Chapter 1

Question 1

Setting Every Community Up for Retirement Enhancement (SECURE)

Answer 1

2019. Granted small employers tax incentives to implement an automatic retirement plan erollment for their employees. Also, allows small employers to form a group that would allow each business’s employees to have better access to retirement plans than the employer could offer by itself.

Question 2

SECURE Act 2.0

Answer 2

Mandatory in 2025. 92 new provisions. Automatic enrollment in retirement plans at a rate between 3 and 10% of their annual play.

Question 3

Tax Cuts and Jobs Act

Answer 3

Provided a tax credit to employers ofering paid leave under FMLA. Employers may be eligible for a credit of 12.5%-25%, Expires 2025. State taxes on employees may increase in some states.

Question 4

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)

Answer 4

governs military service members’ rights regarding the length of military service, return to work, and accomodations for injured veterans. In 2011, Veterans Opp to Work Act, allowed USERRA to recognize claims of hostile work environment results from an individual’s military status.

Question 5

Outsourcing of Payroll Duties

Answer 5

Not as prominent in small companies due to the cost of service versus its benefits. Payroll can be performed without disrupting the revenue-producing tasks of the business.

Question 6

Sarbanes-Oxley Act of 2002 (SOX)

Answer 6

provided criminal penalties for violations of ERISA. Provides protections for whistleblowers and mandates auditors’ rotation among publcly owned companies.

Question 7

American REcovery and Reinvestment Act of 2009 (ARRA)

Answer 7

provided tex credits for employers and employees through Making Work Pay provisions. Tax return credits for the unemployed.

Question 8

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

Answer 8

protects workers and their families with preexisting medical conditions from discrimination based on those conditions.

Question 9

The Protecting Americans from Tax Hikes (PATH) Act of 2015

Answer 9

prevented certain tax fraud schemes. Offered employers tax credits for hiring qualified veterans and individuals who have endured long-term unemployed. extended ATRA provisions.

Question 10

16th Amendment

Answer 10

allowd the U.S. government to levy and collect income taxes on individuals. Incorporated a tiered income tax to limit the tax on wages earned.

Question 11

Civil Rights Act of 1964

Answer 11

prohibited dicrimination based on race, creed, color, sex and national origin.

Question 12

Davis-Bacon Act

Answer 12

1931. requires federal contractors to pay employees an amount commesurate with the prevailing local wage. Enacted to create a standard wages for governmental conracts in excess of $2,000.

Question 13

Walsh-Healey Public Contracts Act

Answer 13

1936. Required employers working on federal contracts in excess of $10,000 to pay employees the federal minimum wage and follow the OT provisions of the Fair Labor Standards Act.

Question 14

Federal Unemployment Tax Act (FUTA)

Answer 14

Employment tax requiring employees to help displaced workers, individuals from the workforce who find themselves unemployed and meet certain state or federal qualifications.

Question 15

Fair Labor Standards Act

Answer 15

1938. egulates minimum wage and stipulates the 40 hour work week. Sets minimum age of 16 in the workplace, although exceptions apply for family-run businesses and farms.Tipped employees are exempt from minimum wage standards.

Question 16

Minimum Wage

Answer 16

minimum hourly amount that may be paid to an employee.

Question 17

Living Wage

Answer 17

a wage that is sufficient to meet basis subsistence needs.

Question 18

Exempt workers..

Answer 18

..are not subject to the wage and overtime provisions of the FLSA.

Question 19

Diane B. Allen Equal Pay Act

Answer 19

Prevents pay differences based on traits protected under other civil rights law. Protects employees who discussed pay with other employees. New Jersey.

Question 20

Internet-based accounting

Answer 20

is a payroll processing option for companies that lack the resources to purchase a computer-based accounting system and desire the ease of access available in internet-based packages.

Question 21

Computer-based accounting

Answer 21

eliminates apparoximately 80% of payroll processing time and errors. Integration of payroll data with other company financial functions through ERP. Requies regular software updates to ensure accuracy.

Question 22

Manual Payroll Systems

Answer 22

Payroll employees relies on deduction percentages presented in pbulications from the IRS. Publication 15. Publication 15-T. Faces time constraints and updated tax tables. Uses Excel.

Question 23

Publication 15

Answer 23

Employer’s tax Guide.

Question 24

Publication 15-T

Answer 24

Federal Income Tax Witholding Methods.

Question 25

Equal Pay Act of 1963

Answer 25

mandates that males and females be paid equally for equal work.

Question 26

Lily Ledbetter Fair Pay Act of 2009

Answer 26

Removed 180-day statute of limitations on unequal treatment claims. Ledbetter's employer declined her raises based on negative reviws that Ledbetter claimed were discriminatory. US Supreme Court ruled in favor of Goodyear because of the lack of timeliness in the filing.

Question 27

Taxes and other liabilities..

Answer 27

..must be reported to governmental agencies in accordance with established deadlines.

Question 28

Employer Indentification Number

Answer 28

Number assigned to employers by the IRS for task reporting. Allows the IRS to know which companies may have employees, generating unemployment tax revenue for the government and creating tax liabilities for the employers.

