payroll quiz from ed2go
the bona fide residence test applies to which group of employees?
U.S. citizens only
which of the following is not true concerning on order/notice to withhold income for child
U.S. territories do not have to honor out-of-state forms.
what does UIFSA stand for?
Uniform Interstate Family Support Act.
what is the current medicare wage base?
Unlimited
which category of deductions is permitted, even if an employee's remaining wages fall below the federal minimum?
court-ordered payments
what is reported on line 7 on the form 941
current quarter's fractions of cents
which of the following systems does not usually integrate with the time and attendance system?
customer service
which employees does the walsh-healey public contracts act cover?
employees working on manufacturing contracts for the federal government
which employees does the McNamara O'Hara service contract act cover?
employees working on service contracts for the federal government
what is listed on the schedule B?
employer's tax liability for each day
which employers would use the form 941-SS?
employers with employees in Guam
the Secretary who does a crossword puzzle while for a rewrite of a memo is said to be?
engaged to wait
in what account is the payment of salaries and wages recorded?
expense
in terms of taxable wages, the term FMV stands for?
fair market value
on which federal from would you report a payment made to a deceased employee in the year after death is reported?
form 1099-MISC
which two forms should be reconciles quarterly to ensure proper reporting?
form 941 and form w-2
general hospital's employees are paid under the 8/80 rule. Nurse Agnes worked the following schedule
four for working over eight hours on both Sundays and Tuesday
sam is a machinist and is paid $21 per hour. he works nine hours on a particular workday. what can his employer do to prevent having to pay overtime?
give sam one hour of time off during the same workweek
which of the following benefits may be offered as part of a cafeteria plan?
group term life
max is a nonexempt employee who works for the spike shoe company. he must travel 30 miles to work each day to the plant in which he works. during the day, max also makes deliveries for the company when he is needed to fill in for other drivers. what applies to Max's travel time?
he must be paid for the travel time during the day doing deliveries but not the travel to and from work
how much can be credited against the minimum wage for board and lodging?
reasonable costs
in direct deposit terms, which term describes the bank where the employee's wages are deposited?
receiving depository financial institution
which of the following implementation steps deals with determining the mechanics of the system?
system design
in which generation of computers did transistors make an improvement over th vacuum tube?
third generation
what is the definition of group term life insurance?
this type of insurance does not have a cash value and is paid only upon death of the employee
which of the following formulas would be the best one to use to compute the allocation of wages for withholding liabilities for an employee who is paid on an hourly or salary basis?
time basis
what can employers use the Schedule D to do?
to explain certain discrepancies caused by an acquisition
what is reporting on line 3 of the form 941
total income tax withheld from wages, tips, and other compensation
what is reporting on line 5e of the form 941
total social security and medicare taxes
what is reported on lime 5 of the form 944?
total taxes before adjustments
which of the following club memberships are considered nontaxable wages to the employee if paid by the employer?
trade associations
which of the following is not considered an educational expense permitted under an educational assistance program?
transportation to out-of- area classes
a valid form w-4 that claims exempt should remain in effect until when?
until December 31st
a valid form w-4 that does not claim exempt should remain in effect until when?
until the employee provides a new form
which of the following check list items would not make the application of a self-service process a win-win situation?
using a single party vendor for one-stop shopping
which of the following is considered an advantage of using a service bureau to process payroll?
very little downtime observed by the user
which of the following formulas would be the best one use to compute the allocation of wages for withholding liabilities for a traveling salesperson paid by commission?
volume of business ratio
which one of the following is not one of the uniform set of factors for determining SUI for multistate employees?
volume of business ratio
under Part 3 line 6, which is reported on the Form 941-X?
wages, tips, and other compensation
when is the form 941-X required to be submitted?
whenever an error is found on a submitted form 941
which of the following is not one of the five suggested minimum past of a procedure?
who should use
under federal requirements, when must employers report all new hires
within 20 days of hire
what is warn?
worker adjustment and retraining notification act
which of the following rules must be met for a plan to be considered an " accountable plan"?
all of these -employees must have paid or incurred deductible expenses while performing services as your employee -employees must adequately account to the employer for these expenses within a reasonable period of time -employees must return any amounts in excess of expenses within a reasonable period of time
under the interstate reciprocal coverage arrangement, the employer is permitted to elect to cover all services of a worker in any state when what occurs?
all of these circumstances
fourteen- and 15 year-olds may not be employed in which of the following occupations
all of these occupations
which of the following is not usually a task that can be handled by an employee self-service system - ESS?
all of these tasks are handled by an ESS
employers can exclude the value of meals or lodging furnished to an employee from the employee's wages if it meets what tests?
all of these tests apply -the employee must accept it as a condition of employment -it is furnished for the employer's convenience -it is furnished on the employer's business premises
under IRS regulations, who may participate in an employer's cafeteria plan?
all participants of a cafeteria plan must be employees of the sponsoring employer
what are the taxation requirement for a group term life insurance benefit that exceeds $50.000?
