Chapter 1: Payroll Fundamentals Challenges Concepts

Transcription

1 Table of Chapter 1: Payroll Fundamentals Challenges Concepts Employees vs. Independent Contractors Common Law and Reasonable Basis Tests Temporary Service/Leased Employees Misclassifying Workers Employment Eligibility Social Security Numbers New Hire Reporting The Fair Labor Standards Act Exempt vs. Nonexempt Employees Exempt Employees Federal Minimum Wage State Minimum Wage Tip Credit Additional Earnings Shift Premiums Paid Time Off Bonuses Defining Overtime When Must Overtime Be Paid? Other Overtime Regulations Exist Defining the Workweek Time of payment Workweek Exceptions Changing Workweeks Calculating Overtime Payments Establishing a Regular Rate of Pay Issues When Calculating Regular Rate of Pay Doing the Math - Calculating Overtime Pay Acceptable Rounding TOC 1

2 Table of 1.8 Defining Time Worked Portal-to-Portal Act of Call-back and Show-up Pay Waiting to Work Preparing to Work Travel Time Seminars/Meetings Remedial Education Record Keeping and Systems Handling Payroll Documents Maintaining a Master File Why a Master File? Record Retention Withholding Allowances (Form W-4) Forms W-4 and W-4P Filing Requirements Invalid Form W Exempt Form W Employer s Responsibilities Deducting Income Tax From Pension Income (Form W-4P) Deducting Income Tax From Sick Pay (Form W-4S) Obtaining Taxpayer Identification Numbers State Withholding Allowance Certificates Child Labor Family and Medical Leave Act (FMLA) Chapter 2: Fundamentals of Payroll Operations The Payroll System Complying With Federal/State/Local Regulations and Company Policies Timely and Accurate Issuance of Paychecks/Direct Deposit Periodic Reporting Record Retention Maintaining Control and Security Batch and Real-time Processing Methods Batch Processing Real-time Processing Employee and Manager Self-Service TOC 2

3 2.3 Interfaces Human Resources/Personnel Benefits Data Collection Bank Checking Accounts Electronic Funds Transfer Time and Attendance General Ledger/Cost Accounting Integration Reconciliations Table of 2.4 Control Procedures Edits Balancing and Reconciliation Documentation Apply Department Procedures Data Auditing and Validating Batch Controls Correction Procedures Accumulator Totals Upgrading/Updating the Payroll System Apply Departmental Procedures Security External audits Paying Employees The Holder in Due Course Rule Paying by Check Direct Deposit The Direct Deposit Process Resolving Late Deposit Issues Stopping Direct Deposit Reversing Direct Deposit Federal Bank Holidays Payment by Payroll Card Regulation of Payment Timing Unclaimed Wages Chapter 3: Paycheck Fundamentals Withholding Federal Taxes Taxable Wages Wages are Taxable When Paid TOC 3

4 Table of Factors Affecting Withholding Withholding Methods A Note on Rounding Withholding Income Tax From Pensions Withholding Social Security and Medicare Taxes Tax Rate and Wage Base Employers Must Pay Their Portion There Is No Age Limit Employers Must Withhold up to the Maximum Additional Deductions From Pay Voluntary Deductions Involuntary Deductions State Taxes State Income Taxes Local Income Taxes State Disability Taxes State Unemployment Insurance Tax Withholding Deceased Employees Gross to Net Calculation Employer-Paid Taxes Why Gross-up? Calculating Gross-up Grossing up with Special Circumstances Chapter 4: Payroll Benefit Basics Fringe Benefits Tax Treatment of Employee Compensation IRS Definition Fair Market Value of Noncash Compensation Imputed Income Recognition of Noncash Fringe Benefits When to Withhold and Deposit Taxes on Noncash Fringe Benefits Withholding Tax on Fringe Benefits Nonreportable Fringe Benefits Prizes and Awards Length-of-Service and Safety Awards Gift Cards TOC 4

5 4.3 Company Vehicles Valuation Methods Group-Term Life Insurance Table of 4.5 Deferred Compensation Qualified Versus Nonqualified Plans (k) Plans (b) Plans (b) Plans Nonqualified Deferred Compensation Plans Section 125 Flexible Benefit Plans Cafeteria Plans Possible Menu Choices Tax Implications Flexible Spending Accounts Chapter 5: Tax Reporting Depositing Federal Taxes Tax Deposit Requirements Clarification of the Rules Safe-Harbor Rule (98% rule) Making Deposits Quarterly Tax Returns Form 941, Employer s Quarterly Federal Tax Return Form 941 Preparation State Unemployment Insurance Reporting FUTA (Federal Unemployment Tax Act) Depositing and Reporting FUTA Tax Form W-2, Wage and Tax Statement The W-2 Series Deadlines Instructions for completing Forms W Transmitting Your Forms W-2 (Form W-3 or Electronically) Penalties Annual Tax Returns Form Form 1099-MISC TOC 5

6 Table of 5.6 Additional Reporting Forms Form 941-X, Adjusted Employer s Quarterly Federal Tax Return or Claim for Refund Form 943, Employer s Annual Federal Tax Return for Agricultural Employees Form 944, Employer s Annual Federal Tax Return Form 945, Annual Return of Withheld Federal Income Tax Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns Form 1095-C, Employer-Provided Health Insurance and Coverage Form 4070, Employee s Report of Tips Chapter 6: Payroll Accounting Accounting Basics Recording Transactions Types of Accounts Balance Sheet and Income Statement Double-Entry Accounting Accrual Chapter 7: Professional Payroll Skills and Responsibilities Customer Service Principles of customer service Implementation of customer service Professional Responsibilities Responding to Penalties, Notices, Inquiries Confidentiality and Security Problem Solving Resources Chapter 8: Preparing for the FPC Exam History and Purpose of Certification Examination Eligibility Requirements Examination Fees What to Take With You to the Examination TOC 6

7 8.5 Testing Center Rules Format of the Examination Table of 8.7 Possible Study Aids Content of the Certification Examination Test Taking Hints How Your Examination Is Scored Attainment of Certification Recertification American Payroll Association Code of Ethics Fundamental Payroll Certification Exam Practice Test Number Fundamental Payroll Certification Exam Practice Test Number Glossary of Common Payroll Terms... G-1 Appendix A Form W-2... A-1 Form W-3... A-2 Instructions for Forms W-2, W-3, W-2c, and W-3c.... A-3 Form W-2c.... A-36 Form W-3c.... A-37 Form W-4... A-38 Form W-4P... A-40 Form W-4S... A-44 Form A-46 Form A-48 Schedule A (Form 940)... A-52 Instructions for Form A-54 Form A-69 Instructions for Form A-73 Schedule B (Form 941)... A-85 Instructions for Schedule B.... A-86 Form 941-X.... A-89 Instructions for Form 941-X... A-93 Form A-109 Instructions for Form A-111 TOC 7

8 Table of Form 945-A.... A-117 Form 1094-B... A-121 Form 1094-C... A-122 Form 1095-B... A-125 Form 1095-C... A-128 Form 1099-MISC... A-131 Form 1099-R... A-132 Form SS-5... A-133 Form SS-8... A-138 Instructions for Form SS-8... A-142 Form I-9 and Instructions... A-145 Order/Notice to Withhold Income for Child Support... A-163 Publication A-167 Publication 15, Circular E, Employer s Tax Guide.... A-168 Index...I-1 TOC 8 2/18