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124 Cards in this Set

  • Front
  • Back
Theory X and Theory Y

Douglas McGregor
X - negative view of humans, they want to avoid work

Y - EEs are motivated to work and seek responsibility

Y positive view
Theory Z
Japanese style or participatory management

long term employment, conensus style of decision making
Situational Leadership

H & B
Hersey and Blanchard

Supporting Coaching (high)

Delegating (low) Directing
Principle Centered leadership

Covey!

Wow GPS!
Do onto others as you'd have others do unto you

Wisdom (balance), Guidance (direction), Power (capacity to act), Security (self esteem)
Planning
planning - 1st step define goals and objectives and timeframe
Organizing
identifying deliverables / milestones and define tasks
analyze resources
Staffing
hiring, job descriptions, recruiting, NHOs, delegating, training
Directing
providing leadership, communicating, reflective listening
Controlling
brings together other management skills from planning/organizing, stffing, directing and finally takes action to achieve goals
Reporting

last
method of communicating with upper management
Empowerment Process
establish desired results
provide guidelines
identify resources available to accomplish tasks
hold peopel accountable
identify consequences
Strategic Planning and Organizing
Defining goals and objectives
Defining the timeframe
Defining the subtasks
Analyzing available resources
evaluating costs
Staffing
Hiring the right employees
delegating tasks and responsibility
Training
Coaching is more formal than
giving feedback

observing the ee and giving suggestions
Directing Employees
Where communication skills come into play

Provide feedback
LISTEN
Coach - to improve performance ex. performance reviews
Counsel - To help with a
personal or attitude problem
Directing Cont
Leadership
vision
buld team support
seek partners
accept accountability
make decisions
lead by example
Controlling ________
Performance

Motivating
Reporting
to upper management
Prioritizing

crisis management immediate attention needed
urgent and important
planning and prevention activities
not urgent but important
pressing activities that may be easy to accomplish
Urgent but not important
easily accomplished, time wasting activities
not urgen and not important
Differnt EE styles

Contributors
Collaborators
communicators
challengers
Task and result
cooperation among team members
devil's advocates
Principles of customer services

the ability to provide what was promised, dependably and accurately
reliability
willingness to help customers
responsiveness
knowledge and courtesy you show your customers and your ability to convey trust competence and confidence
assurance
personal attention and caring
empathy
physical facilities
tangibles
3 Pa od management
Process
People
Proficiency
difference between management and leadership
Kotter

Leadership - useful change
Management - order
Can an ER credit the cost of uniforms against min wage?
No, but you can require the EE to pay for uniforms across pay periods so the deduction does not impact min wage
What taxes are statuatory EEs subject to?

How do you report on W-2?
FICA, FUTA (ex. life insurance and homeworks aren't subject to FUTA)

3,4,5,6 check Stat EE box in 13
What taxes are 501(c) 3 non profits exempt from?

What about churches filing 8472
FIT, FUTA


ALL
What is the penalty to EEs who don't report tips when required?
50% of the FICA taxes the ee owes
Foreign earned income exclusion

Two tests
$91,400
housing - x by .16
only FIT not FICA/FUTA

Bona fide residence & physical presence test
IF an expat or resident alien is employed by a foreign affiliate SS and Med coverage is...
not mandatory but the ER may elect coverage
Are resident aliens working abroad covered under FUTA?
No but US citizens are if they would be if working in US
What falls under section 132?
Commuter, de minimus fringe, athletic / fitness, no additional cost fringes
ISO Incentive Stock Options & ESOP EE Stock Purchase Plan Options

What are the terms?
Excercise within how many months of termination?
Required holding period is the later of?