amount over $50k subject to FICA and FIT, but withholding is optional for the FIT
qualified medical expenses from an HRA do not include which of the following
amounts that are covered under another health plan
when would a Schedule D NOT be filed?
an acquisition that is not a statutory merger or consolidation and that does not quality under the predecessor-successor rules
overpayments are considered------- by the department of labor?
an advance on wages
which of the following is a definition of '' hypothetical' taxes?
an approximation of what the employee's U.S. tax liability would have been had he or she remained in the United States
which of the following would be considered taxable personal use of a company vehicle?
an employee drives a company car on company business during the normal course of a workday and then uses the car to commute to and from work
which employer would complete the form 941-PR?
an employer with employees in Puerto Rico
when is the form 940 due?
annually by January 31 unless you've deposited all of your FUTA tax when it was due; then February 10
when is the form 944 due?
annually by January 31-but if all taxes are paid timely, 10 additional days after that date
what is the general definition of third-party sick pay?
any amount paid under a plan because of an employee's temporary absence from work due to injury, illness, or disability
which eligible employers may offer a 403b plan?
any nonprofit organization under 501c, such as a hospital or university
while the FLSA does not give a definition for hours worked, the US Supreme Court has made several related rulings; what do these rulings include in hours worked?
any time spent in physical or mental exertion that is controlled or required by the employer
what is reported in box F of the form W-2c?
employee's previously reported SSN
what is the limit for hours worked by a 15 year old in a week that school meets
18 hours
the issue of overpayments is addressed by the department of Labor in which opinion letter?
1916
what year was this plan enacted?
1943
What is the definition of a federal tax levy?
Seizure of property to satisfy a tax debt.
what is the limit for the hours worked by a 15 year-old during the school day including Friday?
Three hours
what is reported on line 3 of the form 940?
Total payments to all employees
what is reported on line 7 of the form 940?
Total taxable FUTA wages
what is a file in computer parlance?
a collection of records
Employee Ron Mannes has a child support withholding order for $180.00/payroll. This payroll, the department has also received a creditor garnishment for Mr. Mannes for $1,000. Payroll has determined that his disposable income is $700. What amount, if any, must payroll send to honor the creditor garnishment for this payroll?
$0.00.
what is the per diem for mileage in 2015?
$0.575 per mile
employee charlie dimmock receives $1,300 every two weeks. a child support withholding order is receives by the payroll department. Charlie claims married filing jointly with 2 exemptions on his form w-4. he has the following deductions currently in effect; FIT $100, SS $77.50, medicare $ 18.13, SIT $ 40, 401k plan 3% $39, Health insurance $ 50. calculate the disposable income subject to the child support withholding order for this employee. this question is looking for the maximum amount of wages that would be subject to the child support prior to applying the limits under the CCPA
$1,064.37.
what is the most an employer can exclude for the cost of all employee achievement awards that is under a qualified plan?
$1,600
use the following information to compute the taxable income for an employee under the annual lease value method of taxation of a company vehicle: For Taurus valued at $24,000 total miles driven; 48,721 Business miles reported in submitted log; 36,689 Number of days driven in year; 267 - full year
$1,650
if an employer lends an employee more than ----at an interest rate less than the current applicable federal rate -AFR- , the difference between the interest paid and the interest that would be paid under the AFR is considered additional compensation to the employee
$10,000
to be exempt from employment taxes, an employer can contribute to what amount to an HSA for a qualified individual for self-only coverage?
$ 3,350
an employer can exclude up to what amount from an employee's taxable wages for educational assistance?
$ 5,250
an employee is reimbursed $125 for a transit pass in February of this year. how much, if any must be reported as taxable wages?
$0
Employee Paul Tyler has a child support withholding order in effect for $140/payroll. The payroll department has received a creditor garnishment for Mr. Tyler that must begin this payroll. Payroll has determined that Mr. Tyler has a disposable income of $1,000 for this payroll. The creditor garnishment is in the amount of $1,250. What amount, if any, must the payroll department withhold to satisfy the creditor garnishment for this payroll?
$110.00.
what is the maximum credit allowed for adoption assistance in 2015?
$13,400
what is the maximum foreign housing exclusion for 2015?
$14,112
what is the amount listed on the Percentage Method Table for One Withholding Allowance for an employee who is paid biweekly?
$153.80
what is the base housing amount for 2015?
$16,128
what is the maximum amount an employee may defer info a 401K plan for this ?
$18,000
what is the maximum amount an employee may defer info a 403b plan for this year?
$18,000
calculate the employee portion of the medicare tax for an employee who makes $1,250 gross wages on a biweekly payroll
$18.13
amanda receives a bonus of $750 for winning employee of the quarter. the payroll check. what would the federal income tax on this wage payment be?
$187.50
the cost of the policy with a face value of what amount is excludable from income as a de minimis benefit when it comes to policies on spouses and dependents?
