Betty's Advanced Mid Term Flashcards
Which of the following is not a Statutory Employee
A. Agent Drivers
B. Full time insurance salesman
C. Home workers
D. Direct Sellers and or real estate agents
D. Direct Sellers
- Under the provisions of new hire reporting, the employer must provide the following information to the state directory for each newly hired employee:
a. the employee’s name, address, and social security no#.
b. the employer’s name, address and EIN no#
c. the employee’s date of birth
d. a and b
e. a, b and c
d. a and b
- All of the following documents can be used to prove both identity and work authorization except:
A. U.S. passport
B. INS Form I-551
C. Voter registration card
D. Certificate of naturalization
Voter registration card
- Which of the following would be considered an independent contractor?
A) A life insurance agent
B) A lawyer hired on a project-by-project basis, the company provides secretarial services and office space for the lawyer
C) A lecturer who is paid a percentage of the money collected at fund raisers
D) An outside salesperson
C) A lecturer who is paid a percentage of the money collected at fund raisers
Employers protect themselves by having an employee complete an I-9 Form within how many days of hire?
A. 1
B. 3
C. 4
D. 7
A. 1
Child Labor violations can bring fines of ____________ for each violation that causes death or serious injury of a minor.
A. Up to $1,100
B. Up to $110,000
C. Up to $50,000
D. Up to $10,000 and the officers imprisoned for up to 6 months for second and later offenses
Up to $50,000
ACME files all its information returns – 2,800 W2 forms, on time with the SSA, 40 of which contain incorrect information. Corrections were made May 30th.
How many returns are subject to penalty? ______
40 – 14 = 26__de minimis rule__(.5% x 2800=14)__pg8-141_
ACME files all its information returns – 2,800 W2 forms, on time with the SSA, 40 of which contain incorrect information. Corrections were made May 30th.
How many returns are subject to penalty? ___26______
- Using the information in question 22, what is the potential penalty that can be assessed? _____________
__26 x $130 = $3380.00_____________
Tyco files all of its information returns – 1,600 W2 forms, on time with the SSA, 30 of which contain incorrect information. Corrections were made after August 1.
How many returns are subject to penalty?
30
Tyco files all of its information returns – 1,600 W2 forms, on time with the SSA, 30 of which contain incorrect information. Corrections were made after August 1.
How many returns are subject to penalty? 30
Using the information in question 24, what is the potential penalty that can be assessed?
____30 x $330 = $9900.00______________
Ink-um Incorporated filed all its W2’s on time with the SSA. However, the employee responsible for filing the 50 1099-MISC forms quit before she finished the forms and they were never mailed. What is the potential penalty the Ink-um faces if the forms were not filed before 8/1?
_____$330 per form x 50 forms = $16,500_
Owl Electric is required to file their W2 electronically. However, they are behind the times and don’t even use computers, so they filed their 425 W2’s the old fashioned paper way. How many W2 are subject to the failure to file penalty?
_____415__all forms in excess of 10_ pg8-145
How long must you retain each of the following records in your files?
Work time schedules
Total Wages and Tips
2 yrs - payroll; 4 yrs IRS
If records required by the FLSA are maintained at a central location, how soon after the DOL request must the employer make them available?
72 HRS
The 401k deferred compensation contribution limit (not including catch up) for 2024 is:
$23K
The section 415 annual compensation limit for 2024 is:
$345K
Simplified Employee Pensions are:
a. Provided for by section 408k
b. IRAs
c. Available only to employees over age 21
d. All of the above
All of the above
Nonqualified deferred compensation plans:
a. are covered under section 457
401k pretax contributions are reported on Form W-2:
a. Boxes 1, 3, 5, 12 – Code D
b. Boxes 3, 5, 12 – Code D
c. Boxes 3, 5, 12 – Code D, Box 13 – check retirement box
d. Boxes 1, 12 – Code D
Boxes 3, 5, 12 – Code D, Box 13 – check retirement box
Gross up for over mil
divide by 60.65% (37%+1.45.90) hit SS limit
A salaried nonexempt employee is svheduled to work a fluctuating workweek. The employee’s weekly salary is
$1500. Calculate the employee’s weekly compensation if the employee works 46 hours.
