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76 Cards in this Set

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What is the 2008 Social Security Tax Reate?
6.2%
What is the 2008 Social Security Wage Base?
$102,000
Account is used to record the total of the employer's payroll taxes
Payroll Tax Expense
What is the maximum tax withholding for social security?
$6,324
What is the 2008 Medicare Wage Base?
Unlimited
What is the 2008 Medicare tax rate?
1.45%
What is the 2008 FUTA wage Base?
$7,000
What is the 2008 FUTA tax rate?
6.0%
What is the 2008 FUTA Credit?
5.40%
What is the 2008 FUTA Surtax rate?
.20%
What is the definition of "tipped" employees- those receiving monthly minimum?
$30.00
What is the cash tips received per month requiring report to Employer (Form 4070)?
$20.00
What is the tip allocation of gross receipts?
8%
What is the annual advance in (Earned Income Credit) EIC payments?
$1,750
What is the Federal IRS mileage rate?
$0.505
What is moving expense mileage rate?
$0.19
What is the company car- employer provided fuel rate?
$0.505
What is the bus, tokens, carpool month rate?
$115
What is the [arking rate?
$220
What is the relocation distance test mileage?
50 miles
What is the relocation distance test days?
39 weeks
What is the salary test under FLSA for administrative & executive category?
$455
What is the salary test under FLSA professional category?
$455
What is the FLSA salary test under computer professionals?
$27.63
What is the FLSA salary test under outside salespersons?
None
What is the Federal Supplemental Tax Rate?
25%
What is the Federal supplemental tax rate for wages over $1,000,000?
35%
What is the federal back up withholding rate?
28%
What is the Excise tax rate on early retiremnet plan distributions?
10%
What is the ecise tax rate on excess golden parachute payments?
20%
What is the disposable earnings limit for Child Support when supporting another spouse/children?
50%
What is the disposable earnings limit for Child Support when supporting another spouse/children with arrears?
55%
What is the disposable earnings limit for Child Support when not supporting another spouse/children?
60%
What is the disposable earnings limit for Child Support when not supporting another spouse/children with arrears?
65%
What is the disposable limit for Creditor garnishments?
lesser 25% or 30 x min wage
What is teh disposable limit for Federal Stident Loans?
15%
What is the Foreign Income Exclusion Maximum?
$87,600
What is the Foreign Income Exclusion Minimum?
$14,016
What is the 401(K) contribution limits?
$15,500/
Additional catch up $5,000
What is the 403(B) contribution limit?
$15,500/
Additional catch up $5,000
What is the 408(K) contribution limit?
$15,500/
Additional catch up $5,000
What is the 457 (B) contribution limit?
$15,500/
Additional catch up $5,000
What is the (Savings Incentive Match Plan for employees small employers) SIMPLE contribution limit?
$10,500
What is the SIMPLE catch up contribution limit?
$2,500
What is the annual IRA contribution limit?
$5,000
What is the age of retirement plan distribution not subject to 10% excise tax?
59 1/2
The formula for calculating an employee's net pay is:
gross pay less taxes withheld less other deductions
If the FUTA tax liability for a quarter is less than $500.00, the taxes must be deposited:
With the next quarter's liability if the total liability exceeds $500.00
What is a responsibility of the employer in connection with Form W-4?
Reminding employees by December 1 to submit a new Form W-4 if their marital status or number of allowances has changed
Which of the following tools can be useful in organizing priorities?
A. E-mail; addressing issues in the order received in your inbox
B. Your in-basket
C. Sticky notes reminding you of important tasks
D. A weekly planner
Under the IRS regulations, how many years must copies of an employer's tax returns be retained?
4 years
The ability of a payroll department to provide accurate paychecks on a timely basis is an example of the customer service principle of:
reliability
An employer must remind employees to complete an amended Form W-4 if they have any changes in status:
by December 1 of each year
An advertising department manager, supervising five full-time employees, is paid a monthly salary of $3,500.00. Last month the employee worked 35 hours the first week, 55 hours week two, 40 hours week three, and 50 hours week four. Under the FLSA, how many hours of overtime, if any, must the employee be paid?
0
In a direct deposit system, the ACH file is set up by the:
employer
Which of the following workers is classified as a nonexempt employee?
A. An assistant office manager with no subordinates earning $700.00 a week.
B. A department manager supervising five full-time employees
C. A salesperson soliciting orders at clients' locations
D. An electrical engineer earning $1,200.00 a week, designing computer software systems
Which of the following methods are acceptable methods for paying employees?
A. Only Cash
B. Only Check
C. Only EFT
D. Cash, check, EFT
D. Cash, check, EFT

