Federal Tax Rates
What is Social Secrity Tax Rate?
6.20%
What is the SIT rate?
Depends on the state
What is a lookback period?
A liability period to determine form and deposit schedules
What does a W-4 do?
Helps let an employer know the correct FIT to withhold
What is accrued time off?
Time off that is earned but is not used
What is the Federal Income Tax Rate?
Based on W4
What is the purpose of SUI?
To provide partial wages for an unemployed individual while they look for employment
941 Lookback Period
941 - 12 months ending on June 30th of the prior year (2020 lookback period is July 1st 2018 - June 30 2019)
What is a W-2?
Reports the Wage and Tax withheld and calculated for the employee from the previous year
When income tax is calculated based off of brackets and rates, it is called what?
Graduated Tax Rate
What is the Medicare Tax Rate?
1.45%
Generally, when do most effective dates for SUI rates start?
The beginning of a quarter
When would you be a Monthly Deposit Schedule?
$50,000 or less in tax liability during lookback period
Who is responsible for a 1099 contractor's taxes?
The 1099 contractor
What accrued time off is paid out when terminated and which one is not?
Vacation is paid out, sick is not
What is the Federal Unemployment Tax Rate?
0.60%
How long will a new employer be on the starting tax rate?
Until the employer files SUI for a specific period
Special Deposit Schedules are ...
Quarterly, Annual, and Next Day
Do employers manager a 1099 contractor's garnishments?
No they are not technically the employer of the contractor and do no have the ability to withhold their garnishments
How is PTO accrued?
Depends (By hour worked, by pay period, at anniversary, at the start of every year)
What contributes to FIT calculation?
Marital Status, Number of Allowances, How Frequently they are paid, and How much they are paid
SUI rates are based on what?
Employer Experience
What total tax liability triggers Next Day Deposit?
$100,000 or more
What are the required steps on the W-4?
Steps 1 and 5
Affordable Care Act says you must what?
Offer health coverage to full time employees or opt to reimburse the employees purchased health plan/