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110 Cards in this Set
- Front
- Back
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Common Law Test - Name three components
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1. Relationship
2. Financial Control 3. Behavioral Control |
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Section 530 "reasonable basis" relief provision - What are the two conditions you need to meet to be relieved of paying the taxes?
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1. filed all returns timely
2. ER must have not treated any worked holding a similar position as and EE after 1977 Exclusion for Technical Service Specialists - Only use common law test |
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What mandates equal opportunity employment?
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FLSA enforced by EEOC
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Minors 14-15
What are the rules |
1. May not work prior to 7am or after 7pm unless summre then it is 9pm
2. 3 hours per day on school days/ max 18 hours in week 3. Work max of 8 per daqy on non-school day / 40 per week No Hazardous Positions |
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FLSA - Commissioned Retail Sales
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75% goods services
must make 1.5 x min wages More than half of comp based on commission |
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What does it mean to be paid on a "fee basis"?
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Admin / Professional / Comupter can be paid a flat sum for a single unique job.
Must meet $455 requirement |
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How much must the ee receive in tips to take the tip credit per month?
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$30 per month
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How much must the EE receive for the tips to be taxable?
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$20 per month (4070) remember 40 oz. by 10th of the month following receipt
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What is a National Council state in terms of workers comp?
Competetive States? |
States with plans that conform to the classification codes publisheds by Nat Council on Comp Ins (most states)
Private vs. state option |
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What is non-national council state?
Monopolistic |
States that use independent workers comp manuals
Have to purchase through the states ex. NV, WA, OH |
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What is an ERs agent when it comes to sick pay?
What if 3rd party assumes tax responsibility? |
Bears no insurance risk, reimbursed by ER on a cost-plus-fee basis
Then reports under own name and EIN box 13 "3rd party sick pay" FIT required, treat as supp wages may withhold at flat rate Different from Insurance company ex. Cigna |
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Insurance company withholding on sick pay
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FIT - voluntary if a W-4S is turned in
If net pay is below $10 don't withold, pro-rate if less than a week |
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How do you reprt payment by a 3rd party, report amounts not subject to FIT due to ee after tax deduction
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W-2 box 12 code J (Jaundice)
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Sick pay not subject to SS, Med, FUTA
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after end of 6 months after the calendar month ee goes out, paid after death or disability retirement
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What is the maximum sleep time excluded?
Minimum |
8 hours
5 hours |
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Military pay
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FIT taxable 2009
Not SS & Med unless temp or reservies |
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Repaid overpayment current year
Repaid overpyment subsequent year |
Take net; correct on 941 if quarter closed
Take gross, can't get back FIT Use W-2C to correct FICA, refund overwithheld FICA |
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Payment to an ee, or former ee, in the current year for services in a prior year
What special form? |
W-2 and SSA-131
Special report of wage payments for payments to rtired ees and who are receiving SS benefits but are working |
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Rules on accountable plan for advances?
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30/60/120
Must give advance 30 days from when expenses are incurred, ee must account for it within 60 days of incurred, and return overpayment within 120 days of when exenses were paid or incurred to ER |
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High Low Per Diem
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256/158
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A temp work assignment lasts for....
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1 year or less
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When is a golden parachute subject to an excide tax?
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Value that exceeds 3 x base amount which is avg annual comp over last 5 taxable years
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If a loan is over __________ the interest could be taxable?
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$10K
The difference in interest rate isn't subject to FIT |
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What two forms in the same year for deceased ee?
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1099-MISC (FIT) box 3 "other income"
W-2 |
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Where would you report Director's fees?
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1099-MISC
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Physical presence test
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330 days in a 12 month period
not consecutive |
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International SS Agreements
AKA |
Totalization agreements or Binational SS agreements
ER must obtain a cert of coverage for the country the ee is working |
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IFBA
Includable fringe benefit amount = |
FMV - (EPA + AEL)
Fair market value - (ee paid amount + amount excluded by law) |
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Fringe Benefits -
If more than _________ % of benefits to to key ees the pan is favoring |
25
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What is special about retail sales awards?
