CPP Module 7 Flashcards
Payroll Reporting and Employment Taxes
Form W-2 Box 10
Dependent care benefits for both taxable and non-taxable reimbursements
Form W-2 Box 1
Wages, tips and other compensation
Form W-2 Box 3
Social Security wages up to maximum amount of $168,600
Form W-2 Box 5
Medicare Wages and Tips
Effective FUTA tax rate
0.6% for employers who have paid all SUTA taxes timely and not in a state with credit reductions
What is the lookback period?
Used with Form 941, a 12 month back ending in the previous June 30 to determine federal tax deposit frequency.
What is the lookback period for Forms 943 (Agricultural EEs) and 945 (Annual FIT return)?
Second prior year.
What is the FIRE system?
Filing Information Returns Electronically. Used to electronically file 1099s
What is EFTPS?
Electronic Federal Payment System used to make tax deposits. ERs with $2500+ in tax liability are required to use.
What is FUTA?
Federal Unemployment Tax Act. 6.0% of employee wages up to $7k. Most qualify for a credit of 5.4%, paying only the effective rate of 0.6%.
Form 1099-NEC
Non-employee compensation. Used to report for a payment made to someone who is not an employee, for services related to the business, and totaling at least $600.
What is Form 940?
Annual Federal Unemployment Tax Return used to report taxable wages, FUTA tax, and quarterly liability.
What is Form 941?
Quarterly Federal Tax Return used to report taxable wages, federal income tax withheld, social security and Medicare wages and taxes, and tax deposits.
What is Form 944?
Annual Federal Tax Return for employees with an annual liability of $1,000 or less.
What is Form 945?
Annual Return of Withheld Federal Income. Used to report income tax from nonpayroll tax payments and nonpayroll tax deposits.
What is Form W-2?
Wage and Tax Statement
What is a depositor status?
Monthly or semiweekly for employment taxes. A monthly depositor has a liability of $50,000 or less in a year and a semiweekly depositor is more than $50,000.
What is the FUTA tax credit?
5.4% is not in a state with a credit reduction
What is the FUTA wage base?
$7,000
What is Form 1042-S?
Foreign Person’s US Source Income Subject to Withholding. Must be furnished to the recipient by March 15.
What is the semi-weekly depositor schedule?
Saturday, Sunday, Monday, Tuesday = Friday
Wednesday, Thursday, Friday = Wednesday
What electronic system is used to file Form 940 and 941?
The IRS Modernized e-File (MeF) System.
What is Form 843?
used to claim a refund or request an abatement of certain taxes, interest, penalties, fees, and additions to tax