Question 29

Form SS-4

Answer 29

Form a company files to obtain an EIN.

Question 30

Companies working with..

Answer 30

radio frequency time cards can allocate employee time accurately to company activities.

Question 31

Consolidated Omnibus Budget Reformation Act of 1985

Answer 31

Provided continuance of employee medical benefits after separation from the company.

Question 32

Immigration Reform and Control Act of 1986 (IRCA)

Answer 32

requires employers to verify that employees are legally able to work in the United States. Form 1-9 required and retention is three years from the date of hire of one year from the date of termination.

Question 33

Family and Medical Leave Act of 1993 (FMLA)

Answer 33

granted employees the right to ttask medical leave under reasonable circumstances without fear of jobs. May take unpaid leave, but medical benefits must continue.

Question 34

Personal Responsibility and Work Opportunity Reconcilation Act of 1996 (PRWOR)

Answer 34

mandated that employes file a new hire reporting form within 20 days after an employee initially commences work.Protects children and needy families by enforcing child support obligations.

Question 35

Right-work legislation

Answer 35

promotes and employee's right to opt out of union membership.

Question 36

Workers' Compensation

Answer 36

State laws govern workers' compensation laws. Mandatory insurance policy paid by employers that provides wage replacement and medical benefits to employees who are injured in the course of their employment.

Question 37

Professional Competence

Answer 37

Capability to perform professional duties with an agreed upon standard of quality.D

Question 38

Due Care

Answer 38

the caution that a reasonable person would exercise to avoid being charged with negligence. Must remain current with accounting practices and legal developments.

Question 39

Objectivity

Answer 39

accountant considers only facts relevant to the task at hand.

Question 40

Independence

Answer 40

to act professionally without external pressures that would cause a third party to question the integrity of actions and decisions.

Question 41

Privacy Act of 1974

Answer 41

about the use of information about private citizens.C

Question 42

Computer Fraud and Abuse Act

Answer 42

186. addresses cybercrime.

Question 43

Emplyoee Retirement Income Security Act of 1974 (ERISA)

Answer 43

protection for employees' retirement savings, preventing employers from using employee savings to satisfy business expenses. During 2007-2009, some meployee retirement funds' values decreased, causing employees to postpone retirement.

Question 44

Americans with Disabilities Act of 1990 (ADA)

Answer 44

protecting the antidiscrimniation right sof American workers with disabilities. Applies to employers with 15 or more employees on the payroll.

Question 45

Civil Rights Act of 1991

Answer 45

grante employees who have been discriminated against the chance to be paid monetary damages through legal proceedings.

Question 46

Social Security Act/Federal Insurance Contributions Act (FICA)

Answer 46

provided funding for social welfare benefits including Social Security and Medicare.

Question 47

Medicare

Answer 47

A government-mandated health insurance program individuals. Payroll tax mandated to be paid by all employees of a firm.

Question 48

Independent Contractors

Answer 48

are not company employees are are not reflected in payroll records. Form SS8 is used to determine employee or independent contractor status.

Question 49

Affordable Care Act (ACA)

Answer 49

Mandated health care coverage for all Americans regardless of employment status. Employers responsibility: disclosure and justifications for rates of plans and any increases in premius. Report # of full time equivalent employees, cost of insurance coverage and elimination of a waiting period for health insurance coverage.

Question 50

Tax Cuts and Jobs Act

Answer 50

Changed employee federal income tax liability and required a comprehensive reforming of employee income tax computations. Change to Social Security wage base, adjustments to nonresident alien withholidng, adjustments for inflation and decreases in supplemental wage withholding rates.

Question 51

Consolidated Approprirations Act of 2018

Answer 51

increased funding for the E-Verify program (internet-based system that offers employers instant verification of an employee's eligibility to work in the U.S.). Does NOT replace I-9.

Question 52

Coronavirus Aid, Relief and Economic Stimulus Act (CARES)

Answer 52

to provide economic relief for individuals and businesses. Included individual economic stimulus and encouragemenet for businsses to keep their employees. Tax credit of 50% of employees' wages (up to 10k in wages per employee) promoted employee retention.

Question 53

Taxpayer Certainty and Disaster Tax Relief Act (TCDRA)

Answer 53

Modifications to CARES. Extended employee retentions credit through 6/30/21. Amount per employees to $14,000

Question 54

Professionalism

Answer 54

transparency and public accountability of accounting records.

Question 55

Integrity

Answer 55

Possessing honesty and high moran principles.

Question 56

Copeland Anti-Kickback Act

Answer 56

prohibits a federal contractor or subcontractor from inducing an employee to forgo a portion of the wages guaranteed by the contract.

Question 57

Enterprise Coverage

Answer 57

Company must have a minimum of two employees, volume of sales performed annually must exceed $500,000. Hosptials, Schools, govt agencies, resident care.

Question 58

Individual Coverage

Answer 58

Firms that regularly conduct interstate business, such as companies that produce goods for shipment to a different state, have employees who travel to other states or otherwise conduct business with firms of people in other states.

Question 59

Certified Payroll

Answer 59

report mandated for certain federal government contracts that verifies the accuracy of labor expenses incurred during completion of contract-related activities.