CPP Review Flashcards by Haley Fister

Time period for Child Support wages to be paid after employee’s payment.

Within 7 days

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What agency provides legal framework around Child Support?

Social Security Act

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Formula for calculating taxable sick pay?

EE’s Sick Pay * Employer Paid Premiums for 3 years / Total premium for 3 years

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Third Party Sick Pay Recap Form

Form 8922

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What is a Golden Parachute Payment?

Pmt when there is a change in ownership in the amount of at least 3x the employee’s average salary.

Excess Parachute Payment exceeds 5x salary.

Reports on W-2 Box K - Karat

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Qualified Adoption Assistance Expense

$16,810

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401K Deferral Limits

$23,000, or additional $7500 age 50+

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Foreign Earned Income Exclusion amount

$126,500

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Base Housing amount

$20,040 or 16% of foreign earned income exclusion

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Form used when an employee wants to be exempt from US Income Tax and Withholding

Form 8233

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Tax treaties are

designed to clarify each country’s taxing jurisdiction and to avoid double taxation of income

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FUTA Tax Credit Amount

5.4% applied to 6.0% (0.6%).
Maximum of $7,000 per employee

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Form 940

Annual Federal Unemployment Tax Return

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Form 944

Annual Federal Tax Return. Used in place of Form 941 for tax liability of less than $2500

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Form 945

Annual Return of Withheld Federal Income Tax (non payroll payments)

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Form 943

Annual Tax Return for Agricultural employers

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Form 1042

Annual Withholding Tax return for US Foreign persons. Due date of March 15

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Form 1042 Late Fees

$60 within 30 days of March 15
$130 if field by Aug 1
$330 if filed after Aug 1

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Covey’s principle-centered leadership traits

strive to nurture security, guidance, wisdom, and power.

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Balance sheet item order

Assets, Liability, Stockholder Equity

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Semi Weekly Tax Deposit Schedule

Saturday - Tuesday: Friday
Wendesday - Friday: Wednesday

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ADP Nondiscrimination Highly compensated employee

More than $155k in previous year.
Top paid 20% in previous year, or 5% owners of stock

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Statutory non-employee

“RED” real estate and direct seller

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Non-Discretionary Bonus

Agreed upon bonus - included in RROP

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HSA Catch Up Contribution Age

FSLA Exempt employees are exempt from

overtime and minimum wage

What type of account is a checking account?

Asset Account (debit)

Maximum 401K Contribution holding period

15th BUSINESS day following the month the deferral occured

Taxation of military personnel on temporary assignments

subject to all payroll taxes

Taxation of military personnel on active duty or indefinite assignments

Subject to FIT only

4 Communication Styles

Assertive, Expressive, Introspective, and Supportive

Allocated Tips are in Box

Box 8

Nonqualified Plan distributions are in Box

Box 11

Employer's payment date with a FUTA tax liability of less than $500

Can carry over the balance to the next quarter

How to calculate company's equity?

Assets - Liabilities

Railroad employees are subject to report what kind of tax?

Federal income Tax. They are under a separate FICA and FUTA tax system.

Incentive Stock Option Taxation

if stock is sold before holding period ends, difference between exercised price and option price is reported under gross federal wages

Nonqualified Stock Option taxation

income is report at time of exercise in box 1, 3, and 5.

Accounting Flow

Transaction > Journal > Ledger > Financial Statement

What is Working Capital?

Work Capital = Current Assets - Current Liabilities

W-2 Late Fees

By March 2, $60.00 By Aug 1, $120.00 After Aug 1, $330.00

4 Components that must be kept in an Employee Master File?

1. Employee Personal Data 2. Employment Date 3. Tax and Payroll Data 4. Pay Period and Calendar Year data

Four Steps to take after a data breach

1. Contain 2. Assess 3. Notify 4. Review

Employment Tax Late Deposit penalties

2% of late amount if corrected within 5 days. If 98% of deposit was made timely, it falls under the Sage Habor Shortfall Rule

IRS penalty for understatement of tax deposits. Fraud vs. Mistake

1. Mistake 20% of underpayment 2. Fraud 75% of underpayment

FSA Carry Over Provisions (2)

$610 of unused funds can be carried over to the next benefit year. OR a 2.5 month Grace Period can be provided to use remaining funds.

Name, Address, Occupation, Wages and Hours worked are kept for _ years under the _?

3 years under FSLA

Under the concentration test, a cafeteria plan is not discriminatory if benefits provided to key employees do not exceed

25%

A cafeteria plan can be funded by:

1. Flex dollars or credits 2. After tax employee contributions 3. Salary Reduction

Principle Centered Leadership is

Treat people the way you want to be treated.

Statutory Employee Taxation

Exempt from FIT, FICA, and FUTA

Assertive Communication Style

Prefer facts and detailed advance planning.

Introspective Communication Style

Prefer points to be arranged in logical sequences and show interest in cost/benefit analysis.

Planning and Organization management skills include:

1. Defining goals/objectives/time frame 2. Analyzing available resources 3. Evaluating Costs

Staffing management skills include:

1. training 2. delegating 3. hiring

Controlling management skills include:

1. controlling performance by using motivations

5 Employee Motivation types

1. money 2. acheievement 3. leadership 4. affiliation 5. recognition

Supporting Management Style

low task/high relationship little control from manager with a great deal of trust and support

Coaching Management Style

high task/high relationship manager controls the job and procedures. Relies on personal communication with employees.

Delegating Management Style

low task/low relationship most jobs are delegated to staff with little personal contact with manager.

Directing Management Style

high task/low relationship manager seeks to control staff and direct performance but gives little feedback or guidance.

Project Management Steps

1. Intiation 2. Planning and Design 3. Executing 4. Monitoring and Controlling 5. Closing

Length of Service Award Exempt Amount

Up to $400.00

Five Payroll Professional Interpersonal Skills

1. Motivational 2. Leadership 3. Team Building 4. Problem Solving 5. Cultural Awareness

Formula to calculate net income

total revenue - costs - depreciation

Kotter characterized leadership as:

Direction, Alignment, Motivation, and Change.

Both Federal and State governments have laws for (3):

1. minimum wage 2. overtime 3. exempt status

To avoid inclusion of income from non-qualified plan distributions, participants can defer:

1. After separation of service ( 6 months for key employees) 2. If employee becomes disabled resulting in death or over 12 months. 3. Death 4. After the time specified before the deferral election was made 5. Change in organization control 6. When there is an unforeseen emergency