Payroll Acct Ch 1 Study

Job Description

The descriptions should highlight: The job's essential functions, including any physical requirements. Secondary duties. Attendance requirements. Education requirements and special skills needed. Job holder's supervisor. Positions that the applicant will be responsible for overseeing

The main reason for this requirement is PRWORA

The main reason for this requirement is to help in the enforcement of child support obligations.

U.S. Citizenship and Immigration Services (USCIS)

U.S. Citizenship and Immigration Services (USCIS) can levy fines if an audit uncovers recordkeeping violations. Civil penalties can be $1,100 for each violation. Any person or entity found to have knowingly employed an unauthorized alien is subject to civil fines of up to $16,000 for each worker. Criminal penalties are assessed where a pattern of discriminatory practice is found

Uniformed Services Employment and Reemployment Rights Act (USERRA)

Uniformed Services Employment and Reemployment Rights Act (USERRA) gives military personnel the right to take leaves of absences from their civilian jobs for active military service and to return to their jobs with accrued seniority. The reinstatement must be to the employee's original position or its equivalent, except for the dishonorably discharged. In addition, the return must be granted within two weeks of the job request, and health benefits must be started without any waiting period.

Recordkeeping System

Whether the system is paper-based or computer-based or records in the cloud, it is advantageous to have four separate sets of records for each employee: Personnel file—basic information (e.g., name, address, etc.). Payroll file—salary and benefits. Medical file—insurance and private medical data. I-9 file—copies of the forms and the appropriate documents

employee history record

continuous record of the relationship between the employer and the employee.

requisition for personnel

document submitted by a department head to the Human Resources Department asking for additional or replacement employees.

change in payroll rate form

document that notifies the proper departments of a change in the employee's rate of remuneration.

reference inquiry form

document used by the employer to investigate the references given on the application blank by the job applicant.

applicable large employers—ALEs

employers with 50 or more full-time employees during the previous year.

small employers

employers with fewer than 50 full-time equivalent employees with average annual wages of less than $50,000.

hiring notice

form that is sent to the Payroll Department so that new employees are properly added to the payroll.

Form W-2, Wage and Tax Statement

form used by the employer to report the amount of wages paid each worker in the course of the trade or business of the employer.

Vesting

the process of conveying to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age.

disability benefits

payments to employees who are absent from their jobs because of illness, accident, or disease not arising out of their employment.

employee's earnings record

payroll record for each employee that is used to provide complete information about the accumulated earnings of each employee.

application form

personnel record which gives the applicant an opportunity to provide complete information as to personal qualifications, training, and experience.

Workers' compensation insurance

protection provided to employees and their dependents against losses due to injury or death incurred during employment.

Pre-hire inquiries

questions asked in the employment interview and on application forms, résumés of experience or education required of an applicant, and any kind of written testing.

Affordable Care Act (Obamacare)

Affordable Care Act (Obamacare) consists of two pieces of legislation: Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act. The act was designed to expand health insurance coverage to more Americans while increasing benefits and lowering costs for consumers. Insurance coverage for individuals and their dependents is required for most citizens and legal residents. A small penalty will apply if coverage is not obtained.

Age Discrimination in Employment Act of 1967 (ADEA)

Age Discrimination in Employment Act of 1967 (ADEA) prohibits employers, employment agencies, and labor unions from discriminating on the basis of age in their employment practices. The act covers employers engaged in an industry affecting interstate commerce (who employ 20 or more workers), employment agencies, and labor unions.

American Payroll Association (APA)

American Payroll Association (APA). Membership in the association is open to anyone interested in or engaged in the support of payroll accounting. The APA offers professional training seminars and various publications to its members. Each year, the APA administers examinations for the payroll accountant and awards certificates to those who pass the exams. Fundamental Payroll Certification (to demonstrate a baseline of payroll competency) and Payroll Professional Certification (for the experienced professional to demonstrate the full-range of payroll competency). This testing and certification process has helped the payroll profession to gain recognition in the business community. The APA has also established guidelines for the conduct of the payroll professional. This "Code of Ethics,"

Americans with Disabilities Act of 1990 (ADA)

Americans with Disabilities Act of 1990 (ADA) prohibits employers with 15 or more employees, employment agencies, labor organizations, or joint labor-management committees from discriminating against qualified persons with disabilities because of their disability. prohibition of disability-based discrimination applies to job application procedures, hiring, advancement, termination, compensation, job training, and other conditions of employment

Employee Retirement Income Security Act of 1974 (ERISA)

Employee Retirement Income Security Act of 1974 (ERISA) covers employee pension and welfare plans established or maintained by any employer or employee organization representing employees engaged in commerce or in any industry or activity affecting commerce

Employee Access—Personnel Files

Even though personnel files are the property of the employer, employees may have the right to view and receive a copy of their own files. Even though no federal law guarantees it, more than half of the states allow current employees access to their records.

FICA`

FICA (social security) the basic provisions of the act deal with: Tax on employees (set percent of their gross wages) and employers for the Federal Old-Age and Survivors' Trust Fund and the Federal Disability Insurance Trust Fund. Separate tax on employees and employers to finance the Health Insurance Plan—Medicare. Tax on net earnings of the self-employed individual (Self-Employment Contributions Act—SECA). Making payments to persons who are entitled to benefits under these social security taxes.

Fair employment practices

Federal and state legislations have been enacted to enforce fair employment practices. Many of these laws deal with discrimination on the basis of age, race, color, religion, gender, or national origin.