$2,000
under federal law, what is the minimum current amount of direct wages required to be paid to tipped employees?
$2.13
employees are not required to report their tips if they total less than ----per month?
$20
Payroll must process a current child support order for $200 plus a medical support order for $125 for employee Henry Peters. Payroll has determined that, after deducting taxes and other mandated deductions, Mr. Peters has a disposable income of $662.00. Payroll is allowed a deduction of 50% in the state where Mr. Peters lives and works. To avoid exceeding the allowable limits, how much for each order if any is payroll able to process?
$200 of the current child support and $125 for the medical support order.
an employee can exclude what amount from the employee's taxable wages per month for parking for this year?
$250
calculate the taxable wages per month for group term life insurance for an employee who is 52 years old, has $175,000 in group term life insurance, and pays $2.00 a month in after-tax contributions for the benefit
$26.75
what is the most an employer can exclude for the cost of all employee achievement awards that is not under a qualified plan?
$400
what is the FUTA tax due for an employee who grossed $9,075 for the first quarter of 2015, assuming the employer is entitled to the full state SUI credit for the year?
$42.00
spike shoe company employees are covered by a short-term disability plan through a private insurance carrier. employee Sadie Smith has a $ 15.00 payroll deduction, and Spike Shoe Company pays the remaining $20.00 of the insurance premium. In Sadies's first five month of disability, she received $850.00 in benefits. Calculate the ampunt of FIT and FICA taxable wages for the employee
$484.50
the cost of up to------- of group term life insurance may be excluded from wages of an insured employee.
$50,000
what is the minimum amount the employer must accumulate in FUTA taxes to trigger quarterly deposit requirements?
$500
Payroll has receives a creditor garnishment for employee Tony Green's gross income for this upcoming biweekly payroll income is $700. he has the following deductions currently in effect; FIT $112; SS $40.30; Medicare $9.43; SIT $ 21.00; 401k $14.00; and health insurance $50.00. the garnishment against Mr. Green is for $1,000 what is the disposable income that would be subject to this garnishment?
$517.27.
employee charlie dimmock receives $1,300 every two weeks. a child support withholding order is received by the payroll department. charlie claims married filing jointly with 2 exemptions on his form w-4. he has the following deductions currently in effect; FIT $100, SS $77.50, medicare $18.13, SIT $40, 401k plan 3% $39, health insurance $50. in the lesson one quiz, you calculate the total wages that may be withheld for this child support order. the child support order is for current child support only with no arrears. the state where Charlie is employed permits a maximum of 50% of disposable income to be withheld for child support. what is the maximum that may be withheld for this withholding order?
$532.19.
how much in additional elective deferrals are individuals age 50 and older permitted to make?
$6,000
an employer using the percentage method of withholding pays wages of $600 for a biweekly payroll period to a married, nonresident alien employee. the nonresident alien has properly completed form w-4, entering marital status as '' single'' with one withholding allowance and indicating status as a nonresident alien on line 6 of form w-4. what amount of wages would be used in the withholding tables?
$688.50
calculate the amount of federal income tax to be withheld under the percentage method using the following information; an unmarried employee is paid $800 weekly. this employee has, effect, a form W-4 claiming three withholding allowances
$69.90
what is the current FUTA wage base?
$7,000
calculate the employee OASDI for an employee who makes $1,250 gross wages on a biweekly payroll
$77.50
The payroll department has received a creditor garnishment for employee Tony Green in the amount of $1,000. Payroll has determined that Mr. Green's disposable income subject to the garnishment is $527.45 for this biweekly payroll. The state where Mr. Green lives and works permits garnishments for creditors and follows the federal CCPA limits for deducting. What amount, if any, must payroll send to honor the garnishment?
$92.45.
Payroll is processing the check for employee Tommy Digby. Mr. Digby had two child support orders in effect. Support order A is for $200 and is only for current support. Support order B is for $150 and is again only for current support. A third child support has been received for this payroll. Support order C is for $175. Mr. Digby is paid $1,200 weekly. He has the following deductions currently in effect: FIT $192.00, SS $71.30, Medicare $16.68, SIT $36.00, 401(k) plan $24.00, and Health Insurance $50. Payroll is allowed a maximum deduction of 50% in the state where Mr. Walsh lives and works regardless if arrears are involved. The state also requires the employer to prorate the child support if there is not enough wages to cover all support orders in effect. To avoid exceeding the allowable limits, how should payroll process these two orders? You must provide all correct answers in order to receive full credit, however you will receive partial credit for each individual correct answer you provide.
-The disposable income is $442.01; therefore, each support order would receive $147.34. -The disposable income is $400.51; therefore, using the prorated method, support order A would receive $152.58, support order B would receive $114.43, and support order C would receive $133.50.
which of the following is a qualified transportation fringe benefit? you must provide all correct answers in order to receive full credit, however you will receive partial credit for each individual correct answer you provide
-a transit pass -qualified bicycle commuting reimbursement
the 2015 FUTA rate to be used for making deposits for the first three quaters would be
0.6%
what is the wage base and for the additional medicare tax effective in 2013?
