Free ACCA FA2 Payroll and Employee Costs Study Guide

Overview

This module covers payroll processing and employee cost accounting, including gross-to-net calculations, statutory deductions, and payroll journal entries. Topics include employer on-costs, employee advances, and year-end payroll accruals.

1. Gross-to-net payroll

• Basic pay, overtime, and allowances
• Statutory and voluntary deductions
• Employer on-costs and accruals

2. Payroll accounting entries

• Wages control and clearing accounts
• Remittances to authorities and timing
• Payroll journals and reconciliations

3. Employee advances and benefits

• Advances, loans, and recoveries
• Non-cash benefits and postings
• Year-end payroll accruals