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FICA - 40% FITW - 3% - ANSWER-Unintentional misclassification as an independent contractor who fails to file form 1099-MISC - tax assessment for failure to withhold at FICA and FITW is equal to what percent? FICA - 20% FITW - 1.5% - ANSWER-Unintentional misclassification as an independent contractor who files form 1099-MISC - tax assessment for failure to withhold at FICA and FITW is equal to what percent? SS-8 - ANSWER-Written determination from the IRS regarding an individual's worker status can submit what form 28% - ANSWER-Back up withholding tax rate employer must use Client firm - ANSWER-Employee leasing agency fails to withhold taxes it can become whose responsibility to pay these taxes Unemployment insurance - ANSWER-Wages are subject to federal requirements including federal income tax withholding, FICA tax withholding, and federal tax $7.25 - ANSWER-The federal minimum wage rate has stayed at what amount per hour since July 24, 2009? $2.13 - ANSWER-What is the minimum hourly rate that employers must pay to certain tipped employees after applying the maximum allowable tip credit? $7.25 - ANSWER-After adding employees tips for the week to the employee’s regular pay, the average hourly rate for the week must be at least what amount? Fair labor standard act of 1938 - ANSWER-The federal law governing minimum wage and overtime pay is the: Wage & Hour - ANSWER-The federal law governing minimum wage and overtime pay is the: Method & frequency - ANSWER-States may regulate and of payment as well as minimum wage overtime and proper handling of unclaimed wages? $250,000 - ANSWER-A non-retail business an established before April 1, 1990 must comply with federal wage hour law if its annual gross sale exceeds: Schools, hospitals, and nursing homes - ANSWER-Three kinds of establishments in operation on or after April 1, 1990 that are covered by the FLSA regardless of their annual sales volume are: $500,000 - ANSWER-A dry cleaner that began operations on May 1, 1991 is covered by the FLSA under the enterprise test if its gross annual sale exceeds: Family-owned restaurant that employs family members - ANSWER-Who is likely not to be covered by the FLSA? $500,000 - ANSWER-A retail enterprise that began operations after March 31, 1990 is covered by the FLSA if it's annual gross sales volume per year exceeds what amount Department stores - ANSWER- are covered by the FLSA only if they meet an annual sales volume test Escheat - ANSWER-State law covering the treatment of unclaimed wages are called laws. Tipped employees, Computer personnel's, recipients of the opportunity wage, ???? - ANSWER-Name the four kinds of employees that are exempt from federal minimum wage Schools, hospitals, nursing homes, dry cleaners, construction company - ANSWER- Name five kinds of businesses operating prior to April 1, 1990 that are covered by the FLSA regardless of their annual sales Apprenticed, learners, messengers, handicapped persons, full-time students - ANSWER-Name five kinds of employees who may qualify for a special certificate for the payment of a sub-minimum wage Fair Labor standards act - ANSWER-What does FLSA stand for? Fair labor standards act - ANSWER-The federal law that governs minimum wage and overtime requirements is called: $0 - ANSWER-Assume that a nursing home began operations on April 1, 1988. The nursing home is covered by the FLSA under the enterprise coverage test if it's sales for the year exceed: $362,500 - ANSWER-Retail enterprises in operation before April 1, 1990 are covered by the FLSA if they are gross annual sales exceed: $250,000 - ANSWER-Non-retail enterprises in operation before April 1, 1990 are covered by the FLSA if they are gross annual sales exceed: 2 and 3 - ANSWER-Time cards need to be retained for years if a report of hours worked by date and week also is retained. Otherwise, daily and weekly hours records must be retained for years Driver's license, ID card issued by federal, state or local government, US military card, voters registration card, School ID with photo - ANSWER-Name one document that proves only employees identity US passport, form I-94, permanent resident card, form I-766 - ANSWER-Name one document that proves both identity and employment Social Security card, birth certificate, US citizen ID card - ANSWER-Name one document that establish appointment authorization SS-5 - ANSWER-And employee requiring a new or duplicate Social Security card should complete form 1-9 - ANSWER-The immigration Reform and control act of 1986 requires that employers and employees complete which form End of employees first day on job - ANSWER-When must you complete an I-9 for an employee who will be working for your firm for less than three days End of the employee’s 4th Day on the job - ANSWER-When must you complete and | nine for an employee who will be working for your firm for the indefinite future End of the Term - ANSWER-Employers must return and age certificate to and employee at Identification and authorization to work - ANSWER-Upon higher, all new employees provide their employer with a Social Security card, a completed signed and dated W-4, and documentation that proves the employees and Immigration Reform and control act - ANSWER-The law designed to reduce the number of undocumented workers in the United States is known by the initials | RCA which stands for: Tax advice - ANSWER-And employer may explain how to fill out the W-4 but should never give: Previous and current year - ANSWER-Employees may not claim exempt from federal income tax withheld unless they did not go any tax in the years and do not expect cheap oh tax in the EIN - ANSWER-When submitting a W-4 to the IRS, include employers ____on line 10 Employee alters the form, added a flat tax to be withheld, knowledge of false information provided, forgets to sign - ANSWER-What is a reason employers should reject a W-4? 