0.9% on wages above $200,000
what is the gross payroll for the pay period for the following nonexempt employee: peter is hired at a weekly salary of $500 a week for all hours worked; he works 50 hours during the first week and 45 hours during the second week of a biweekly payroll?
1,077.80
what is the gross payroll for the period for the following nonexempt employee: Sylvia is hired at a weekly salary of $500 a week; her salary is based on a fixed workweek of 40 hours; she worked 50 hours her first week and 45 hours her second week of a biweekly payroll?
1,281.25
what is the current medicare employee rate
1,45%
the employee paricipates in the employer's dependent care assistance plan and has a cash reimbursement of $150 a month. from January to December 2014, the employee was reimbursed in the amount of $1,650 for the first 11 month of the december 2014. what amount is reported on the 2014 form w-2 in box 10?
1,800
how many days does the employee have to inform his her employer when beginning work for another employer if the employee works less than full-time, five days a week?
10
employers must furnish the notice received from the IRS concerning the under-withholding problem for their employee within how many days after receiving the notice?
10 days
generally, life indurance is not group term life insurance unless the company provides it to at least how many employees at some time during the year?
10 full-time employees
in order to have a simple retirement account on behalf of each employee the employer must have fewer than ------- employees
100
an employee for the company is currently working in a foreign country for the company's wholly owned subsidiary. he has a tax home in this foreign country and meets the '' bona fide residence test'' how much of his foreign earned income may the employee exclude from his or her taxable income in tax year 2015?
100,800
the walsh-healey public contract act covers contracts in excess of how much?
10000
for most fringe benefits studied in the lesson, a highly compensated employee is one who receives more than ------ in pay for the preceding year.
115,000
what is the current OADSI wage base?
118,500
what is the current OASDI combined employee/employer rate?
12.4%
flexible spending accounts are authorized under what section of the internal revenue code?
125
the special tax treatment of a cafeteria plan is allowed under which IRS code?
125
dependent care assistance programs are subject to the rules of what internal revenue code?
129
the value of employer- provided security can be excluded from an employee's wages under what internal revenue code?
132
what section of the internal revenue code excludes from income qualified moving expenses
132
calculate the following: Jaimie, a police officer, has a normal tour of duty of 28 days.During that time, he worked a total of 185 hours. To how much overtime would the officer be entitled?
14 hours
Employers are permitted to withhold up to what amount of disposable pay to satisfy a student loan?
15%.
how much must a tipped employee be paid per hour in direct wages when an employer uses the tip credit?
2.13 per hour
what is the current medicare combines employee/employer rate
2.9%
For a Medical Support Order, how long does the employer have to complete and return the Employer Response Form to the issuing agency?
20 business days.
In regards to student loans, how long does the employer have to complete and return the Employer Certification?
20 days from the date of receipt.
employers can exclude the value of an employee discount from the employee's wages up to what limit?
20% of the price charged non-employee customers
the davis-bacon act covers contracts in excess of how much ?
2000
Employees with tax levies may enter into a voluntary agreement with the IRS to have the levy set aside and a set amount deducted each payroll until the amount owed is satisfied. What form, signed by both the employee and the IRS, must the payroll department receive to implement this voluntary agreement?
2159
fourteen and 15 year-old youths enrolled in approved Work Experience in Career Exploration Program may be employed for up to how many hours in a school week?
23 hours
what is the current federal supplemental tax rate?
25%
Under the CCPA, what is the limit that is protected from a creditor garnishment?
25% of disposable earnings or the amount that exceeds 30 times the federal minimum wage, whichever is greater.
the McNamara O'Hara service contract act covers contracts in excess of how much?
2500
an employee, Bill, who is subject to the statutory minimum wage, is paid $8.10 per hour and works 39 hours this workweek. the payroll department has been requested to deduct $200 for his uniforms out of his paychecks. what amount will you deduct from Bill's wages this payroll?
33.15
what are the total gross wages that would be due a nonexempt employee covered under the FLSA using the following information: total hours 47 -including 8 hours paid for vacation. rate of pay ;$8.00 per hour?
376.00
an employee must work full time in the general vicinity of the new job location for how many weeks of the first 12 months to pass the time test?
39
what is the current federal supplemental tax rate for employees whose supplemental wage payments exceed $1,000,000?
39.5%
what amount would be added to a nonresident alien's gross wages to determine federal income tax withholding when the employee is paid weekly?
44.20
which employees does the davis-bacon act cover
employees working on construction contract for the federal government
a special minimum wage of ------per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer
4.25
which of the following is considered a voluntary garnishment?
401(k) deduction.
Payroll has received a federal tax levy for employee Ron Weston. Mr. Weston has gross wages of $1,000, taxes of $186.50, health insurance of $75, and a savings bond deduction of $25 already in effect for this payroll when the levy was received. Mr. Weston is paid biweekly and on his 668-W form, he states he files single and has 3 exemptions. What amount, if any, must payroll send to the IRS to honor this levy for this payroll?
