Fundamental Payroll Certification

Front 1

Common Law Test and categories

Back 1

IRC way to determine worker as EE or contractor.

Behavioral control

Financial control

Relationship of the parties

Front 2

Behavioral control

Back 2

Right to control or direct means by which worker performs the work done

Front 3

Financial control

Back 3

Whether worker has the opportunity to make a profit or suffer a loss

Front 4

Relationship of parties

Back 4

Determined by examining how the worker amd the ER perceive their relationship. (if w-2 is files or EE receives benefits or is an EE )

Front 5

SS-8

Back 5

Form used to receive a definitive IRS ruling as to a workers status (EE or 1099)

Front 6

Reasonable basis

Back 6

Defined by sec 530 of revenue act of 1978. ER may treat workers which would be EEs under common law test as 1099 under reasonable basis

Front 7

Backup withholding

Back 7

28% is withheld if payee fails to provide Tin or IRS has notified the payer that the Tin is incorrect

Front 8

W-9

Back 8

Request for Taxpayer ID number and certification

Front 9

Federal New Hire Reporting Requirement

Back 9

EEs name address and ssn

Ers name address and fein

Date of hire

Front 10

Rehired EE must be reported when they have been separated from organization for how long?

Back 10

60 days

Front 11

Ers must report new hires within what time frame

Back 11

20 calendar datys of DOH

Front 12

Info required for SSN verification purposes

Back 12

EEs SSN full name and DOB

Front 13

White collar exemptions

Back 13

Administrative (at least $455 a week)

Executive (455)

Any EE who owns at least 20% of enterprise

Professional EE 455

Computer professionals (make more than 27.63 an hour)

Outside sales

Front 14

Supplemental disability payment

Back 14

Brings wage of partially disabled worker up to EEs pretty disability wage level

Front 15

Gift

Back 15

Amt paid to EE on a special occasion. Not included in EEs regular rate of pay so long as amount does not depend on hrs worked, production, or efficiency.

Front 16

Engaged to be waiting

Back 16

Compensable worktime bc ER requires EE to wait to begin work

Front 17

Waiting to Be engaged

Back 17

Not worktime bc EE is freed from all duties for a definite period of time and has enough time to pursue personal business before returning to work

Front 18

Remedial education exemption

Back 18

ER may employ a worker for up to hrs over 40 Hr workweek without having to pay overtime if extra hours are spent in a remedial education program (not graduated HS and not job specific training)

Front 19

Minors age 14& 15

Back 19

Cannot work during school hrs

Limited to 3 hrs a day and 18 a week when school is in session

Front 20

FMLA

Back 20

Guarantees EEs 12 weeks of unpaid leave within a 12 month period

Front 21

I-9

Back 21

Employment eligibility verification

Front 22

Form I-551

Back 22

Permanent resident card (green card) or alien registration receipt card

Front 23

I-776

Back 23

Employment authorization document with a photograph

Front 24

SS-5

Back 24

Application for social security card-used to obtain new social security card or have card reissued

Front 25

W-4

Back 25

EEs with holding allowance certificate

Must be kept four years

Front 26

1040

Back 26

U. S. Individual income tax return

Front 27

Imputed income

Back 27

Represents the value of the benefits employees receive from from the employer and must be included in employees income aka fringe benefits

Front 28

Optional flat rate withholding

Back 28

25% FIT for supplemental wages

Front 29

Mandatory flat rate method

Back 29

39.6% of supplemental wages over $1000000

Front 30

Common control

Back 30

When determining whether payments are regular or supplemental wages in a year exceed $1mllion an er must consider wage payments made to ee by any other er treated as a single er with the first er

Front 31

Aggregate method

Back 31

Must use this method when calculating FIT for supplemental wages when an EE has no federal income tax withheld from regular wages (when it does not excess a million)

Front 32

SS maximum for EE and ER

Back 32

$7254

Front 33

Aggregate method

Back 33

Must use this method when calculating FIT for supplemental wages when an EE has no federal income tax withheld from regular wages (when it does not excess a million)