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Don't have to withhold FIT but have to report it
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No more than what percentage of adoption assistance can go to shareholders?
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5
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What do ee discounts not apply to?
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stock and bonds and amounts over a 20% discount
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NQSO
Non qualified stock options Subject to what taxes? Where on box 12? |
Subject to all taxes
Boxes 1,3,5 and 12 code V think Value |
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When do you not include GTL as income?
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If beneficiary is ER or charitable organization or EE terminates due to permanent disability
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Moving expenses -
Two tests Distance & Time |
Distance - 50 miles
Time - 39 weeks (not consecutive) |
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What do you do with nontaxable moving expenses paid directly to EE?
What about taxable |
W-2 Box 12 code P (packing)
Can tax at supp rate |
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Qualification of a CHV
Commuter highway vehicle Can you provide in place of pay |
seats 6, at least 80% of use for commuting ees and they occupy 50% of seats
Yes! |
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Ways to compute company car taxability of personal miles?
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General valuation rules - Lease chart
or Cents Per Mile Method |
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What is the limit to use the cents per mile method of a company car?
What happens when you begin to use the CPM method? |
$15K
You have to keep using it or go to the commuting rule (you can switch from commuting to CPM) |
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Can you switch from the lease value method to the CPM method?
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No, but can use commuting
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Belo plan is also know as the?
What is the max hours per week for below plan? Can you have other comp that impacts regular rate of pay? Must be necessitated by? |
constant wage plan
60 No Work |
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What is the overtime rule for firefighters?
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212 hours to a 28 day work period (prorate if period is shorter than 28) ex. (212/28 * 20 days = 151 hours)
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What is the overtime ratio for law enforcement?
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171/28
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How much comp time can emergency responders accrue?
What about other public ees? |
480 hours
240 hours |
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When can you not use flat supp rate?
What must you use? |
When you have not withheld yet in the current year on regular wages.
Aggregate |
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You may treat noncash fringe benefits as paid on any frequency but no less than
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annually
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Withholding on Tips
What is the ordering rule? |
Withhold on reg wages and other comp
Withhold ss and med tax on tips Withhold FIT on tips |
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If by the 10th of the month following when you receive the ee's report of tips you don't owe the ee enough you....
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don't have to collect the ee tax but still pay the ER portion of FICA
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What is schedule D of form 941
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Report of discrepancies caused by acquisitions, statuatory mergers, or consolidations
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Define related corporations for purposes of a common paymaster
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Corp are part of a controlled group
if not public 50% of board of director members are the same, share 50% officers, 30% of ees are the same |
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Employers can round AIC payments to the
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nearest dollar
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Household ee FUTA test
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$1000 or more of cash wages in any quarter
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Employers exempt from FUTA include:
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indian tribal govt
501(c)(3) non profits Fed, state and local govt ees |
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What happens if resident/nonresident status changes during the year
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based on time of payment
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What taxes are non-resident aliens subject to?
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FIT for sure!!
FICA unless totalization agreement FUTA for sure! |
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When are monthly deposits due?
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15th day of the following month
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Semi-weekly depositer
Wed-Fri Sat - Tue |
Wed
Tue |
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What form do you need to file with the 941 for semi-weekly depositer?
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Schedule B
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If total deposits in preceding year were more than ______________ EFTPS is required
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$200K
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If deposting with FTD coupons use form
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8109
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When also might you have a 10% deposit penalty?
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using paper if required to use EFTPS
making a deposit at an unathorized financial institution or within 10 days of notice from IRS sent |
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What determines child support order precedence
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date it was established not served
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What act governs child support orders
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CCPA Consumer Credit Protection Act - sets the percentage limits
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What are the two methods states use to allocate child support orders
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1. distribute equally
2.pro-rate |
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If someone doesn't turn in part 3 or 4 of a tax levy use....
