Payroll

Question 1

Employee net pay =

Answer 1

gross (total) wages - benefit deductions - taxes + reimbursements

Question 2

Total cost of payroll for the employer =

Answer 2

gross (total) wages + employer taxes + employer benefit contributions

Question 3

Federal Unemployment Taxes (FUTA) are due when?

Answer 3

Annually

Question 4

Most federal taxes (FIT, Medicare and social security) are due when?

Answer 4

Monthly or bi-monthly

Question 5

State taxes are often due when?

Answer 5

Quarterly (depends on state)

Question 6

Gross pay

Answer 6

This is the total pay for an employee before taxes and deductions

Question 7

Net pay

Answer 7

What the employee receives after taxes and deductions

Question 8

Taxable wages

Answer 8

All wages minus any pre-tax benefits, and they do not include reimbursements.

Question 9

What are the 6 big payroll taxes?

Answer 9

1. Federal income tax (FIT)
2. State income tax (SIT)
3. Medicare
4. Social Security
5. Federal Unemployment Tax Act (FUTA)
6. State unemployment insurance (SUI)

Question 10

What taxes are only paid by the employee?

Answer 10

Federal income tax (FIT)
State income tax (SIT)

Question 11

What taxes are paid by both the employee and employer?

Answer 11

Medicare
Social Security

Question 12

What taxes are only paid by employer?

Answer 12

Federal Unemployment Tax Act (FUTA) - 6% of first $7,000 of wages to an employee per year

State unemployment insurance (SUI) - Rates vary by state

Question 13

Gusto’s is full-service payroll because of what 4 main reasons?

Answer 13

1. All the taxes, all of the time

We automatically calculate, file and pay all local, state, and federal taxes, each time payroll is run. I-9s, W-2s, 1099s, W-4s, check, direct deposit, and reporting are all included.

2. Unlimited payrolls per month for each employee (PEPM)
3. Easy employee management

Employee accounts, self-onboarding, self-service, and lifetime logins.

4. Form and filing management

We file all payroll tax forms using eFile, eSign, and eFax technologies.

Question 14

What are the 4 payroll processing times Gusto offers?

Answer 14

4 day
2 day
Next day (only available on Plus and Premium plans)

Cutoff to run payroll is 7pm EST

Question 15

What are the 5 types of payrolls/payments you can make with Gusto?

Answer 15

1. Regular (e.g. hourly/salaried employees)
2. Off-cycle (e.g. paying an employee in advance, paying severance, fixing errors from previous payroll)
3. Bonus - Similar to Off-cycle but uses a default 22% withholding rate per the IRS. There will also be some limitations to benefit withholdings and deductions when payrolls are run as a bonus.
4. Dismissal (e.g. outstanding wages, expenses, unused vacation pay)
5. Contractor - Paid when their services are used. Aren’t subject to taxes and deductions. Gusto has a default limit of 10 payments per contractor per month (but can be increased to 20).

Question 16

To run payroll on Gusto, what are the 4 steps admins need to follow?

Answer 16

To be completed