46.19
what would the penalty be for a tax deposit made seven days late?
5%
if an employer has paid state unemployment tax in a timely manner, what is the maximum FUTA credit the employer is entitled to?
5.4%
what is the gross pay for an employee who works piece rates using the following : 52 hours worked in the workweek; $420 compensation at piece rates for 46 hours of productive work ; $8.00 an hour for 6 hour of waiting time?
522.00
what is the current OASDI employee rate
6,2%
warn offers protection to workers by requiting employers to provide advance notice of how many days prior to a covered plant closing?
60 days
employees who believe they will quality for the exclusions for foreign earned income under the IRC should complete what form?
673
what is the gross pay due under the FLSA for a nonexempt employee paid biweekly for the pay period ending July 15, using following information; normal workweek; 40 hours; hourly rate; $8.75 per hour; employee worked 42 hours in the first workweek and 35 hours in the second workweek?
682.50
what is the current federal minimum wage?
7.25
what is the gross payroll for the pay period for the following nonexempt employee: Angie, whose normal hourly rate is $15 per hour, worked the following schedule at the following rates
707.10
large food and beverage employers must make an annual report of tips by using what IRS form?
8027
what form must the nonresident alien complete to claim a tax treaty exemption from withholding?
8233
what is the gross pay for an employee who makes $15 per hour and works 53 hours in the workweek?
870
what is the gross pay for an employee who makes $15 per hour, works 52 hours for the week, and receives a $25 production bonus?
897.88
an employee behinds work at 8.02, takes lunch from 12:01 to 12:59, and punches out at 5:07. using the five minute rule and calculating in quarter- hour increments, how many hours should the employee be paid for on each punch?
8:15
the position of the IRS in hanging overpayments is spelled out in a private letter ruling. what is the number of this private letter rulling?
9103031
what section of the internal revenue code allows employees working in a foreign country to exclude foreign earned income from taxable income?
911
the IRS form---- was created to report to report and reconcile the payments made to the IRS for the income tax income tax and FICA taxes during a quarter period
941
State tax levies can be used to collect for which of the following unpaid or delinquent items?
All of the other answers as state law permits.
which of the following payments are not third-party sick pay
All of these payments -payments are related to absence from work -medical expense payments -workers' compensation -disability retirement payments
a payment made to a deceased employee in the year of death is reported on what federal form?
BOTH FORM W-2 and form 1099-MISC
Once an employee voluntarily declares bankruptcy, who is appointed by the court to handle the matter?
Bankruptcy trustee.
which code is used for group term life insurance for box 12 of the form w-2?
C
Once an employer receives a bankruptcy order, it is to cease withholding all garnishments except?
Child support
what does CCPA stand for?
Consumer Credit Protection Act.
when would form 941 be due for the third quarter?
October 31
what is the purpose of the personal responsibility and work opportunity reconciliation act as it applies to child support?
Established the new hire reporting system.
which nonresident aliens are not subject to FICA taxes if the work performed conforms to the purpose for which they were admitted?
F,J or M visas
what is the suggested date for distribution of the year-end reminder memo?
December 1
Which department of the federal government is responsible for administering and collecting on delinquent student loans?
Department of Education.
The laws protecting the employee from termination and exceeding the limits to be deducted for creditor garnishments are enforced by what agency on the federal level?
Department of Labor.
What is a Form W-4?
Employee's Withholding Allowance Certificate
what does EIN stand for
Employer Identification Number
a payment made to a deceased employee in the year of death is subject to which federal taxes?
FICA and FUTA only
military duty pay differential is subject to what taxation on the federal level?
FIT only
which of the following items is not generally included in an audit by the IRS of forms 941 and w-2?
FIT taxable wages
lady of the lake swimwear employees are covered by a long-term disability plan through a private insurance carrier. lady of the lake pays 100% of the $ 21 per-employee premium. employee amanda lambert received $250.00 in benefits in her tenth month of disability. calculate the FIT and FICA taxable wages for the employee.
FIT wages=$250; FICA wage=$0
payment made under a non-accountable plan are wage and subject to which taxation?
FIT, FICA, AND FUTA
payments that do not satisfy the definition of qualified expenses under the internal revenue code are subject to what taxation?
FIT, FICA, and FUTA
supplemental payment benefits that exceed the workers' compensation benefits paid to an employee out on workers' compensation is subject to what employment taxes?
FIT, FICA, and FUTA
Jim Roberts is paid $ 500 per week. His deduction for health insurance under a cafeteria plan is $ 75 per pay period. he has a credit union deduction of $40 and union dues of $12. What are his FIT and FICA taxable wages?
FIT=$425; FICA=425
how many documents and instructions are contained in a NMSN?
FOUR
what is the suggested date the payroll department should begin issuing duplicate forms w-2?
February 15
what does FICA stand for?