Tax treatment?
3 mos term

two years from date of grant or 1 year after ee exercises options
if these are met than no W2
If they aren't met report spread on W-2 box but witholding is not required; exempt from FICA/FUTA
Does an ER have to withhold FIT on personal use of a CO car?
No but must withhold FICA and pay FUTA
Do you withhold FIT or FICA on allocated tips?
No
What are notices CP2100 / CP2100A
Notice to a payer that he/she might be responsible for backup withholding
B Notice
backup withholding notice to payee after CP notices received send B notice to payee and W-9
ER is subject to FUTA if pays wages of ___________ or more in any calendar quarter or has one or mor ees for at least some part of a day in ________ weeks
$1500

20
Name the two resident alien tests

How long must someone be in the US
Green card & substantial presence

31 days in current yeasr or 183 days during 3 year period of current year and two preceding years
What taxes are resident aliens subject to?
FIT, FICA, FUTA on worldwide income
What Visas qualify for FICA exemption?
A - "A" crowd govt officials
F,J,M and Q - Schools
G - Gov Int organization
What is the FUTA deposit schedule?

If the tax liability is $_________ or less no deposit is required, carry forward to the next ___________
Last day of the moknth following the end of the quarter


$500
Deposits must be inititated at least __________ business day before due
1
Deposit shortfall with no penalties
$100 or 2% whichever is greater & paid by the shortfall makeup date
Penalty rates for late deposits:

2%
5%
10%
15%
1-5 day
6-15 days
16 + days
more than 10 days after the first notice IRS sent
What are NQDC under
409A
If NQDC is nonfunded then deferrals are subject to income tax upon
contructive receipt
If NQDC is funded then subject to income tax when
deferred
Most NQDC plans are intended to be
non funded and may reduce all taxes when substantial risk of forfeiture exists
In order for an ER to have a SEP Simplified EE Pendion they must

What code on W-2
have less than 25 ees, free from FIT for ee deferrals but subject to SS and Medicare and FUTA (limit against total comp is 25%)

F
When is the 940 due for FUTA
Jan 31st (10 day automatic ext if filed all on time)
What is the alternative wage reporting procedure

hint. predecessor
Successor assumes predecessors' obligation for the W-2 and W-3 reporting

File schedule D (report of discrepancies)
Form 945 is used to report non-payroll withheld _____

on items like _________
FIT

pensions, military retirement, back up withholding, indian gaming, gambling
When is 1099 due?

What should you include if filing via paper
03.1 with IRS or 03.31 if filing electronically

1096
Non resident aliens
can only claim up to 1 allowance on W-4 not exempt
W-2 failure to file penalties

$15
$30
$50
$15 if within 30 days max 75K, 25 if small business
$30 if more than 30 but by 8/1 max $150K, $50K
$50 if after 8/1 max $250K, $100K for small business
Intentional disregard of filing requirements
$100 per form no max
Find for not giving a W-2 to an employee
$50 per W-2 max $100K
Deminimus allowed on W-2s
greater of .5% of returns or 10
Business Entity Principle
Company is separate from owners
cost principle
value of goods and sesrvices is based on original costs
sincerity principle
accountants will reflect the truth
consistency principle
AKA regularity principle
monetary unit principle
use single unit of currency
matching principle
match expenses and revenues to the accounting period when they actually occured this will avoid overstating the books
accrual principle
record revenue or income when actually earned
continuity principle
assume business whill contnue forever when preparing financials
Dual Aspect Principle
double-entry accounting
accounting cycle
list transactions
post journals to ledgers
prepare the trial balance
post accruals and adjs
prepare the adjusted trial balance
prepare the financial statements
close the books
reconcile the books
post any reverse entries
Ex of asset accounts
cash, receivables, inventory, computers, furniture
Liability
taxes payable, benefits payable,garnishments payable,ESSP
expense
cost of doing business, salary expense, bonus expense, ER tax expense
Owners equity =
assets minus liabilities
how to post an accrual
debit salary expense and credit salary payable
Penalties for misclassification of an independent contractor if ER files required information returns
20 % of the EE rate for SS and Med
1.5% of wages for FIT
trial balance
lists the balances of all open accounts in the GL
Balance sheet
shows firms assets, liabilities and owner's equity at a point in time
Penalties for misclassification of an independent contractor if ER DOES NOT file required information returns
40% of EE rate for SS and Med
3.0% of wages for FIT
income statement

