GAAP
Which principle of GAAP states the actual cost of an item needs to be stated, not its current value?
Cost Principle
Which government organization is responsible for processing tax returns, collecting funds, issuing refunds, performing audits, etc.
IRS (Internal Revenue Service)
True or False: The United States mandates that ALL employees contribute toward a retirement account
False
IRA... What does it stand for?
Individual Retirement Account
What is the state income tax to be withheld from paychecks in the state of Texas?
0% (Texas does not have state income tax)
Which principle of GAAP states all info relevant to financial statement viewers must be in the financial statement?
Disclosure Principle
The United States uses a progressive tax system. What does this mean?
The more income an individual has, the higher income is taxed at a higher rate/percentage
To qualify for overtime pay, an employee must work at least:
(minimum hours per day AND week)
8 hours / day
40 hours / week
True or False: You could invest in stocks with funds directly from your Traditional IRA or Roth IRA
True
Social Security is a requirement to be withheld from paychecks for the majority of employees in the United States. What percentage of overall earnings would this represent?
6.2%
Which principle of GAAP states accountants must only record information which can be verified?
Reliability Principle
This tax form is filled out by the employer and to all employees of a business to notify them of their earnings from the previous year
W2 form
The accounting staff position that compiles and computes payroll data, then prepares, journalizes, and posts payroll transactions:
Payroll Clerk
John works full-time for his company and as an added incentive, the company promises to contribute one dollar toward John's retirement account for every dollar that he contributes himself. Which type of retirement account is described here?
401k
ALL TEAMS ANSWER!! (Daily Double)
On her most recent paycheck, Jessica earned a gross pay amount of $1,150.00
How much Social Security AND Medicare should be withheld from this paycheck?
hint: must round to the nearest cent!!! (hundredth)
Social Security: $71.30
Medicare: $16.68
Which principle of GAAP states business activities creating dollar amounts large enough to affect business decisions should be recorded and reported as separate items in the accounting records and financial statements
Materiality
This tax form is filled out by the employer to notify freelancers / non-employee personnel of their earnings from the previous year
Form 1099
Which labor law established minimum wage?
FLSA (Fair Labor Standards Act)
Bob wants to reduce the amount of personal taxable income for the current year. Therefore, which retirement account should he open / contribute money toward?
Traditional IRA
When manually calculating how much federal tax an employee will owe on a particular paycheck, what THREE things must be taken into consideration?
1. Marital Status
2. Total Pay (Gross)
3. # of withholdings
Which organization is responsible for creating and maintaining GAAP?
FASB (Financial Accounting Standards Board)
This tax form is filled out by the employee when hired, and informs the employer of the correct number of tax withholdings for the employee.
W4 form
This date is the deadline each year for employers to send all employees their respective tax forms
Jan. 31
THREE True/False Statements (must get all three correct to get points)
1. (True/False) There is no contribution limit for a traditional IRA
2. (True/False) Roth IRA is for post-tax contributions
3. (True/False) Traditional IRA is for pre-tax contributions
1. FALSE
2. TRUE
3. TRUE
What two components make up FICA taxes? (not including federal tax)
Social Security & Medicare