FLSA & Pay Schedules
A pay schedule that doesn't have a gap between the end of the pay period and when the employees are paid:
Non-arrears
Workers that are paid a set rate for every hour they work, and record their time in a timesheet that’s submitted each pay period.
Non-Exempt
The nine-digit number assigned by the IRS to identify taxpayers who are required to file various business tax returns
FEIN or EIN
Federal Employer Identification Number
Which of these benefits are considered post-tax? (more than one)
1. Roth 401k
2. Traditional IRA
3. Gym Membership
4. Section 125 Health Insurance
1. Roth 401k
3. Gym Membership
The portion of an employee's gross wages that are taxable:
Subject Wages
What is the total number of hours a full-time employee can work in a calendar year without being paid overtime?
2080
Which form does an employee complete that tells their employer how much federal income tax to withhold?
W-4
True or False: An employee cannot update their form W4 once they have filled it out.
FALSE - they can update it as many times as they need
Which of these benefits are considered pre-tax? (more than one)
1. Traditional 401k
2. Roth IRA
3. Commuter
4. Section 125 Health Insurance
1. Traditional 401k
3. Commuter
4. Section 125 Health Insurance
Which of these earnings is not taxable?
1. Commission
2. Tips
3. Bonus
4. Reimbursements
4. Reimbursements
What parts make up a pay schedule?
Pay period
The day the employer runs the payroll (due date)
Pay date (check date)
What is the test employers complete to help them determine if an individual should be hired as a W2 Employee or 1099 Contractor?
Common Law Test
Which form is filed quarterly to the IRS that reports how much FICA and federal income taxes were paid?
941
When an employee has a pre-tax deduction (for example, Health Insurance) through payroll, what happens to their taxable income (subject wages)?
Their taxable income (subject wages) decrease
After surpassing $200,000.00 in wages for the year, what is the total employee tax rate for Medicare?
2.35%
Name 4 things the FLSA established
1. Minimum wage & overtime rates
2. 8-hour workday, 40-hour work week
3. Type of work minors can perform & hours they can work
4. What days are workdays and weekends
5. Record Keeping
1. Minimum wage & overtime rates
2. 8-hour workday, 40-hour work week
3. Type of work minors can perform & hours they can work
5. Record Keeping
Money that is paid to an employee before any taxes or pre-tax deductions are taken out:
Gross Wages
What form do employers file each year that reports how much an employee was paid and how much taxes they paid for the year?
W-2
Deductions that employees do not elect; instead, they are imposed by law. Also known as a garnishment:
In-voluntary Deduction
What taxes do employees pay through payroll?
Federal Income Tax (FIT)
State Income Tax (SIT)
FICA - Social Security & Medicare
Kelly is an exempt employee that makes $93,600.00 annually. What is Kelly's regular rate of pay (hourly rate)?
$45.00 an hour
Which section/s of the Form W4 must all employees complete?
Sections 1 & 5 only
Which form reports how much FUTA was paid throughout the year?
940
What taxes are assessed on an employee deduction for Traditional 401(k)?
- Social Security
- Medicare
- FUTA
What taxes do employers pay through payroll?
Federal Unemployment (FUTA)
State Unemployment (SUI/SUTA)
FICA - Social Security & Medicare