Payroll Processing
What is batch processing?
The coding and collecting of items processed into similar groups. This grouping allows for easier reconciliation.
How long must records of time cards and work time scheduled be retained?
2 years
What is the penalty for failing to pay minimum wage and overtime?
Recovery of back wages and equal damages, and for repeated willful violations the penalty can be up to $2,515 per violation.
What will assist in finding an error within a batch?
Interim totals
What is a master file?
The collection of data describing the employees of a company.
Who regulates pay frequency?
States regulate the frequency employers pay employees, when final wage payments must be made, and the lag-time between the end of the pay period and pay date.
How long must you retain copies of Form W4?
4 years
What are the penalties for child labor violations?
Fines up to $16,035 per violation; $72,876 if the violation causes death or serious injury of a child
Between Forms W-2 and Forms 941, what does the IRS and SSA reconcile?
Medicare tax withholding.
Does the IRS regulate the format of the master file?
Government agencies do not require a master file be kept in any specific format.
Why must employers regularly reconcile their wage and tax information?
To help prevent out-of-balance conditions between payroll records and amounts reported to government agencies, and to reduce possible penalties from federal and state tax agencies.
How long must you retain employee information, such as name, address, occupation, DOB, or gender?
3 years
What is the penalty for understatement of taxes?
20% of the underpayment; 75% of the underpayment if due to fraud
True or False: Payroll register reconciliation should occur every pay period
True
What defines an integrated system?
An integrated system is a single database that is available to all users.
What is escheat?
The process of transferring abandoned wages to the appropriate state agency.
Employee wage data recordkeeping requirements are outlined where?
FLSA
What is the penalty for failure to withhold federal income, social security, and Medicare taxes?
100% of the withholding; in addition, officers or employees could be personally liable for an equal amount
What information is interfaced between the payroll system and the bank reconciliation system?
Paycheck amount
What is a computer interface?
The point where two distinct data-processing elements meet and pass data between the systems.
What must Form W-2 Box 2 equal?
The total of all Forms W-2 Box 2 must equal Line 3 from all Forms 941 filed during the year.
Employee tax data recordkeeping requirements are outlined where?
Internal Revenue Code
What is the safe harbor for de minimis errors?
No penalty will be assessed for uncorrected errors of $25 or less for withholding errors or $100 or less for reporting of wages or other information items. This safe harbor does not apply if the error was deliberate, or if a correction must otherwise be made.
Certain totals on Forms W-2 MUST reconcile with similar totals reported on what?
Quarterly Forms 941
What does UKG stand for?
Ultimate Kronos Group