Payroll Flashcards
To ensure students understand the differences between a W2 employee and 1099 independent contractor, as well as gain an understanding of how payroll taxes are computed.
1
Q
What is the name of the IRS form that must be completed by employees to indicate allowances claimed to determine the amount of Federal Income Tax that is withheld every period?
A
IRS Form W4
2
Q
A
3
Q
What is FUTA?
A
FUTA stands for Federal Unemployment Tax Act and is a tax imposed on employers on the first $7,000 an employee earns.
4
Q
What is SUTA
A
SUTA stands for State Unemployment Tax Act and is a tax imposed on employers and varies per state as each state has their own rate.g
5
Q
A
6
Q
A
7
Q
A
8
Q
A
