Flashcards in Ch 11 - Payroll Reporting Topics Deck (21):
When is an employer required to use EFTPS for tax deposits?
If annual federal tax deposits are more than $200K
What is the penalty if an employer who is required to submit tax deposits by EFTPS does not submit by this method?
subject to 10% penalty
what decides the frequency of federal tax deposits?
amount of tax liability compared to liability threshhold in lookback period
What is the lookback period?
four-quarter period ending on June 30 of preceding year
What is the frequency of federal tax deposits when amount owed is less than liability threshold?
due quarterly with payroll tax return, form 941
What is frequency of federal tax deposits when amount owed is more than liability threshold? (2)
1. If amount in lookback period was $50K or less: Monthly deposit schedule rule
2. If amount in lookback period was more than $50K: Semiweekly deposit schedule
When are payments due for employers on the monthly federal tax deposit schedule?
15th day of following month
When are payments due for employers on the semiweekly payment schedule for federal tax deposits?
1. if payday is Wed, Thu or Fri, deposit is due on following Wed
2. If payday is Sat, Sun, Mon or Tue, deposit is due following Friday
What is the payment schedule for an employer with no lookback period, and amount owed is $25K or more?
Monthly Deposit Schedule rule
What is the payment schedule for employers with an accumulated tax liability of $100K or more on any day?
Deposit is due next banking day, even if already on monthly or semeweekly deposit schedul
What is the entry to record employer's share of social security and Medicare taxes at end of each pay period? (3)
1. debit payroll taxes expense
2. credit soc sec payable, medicare payable
What is the entry to record the payment of payroll taxes? (4)
1. debit soc sec tax payable (emp + empr)
2. debit medicare tax payable (emp +empr)
3. debit employee income tax payable (emp)
4. credit sum total of above to cash
what are the monthly payroll accounting tasks? (3)
1. individual earnings records updated
2. taxes prepared and deposited via EFTPS or Form 8109
3. tax deposit recorded in cash payments journal
What are quarterly payroll accounting tasks? (3)
1. total individual earnings records
2. Quarterly Summary of Earnings Records
3. Quarterly Federal Tax Return
Where can exceptions to the requirement to filing the Employer Quarterly Federal Tax Return, 941?
Publication 15, Circular E
What information is found on the Employer Quarterly Federal Tax Return, Form 941? (3)
1. employee earnings
2. tax liability for each month in quarter
3. deposits made
What programs are administrated by the Social Security Administration? (3)
1. Old Age and Survivors Program
2. Disability Insurance Program
3. Supplemental Security Income program
When is Employer Quarterly Federal Tax Return, Form 941 due? (2)
1. last day of month following end of each calendar quarter
2. if taxes for quarter were deposited were due, due date is extended by 10 days
If an employee quits in the middle of the year, when can they receive their W-2?
within 30 days after request or after final wage payment, whichever is later
When are employers required to file W-2's electronically?
If they issue 250 or more W-2's