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married filing separate 1
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What form releases a tax levy
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Form 688-D
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What determines child support order precedence
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date it was established not served
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What act governs child support orders
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CCPA Consumer Credit Protection Act - sets the percentage limits
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What are the two methods states use to allocate child support orders
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1. distribute equally
2.pro-rate |
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If someone doesn't turn in part 3 or 4 of a tax levy use....
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married filing separate 1
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What form releases a tax levy
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Form 688-D
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For purposes of garnishments gross pay excludes
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tips and imputed income
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You may not garnish wages of employees who have been involuntarily terminated within ____ months for a _________ garnishment
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12, student
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Studen loans max at ____ % and can't exceed _____% of disposable
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15, 25
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Qualified Deferred Com Plans
What is CODA |
Cash or deferred arrangement
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ADP Test is the
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Actual Deferral Percentage
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What determines child support order precedence
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date it was established not served
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What act governs child support orders
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CCPA Consumer Credit Protection Act - sets the percentage limits
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What are the two methods states use to allocate child support orders
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1. distribute equally
2.pro-rate |
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If someone doesn't turn in part 3 or 4 of a tax levy use....
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married filing separate 1
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What form releases a tax levy
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Form 688-D
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ADP - Actual deferral percentage testing
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1. 1.25 x deferral ratio to non HCE for prior plan year or lesser of 2 x avg or 2 % plus the avg deferral ratios
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What is the special 15 year catchup
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For 403(b), $3K or special calc off $15K
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Deferrals for SS, Med, FUTA for NQDC are upon the latter of
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when no risk of forfeiture or when services are performed (latter of)
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What do you use to ammend a 940
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another 940 and mark the amended return box
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When is the 941 due?
If sending payment with 941 use |
Last day of the month following the end of the quarter
Can file electronically 941 - V |
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Employers of household employees file a Form
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1040 H
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What are the 2 circumstances you can make a tax payment with the 941?
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Net taxes for the quarter are less than $2500
Monthly filer making a timely deposit |
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Liability is based on when
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something is paid
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expense is basedon when
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a pay period ends
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Copy A W-2 is due with the SSA by
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02.28.10 or 03.31 if filing electronically
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Box 14 on W-2 is used to report
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total value of fringe benefits ex. annual lease value on co car
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When do you not need to file a W-3
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if you file electronically with SSA
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What is box 7 of the 1099 used for
don't use it to report |
non employee compensation
employee business expense reimbursements |
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IRC is Internal Revenue Code under Title
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26
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What is Circular E
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ER's tax guide updated at least annually
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Revenue Ruling states the IRS
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position
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Revenue Procedure tells you
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how to carry out the ruling
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What department oversees new hire reporting
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Fed Dept of Health and Human Services
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MWR Multiple Worksite reporting contains
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# of ees 12th of the month and total quarterly wages at each worksit
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100% penalty occurs when
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willfully does not withhold and deposit taxes
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Failure to file correct information returns
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penalty for failure to file a return; for each whole or part month that a return is not filed when required 5% of the unpaid tax due to a max of 25%
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Go through the direct deposit process
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1. Co creates and sends ACH file to OFDI 2 business days prior to payday
2. OFDI sends ACH files to regional ACH 3. On payday, ACH transmits deposit data to RDFI based on bank routing numbers 4. RDFI deposits funds to ee bank accounts |
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purpose of external audits
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to ensure financial statements are accurate
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What items have a 2 year retention?
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time cards
deductions from wages wage rate tables schedules |
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what is a timeshared payroll system
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rent time on a computer housed and maintained by a vendor; other companies also share time on the computer and use the software
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Steps to Selecting a new payroll system
4 steps |
1. form a project team
2. perform a needs analysis (define objectives) 3. prepare a request for proposal (details the technical and functional requirements) 4. select a system |
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Steps to implement a new system:
6 steps |
1. project initiation (SOW)
2. requirements gathering and analysis 3. configuration 4. testing 5. training 6. rollout |
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GAAP Principles
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generally accepted accounting principles
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motivators
MALAR |
Money, achievement, leadership, affiliation, recognition
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