Front 34

SS maximum for EE and ER

Back 34

$7254

Front 35

Form 4070

Back 35

Employees report of tips to employer

Front 36

SS maximum for EE and ER

Back 36

$7254

Front 37

Form 4070

Back 37

Employees report of tips to employer

Front 38

CCPA

Back 38

Costumer Credit Protection Act

Provide legal framework around which state child support withholding laws are constructed

Front 39

Maximum Amount to Withhold for Child Support

Back 39

50% of the EEs disposable earnings of EE is supporting another spouse or children

60% if the EE is not supporting

Amts increase to 55% and 65% is in arrears

Front 40

When do child support orders take effect

Back 40

No later than the first pay period that begins after 14 working days following the mailing of the notice to withhold to ER

Front 41

Form 668-W

Back 41

Notice of Levy on wages, salary, and other income. Instructs employers to remit amounts withheld for the levy on the same day wages are paid to the EE

Front 42

Form 668-D

Back 42

Release of Levy/release of property from levy

Front 43

Form 2159

Back 43

Payroll deduction agreement

Front 44

Creditor Garnishment limit

Back 44

25% of the EEs disposable for the week or the Amt by which the ee disposable earnings for the week exceed 30 tones the federal minimum hourly wage then in effect

Front 45

Student loan garnishment maximum

Back 45

15% of EEs disposable earnings or the excess of earnings over 30 times fed min wage

Front 46

Priorities of withholding disorders

Back 46

Child support

Bankruptcy

Federal administrative garbishments

Federal tax levies

Student loan

State tax levies

Local tax leviea

Creditor garnishments

Employer deductions

Employee voluntary deductions

Front 47

Non taxable benefits

Back 47

No additional cost services

Qualified EE discounts

Working condition fringes

DE minimise fringes

Qualified transportation benefits

On premises athletic facilities

Qualified retirement advice

Qualified moving expense reimbursements

Front 48

Highly compensated employees

Back 48

5% owner of the employers stock or capital at any time during the current or preceding year; or received more than $115000 in compensation from the employer during the preceding year

Front 49

Qualified EE discounts

Back 49

Discounts on goods cannot exceed the gross profit percentage when goods are sold to customers

Discount on services cannot exceed 20% of the price at which services are offered to customers

Front 50

Distance test

Back 50

New workplace must be at least 50 miles farther from old workplace(old residence if no workplace)

Front 51

Distance test

Back 51

New workplace must be at least 50 miles farther from old workplace(old residence if no workplace)

Front 52

Time test

Back 52

During 12 month period immediately following move the er must expect EE to work full time at least 39 weeks in the general location of the workplace

Front 53

Two types of deductible moving expenses

Back 53

Transportation of household goods

Expense from traveling from old home to New home.

Front 54

Two types of deductible moving expenses

Back 54

Transportation of household goods

Expense from traveling from old home to New home.

Front 55

Mileage rate for moving expenses

Back 55

.235 per mile

Front 56

Moving expenses listed on w-2

Back 56

Box 12 code p

Front 57

Prizes for retail sales people

Back 57

Non cash prizes awarded to retail salespeople paid solely on a commission basis for exceeding or seeking quotas. Ers do not have to withhold federal income tax from such prizes although they must be reported on w-2. Subject to FICA and Futa

Front 58

Prizes for retail sales people

Back 58

Non cash prizes awarded to retail salespeople paid solely on a commission basis for exceeding or seeking quotas. Ers do not have to withhold federal income tax from such prizes although they must be reported on w-2. Subject to FICA and Futa

Front 59

General valuation method

Back 59

The fair market value of a company provided vehicle is the amount an individual would pay to lease the same or comparable vehicle in an arms length transaction in the same geographic area for the same length of time

Front 60

Special valuation methods

Back 60

Commuting valuation

Annual lease valuation

Vehicle cents per mile valuation

Front 61

Commuting valuation method

Back 61

Allows ER to value an EEs personal commuting use of an ER provided vehicle at $1.50 per one way commute amd $3 per round trip

Front 62

Annual lease value method

Back 62

The fair market value of EEs personal use of company provided cars is determined by multiplying the annual lease value of the car by the percentage of personal miles driven

Front 63

Vehicle cents per Mile method

Back 63

.56 cents per Mile

Front 64

Qualified deferred compensation plans

Back 64

Meet requirements of IRS regulations

401k

403b-educational institutions and non profits

Front 65

Qualified deferred compensation plans

Back 65

Meet requirements of IRS regulations

401k

403b-educational institutions and non profits

Front 66

Non qualified deferred compensation plans

Back 66

Do not meet requirements of IRS regulations. They provide EEs with some of the benefits Osvaldo qualified plan by delaying taxation for federal invoke tax purposes but there is more risk of loss of the deferrals and severe restrictions for deferrals amd distributions from the plan

457 be plan

Front 67

Semi weekly depositers

Saturday Sunday Monday and Tuesday deposit...

