Unit 5: PayDay Simulator
How can a small business owner predict payroll cash-outs and still make rent on time?
Small business owners often struggle with cash flow timing, especially when payroll obligations coincide with other major expenses like rent. Through this unit, you'll build a comprehensive payroll system that helps predict and manage these cash flow challenges.
- ▶Build a working payroll prototype using XLOOKUP and IF logic
- ▶Demonstrate mastery of payroll systems through comprehensive tutorial presentation
Gross Pay
Total earnings before any deductions are taken out, including regular wages, overtime, and tips.
Net Pay
The amount an employee actually receives after all withholdings and deductions are subtracted from gross pay.
Withholdings
Amounts deducted from an employee's gross pay for taxes, insurance, retirement, or other obligations.
Tax Tables
Published schedules that determine how much income tax to withhold based on an employee's filing status and pay amount.
Payroll Register
A summary report listing all employees, their gross pay, deductions, and net pay for a specific pay period.
Bank Reconciliation
The process of comparing internal payroll records against bank statements to identify timing differences and errors.
Overtime Pay
Additional compensation for hours worked beyond the standard workweek, typically at 1.5 times the regular rate.
Hourly Wage
Pay calculated based on the number of hours worked, as opposed to a fixed salary.
Salaried Employee
An employee who receives a fixed amount of pay per period regardless of hours worked.
Employer Tax Contribution
Taxes the employer must pay in addition to employee wages, such as Social Security, Medicare, and unemployment insurance.
Cash Flow
The movement of money in and out of a business; positive cash flow means more money coming in than going out.
Working Capital
The difference between current assets and current liabilities; measures a company's short-term financial health.
Excel Table
A structured range of data in Excel with named columns, auto-expanding formulas, and built-in formatting.
SUMPRODUCT
An Excel function that multiplies corresponding values in arrays and returns the sum of those products.
SUMIFS
An Excel function that adds cells meeting multiple criteria, such as summing expenses for a specific department and month.
Study these terms
These 15 terms appear across this unit. Use the bilingual glossary to review them, or start a vocabulary study session to practice with flashcards, matching, and speed round.
Practice this unit's vocabulary with flashcards, a matching game, or a timed speed round. Your progress is tracked locally and can be exported.
Payroll system demo to HR professionals
Ready to prove your payroll expertise? Launch the Unit 5 practice test to rehearse gross-to-net calculations, tax withholdings, overtime logic, and validation with randomized questions from every payroll lesson.
Tip: Complete Lesson 10 first so you can apply QA checks, reconciliation strategies, and professional presentation standards while reviewing your answers.