 In this presentation, we will discuss payroll legislation. We're going to talk about laws that are related to payroll. Note that this course will get into the calculation of payroll, the recording of the debits and credits, the accounting related to payroll. But we do want to give some context as well and list out some of the laws related to payroll for a few different reasons. One, some of them will have a direct impact on the journal entries that we will make. Two, we want to know the complexities of payroll outside of just recording the payroll so that we can see how the internal controls could be affected as well. We want to see how they could be related in terms of payroll and human resources in order to have a better understanding of what's entailed within payroll. We won't go over all the laws in detail, but it'll give you an idea of the complexity of payroll and how it has changed over time. Once we get to recording the payroll, then of course we're going to be focusing in on those types of legislations that have to do with mainly taxes that are requiring us to make a deduction. And those types of laws will be similar on the federal level. State laws will typically have similar type of laws. And if we're in other countries other than the US, then we're typically going to have similar type of withholding laws that can be applied in terms of taxation. So when we think about taxation, it's just really a question of, okay, what type of taxation is being used here when we try to think of how are we going to record the journal entry related to the processing of payroll? Once we know that, we can then figure out how to apply and just we have to use the appropriate tax rates, of course, and then apply the circumstances and record the journal entry in accordance with the rules that we are in. As we list through some of these laws, remember that some of them are going to have a direct impact on the recording of payroll, some of them have overlap between human resources in other areas. We've got the Equal Pay Act of 1963, which deals with women in the workforce and working towards having more equal pay for the same work being provided. We've got the Civil Rights Act of 1964, which is going to prevent or reduce discrimination based on race, gender, or national origin. We've got the Age Discrimination in Employment Act, which prevents or reduces the likelihood for mandatory retirement for workers over the age of 40. We have the Occupational Safety and Health Act of 1970. We also have the Employee Retirement Income Security Act of 1974, which is going to protect and safeguard the retirement fund accounts for employees. We've got COBRA of 1985, which allowed for health insurance continuation after termination so that someone doesn't get thrown off the health insurance. There's got to be a requirement for that continuation of health insurance. We have the Immigration Reform and Control Act of 1986, which deals with employers having proof of employment eligibility within 20 days of employment. So it once again gets a little bit more responsibility to the employer to make sure that there's proof of employment eligibility by the employee. We've got the Americans with Disabilities Act of 1990, and that's going to protect the rights of disabled workers. The Civil Rights Act of 1991 deals with infringements and monetary penalties for civil rights issues. One of the major pieces of legislation with regard to recording payroll taxes, recording the journal entry, recording the taxes related to payroll is the 16th Amendment to the U.S. Constitution of 1913. And this mandates that the employer be the one that collects payroll taxes from the employee. And this is a huge change. It's a huge change in focus in terms of whose responsibility it is in some sense to pay the payroll taxes. In other words, the assumption before this time would be that all individuals are going to have the responsibility of reporting their own payroll taxes, as we still do at the end of the year with with our 1040 report the taxes and paying the payroll taxes. However, this mandates that the responsibility for withholding lies at least in part on the employer. And that's a huge shift. So the employer now has a responsibility, a huge responsibility to withhold the payroll taxes from the employee. And then, of course, to process and give that information that that has been done. And that's going to include a lot of added paperwork. And so wherever that is the case, that's where this idea of withholding it is in place. And that's where the complication in terms of recording will also be in place as well, because there becomes confusion in terms of who's paying the payroll tax, who's actually getting a tax imposed on them, is that the employee or the employer and who's responsible for paying the taxes and whose pocket of those taxes coming out of. It's a little bit confusing when the employer is the one that's taking the payroll taxes for the government out of the employee taxes and then paying them theoretically for the employee. When we get to the journal entries and recording journal entries, we'll see how that kind of muddies the water. And so anywhere that is the case, state taxes are going to be similar, that we have these types of withholdings will have the similar responsibility, that responsibility being on the company, any location where we're at, where that is the case, the responsibilities on the company to basically make sure that the payroll taxes are withheld will have similar type of issues with regard to recording payroll and making those withholdings. We then had a lot of laws in the 1930s that dealt with payroll or payroll related issues, including FICA of 1935. And that's going to be the Federal Insurance Contributions Act. We'll talk more about FICA because it's going to be a major component in terms of taxes and payroll taxes. We've got the Fair Labor Standards Act of 1938. We've got FUTA and SUTA, Federal Employment Tax and State Unemployment. Now the federal unemployment and state unemployment, again, are going to be things that the employer are going to have to withhold. And so we'll deal with those when we do our calculation. Note that we are including the state unemployment here. And we don't typically do that. You might be saying, well, you know, we're not going to deal with each individual state or each location. We're usually dealing with the federal side. And then we can apply these principles as they relate to whatever location we're in, whatever state we're in, whatever country we're in. In this case, we're including the state taxes because the Fed did something kind of sneaky here. They basically, in some ways, when they put in this law, pretty much mandated that the states have to have some law by making the FUTA law dependent on the state law. And therefore, the state laws are often pretty standardized because of that. So this is one area where we could have difference in SUTA, but we're going to touch on the state law there. We also have the Fair Labor Standards Act of 1938. Again, another law that was created in the depression. So we know that a lot of a lot of legislation was created in the 1930s when we had a depression. And that would stimulate a lot of activity, of course, in terms of trying to do something to make this the circumstances and situations of people better. So we have the Fair Labor Standards Act, and that's going to include including things related to working conditions, working hours, and overtime regulations, things that like break times and having proper types of break times and a minimum wage. Goodbye.