30 days - ANSWER-How long does an employer have to implement a revised W-4 The greater of 2% or $100 - ANSWER-For a deposit to be considered timely, the deposit shortfall cannot exceed what amount? $1000 - ANSWER-And employer may file form 944 annually if it's estimated annual employment tax liability is less than what amount? Federal insurance control act - ANSWER-FICA stands for what? Paid Quarterly (941) - ANSWER-A quarterly employment tax liability of less than $2500 can be 6.2% - ANSWER-Effective January 1, 2016 the employer Social Security tax rate is: $118,500 - ANSWER-The OASDI Wage limit for 2016 is: EFTPS - ANSWER-How are tax deposits made? 940 - ANSWER-Which form is used to report and employers FUTA tax liability W2, copy B - ANSWER-What is used to report wage and tax information to employees 941 - ANSWER-What is used to report wage and tax information to the IRS 945 - ANSWER-What is used to report federal income tax withheld from non-wage income W2, Copy A - ANSWER-What is used by the SSA to update an employee’s retirement earnings account 0.6% - ANSWER-2016 minimum FUTA rate 6.0% for the first $7,000 of taxable wages paid to each employee - ANSWER-2016 maximum FUTA tax 5.4% - ANSWER-And employer that makes timely payments to its state unemployment fun may be entitled to a maximum credit of up to. $500 - ANSWER-Employer must deposit FUTA if the undeposited amount at the end of the quarter exceeds -9% - ANSWER-Employers withhold an additional medical care tax from wages in excess of $200,000 of what rate Hospital insurance, also referred to as Medicare - ANSWER-What does H | stand for Old age survivor and disability insurance, also referred to as social security - ANSWER- What does OASDI STAND FOR? OASDI and HI - ANSWER-What two separate taxes is FICA made of 6.2% - ANSWER-As of January 1, 2016, employees and employers each pay Social Security tax of $118,500 - ANSWER-For 2016, the Social Security wage ceiling is what? (Unchanged it from 2015) Employer pay period, marital status, employee personnel allowance, wages, supplemental wages - ANSWER-Name it two factors that determine the amount of F | TW on each employee's paycheck 25% - ANSWER-Employers may optional he withholds federal tax at what rate if certain conditions are met? 39.6% - ANSWER-If and employees supplemental wages for the year exceed $1 million a flat tax rate of what applies without regard to the employees form W-4 and regardless of whether the supplemental withholding rate of $.25 was used in the calendar year Electronic funds with drawl - ANSWER-What does EF W stand for Less than $2500; form 941 - ANSWER-A liability for the quarter of less than what amount may be paid by at the end of the quarter with what form? Credit/debit card*, EFW, check or money order (*noted just below this "Federal tax deposits cannot be made using a debit or credit card or EFW) - ANSWER-How can payroll deposits be paid? One business day from the day the liability is incurred - ANSWER-Employers with a deposit liability of $100,000 or more must make their deposits win? July 1 - June 30 - ANSWER-Form 941 Lookback period is year for which the deposit status is determined is prior to the calendar $50,000 - ANSWER-Employers with and accumulated 941 liabilities of more than during the Lookback period are semi-weekly depositors for the next calendar year $50,000 - ANSWER-Employers with and accumulated 941 liabilities of less than during the Lookback period are monthly depositors for the next calendar year Monthly depositor (also, new employers look back period May not be a full 12 month.) - ANSWER-New employees are what kind of depositors, until the end of the calendar year unless the one business day rule is triggered The 15th of the following month or the next business day if the 15th falls on a weekend or holiday - ANSWER-When are monthly depositors payroll taxes due? The Wednesday/Friday Rule: no later than the following Wednesday. - ANSWER-When are semi-weekly depositors payroll taxes due for wages paid on Wednesday, Thursday and/or Friday? The Wednesday/Friday Rule: no later than the following Friday. - ANSWER-When are semi-weekly depositors payroll taxes due for wages paid on Saturday, Sunday, Monday and/or Tuesday? In addition, a separate deposit must be made for each quarter, even if the liabilities are deposited on the same day. - ANSWER-*Additional information* liabilities incurred on the last day of the month of a quarter are treated as separate and distinct from liabilities incurred in the following quarter. Employers (therefore employers should calculate their forms 941/944 liability for the Lookback period each year to make sure that their deposit frequency is correct) - ANSWER-Who is responsible for determining deposit status? 941/944 - ANSWER-Which form designated FICA and FITW? 940 - ANSWER-Which form designated for FUTA 945 - ANSWER-Form designated for back up tax Electronically - ANSWER-Federal tax deposits are paid End - ANSWER-The rule of constructive receipt is particularly important at the of the year Constructively received - ANSWER-Federal income tax and FICA taxes are withheld from wages in the year they are___ by employees 2? - ANSWER-Wages should not be deferred unless the employee is covered by a The wages are made available - ANSWER-Constructive receipt is based on the principle that wages are taxable when Payroll tax exp --FICA Employer Payable - ANSWER-Entry to record the payroll expense for the employers FICA tax Credit, deduct - ANSWER-To record the fight go withheld from employees pay, __ FICA employee withheld payable and salary expense Credit, deduct - ANSWER-To record the entry for accrued salary, salaries payable and salaries expense Debit, credit - ANSWER-To record and employers FICA liability, payroll tax expense and FICA employer payable 