Federal Insutance Contributions Act
What does FUTA stand for?
Federal Unemployment Tax Act
FUTA taxes are reported on what IRS form?
Form 940
FICA taxes are reconciled and reported on what IRS form along with the federal income tax?
Form941
currently, how many mismatch codes does the SSNVS use when reporting the status of the employee's social security number and name to the employer?
Four
which of the following is NOT a medicare expense permitted under a medical FSA?
HMO premium
a form w-2 needs to be provided to a terminated employee by what date?
If the employee requests the form in writing, then within 30 days of the date of the request or the date of termination, whichever is later
what is a stock option granted under an arrangement that meets the requirement of IRC 422 is referred to as?
Incentive stock option
what does OASDI stand for
Old Age, Survivors and Disability Insurance
if an error is discovered on a form 941 in April of this year. when is the form 941-X due?
July 31
what is the purpose of the consumer credit protection act as it applies to child support?
Limits the amount of income subject to withholding for child support.
if a serious under-withholding problem is found to exist for a particular employee, what may the IRS issue to the employer specifying the maximum number of withholding allowances permitted for a specific employee?
Lock-in Letter
a separate transaction may be sent to the employer in order to obtain part or all of the payment. this type of transaction is known as what?
Lump sum payment.
a payment made to a deceased employee in the year after death is subject to which federal payroll taxes?
NONE
what does NMSN stand for?
National Medical Support Notice.
a non qualified deferred compensation plan is authorized under what internal revenue code?
None. it is not qualified under the internal revenue code
under the Affordable Care Act, health insurance benefits are subject to what taxes in 2015?
None; health insurance benefits are nontaxable
What form is used by the IRS to notify an employer of a tax debt?
Notice of Tax Levy IRS Form 668-W.
year-end committees should be organized and begin meeting by what date?
November 1
what two taxes, when combined, are referred to as the FICA taxes?
OASDI and Medicare
which of the following terms applies to the business process whose purpose is to collect written information about the capabilities of various suppliers?
RFI
which of the following is considered a qualified moving expense?
Reasonable costs of moving the household goods from the old home to the new home
an EIN must be obtained prior to when the first withholding payment is due for deposit. If an employer does not have an EIN, a form-------- , application for employer identification number, must be completed and submitted to the IRS
SS-4
victor's video store accumulated payroll tax liabilities of $54,000 during the "lookback' period of July 1, 2013 through June 30, 2014. what will the frequence of his tax deposits be in 2015?
Semiweekly deposits will be required
what does SDU stand for?
State Disbursement Unit.
What is the limit under the Consumer Credit Protection Act that may be deducted from wages for a state tax levy?
State tax levies are not covered under the Consumer Credit Protection Act.
the united states has entered into agreements with several foreign countries to prevent double taxation of expatriates. what are these agreements are known as?
Totalization Agreements
payroll must process a current child support order for employee alan walsh. in addition to the current child suppot ampint to withhold of $200, the child support order has an arrears requirement of $125. alan claims married filing jointly with q exemption on his form w-4. alan is paid $1000 weekly. he has the following deductions currently i effect; FIT $160.00 SS $58.90, medicare $13.78, SIT $30.00 , 401k plan $20.00, and health insurance $50. payroll is allowed a maximum deduction of 50% in the state where Mr. Walsh lives and works regardless if arrears are involves. to avoid exceeding the allowable limits, how should payroll process this order?
Take $200 for the current support and the full $125 of the arrears.
payroll is processing the check for employee Tommy Digby. Mr. Digby has two child support orders in effect. support order a is for $200 and is only for current support. Support order B is for $150 and is again only for current support. Mr. Digby is paid $1,200 weekly. He has the following deductions currently in effect; FIT $192.00, SS $ 50.40, Medicare $ 17.40, SIT $36.00, 401K plan $24.00 , and health insurance $50. payroll is allowed a maximum deduction of 50% in the state where Mr. Walsh lives and works regardless if arrears are involved. to avoid exceeding the allowable limits, how should payroll process these two order?
Take the full amount for both support orders, as there is sufficient disposable income to cover the $350.
What are the limits under the CCPA as it applies to voluntary wage assignments?
The CCPA does not apply to voluntary wage assignments.
Which of the following is not usually required by state law when an employer receives a voluntary wage assignment?
The assignment can be signed in advance of the employee getting the monies from the loan company.
the united states has entered into agreements with several foreign countries to prevent double taxation of expatriates. what are these agreements known as?