A semiweekly depositor has a liability of $79,000.00 from Wednesday's pay day and a liability of $50,000.00 from Friday's pay day. The tax deposit is due:
A. Monday
B. Wednesday
C. Friday
D. by the 15th of the following month
. Monday
Role plays and case studies are good ways to train payroll employees on principles of customer service, since these methods
A. emphasize procedures rather than results
B. take very little time
C. are based on customer service scenarios
D. force all the employees to participate
are based on customer service scenarios
Which government entity(s) uses Form W-2 to track information?
A. IRS only
B. SSA only
C. DOL only
D. IRS and SSA
IRS and SSA
The repayment of overpaid wages by an employee has an impact on what two sets of records?
A. tax and benefits
B. accounting and bank reconciliation
C. accounting and tax
D. bank reconciliation and benefits
accounting and tax
In which situation is an employee required to file a new Form W-4?
A. Itemized deductions increase
B. Death of a dependent child in the previous year
C. Adoption of a child
D. Birth of a child
Death of a dependent child in the previous year
According to the IRS, what employee records must be retained?
A. Date marital status changed
B. Date employment application submitted
C. Allowances
D. Anticipated date of next pay increase
C. Allowances
A monthly depositor's liability during the lookback period was
A. $500.00 up to $3,000.00
B. $3,000.00 up to $50,000.00
C. $50,000.00 or less
D. more than $50,000.00
C. $50,000.00 or less
If an employee does not complete Form W-4 when hired, when must the employer request the employee complete Form W-4?
A. Each pay period after the employee was hired
B. Each quarter after the employee was hired
C. By December of the first year of employment
D. Each month after the employee was hired
C. By December of the first year of employment
If a Form W-4 is incomplete, the employer must:
A. Implement the form, and ask the employee to complete another form
B. Reject the form
C. Tell the employee the form is incomplete
D. Ask the employee to provide the missing information on the form
B. Reject the form
Which of the following plans can discriminate in favor of highly compensated employees?
A. 401(k) plans
B. 403(b) plans
C. 457(b) plans
D. Qualified defined benefit plans
C. 457(b) plans
What transaction is generally posted as a debit?
A. Decrease in an asset account
B. $5,000.00 check issued, posted to the checking account
C. $500.00 payment of withheld child support, posted to the liability account
D. State income tax withheld, not deposited, posted to the liability account
C. $500.00 payment of withheld child support, posted to the liability account
Which of the following requirements governs the frequency of when employees must be paid?
A. FLSA rules
B. State laws
C. Company procedures
D. IRS regulations
B. State laws
All of the following benefits are taxable wages EXCEPT
A. Commissions
B. Bonuses
C. Overtime compensation
D. De minimis fringe benefits
D. De minimis fringe benefits
If a payroll department staff member does not respond to a voice mail message from an employee about their paycheck, which customer service principle is being violated?
A. Tangibles
A. Tangibles
B. Responsiveness
C. Empathy
D. Compliance


C. Empathy
D. Compliance
B. Responsiveness
On Form W-2, which box is matched with its use?
A. Box 12 (Code J)--State agencies that report only Medicare
B. Box 12 (Code M)--Uncollected social security tax on group-term life insurance coverage
C. Box 12 (Code E)--20% excise tax on excess parachute payments
D. Box 11--Dependent care benefits
B. Box 12 (Code M)--Uncollected social security tax on group-term life insurance coverage
An employee provides a new Form W-4 on August 15. The employer must retain the prior Form W-4 until:
A. January 1 of the following year
B. April 15 of the following year
C. four years after the new form was filed
D. four years after the last tax return was filed using the information on the Form W-4
D. four years after the last tax return was filed using the information on the Form W-4

Which form must be filed by an employee in order to receive AEIC payments?
A. Form W-9
B. Form W-4
C. Form W-4P
D. Form W-5
D. Form W-5

Under the FLSA, in which of the following situations for a Sunday to Saturday workweek must a nonexempt employee be paid an overtime premium?
A. An employee worked 8 hours on Monday and Tuesday, 10 hours on Wednesday, 12 hours on Thursday, and 5 hours on Friday.
B. An employee worked 10 hours on Sunday and 30 hours between Monday and Friday.
C. An employee worked five eight-hour shifts per week not including commute time of two hours a day.
D. An employee worked 30 hours in a week, called in sick Thursday and Friday, and received 16 hours of sick pay for the week.
A. An employee worked 8 hours on Monday and Tuesday, 10 hours on Wednesday, 12 hours on Thursday, and 5 hours on Friday.
A semiweekly depositor that has a payroll tax liability of $80,000.00 from a Thursday payroll must deposit the liability by
A. Monday
B. Tuesday
C. Wednesday
D. Friday
. Wednesday