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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 |
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Theory Z
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Japanese style or participatory management
long term employment, conensus style of decision making |
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Situational Leadership
H & B |
Hersey and Blanchard
Supporting Coaching (high) Delegating (low) Directing |
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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) |
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Planning
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planning - 1st step define goals and objectives and timeframe
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Organizing
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identifying deliverables / milestones and define tasks
analyze resources |
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Staffing
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hiring, job descriptions, recruiting, NHOs, delegating, training
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Directing
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providing leadership, communicating, reflective listening
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Controlling
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brings together other management skills from planning/organizing, stffing, directing and finally takes action to achieve goals
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Reporting
last |
method of communicating with upper management
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Empowerment Process
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establish desired results
provide guidelines identify resources available to accomplish tasks hold peopel accountable identify consequences |
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Strategic Planning and Organizing
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Defining goals and objectives
Defining the timeframe Defining the subtasks Analyzing available resources evaluating costs |
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Staffing
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Hiring the right employees
delegating tasks and responsibility Training |
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Coaching is more formal than
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giving feedback
observing the ee and giving suggestions |
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Directing Employees
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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 |
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Directing Cont
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Leadership
vision buld team support seek partners accept accountability make decisions lead by example |
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Controlling ________
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Performance
Motivating |
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Reporting
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to upper management
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Prioritizing
crisis management immediate attention needed |
urgent and important
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planning and prevention activities
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not urgent but important
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pressing activities that may be easy to accomplish
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Urgent but not important
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easily accomplished, time wasting activities
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not urgen and not important
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Differnt EE styles
Contributors Collaborators communicators challengers |
Task and result
cooperation among team members devil's advocates |
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Principles of customer services
the ability to provide what was promised, dependably and accurately |
reliability
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willingness to help customers
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responsiveness
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knowledge and courtesy you show your customers and your ability to convey trust competence and confidence
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assurance
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personal attention and caring
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empathy
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physical facilities
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tangibles
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3 Pa od management
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Process
People Proficiency |
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difference between management and leadership
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Kotter
Leadership - useful change Management - order |
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Can an ER credit the cost of uniforms against min wage?
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No, but you can require the EE to pay for uniforms across pay periods so the deduction does not impact min wage
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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 |
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What taxes are 501(c) 3 non profits exempt from?
What about churches filing 8472 |
FIT, FUTA
ALL |
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What is the penalty to EEs who don't report tips when required?
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50% of the FICA taxes the ee owes
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Foreign earned income exclusion
Two tests |
$91,400
housing - x by .16 only FIT not FICA/FUTA Bona fide residence & physical presence test |
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IF an expat or resident alien is employed by a foreign affiliate SS and Med coverage is...
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not mandatory but the ER may elect coverage
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Are resident aliens working abroad covered under FUTA?
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No but US citizens are if they would be if working in US
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What falls under section 132?
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Commuter, de minimus fringe, athletic / fitness, no additional cost fringes
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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 |
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Does an ER have to withhold FIT on personal use of a CO car?
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No but must withhold FICA and pay FUTA
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Do you withhold FIT or FICA on allocated tips?
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No
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What are notices CP2100 / CP2100A
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Notice to a payer that he/she might be responsible for backup withholding
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B Notice
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backup withholding notice to payee after CP notices received send B notice to payee and W-9
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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
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$1500
20 |
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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 |
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What taxes are resident aliens subject to?
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FIT, FICA, FUTA on worldwide income
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What Visas qualify for FICA exemption?
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A - "A" crowd govt officials
F,J,M and Q - Schools G - Gov Int organization |
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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 |
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Deposits must be inititated at least __________ business day before due
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1
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Deposit shortfall with no penalties
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$100 or 2% whichever is greater & paid by the shortfall makeup date
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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 |
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What are NQDC under
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409A
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If NQDC is nonfunded then deferrals are subject to income tax upon
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contructive receipt
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If NQDC is funded then subject to income tax when
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deferred
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Most NQDC plans are intended to be
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non funded and may reduce all taxes when substantial risk of forfeiture exists
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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 |
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When is the 940 due for FUTA
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Jan 31st (10 day automatic ext if filed all on time)
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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) |
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Form 945 is used to report non-payroll withheld _____
on items like _________ |
FIT
pensions, military retirement, back up withholding, indian gaming, gambling |
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When is 1099 due?
