PAYROLL ACCOUNTING

FUTA (Federal Unemployment Tax Act)

A payroll or employment tax paid solely by the employer based on the salary, usually around .6% to cover the unemployment insurance (UI) and job service programs, pay one-half of the cost of extended unemployment benefits, and provides for a fund from which states may borrow

SUTA (State Unemployment Tax Act)

A tax usually paid only by employers to the state for employee unemployment insurance.

Merlin Anson owns Uninix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding what payroll processing option is best for Uninix Computers?

The amount of money he has to spend on payroll processing & the number of independent contractors.

ACA (the affordable care act)

in 2010, it was designed to provide better health security by enacting comprehensive health insurance reforms that hold insurance companies, low cost healthcare for all quality Americans.

Equal pay act of 1963

mandated that males and females be paid equally for equal work.

SSA (Social security Act)

provided help for people that were old aged, unemployed, or disabled; founded in 1935, also known as FICA (Federal insurance contributions act)

FLSA (Fair Labor Standards Act)

regulates minimum wage, maximum hours & child labor laws

Walsh-Healey Public Contracts Act of 1936

required companies to pay workers a minimum wage for all hours worked under 40 per week and time and a half per hour for any hours over 40 hours per week. Also prohibited the employment of individuals under the age of 16.

IRCA (The immigration reform and control act of 1986)

requires employers to verify that employees are legally able to work in the United States.

OSHA (The occupational safety and health act of 1970)

defined and enforced healthy and safe working environments for employees.

Civil Rights Act of 1991

Enforces payment of monetary damages because of discrimination

PRWOR (Personal Responsibility and Work Opportunity Reconciliation Act of 1996)

Ensures that child support obligations will be paid

COBRA (consolidated omnibus budget reformation act of 1985)

Extends medical benefits for terminated employees

ERISA (Employee Retirement Income Security Act of 1974)

Governs the management of retirement plans

ADEA (Age Discrimination in Employment Act of 1967)

Protects discrimination of workers older than age of 40

ADA (The Americans with disabilities act of 1990)

Protects the rights of disabled workers

HIPAA (The health insurance probability and accountability act of 1996)

Protects workers and their families who have preexisting medical conditions from discrimination based on those conditions.

SOX (Sarbanes-Oxley Act of 2002)

Requires internal controls on payroll practices of public companies