hint: net income is the
shows revenues, expenses and profits over a period of time

bottom line
What qualifies an EE as a HCE (Highly Compensated EE)
5% Owner current year or preceding
EE receive more than $105K precedding year (can ignore if ee was note in tope 20% of earners preceding year.
Taxabiltiy of long term care
pre-tax can be under 125
grant date - freeze the price of the stock
excercise - get it at last year's price vs. this years price
the day an ee is told you will get this option
ee says he/she wants to make purchase of stock
Taxable amount
different between grant date and excercise date
Stock Options - settlement date
when transaction goes through constructive receipt
ex. could be a different tax year
Taxabiltiy of long term care
pre-tax can be under 125
Taxabiltiy of long term care
pre-tax can be under 125
supplemental unemployment benefits
always subject to FIT
may not be for FICA if certain criteria are met
grant date - freeze the price of the stock
excercise - get it at last year's price vs. this years price
the day an ee is told you will get this option
ee says he/she wants to make purchase of stock
grant date - freeze the price of the stock
excercise - get it at last year's price vs. this years price
the day an ee is told you will get this option
ee says he/she wants to make purchase of stock
Taxable amount
different between grant date and excercise date
Taxable amount
different between grant date and excercise date
Stock Options - settlement date
when transaction goes through constructive receipt
ex. could be a different tax year
Stock Options - settlement date
when transaction goes through constructive receipt
ex. could be a different tax year
supplemental unemployment benefits
always subject to FIT
may not be for FICA if certain criteria are met
supplemental unemployment benefits
always subject to FIT
may not be for FICA if certain criteria are met
ISOs stock options
If ee sells before must report on W2 but don't withhold
NSOs (Non-qualified stock options)

What box code
buy stock for fixed price for a period of time. Taxed when exercised
12 - V
ESPP - Stock purchase plan
15% discount on stock, if complies with rules no income; once sold
allocated tips
8% of gross sales to compare
not used in any calculation for ee just a balancing for the ER
Form 8027
ERs report of tipped income and allocated tips - 1 x per year
ee's portion plus allocated tips
backpay
statuatory vs. non-statuatory
statuatory can go back and correct with SSA for right period; non-statuatory you can't
Do you report wages for statuatory in box 1
yes, you just don't withhold
AIC Limits
Single 35,463
Married 38,583
When do you use codes M & N - What types of employees
Former employees with coverage, not a termed ee
501(c) 18 D-
Code H Highest
Employee funded Plan
25% of income
elective deferrrals not subject to FIT but in box 1; deduct when doing personal income taxes
If claiming exempt
works for all taxes
great for bonuses!
implementing a W-4
first pay date after 30 days
can have a 30 day policy
Can only use the flat rate if
they have been paid reg wages in current year or immediate preceding year
FJMQ Visas
Not subject FICA or FUTA
Bona Fide Residence Test
Brings family, purchase home or sign a longterm lease, involved in the culture and social life, meet terms of ee agreement regarding foreign assignment
Physical Presence Test
330 days during any consecutive 12 month period
Foreign earned income exclusion
Base housing amount
Housing Cost exclusion limitation
91400
x .16 = 14624 (2)
x .30 = 27420 (1)

1 - 2 = Max amount of foreign housing cost exclusion (if housing is above base you can take max $12,796)
Hypo tax -
used for expats to find out the tax they would have paid if the ee had remained in US aka stay at home tax
US Source income =
Wages paid x # of days working in US/ total number of work days
Does FUTA applly to non-resident aliens
yes
1042 series
Foreign source income
immigrant visas also known as
green cards (but not green)
Archer MSA or MSA
ers can't have more than 50 ees present or preceding year
must have a HDHP can be ER or EE but not both, must be the same for everyone, not part of 125 Code R (RX); taxable in 1,3,5