General
What is the Publication Name of the Circular E & where can it be found (on the internet)?
Publication 15 & www.irs.gov, published every year
What is the Form number of the Employer’s Annual Federal Unemployment (FUTA) Tax Return & how often is it filed?
Form 940, Annually; Due by January 31
What is a 941 tax deposit made up of?
Employee & Employer FICA + FWH
New employees are required to complete what two federal forms?
Form W-4 & Form I-9
The IRS requires employers to maintain & store all records of employment taxes for at least how many years?
4 YEARS
What is the name & cost of the system employers may enroll in to view deposits made on their behalf
Electronic Federal Tax Payment System (EFTPS)& FREE
What is the difference between Form 941 and Form 944?
Form 941: Filed Quarterly; Due by April 30, July 31, October 31, and January 31
Form 944:
1. Filed Annually; Due by January 31
2.The IRS must give you written notice if you are eligible to file Form 944.
3.Form 944 is typically for employers who will have less than $1k in taxes withheld for the year
If an employer has over $100,000 in 941 taxes due for a given pay date, when does it need to be deposited?
The next business day
By what date are employers required to furnish employees with Forms 1099 and W-2?
January 31st
What are the two main methods for calculating tax withholding?
The Percentage Method and Wage Bracket Method
Who is responsible for ensuring the accuracy of payroll tax returns and deposits if an employer retains a third party such as CPS?
The employer; they are responsible to ensure that tax returns are filed and deposits and payments are made, even with a third party to perform these acts.
What is the penalty for a 941 tax deposit that is one day late?
2%
What taxes refer to FUTA, who pays them & provide any rates/wage bases if applicable?
Federal UI paid by the Employer; 6% & $7,000.00 wage base
Name one of the three methods an employer can use to verify an employee SSN
FORM I9, EVERIFY, SSA VERIFICATION SITE
What term is used to describe taxable wage payments to an employee that are not regular wages? Examples?
Supplemental wages
Ex: Bonuses, Commissions, Severance pay, PTO payouts, Prizes and awards, Back pay and retroactive pay increases, Taxable fringe benefits
What number is required to be on all items sent to the IRS and SSA?
EIN(Employer Identification Number)
What are the two deposit schedules used for making 941 tax deposits?
Semiweekly:(IF CHD =Wed,Thurs,Fri THEN deposit taxes by the following Wed. IF CHD=Sat,Sun,Mon,Tues THEN deposit taxes by the following Wednesday. Friday)
Monthly:Deposits made by the 15th day of the following month of CHD (ex CHD 09/12, Deposit taxes by 10/15)
What taxes refer to FICA, who pays them & provide any rates/wage bases if applicable?
Social Security: Paid by EE & ER, rate of 6.2%, wage limit of $176,100
Medicare: Paid by EE & ER, rate of 1.45%, no wage limit BUT 0.9% additional medicare rate applied to EE when $200,000 in wages met
TOTAL: 7.65% FICA
How long does a Form W-4 remain in effect?
Until the employee provides you a new Form W-4
If there was no payroll or wages paid to employees for an entire year do quarterly or annual tax returns need to be filed?
The business must continue filing quarterly or annual payroll tax returns until it officially informs the IRS it has closed or stopped paying wages. Reports 0s.
What does the abbreviation FICA stand for?
Federal Insurance Contributions Act
By what date are employers required to file paper Forms W-2 and W-3 with the SSA? Forms 1099 and 1096 with the IRS?
For W2s/W3- Jan 31st of following year
For 1099/1096 - Feb 28th of following year
Generally, employers can take a credit against their FUTA tax for amounts paid for state unemployment tax. What is the amount of this credit?
5.4%
Generally, if an employer incorrectly treats an employee as a non-employee (i.e. 1099 contractor), who is liable for the social security, Medicare, and income taxes?
The Employer
What is the primary difference in the tax treatment of accountable versus non-accountable employee business expense reimbursements?
Reimbursements under an accountable plan are not counted as wages and therefore not taxable to the employee, while those under a nonaccountable plan are treated as taxable wages