What should you include if filing via paper |
03.1 with IRS or 03.31 if filing electronically
1096 |
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Non resident aliens
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can only claim up to 1 allowance on W-4 not exempt
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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 |
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Intentional disregard of filing requirements
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$100 per form no max
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Find for not giving a W-2 to an employee
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$50 per W-2 max $100K
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Deminimus allowed on W-2s
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greater of .5% of returns or 10
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Business Entity Principle
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Company is separate from owners
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cost principle
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value of goods and sesrvices is based on original costs
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sincerity principle
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accountants will reflect the truth
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consistency principle
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AKA regularity principle
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monetary unit principle
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use single unit of currency
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matching principle
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match expenses and revenues to the accounting period when they actually occured this will avoid overstating the books
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accrual principle
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record revenue or income when actually earned
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continuity principle
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assume business whill contnue forever when preparing financials
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Dual Aspect Principle
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double-entry accounting
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accounting cycle
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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 |
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Ex of asset accounts
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cash, receivables, inventory, computers, furniture
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Liability
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taxes payable, benefits payable,garnishments payable,ESSP
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expense
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cost of doing business, salary expense, bonus expense, ER tax expense
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Owners equity =
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assets minus liabilities
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how to post an accrual
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debit salary expense and credit salary payable
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Penalties for misclassification of an independent contractor if ER files required information returns
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20 % of the EE rate for SS and Med
1.5% of wages for FIT |
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trial balance
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lists the balances of all open accounts in the GL
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Balance sheet
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shows firms assets, liabilities and owner's equity at a point in time
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Penalties for misclassification of an independent contractor if ER DOES NOT file required information returns
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40% of EE rate for SS and Med
3.0% of wages for FIT |
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income statement
hint: net income is the |
shows revenues, expenses and profits over a period of time
bottom line |
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What qualifies an EE as a HCE (Highly Compensated EE)
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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. |
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Taxabiltiy of long term care
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pre-tax can be under 125
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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 |
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Taxable amount
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different between grant date and excercise date
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Stock Options - settlement date
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when transaction goes through constructive receipt
ex. could be a different tax year |
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Taxabiltiy of long term care
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pre-tax can be under 125
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Taxabiltiy of long term care
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pre-tax can be under 125
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supplemental unemployment benefits
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always subject to FIT
may not be for FICA if certain criteria are met |
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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 |
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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 |
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Taxable amount
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different between grant date and excercise date
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Taxable amount
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different between grant date and excercise date
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Stock Options - settlement date
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when transaction goes through constructive receipt
ex. could be a different tax year |
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Stock Options - settlement date
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when transaction goes through constructive receipt
ex. could be a different tax year |
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supplemental unemployment benefits
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always subject to FIT
may not be for FICA if certain criteria are met |
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supplemental unemployment benefits
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always subject to FIT
may not be for FICA if certain criteria are met |
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ISOs stock options
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If ee sells before must report on W2 but don't withhold
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NSOs (Non-qualified stock options)
What box code |
buy stock for fixed price for a period of time. Taxed when exercised
12 - V |
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ESPP - Stock purchase plan
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15% discount on stock, if complies with rules no income; once sold
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allocated tips
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8% of gross sales to compare
not used in any calculation for ee just a balancing for the ER |
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Form 8027
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ERs report of tipped income and allocated tips - 1 x per year
ee's portion plus allocated tips |
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backpay
statuatory vs. non-statuatory |
statuatory can go back and correct with SSA for right period; non-statuatory you can't
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Do you report wages for statuatory in box 1
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yes, you just don't withhold
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AIC Limits
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Single 35,463
Married 38,583 |
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When do you use codes M & N - What types of employees
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Former employees with coverage, not a termed ee
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501(c) 18 D-
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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 |
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If claiming exempt
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works for all taxes
great for bonuses! |
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implementing a W-4
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first pay date after 30 days
can have a 30 day policy |
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Can only use the flat rate if
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they have been paid reg wages in current year or immediate preceding year
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FJMQ Visas
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Not subject FICA or FUTA
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Bona Fide Residence Test
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Brings family, purchase home or sign a longterm lease, involved in the culture and social life, meet terms of ee agreement regarding foreign assignment
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Physical Presence Test
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330 days during any consecutive 12 month period
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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) |
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Hypo tax -
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used for expats to find out the tax they would have paid if the ee had remained in US aka stay at home tax
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US Source income =
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Wages paid x # of days working in US/ total number of work days
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Does FUTA applly to non-resident aliens
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yes
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1042 series
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Foreign source income
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immigrant visas also known as
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green cards (but not green)
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Archer MSA or MSA
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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 |