Totalization agreements
which of the following describes an eligible dependent under a Dependent Care Assistance Program?
a dependent for income tax purposes and age 12 or younger
Mr. Bogart wants to reward one of his employees for handling an irate customer with great skill and saving an account. he has decided to give the employee, peter, a $100 bonus. peter is unaware of the bonus, and it comes after the event with the irate customer is over. the company does not have a plan or policy to reward employees for dealing with customers. what type of bonus would this be?
a discretionary bonus and not included in the regular rate of pay calculation
how is the legal workweek defines under the FLSA?
a fixed and regularly period of 168 consecutive hours
which of the following is not a suggested item for inclusion in the year-end memo?
a reminder that the employee's form W-5 is expiring
who must file a Schedule B?
a semiweeekly depositor
in a disaster recovery plan, which of the following is not normally considered a critical function?
address changes
which class or classes of visa holders are generally exempt from FITA?
agricultural workers and students
what federal taxes are stipends generally subject to?
all employment taxes, as they are considered wages
if an error has been discovered on a previously filed form w-2, when must a form w-2c be files?
as soon as the error is discovered
under the cents-per-mile method for calculating personal use of a company vehicle, how many miles must the vehicle be driven in a year to qualify to use this method?
at least 10,000
what is the first objective in terms of customer service in the payroll deportment?
compliance with federal and state regulations
which of the following is not reported on the form 941?
backup withholding
what is reported on Line 12 of the form 941
balance due
when should a procedure be updated or minimally reviewed?
both annually and as needed depending upon the procedure
coverage over the limit is reported as wages in which box or boxes or the form w-2?
box 1, 3, 5, and 12
in what box on the form w-2 would you report the amount of deferrals, including any accumulated interest, that become taxable for social security and medicare taxes during the year - but were for prior year year services- because the deferred amounts were no longer subject to a substantial risk of forfeiture?
box 11
third- party sick pay that is not subject to federal income tax due to the employee contributing to the sick pay plan is reported in what box or boxes on the form w-2?
box 12 code J
social security and medicare owed by former employees who are providing coverage after separation from service is reported in which box of the form w-2?
box 12 code M and N
qualifies moving expenses paid directly to the employee are reported in which box or boxes of the form w-2?
box 12 code P
what box on form w-2 is used to report contributions to an HSA?
box 12 code W
a golden parachute is reported in which box of the form w-2?
box 12 code k
where on the form w-2 is dependent care assistance reported?
box-10 only
what is the current term COBRA stand for?
consolidated Omnibus Budget Reconciliation Act
which of the following is usually included in the calculation of total payroll for workers' compensation premiums?
consolidated straight time
time and attendance systems automate what function of the payroll process?
calculating up to the gross payroll of a check
what does CODA stand for?
cash or deferred arrangement
who invented the first device that could be considered a computer in the modern sense of the word?
charles baggage
the amount contributed by the employee to a 403b plan must be reported under what code in box 12 of the form W-2?
code E
what is reported on line 2 of the form 944?
federal income tax withheld from wages, tips, and other compensation
if an error is discovered on the form 944 filed for tax calendar year 2013, how is the form amended?
file a form 944-x for 2013
if an error is discovered on the form 940 files for tax calendar year 2013, how is form amended?
file the 2013 form 940 using a new form and mark the maended return box in the top-right corner
which of the following describes a flexible spending account?
flexible spending accounts provide an account that is used to reimburse the employee for dependent care and health care expenses with pre-tax dollars
what term is used to describe the employer who is responsible for reporting and submitting unclaimed wages to the state?
holder
what is a legal occupation for a minor under the age of 14 not employed by a parent or guardian?
homemakers making Christmas wreaths
how are adoption assistance benefits reported on the employee's form w-2?
in box 12 code T
what does ISO stand for?
incentive stock option
what does the term IHRMS stand for?
integrated Human resources Management system
which of the following terms listed below is described as the point of interaction between a computer and another system?
interface
when a non discretionary bonus cover a period of time longer than a workweek, how much it be handled?
it must be apportioned back over the workweek for the entire period in which it is earned
which employers must allocate tips?
large food or beverage establishments
the FLSA generally restricts employers from making deductions from employees' wages that would reduce the employee's average hourly wage to what amount?
less than the statutory minimum
what is the maximum employee annual contribution limit for a 457 plan?
lesser of $18,000 or 331/3% of annual compensation
what are the maximum annual contribution limits under section 401a for a 401k?
lesser of $53,000 or 100% of annual compensation
FUTA and SUTA taxes payable are what types of accounts?
liabilities
an employer paid wages on March 10. On which line under which month would the tax liability appear on the scheduleB?
month 3 line 10
who is required to complete a multiple worksite report?
most multilocation employers with a total of 10 or more employees combined in their secondary locations are required or requested to complete the MWR
qualified disaster relief payments made to an employee by an employer are subject to what taxation?
no taxation they are considered a grant
what payment must be included in the regular rate of pay?
non discretionary bonus
pre-tax deductions under a 125 plan are subject to which federal taxes?
none of these taxes
Flexible spending accounts are subject to what federal taxation?
none; amounts in an employee's FSA are not subject to taxation on the federal level
josie, an employee of ABC widgets, is paid 35,000 annually. she is married and filling a joint return. Josie uses $300 from her dependent care assistance plan to help pay for childcare. the funds taken out of her DCAP account is subject to what taxation?
