CPP Review Flashcards
Time period for Child Support wages to be paid after employee’s payment.
Within 7 days
What agency provides legal framework around Child Support?
Social Security Act
Formula for calculating taxable sick pay?
EE’s Sick Pay * Employer Paid Premiums for 3 years / Total premium for 3 years
Third Party Sick Pay Recap Form
Form 8922
What is a Golden Parachute Payment?
Pmt when there is a change in ownership in the amount of at least 3x the employee’s average salary.
Excess Parachute Payment exceeds 5x salary.
Reports on W-2 Box K - Karat
Qualified Adoption Assistance Expense
$16,810
401K Deferral Limits
$23,000, or additional $7500 age 50+
Foreign Earned Income Exclusion amount
$126,500
Base Housing amount
$20,040 or 16% of foreign earned income exclusion
Form used when an employee wants to be exempt from US Income Tax and Withholding
Form 8233
Tax treaties are
designed to clarify each country’s taxing jurisdiction and to avoid double taxation of income
FUTA Tax Credit Amount
5.4% applied to 6.0% (0.6%).
Maximum of $7,000 per employee
Form 940
Annual Federal Unemployment Tax Return
Form 944
Annual Federal Tax Return. Used in place of Form 941 for tax liability of less than $2500
Form 945
Annual Return of Withheld Federal Income Tax (non payroll payments)
Form 943
Annual Tax Return for Agricultural employers
Form 1042
Annual Withholding Tax return for US Foreign persons. Due date of March 15
Form 1042 Late Fees
$60 within 30 days of March 15
$130 if field by Aug 1
$330 if filed after Aug 1
Covey’s principle-centered leadership traits
strive to nurture security, guidance, wisdom, and power.
Balance sheet item order
Assets, Liability, Stockholder Equity
Semi Weekly Tax Deposit Schedule
Saturday - Tuesday: Friday
Wendesday - Friday: Wednesday
ADP Nondiscrimination Highly compensated employee
More than $155k in previous year.
Top paid 20% in previous year, or 5% owners of stock
Statutory non-employee
“RED” real estate and direct seller
Non-Discretionary Bonus
Agreed upon bonus - included in RROP
HSA Catch Up Contribution Age
55
FSLA Exempt employees are exempt from
overtime and minimum wage
What type of account is a checking account?
Asset Account (debit)
Maximum 401K Contribution holding period
15th BUSINESS day following the month the deferral occured
Taxation of military personnel on temporary assignments
subject to all payroll taxes
Taxation of military personnel on active duty or indefinite assignments
Subject to FIT only
4 Communication Styles
Assertive, Expressive, Introspective, and Supportive
Allocated Tips are in Box
Box 8
Nonqualified Plan distributions are in Box
Box 11
Employer’s payment date with a FUTA tax liability of less than $500
Can carry over the balance to the next quarter
How to calculate company’s equity?
Assets - Liabilities
Railroad employees are subject to report what kind of tax?
Federal income Tax. They are under a separate FICA and FUTA tax system.
Incentive Stock Option Taxation
if stock is sold before holding period ends, difference between exercised price and option price is reported under gross federal wages
Nonqualified Stock Option taxation
income is report at time of exercise in box 1, 3, and 5.
Accounting Flow
Transaction > Journal > Ledger > Financial Statement
What is Working Capital?
Work Capital = Current Assets - Current Liabilities
W-2 Late Fees
By March 2, $60.00
By Aug 1, $120.00
After Aug 1, $330.00
4 Components that must be kept in an Employee Master File?
- Employee Personal Data
- Employment Date
- Tax and Payroll Data
- Pay Period and Calendar Year data
Four Steps to take after a data breach
- Contain
- Assess
- Notify
- Review
Employment Tax Late Deposit penalties
2% of late amount if corrected within 5 days.
If 98% of deposit was made timely, it falls under the Sage Habor Shortfall Rule
IRS penalty for understatement of tax deposits. Fraud vs. Mistake
- Mistake 20% of underpayment
- Fraud 75% of underpayment
FSA Carry Over Provisions (2)
$610 of unused funds can be carried over to the next benefit year. OR a 2.5 month Grace Period can be provided to use remaining funds.
Name, Address, Occupation, Wages and Hours worked are kept for _ years under the _?
3 years under FSLA
Under the concentration test, a cafeteria plan is not discriminatory if benefits provided to key employees do not exceed
25%
A cafeteria plan can be funded by:
- Flex dollars or credits
- After tax employee contributions
- Salary Reduction
Principle Centered Leadership is
Treat people the way you want to be treated.
Statutory Employee Taxation
Exempt from FIT, FICA, and FUTA
Assertive Communication Style
Prefer facts and detailed advance planning.
Introspective Communication Style
Prefer points to be arranged in logical sequences and show interest in cost/benefit analysis.
Planning and Organization management skills include:
- Defining goals/objectives/time frame
- Analyzing available resources
- Evaluating Costs
Staffing management skills include:
- training
- delegating
- hiring
Controlling management skills include:
- controlling performance by using motivations
5 Employee Motivation types
- money
- acheievement
- leadership
- affiliation
- recognition
Supporting Management Style
low task/high relationship
little control from manager with a great deal of trust and support
Coaching Management Style
high task/high relationship
manager controls the job and procedures. Relies on personal communication with employees.
Delegating Management Style
low task/low relationship
most jobs are delegated to staff with little personal contact with manager.
Directing Management Style
high task/low relationship
manager seeks to control staff and direct performance but gives little feedback or guidance.
Project Management Steps
- Intiation
- Planning and Design
- Executing
- Monitoring and Controlling
- Closing
Length of Service Award Exempt Amount
Up to $400.00
Five Payroll Professional Interpersonal Skills
- Motivational
- Leadership
- Team Building
- Problem Solving
- Cultural Awareness
Formula to calculate net income
total revenue - costs - depreciation
Kotter characterized leadership as:
Direction, Alignment, Motivation, and Change.
Both Federal and State governments have laws for (3):
- minimum wage
- overtime
- exempt status
To avoid inclusion of income from non-qualified plan distributions, participants can defer:
- After separation of service ( 6 months for key employees)
- If employee becomes disabled resulting in death or over 12 months.
- Death
- After the time specified before the deferral election was made
- Change in organization control
- When there is an unforeseen emergency
