Payroll Pt.1
Taxes
W2's
Payroll Pt.2
Misc.
100
What three reports should always be sent to clients for review and approval prior to payroll processing?
Payroll Register, Payroll Recap & Funding Report, Employee's Not Paid Report
100
Who pays unemployment taxes-employee or employer?
Employer
100
By what date must W-2s be distributed to employees and filed with the SSA each year?
By January 31 of the following year.
100
What is the difference between gross pay and net pay?
Gross pay is the total money you earn.
Net pay is the money you actually get after taxes and deductions.
100
What does our slogan, "ARR" stand for?
Acknowledge, Research, and Resolution
200
What is the purpose of a state reciprocity agreement, and how does it affect payroll?
It allows workers who live in one state and work in another to only pay income tax to their home state, simplifying withholding.
200
What is the IRS supplemental rate?
22%
200
What information is reported in Box 1 of a W2?
Total taxable wages, tips, and other compensation subject to federal income tax withholding.
200
Which w4 coding would have more federal taxes withheld. S,0 or M,0
S,0
200
How many hours are in a typical semi-monthly pay period?
86.67 hours
300
How much is the FUTA tax if I made $10,000?
$42.00
300
If you live in Oregon but drive to work in Washington, where are you taxed for SIT?
Oregon
300
What information is reported in Box 3 of a W-2?
Wages subject to Social Security (includes 401(k), excludes pre-tax insurance).
300
What is the difference between exempt and non-exempt?
non exempt gets paid hourly
300
How often is the 944 return filed?
Annually
400
What are the federal limits for 401(k) employee deferrals in 2026?
For 2026, the limit is $24,500, with an additional $8,000 catch-up for employees aged 50+.
400
What taxes are included in FICA?
Social Security (6.2%) and Medicare (1.45%).
400
What information is reported in Box 5 of a W-2?
Wages subject to Medicare (includes both 401(k) and pre-tax insurance).
400
What is the Medicare wage limit?
Unlimited
400
What are payroll liabilities?
Amounts owed by employer for payroll taxes and benefits.
500
How do you calculate federal unemployment tax (FUTA)?
FUTA is .6% on the first $7,000 of wages per employee, often reduced by state credits.
500
When does additional Medicare kick in?
BONUS- What is the percentage?
$200,000
1.45% (regular Medicare) + 0.9% (additional) = 2.35% total from employees once their wages exceed a certain threshold.
500
If an employee contributes to a 401(k), how does that impact Boxes 1, 3, and 5?
Contributions reduce Box 1 (federal taxable wages) but do not reduce Boxes 3 or 5 (Social Security and Medicare wages).
500
When are IRS deposits due when the Federal tax liability is over 100k on a check date?
Next business day
500
What forms are used to file federal payroll taxes? Give 2 examples.
941 (quarterly), 944 (annual), 940 (annual), W-2 (employee), W-3 (summary).