Calculation Of A Paycheck Flashcards Preview

Eva's Certified Payroll Professional > Calculation Of A Paycheck > Flashcards

Flashcards in Calculation Of A Paycheck Deck (16):
1

What is an employees "regular rate" of pay?

Regular rate of pay is the weighted average of his or her hourly rate.

2

How is the regular rate of pay calculated?

Total pay for work week (hourly x hours) + additional comp - exclusions = regular pay

Regular pay / total hours worked = "regular rate of pay"

3

How is the OT rate calculated?

Total pay for work week (hourly x hours) + additional comp - exclusions = regular pay

Regular pay / total hours worked = "regular rate of pay"

Regular rate x .5 = OT rate

4

What is "imputed income"?

The addition of the value of cash/non cash compensation for taxation. Examples: dependent care, adoption assistance, group term life insurance, PUCC

5

What is the "special account rule"?

Allows employers to report detain fringe benefits provided to employees in November and/or December as received in the following year.

6

What is considered an "accountable plan"?

Expense reimbursements - must be for work, and must provide a receipt (meal, gas, travel, per diem)

7

What is a nonaccountable plan?

Excess reimbursements you fail to return to your employer and reimbursements of nondeductible expenses

8

What requirements define whether award or prize is income inclusion or income exclusion?

To be considered exclusion the following 3 requirements must be satisfied:
1. Selected without any action (entering a contest).
2. Not required to render substantial future services as a condition.
3. They must assign Awards away from them selves. (Give to charity)

9

2015 mileage rate

.575 or 57.5 cents per mile

10

How should a deceased employees final check be handled in the case that the final check and death happened in the same year ?

The net check should be voided (if not cashed).

A w-9 should be completed by the employees beneficiaries/ personal representative, and then the net check should be reported on a 1099.

The check taxation will remain the same.

11

How should a deceased employees final check be handled in the case that the final check and death happened in different years?

These wages are not taxable and should be reported on box 3 of form 1099, payable to the employees estate/ beneficiaries/ personal representative

12

Disposable income is

Gross - taxes = disposable income

13

When is an employer not allowed to deduct an amount for "uniforms" ?

If it will lower the employees wages below FLSA minimum wage

14

Taxability of Personal use of company car/equipment

FICA, FUTA and FIT taxable

15

Taxability of GTL

FICA taxable, FIT reportable, FUTA exempt

16

Taxability of a qualified moving expense

FICA, FUTA and FIT exempt