In flux, only gets premium paid.
Rate Hours Pay
$1500 flux 32.61 46.00 1500.00
premium 16.30 6.00 97.83
1597.83
An hourly employee is paid a rate of $11/hr. The employee works a total of 47 hours in the workweek and receives
a production bonus of $30. Calculate the employee’s regular rate of pay.
$11.64
11.00 47.00 517.00 non discretionary 30.00 547.00 new rate 11.64
An hourly employee is paid a rate of $11/hr. The employee works a total of 47 hours in the workweek and receives
a production bonus of $30. Calculate the employee’s gross pay for the workweek.
11.00 47.00 517.00
non discretionary 30.00
547.00
new rate 11.64 premium 5.82 40.73
587.73
A pieceworker is paid a piee rate of $.55. The employee works 44 hours and produces 890 pieces during the workweek.
The employee’s manager is impressed by the individual this week and pays him an additional bonus of $25.
What is the employee’s regular rate of pay?
$11.13
890*.55 = 489.50 / 44 hrs (don’t include bonus)
A pieceworker is paid a piee rate of $.55. The employee works 44 hours and produces 890 pieces during the workweek.
The employee’s manager is impressed by the individual this week and pays him an additional bonus of $25.
How much overtime premium is the employee due?
pieces
piecework hrs 890 0.55 489.50
44 $11.130 prem rt $5.565 22.26
A pieceworker is paid a piee rate of $.55. The employee works 44 hours and produces 890 pieces during the workweek.
The employee’s manager is impressed by the individual this week and pays him an additional bonus of $25.
Calculate the employee’s gross weekly compensation.
pieces
piecework hrs 890 0.55 489.50
44 11.130 prem rt 5.565 22.26
511.76
Discretionary 25.00
536.76
A company has total tax liability during the lookback period of $65,000 on a accrual basis and $45,000 on a cash basis. The company is a:
a. Monthly schedule depositor
b. Next day depositor
c. Semiweekly schedule depositor
still Monthly schedule depositor, based on cash basis. never know when accrual will be pd. if over 100k, semi
Futa annual max on taxed is
$7k
An employer has paid all FUTA taxes tinmely and in full. The employer’s state is not in an arrears repaying federal unemployment loans. Calculate the FUTA tax liability the employer must pay for an employee with current wages of $1,500 and YTD wages of $6,295.
a. $4.23
b. $90.00
c. $9.00
d. $42.30
a. $4.23
$7,000.00 max
($6,295.00) YTD
$705.00 taxable wage
0.006
$4.23 tax due
- Employee Sherri receives a department store gift certificate of $500 in appreciation of her outstanding work performance. She earns $3,500 per week and claims married filing jointly with 2 dependents under the age 17 and 1 over the age of 17 on her 2022 Form W-4. Her year-to-date wages for 2024 were $169,000 prior to the award. The value of the award is included (imputed) with her next regular weekly payroll check. Calculate her net pay using the percentage-method withholding calculation for federal income tax.
Remember to calculate SS & MED With gift card then deduct it at end for net pay. No SS on this as it is pass the $168,600 LIMIT. Figure the FIT based on $3500 WITH WORKSHEET 1A, Gift card does not hit FIT. sUBTRACT ALL FOR NET PAY. Less FIT, MED, GIFT
- An employee is paid a bonus of $1,500 with a regular bi weekly wage payment of $2,000 in 2024 that is indicated separately on the employee’s pay stub. The employee has received no supplemental wages so far this year. The employee has an elective deferral or 5% of regular wages made to the 401 (k) plan each pay period. For federal income tax withholding purposes the company uses the optional flat rate for all bonuses and the percentage method for regular wage payments. The employee’s 2023 W-4 claims married filing jointly with 2 dependents over the age of 17. What is the employee’s total federal income tax withholding?
Calculate reg wages $2000 less 5% of 401k for FIT. Don’t forget later, bonus 8 22%, then all $3500 gets taxed .0765 (6.2+1.45), then reduce 100 for 401k for net pay