none; up to $5,000 is not subject to taxation for married employees filing a joint return
on form w-4 for a nonresident alien, what must be written above the dotted line 6?
nonresident alien, or NRA
what must be written in on line 6 of the form w-4 for a nonresident alien according to the IRS regulations?
nonresident alien, or NRA
what does NSO stand for?
nonstatutory stock option
qualifying moving expenses paid to a third party or furnished to the employee in kind are reported in which box or boxes on the form w-2?
not reported on form w-2
when are taxes due for a monthly tax depositor?
on the 15th of the following month
what is the federal definition of overtime?
one and one- half times the employee's regular rate of pay for all hours worked in excess of 40 hours in a workweek
how long may a work assignment be to qualify as a temporary work assignment?
one year or less
what term is used to describe the employee whose unclaimed wages are being remitted to the state?
owner
which of the following implementation steps deals with running the old system side by side with the new system?
parallel testing
what is the name of the IRS plan that requires the majority of people have their taxes deducted by their employer from their wages?
pay as you go plan
what type of audit is conducted to incover a ''fake'' employee?
phantom employee
whait are the there tasks at year end that should be accomplished to ensure a successful year end?
plan, organize, and verify
what must be written on the duplicate form w-2 according to IRS requirements?
reissued statement
the company paid $4,000 for temporary quarters for its employee Fred while his family was preparing for the move to a new city. in addition, it reimbursed Fres $650 for his meals. what does payroll need to do with these amounts?
report $ 4,650 as taxable wages for FIT, FICA, and FUTA for this employee
when purchasing a new payroll system, a RFP must be completed. what does the term RFP stand for?
request for Proposal--- ask for proposals from vendors who sell the new system
which of the following is not one of the recommended steps to use to determine which system is best suited for the current and future needs of the company?
roughly determine the costs of the current system
what does simple stand for regarding pension plans?
savings incentive match plan for employees
which of the following is not a category of computerized payroll system?
self-programming
what is the definition of "work periods" for fire protection and law enforcement?
seven to 28 days
what does SEP stand for?
simplified employee pension plan
if an employer does not receive a form W-4 on a newly hired employee, how should you handle withholding?
single, zero allowances
to what federal agency are forms w-2 submitted?
social security administration
what does SSNVS stand for?
social security number verification service
which of the following is NOT an exception to the taxation rule for certain vehicles or employees where personal use of a company vehicle is not taxable?
special rules for auto detailers
what is reported in box 16 of the form w-2?
state wages, tips, and so forth
which eligible employers may offer a 457 plan
states, political subdivisions of states, tax exempt organizations that are exempt under Sec 501a, and tax exempt rural cooperative companies
to exclude the cost of a no-additional-cost service fringe benefit from the employee's taxable wages, what must the service provided to the employee not cause the employer to incur?
substantial additional costs
what is an example of a "change in family status" which allows an employee to change or adjust benefits to a cafeteria plan during the plan year?
taking of an unpaid leave of absence
what is it called when, under section 125, the benefits employees may choose under a cafeteria plan are not wages for the purpose of federal income tax, FICA taxes, or FUTA taxes?
tax-preferred treatment
what is reported on line 5b column 1 of the form 941
taxable social security tips
when an employee submits an invalid form W-4, what should the employer do?
tell the employee that the form is invalid and ask for another one
nonresident aliens are governed by what rule for federal income tax withholding?
territorial Agreements
what is the limit for hours for hours for a child worker 16 years and older?
the FLSA does not limit the number f hours or times of day for workers 16 years and older
as of April 13, 2005, employers are required to mail copies of form W-4 to the IRS for which one of the following reasons?
the IRS requests it be done
what does a master file consist of?
the collection of all the employee records on the payroll system
which of the following is not considered an advantage of an in-house custom system?
the computer is located in-house
what can be said of the employer's agent?
the employer's agent bears no insurance risk and is reimbursed on a cost plus fee basis
which of the following is NOT a method to determine the taxation period for an employee who is being paid for a period that is unrelated to a specific length of time? count back the number of days from the payment period to the latest of
the last time the employee completed a form w-4
which of the following is not one of the safeguards that can put into place to maintain confidentiality of the payroll department?
the physical office has open enterances to allow easy access for payroll customers
an employer who has employees working in more than one state may designate one state-in which it has employees- to receive all of its new hire reports. the new hire report must be submitted by magnetic media or electronically. when must an employer taking advantage of this option file new hire reports?
the reports must be filed twice a month with reports separated by not less then 12 but no more than 16 days
what is the method used to determine when the employee has been paid?
the rule of constructive receipt
which of the following points should not be considered when establishing a fraud prevention program?
the same employee who sets up new hires in the payroll system should edit the master file input report, process the payroll, or distribute the checks
resident aliens are subject to which taxes for work performed in the United States?
the same taxes as U.S. citizens
what is the dollar limit applied to nontaxable moving expenses?
there are no dollar limits on the amount of these expenses