Back 67

The next Friday

Front 68

Semi weekly depositers

Saturday Sunday Monday ANS Tuesday deposit...

Back 68

The next Friday

Front 69

Semi weekly depositors

Wednesday Thursday and Friday pay days deposits are due...

Back 69

The next Wednesday

Front 70

Semi weekly depositers

Saturday Sunday Monday ANS Tuesday deposit...

Back 70

The next Friday

Front 71

Semi weekly depositors

Wednesday Thursday and Friday pay days deposits are due...

Back 71

The next Wednesday

Front 72

Shortfall rule

Back 72

An employer satisfies its deposit obligation if the Amt of the shortfall is no more than the greater of $100 or 2% of the entire Amt due so long as the original deposit was made timely and the shortfall is deposited by the appropriate makeup date

Front 73

EFTPS

Back 73

Electric federal tax payment system

Most employers are required to make federal tax deposits using EFTPS

All organizations are enrolled in EFTPS when an ein is issued

Front 74

941-x

Back 74

Adjusted employers quarterly federal tax return

Front 75

W-3

Back 75

Transmittal of wage and tax statements

Front 76

Reflective listening

Back 76

Restating what you understand from others statements

Front 77

Purpose of labor distribution

Back 77

Payroll expenses are allocated to the job function that the employee worked

Front 78

Which deferred compensation plans generally do not contain equal benefits for all EEs

Back 78

Non qualified

Front 79

What journal entries are required to record $250000 in salaries earned during the last week of July but not paid until the first Friday in August ?

Back 79

Debit accrued salary expense; credit accrued salary expense

Front 80

How is a file 940 corrected

Back 80

By filing an amended 940

Front 81

Futa taxes over $500 must be deposited...

Back 81

Quarterly

Front 82

A non exempt EE is provided room and board. Under Flsa the employees regular rate of pay calculation includes...

Back 82

100% of the fair market value of the room and board

Front 83

A non exempt EE is provided room and board. Under Flash the employees regular rate of pay calculation includes...

Back 83

100% of the fair market value of the room and board

Front 84

The shortfall make up deposit must be made for a semi weekly depositor by the...

Back 84

First Wednesday or Friday on or after the 15th of the next month or due date of the return whichever is earliest

Front 85

When filing paper forms w-2 the due date to the SSA is

Back 85

Jan 31

Front 86

EE provides new form w-4 on August 15th. The Employer must retain the prior form w-4 until...

Back 86

Four years after the last tax return was filed using the info on the w-4

Front 87

TIN and name reported on 1099 form can be checked by using the

Back 87

IRSs Tin Matching System

Front 88

What penalty may be assessed against a company that files its forms w-2 electronically with the SSA on May 15?

Back 88

$60 per w-2

Front 89

To correct a direct deposit payment made in error within 5 banking days the Employer must generate a...

Back 89

Single entry reversal

Front 90

A procedure that can be put into place instead one person payroll department to ensure adequate controls is to...

Back 90

Have the accounting department reconcile the payroll bank account

Front 91

An ER only paid 98% of its tax liability by the due date of Feb 15 when is remaining 2% due

Back 91

By due date of the quarterly form 941

Front 92

EEs who are eligible foe direct deposit and receive paychecks sent through the mail are constructively paid

Back 92

When the checks are delivered

Front 93

Futa tax credit

Back 93

5.4%

Front 94

401k is subject to to which taxes

Back 94

Social security Medicare and Futa

Front 95

How may Fit be withheld from desperation pay and accrued vacation wages totaling $20000 that are paid at the time of termination and identified separately from EEs pay stub?

