Calculation Of A Paycheck Flashcards
What is an employees “regular rate” of pay?
Regular rate of pay is the weighted average of his or her hourly rate.
How is the regular rate of pay calculated?
Total pay for work week (hourly x hours) + additional comp - exclusions = regular pay
Regular pay / total hours worked = “regular rate of pay”
How is the OT rate calculated?
Total pay for work week (hourly x hours) + additional comp - exclusions = regular pay
Regular pay / total hours worked = “regular rate of pay”
Regular rate x .5 = OT rate
What is “imputed income”?
The addition of the value of cash/non cash compensation for taxation. Examples: dependent care, adoption assistance, group term life insurance, PUCC
What is the “special account rule”?
Allows employers to report detain fringe benefits provided to employees in November and/or December as received in the following year.
What is considered an “accountable plan”?
Expense reimbursements - must be for work, and must provide a receipt (meal, gas, travel, per diem)
What is a nonaccountable plan?
Excess reimbursements you fail to return to your employer and reimbursements of nondeductible expenses
What requirements define whether award or prize is income inclusion or income exclusion?
To be considered exclusion the following 3 requirements must be satisfied:
- Selected without any action (entering a contest).
- Not required to render substantial future services as a condition.
- They must assign Awards away from them selves. (Give to charity)
2015 mileage rate
.575 or 57.5 cents per mile
How should a deceased employees final check be handled in the case that the final check and death happened in the same year ?
The net check should be voided (if not cashed).
A w-9 should be completed by the employees beneficiaries/ personal representative, and then the net check should be reported on a 1099.
The check taxation will remain the same.
How should a deceased employees final check be handled in the case that the final check and death happened in different years?
These wages are not taxable and should be reported on box 3 of form 1099, payable to the employees estate/ beneficiaries/ personal representative
Disposable income is
Gross - taxes = disposable income
When is an employer not allowed to deduct an amount for “uniforms” ?
If it will lower the employees wages below FLSA minimum wage
Taxability of Personal use of company car/equipment
FICA, FUTA and FIT taxable
Taxability of GTL
FICA taxable, FIT reportable, FUTA exempt
