explained it very well. Though I'd still need more practice and I recommend this course to everyone.

5
Member's Profile
Great course, very informative regarding payroll taxes and unemployment. I wonder what you'd have to say about unemployment if you had made these videos after 2020!

3
Anonymous Author
This was a good overview of payroll and taxes but I was hoping the course would cover information on best practices and internal controls around the payroll process.

5
Member's Profile
A solid overview in the payroll bookkeeping process. Great introductory course! Would suggest a different course if you are looking for something more in-depth.

5
Member's Profile
There is a lot of information in this course. Helpful information if you are the one pputting ogether new hire packets an dunderstanding the items needed.

5
Anonymous Author
The course provided a thorough understanding of the payroll and expense process. Good section on the importance of retaining appropriate documentation.

5
Member's Profile
This course provided the basis for understanding the fundamentals of payroll functions and the IRS requirement for labor tax rates and other deductions.

4
Anonymous Author
I am so glad we have a payroll service. This section really explained how intricate the process can be and how many errors can occur if done manually.

3
Member's Profile
Class was good. Lot of explanations for the various payroll taxes which was helpful. How tax effects different types of legal entities was beneficial.

4
Member's Profile
Very helpful intro to payroll and expenses, especially as it relates to taxes. However, I had also hoped to learn more about payroll journals entries.

5
Anonymous Author
This was a great course that gave a overview of payroll risks, taxes, etc. Great course for anyone in accounting or who is involved with payroll.

5
Anonymous Author
The course was easy to follow and understand. It does not go into depth about state requirements, but does cover federal requirements and rates.

5
Anonymous Author
The course is informative from the prospective of rules and regulations. I would have liked to have seen more technical accounting examples.

5
Anonymous Author
Well explained material. Nice breakdown between allowable and non-allowable expenses, also ones that are deductible as well. Would recommend.

4
Anonymous Author
Payroll is such an expansive subject I feel that it should have it's own course. Overall, this course was easy to follow and explained well!

5
Member's Profile
Good overview of payroll and expense process. Instructor was effective in presenting the material and making it relevant with examples.

5
Member's Profile
I did not have a basic understanding of Payroll and its functions. This was a great introductory with detailed and concise information

4
Anonymous Author
This was a helpful course. It would also be interesting to see this cover the journal entries to record payroll in a general ledger.

5
Anonymous Author
Great course regarding overall review of Payroll taxes as well as bookkeeping procedures when understanding what is tax deductible.

4
Anonymous Author
Good overview of the process of payroll, associated taxes, and mistakes to avoid. Section about expenses was concise but thorough.

5
Member's Profile
This was a great refresher course on Payroll Accounting. This course would be beneficial for bookkeepers and payroll accountants.

5
Anonymous Author
Great information, the charts are especially helpful. I watched the lesson twice and was able to really understand everything.

5
Anonymous Author
The course was presented in an informative way and in an appropriate level of detail for someone who is not a payroll specialist.

5
Member's Profile
I really enjoyed the layout of this course. Great refresher on the payroll tax system and how it affects businesses.

3
Member's Profile
this course was ok.. I feel that the material was very basic, although the exam was more difficult than I expected

5
Anonymous Author
Awesome course, explained the different taxes requirements and expressed the importance of maintaining paperwork.

5
Anonymous Author
Good course on payroll and expenses with a lot of encouragement to properly document your transacations.

4
Anonymous Author
Great overview on Payroll considering it is such a critical and important area in any business.

5
Anonymous Author
The course was easy to follow. It covered a great deal of material, but summarized it well.

5
Anonymous Author
Great teacher! I really enjoyed learning about this topic so I can understand my paycheck.

5
Anonymous Author
Clear and concise material and presentation. Great overview of Bookkeeping for Payroll.

5
Member's Profile
Lynn did a great job, I liked the stories she added from her own personal experiences.

5
Member's Profile
Very Informative. Learned a lot about the rules and regulations of tracking expenses

5
Member's Profile
Very informative stuff... starting to understand the whole picture of the work...

4
Member's Profile
lots of good information and illustrations. The lists are worth keeping for review

5
Member's Profile
Lots of good information presented in a way that is easy to follow and understand

5
Anonymous Author
Lots of good on information on requirements as it relates to payroll accounting.

4
Anonymous Author
Good introduction to payroll and expenses or refresher for those in practice.

4
Anonymous Author
A lot of really important information delivered in an understandable manner.

4
Anonymous Author
Course material was thorough and presented in an easy to comprehend manner.

5
Member's Profile
great slides for so much information. also great templates to help us out.

5
Anonymous Author
Good refresher on payroll terms, especially allowable deductible expenses.

5
Anonymous Author
There are some errors in the powerpoint presentation regarding expenses.

5
Anonymous Author
Pretty info dense for the short duration of the program. I'd recommend.

5
Member's Profile
Good material for this section. Very important and interesting section.

5
Member's Profile
A very complicated process explained in a clear, understandable way.

5
Member's Profile
Good overview of basics for payroll and business expense reporting.

5
Member's Profile
The instructor was engaging and covered relevant topics and details.

5
Member's Profile
this was a great introduction into payroll and recording of payroll

5
Anonymous Author
This was a very good dive into Bookkeeping: Payroll and Expenses.

4
Anonymous Author
This course has a lot of detail and specifics related to payroll

5
Member's Profile
It's a great course. It's easy to follow and read. Very helpful

3
Anonymous Author
Thank you for Bookkeeping: Payroll And Expenses and materials.

5
Anonymous Author
Very informing. Enjoyed this course very much, learned a lot.

5
Anonymous Author
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5
Anonymous Author
Very entry level course. I would recommend for beginners.

5
Anonymous Author
good to understand specially business expenses criteria.

5
Member's Profile
Good course on payroll. Instructor is easy to follow.

5
Anonymous Author
Great overview of basic payroll and business expenses

5
Anonymous Author
very helpful and informative. practical information

Prerequisites
Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Bookkeeping Basics – Payroll and Expenses2:11
  Payroll12:56
  Payroll Continued11:13
  Payroll Taxes11:57
  Payroll Taxes Continued13:50
  Payroll Risks to Avoid3:44
  Business Expenses6:40
  Allowable Deductible Business Expenses17:27
  Summary00:56
CONTINUOUS PLAY
  Bookkeeping Basics – Payroll and Expenses1:20:55
SUPPORTING MATERIALS
  Slides: Bookkeeping Basics – Payroll and ExpensesPDF
  Bookkeeping Basics – Payroll and Expenses Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam