Chap 6 Terms

Question 1

Annual Schedule Depositors

Answer 1

employers who have an annuals payroll tax liability of less than $1,000 during the loopback period and are notified in writing by the IRS that they submit Form 944 and remit taxes on an annual basis.

Question 2

Annual Total Compensation Report

Answer 2

a list of all compensation that an employee earns per year, including (but not limited to) salary, commissions, bonuses, and all fringe benefits; example include health insurance, employer contributions to the employee’s retirement plan, life insurance, and tuition reimbursements.

Question 3

ACH

Answer 3

Automated Clearing House; the electronic network of financial institutions in the US through which monetary transactions are transmitted in batches.

Question 4

Benefit Analysis

Answer 4

a calculation of the costs and benefits of a company, department, project, or employee.

Question 5

Departmental Classification

Answer 5

the division of payroll-related costs by employee function or organizational department.

Question 6

EFTPS

Answer 6

Electronic Federal Tax Payment System; a free tax payment service provided for use for employers in the US.

Question 7

FICA

Answer 7

Federal Insurance Contributions act of 1935

Question 8

Form 940

Answer 8

the Employer’s Annual Federal Unemployment Tax Return

Question 9

Form 941

Answer 9

the Employer’s Quarterly Federal Tax Return

Question 10

Form 944

Answer 10

Employer’s Annual Federal Tax Return

Question 11

W-2

Answer 11

Wage and Tax Statement

Question 12

Form W-3

Answer 12

Transmittal of Wage and Tax Statements

Question 13

FUTA

Answer 13

Federal Unemployment Tax Act of 1939

Question 14

Labor Distribution

Answer 14

the classification of a firm’s labor by internally designated classifications.

Question 15

Lookback Period

Answer 15

the time frame used by the IRS to determine the payroll tax deposit schedule for a company.

Question 16

Monthly Depositors

Answer 16

a company that must deposit its Federal Income Tax and FICA payroll withholdings and contributions on a monthly basis, based on the loopback period.

Question 17

Next Business Day Depositors

Answer 17

a semiweekly schedule depositor whose payroll tax liabilities exceed $100,000 for any pay period.

Question 18

Payroll Tax Reports

Answer 18

reports offering details of the period’s tax liability that en employer must file with governmental authorities.

Question 19

Quarterly Depositors

Answer 19

monthly schedule depositors who have a payroll tax liability of less than $2,500 during the preceding for current quarter may remit the payroll tax liability when filing Form 941

Question 20

Schedule B

Answer 20

the report of tax liability for semiweekly depositors.

Question 21

Semiweekly Depositors

Answer 21

a firm that must deposit its federal income tax and FICA payroll withholdings and contributions within three days of the pay date, based on the loopback period.

Question 22

Statutory Deductions

Answer 22

payroll deductions mandated by law

Question 23

SUTA

Answer 23

State Unemployment Tax Act of 1939

Question 24

Tax Remittance

Answer 24

the payment of a firm’s payroll tax liability.