Chapter 2 Flashcards
Pay period
The recurring period during which a firm collects employee labor data and pays employees in accordance with wage or salary agreements.
The recurring period during which a firm collects employee labor data and pays employees in accordance with wage or salary agreements
Pay period
New Hire Reporting
Process of notifying the government authorities of any new hires shortly after hire date.
Process of notifying the government authorities of any new hires shortly after hire date.
New Hire Process
Daily Pay
Pay frequency in which the employee gets paid each business day.
Pay frequency in which the employee gets paid each business day.
Daily Pay
What type of pay is typically used for daily labor?
Daily pay, but could be considered independent contractor and not subject to payroll or payroll taxes and w2s
Weekly Pay
Pay frequency in which the employee gets paid 52 weeks per year
Pay frequency in which the employee gets paid 52 weeks per year
Weekly pay
What type of pay periods do grocery stores, professional offices and construction companies use?
Weekly pay
Bi Weekly
Pay frequency in which the employee gets paid 26 times per year
Pay frequency in which the employee gets paid 26 times per year
Bi weekly
Semimonthly Pay
Pay frequency in which the employee gets paid 24 times per year
Pay frequency in which the employee gets paid 24 times per year
Semimonthly pay
What pay cycle uses either the 1st & 15th or 15th and last day of the month as pay days?
Semimonthly pay
Monthly payroll
Pay frequency in which the employee gets paid 12 times per year
Pay frequency in which the employee gets paid 12 times per year
Monthly pay
Pay frequency that can have companies offer employees to draw wages mid month
Monthly payroll
Form SS-8
Used by the IRS to determine if a worker is an employee or an independent contractor
Form ______ is used by the IRS to determine if a worker is an employee or an independent contractor
SS-8
2 criteria’s to determine employee status.
Work direction and material contribution
If worker is provided with materials and company benefits. Is this worker an employee or independent contractor?
Employee
What 3 common law test does the IRS use to determine employee vs. independent contractor
Behavioral control, financial control, relationship of the parties.
W-4
The employee withholding allowance certificate
The employee withholding allowance certificate
W-4
Foreign account tax compliance Act (FATCA)
Federal law that regulates the income tax withholdings of foreign employees
Federal law that regulates the income tax withholdings of foreign employees
Foreign account tax compliance act (FATCA)
Statutory employee
A special class of employees who run their own business but must be treated as employees for tax reasons
A special class of employees who run their own business but must be treated as employees for tax reasons
Statutory employee
Exempt employee
An employee who is not subject to the overtime provisions of FLSA
An employee who is not subject to the overtime provisions of FLSA
Exempt employee
Non exempt employee
An employee who is subject to all overtime provisions of FLSA. Usually hourly employees
An employee who is subject to all overtime provisions of FLSA. Usually hourly employees
Non exempt employee
Leased employees
A person who provides services for a company subject to provisions of the IRS code section 414(n)
A person who provides services for a company subject to provisions of the IRS code section 414(n)
Leased Employee
Leased employee is determined but section 414(n) classified under what conditions?
Formal agreement between employee and employee leased organization.
Employee works on a FT basis
Employee actions are directed by recipient of company
leased employees are considered common law employees? T or F
True
Up to what percentage can a company employees be leased
No more than 20%
Temporary employees
A worker who is employed by a temp agency & works under the direction of the agency on a temporary basis for different companies.
A worker who is employed by a temp agency & works under the direction of the agency on a temporary basis for different companies.
Temporary employees
Pay records
Pay frequency is important as this helps determine the income tax withholding
Commission
Employee compensation paid upon completion of a task, often pertaining to sales activities
Employee compensation paid upon completion of a task, often pertaining to sales activities
Commission
Piece rate
Employee compensation based on production of unit or completion of an action during a specified time period
Employee compensation based on production of unit or completion of an action during a specified time period
Piece rate
Internal controls
A firms process of maintaining efficiency and effectiveness work quality accurate and reliable financial reports and legal compliance
A firms process of maintaining efficiency and effectiveness work quality accurate and reliable financial reports and legal compliance
Internal controls
Examination and analysis of accounting records to ensure accuracy and completeness
Review process
Review process
Examination and analysis of accounting records to ensure accuracy and completeness
Payroll review
Verification of payroll accuracy for a period
Verification of payroll accuracy for a period
Payroll review
File security
The protection of sensitive payroll information by restricting access and security storing files
The protection of sensitive payroll information by restricting access and security storing files
File security
File maintenance
The application of all transactions including any necessary modifications to an employees file.
The application of all transactions including any necessary modifications to an employees file.
File maintenance
Payroll audit
An examination of a firms payroll records to determine legal compliance
An examination of a firms payroll records to determine legal compliance
Payroll audit