Form I-9, Employment Eligibility Verification

Form I-9, Employment Eligibility Verification form that lists the documents an employee must furnish to the employer; they identify the employee and, if an alien, verify authorization to work in the United States.

Equal Employment Opportunity Commission (EEOC)

Guidelines, established by the Equal Employment Opportunity Commission (EEOC), also include physical characteristics in the definition of national origin discrimination. The EEOC has also declared that sexual harassment violates the Civil Rights Act.

Terminating an Employee

If an employee has an employee contract or if promises were made to the employee, termination can only be done with "good cause." This means the firing must be based on reasons related to business needs and goals. An "at-will" employee can be discharged for any reason as long as it is not a discriminatory reason, even if the employee just does not work well together with the staff.

Disclosure Requirements

Informational reports must be filed with the U.S. Department of Labor, the IRS, and the government insurance program. In general, the reports consist of descriptions of the plans and the annual financial data.

Payroll Guide

One of a number of publications designed to provide current information to the practitioner is published by the Research Institute of America, Inc. This biweekly publication is entitled Payroll Guide, and it is a comprehensive review of changes in regulations affecting payroll reporting

Family and Medical Leave Act of 1993 (FMLA)

The Family and Medical Leave Act of 1993 (FMLA) requires employers that have 50 or more employees within a 75-mile radius, for at least 20 weeks in the current or preceding calendar year, to grant workers unpaid leave for a family or medical emergency. In cases of childbirth, adoption, or serious illness of the employee or the employee's child, spouse, or parent, the employer must offer the worker as many as 12 weeks of unpaid leave

E-Verify

This is a government-run Internet-based system that allows employers to check the employment eligibility of new hires by comparing the information on an employee's Form I-9 with databases of the Social Security Administration and the Department of Homeland Security.

Equal Employment Opportunity

Title VII of the Civil Rights Act of 1964, entitled "Equal Employment Opportunity," provides for several fair employment practices. The act, as amended, forbids employers to discriminate in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, gender, or national origin.

entry-level payroll clerk

an entry-level payroll clerk collects, reviews, approves, and records time records. The clerk also updates attendance records, including vacation, sick, and personal days. Once a payroll is processed, the clerk reviews the information to ensure the accuracy of each employee's pay statement

income tax withholding

income tax withholding: Income tax is levied on the earnings of most employees and is deducted from their gross pay. Income taxes can be imposed by federal, state, and local governments. Federal Income Tax (FIT) employs a percentage formula used by each employer to withhold a specified amount from each wage payment. State tax rates vary from state to state.

fair employment practices

laws that deal with discrimination on the basis of age, race, color, religion, gender, or national origin as a condition of employment.

Income tax

levy on the earnings of most employees that is deducted from their gross pay.

Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA)

mandates that all states must establish new-hire reporting programs. Every employer is required to report the name, address, and social security number on each new employee and the employer's name, address, and federal employer identification number within 20 days of hire to the State Directory of New Hire Reporting. Failure to report this information can result in fines of up to $25.00 per new hire

payroll register

multicolumn form used to assemble and summarize the data needed at the end of each payroll period. It lists all employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid.

Fair Labor Standards Act (FLSA)

referred to as the Federal Wage and Hour Law the outline of the law deals with: Minimum wage ($7.25 per hour) and overtime pay requirements. In addition, equal pay for equal work, employment of child labor, public service contracts, and wage garnishment. Coverage of employers engaged in interstate commerce or in production of goods and services for interstate commerce. Maintaining records that explain the basis of wage differentials paid to employees of opposite sex for equal work. Displaying a poster (from the regional office of the Wage and Hour division) informing employees of the provisions of the law. States' Minimum Wage and Maximum Hour Laws that also establish minimum wage rates for covered employees. Where both federal and state laws cover the same employee, the higher of two rates prevails (e.g., Rhode Island - $9.60 per hour). The State's wage orders that also can affect pay periods, pay for call-in and waiting times, rest and meal periods, absences, meals and lodging, uniforms, etc.

executive orders

regulations issued by the federal government that ban, in employment on government contracts, discrimination based on race, color, religion, sex, or national origin.

investigative consumer report

study done by a consumer reporting agency on a job applicant or current employee concerning the individual's character, general reputation, and mode of living.

human resources system

those procedures and methods related to recruiting, selecting, orienting, training, and terminating personnel. Extensive recordkeeping procedures are required in order to: Provide data for considering promotions and changes in the status and earnings of workers. Provide the information required by various federal, state, and local laws. Justify company actions if investigated by national or state labor relations boards. Justify company actions in discussions with local unions or plant committees.

payroll accounting system

those procedures and methods related to the disbursement of pay to employees.

Unemployment Taxes

unemployment taxes: Tax levied on employers (Federal Unemployment Tax Act—FUTA) that is used to pay state and federal administrative expenses of the unemployment program. A credit granted against most of the FUTA tax if the employer pays a state unemployment tax. A smaller credit is granted to states that have not paid back borrowings from the federal government which were used to pay the cost of benefits to their eligible unemployed workers. State unemployment taxes (SUTA) on employers imposed by all states. These taxes are used to pay unemployment benefits. Standards set by the Social Security Act that result in a high degree of uniformity in the requirements of state unemployment laws. Employers' need to be aware of the SUTA laws in the states where they operate.