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FPC PAYROLL FUNDAMENTALS Q & A 2024
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FPC PAYROLL FUNDAMENTALS Q & A 2024
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FPC PAYROLL FUNDAMENTALSWorker that has Fed, OASDI, Medicare, State withheld - Answers-Employee
Worker that requires the employer to pay ER taxes - Answers-Employee
Worker that receives W2 form - Answers-Employee
Worker that does not have taxes withheld - Answers-Independent Contractor
Worker that has TIN - Answers-Independent Contractor
Worker that receives 1099 Form - Answers-Independent Contractor
Temporary Service Provider or Leasing Company - Answers-Pays employees and taxes
instead of company the employee is performing services for
Immigration reform and Control Act of 1986 (IRCA) - Answers-Requires employer to
verify employees' eligibility for employment in the US.
Penalties for Violating IRCA - Answers-$375 for the first offence and $16,000 for the
third
Antidiscrimination under IRCA - Answers-The law prohibits discrimination in hiring or
recruiting workers on the basis of national origin or citizenship
Verification of eligitability - Answers-The burden of verifying that any employee is eligible
to work in this country falls on the employer. All employees hired after November 6,
1989 must be verified.
When must Section 1 of Form I-9 be completed? - Answers-The employee's date of
hire.
When must Section 2 of Form 1-9 be completed? - Answers-Within three days of hiring
the employee.
Form SS-5 - Answers-Application for a social security card
Form I-9 - Answers-Employment Eligitability Verification
Employee SSN verification is... - Answers-recommended but not required.
What information must an employer report for new hires? - Answers-Name, Date of
Hire, Address, SS, Employer's Name, Address, and EIN
, Fair Labor Standards Act of 1938 (FLSA) - Answers-Guarantees employees a minimum
wage, requires employers to pay an overtime premium, limits when minors can work,
and provides equal pay protection.
Who is protected by FLSA? - Answers-Nonexempt employees
Minimum weekly salary required for exempt employees - Answers-$455
4 categories of exempt employees - Answers-Executives, Administrative Employee,
Professional, Outside Sales People
Special FLSA provisions exist for... - Answers-Various transportation workers,
agricultural workers, hospital employees, and public sector employees.
Asks how independent is the employee and how much control can be exervised over
the worker. - Answers-Common Law Test
A worker cannot sign a new contract stating that they will be an indepndent contractor. -
Answers-Common Law Test
Employer has treated similar workers as independent contractors for any period and
has filed tax returns - Answers-Reasonable Basis Test
Longstanding industry standard of treating similar workers as independent contractors -
Answers-Reasonable Basis Test
Court decisions for treating workers in similar circumstances as independent contractors
- Answers-Reasonable Basis Test
IRS has ruled in a "published ruling" that the workers are indpendent contractors -
Answers-Reasonable Basis Test
Automated clearing house (ACH)- - Answers-An entity which serves as the central
agency for processing and transferring funds from one financial institution to another via
electronic data transmission. ACHs operate under rules and standards established by
the National Automated Clearing House Association (NACHA)
Circular E - Answers-Employer's Tax Guide (IRS Publication 15). The basic IRS
reference. Provides explanation and illustration of an employer's federal tax withholding,
depositing, and reporting obligations. Circular E provides information relevant to all
employers, while Publication 15-A, Employer's Supplemental Tax Guide , is intended to
provide additional information required by larger employers.
Disposable earnings - Answers-That portion of earnings remaining after deductions
required by law have been made; used to calculate the maximum amount of an
employee's wages subject to garnishment
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