Back 95

Using supplemental rate or aggregate method

Front 96

An ER owes $750 in Futa taxes for the first quarter. When is the Futa tax due?

Back 96

April 30

Front 97

If an EE is unable to collect As and Medicare on an EEs reported tip income the employer must

Back 97

Report under withheld amts in Box 12 codes A and B

Front 98

Wages paid in the same year after an EEs death but issued after the EEs death are subject to what taxes

Back 98

Social security Medicare and Futa

Front 99

An ER files both 941 and 943 for workers. At the end of the year he will report wages to SSA with

Back 99

2 separate w-3s

Front 100

Primary advantage of developing an in house system

Back 100

Employer controls entire computer system

Front 101

The FMLA requires ERs to maintain records for

Back 101

3 years

Front 102

When checking for phantom employees which of the following actions should be taken?

Back 102

Have employees pick up checks/direct deposit advices and show identification

Front 103

A record of the financial transactions account is a

Back 103

Ledger

Front 104

A record of the financial transactions account is a

Back 104

Ledger

Front 105

A record of daily transactions of a business is a

Back 105

Journal

Front 106

An example of employment data element contained in the master file is

Back 106

Hourly rate of pay

Front 107

Payroll documentation ensures that procedures are followed True or false

Back 107

False

Front 108

How would an increase to an asset account be posted

Back 108

Debit

Front 109

Unacceptable to an external audit officer

Back 109

Storage of blank payment checks in the payroll department

Front 110

Statue of ministries correcting a form 941 is

Back 110

April 15th three years after the close of the tax year error was made

Front 111

Who distributes EFTPS payments to the receiving financial institutions

Back 111

ODFI

Front 112

457b

Back 112

Common retirement plan for state/city/local government EEs

Front 113

Qualified parking limit

Back 113

250

Front 114

Qualified parking limit

Back 114

250

Front 115

Qualified transportation

Back 115

$130

Front 116

Cafeteria benefits include

Back 116

Accident and health insurance

Gtl short and long term disabilitu

HSA and FSA accounts

Elective vacation days

Adoption assistance

Dependent care

Qualified deferred comp plans

Front 117

Accuracy related penalties

Back 117

20% of the under payment, 75% of under payment if due to fraud

Front 118

Failure to make timely deposits

Back 118

2% 1-5 days late

5% 6-15

10% 16+

Front 119

Statutory EEs - dish

Back 119

Drivers

Insurance sales person

Salesperson

Homeworkers

Fit is blocked

FUTA only paid on drivers ANS traveling sales

Front 120

Statutory Non EEs - sit and read

Back 120

Sitters

Real estate agents

Direct sellers

Treated as 1099s

Front 121

Law enforcement OT

Back 121

6.11

Front 122

Fire protection OT

Back 122

7.57

Front 123

What determines the tax liability of an off cycle check?

Back 123

When the Weather receives the check

Front 124

When does a depositer status change because the $50000 threshold during the look back period has been exceeded

Back 124

Annually

Front 125

Primary purpose of batch controls is to

Back 125

Validate entry accuracy

Front 126

Federal unemployment taxes are used to fund

Back 126

The administration of the unemployment insurance program

Front 127

Cafeteria benefits do not include

Back 127

Educational assistance

DE minimis fringes

Rides in commuter vans

Employee discounts

Qualified transportation fringes

Non qualified retirement plans

Front 128

OSHA documents

Back 128

Retention period: 5 years

Work related illness/injury/ accident documents

Front 129

IRS /SSA/ Futa documents

Back 129

Retention: 4 years

Copies of tax filings

Voided checks

Earnings records

W-4

3PSP records

Front 130

Flsa /irca documents

Back 130

Retention: 3 years

EE information

Hours worked

Earnings

I-9

Front 131

FMLA documents

Back 131

Retention: 3 years

Dates of FMLA leave

Documentation of FMLA leave

FMLA plan description

Dispute records

Front 132

Supplemental records

Back 132

Retention: 2 years

Time cards

Wage rate tables

Work schedules

Front 133

Direct deposit process flow

Back 133

Originator-ODFI-ach-receiver-rdfi

Front 134

ODFI

Back 134

Originating depository financial institution (employers bank)

Front 135

Rdfi

Back 135

Receiving depository financial institution (employees bank)