Exam (elaborations)
Test bank For Intro to Payroll 7th Edition by Alan Dryden
- Module
- Institution
Test bank For Intro to Payroll 7th Edition by Alan Dryden
[Show more]
1 review
By: briannablackburn • 1 week ago
By: AllLegitExams • 1 week ago
Thank you for the Review, wishing you very success in your studies. You are always welcome to my page any time you need any academic material.
Seller
Follow
AllLegitExams
Reviews received
Content preview
Test bank For Intro to Payroll 7thEdition by Alan Dryden
What two forms do new hires fill out? - ANSI-9 and W-4
Federal taxes - ANSAll employees working in the US must pay federal income and employment
taxes on their wages.
State tax - ANSDepending on the state where the employee works they may also have to pay
state income taxes.
How do Federal and State taxes get paid? - ANSThe employers withhold the tax from the
wages and send the money directly to federal, state and local governments.
What are employment taxes? - ANSSocial security and Medicare taxes. AKA FICA taxes
(federal insurance contributions act).
Social security wages - ANSAre recorded in the employees individual social security account.
The money employees have earned will be used to determine their social security benefits when
they retire or become disabled.
Medicare - ANSMedicare taxes provide employees with basic health insurance once they reach
65, or earlier if they become disabled.
Three major categories of benefits paid through social security. - ANSRetirement, disability and
survivors.
Self employed social security. - ANSIndividuals pay their own social security taxes when they
file their income tax return and IRS reports their earnings to SSA.
Unemployment Insurance Tax - ANSEmployees who lose their job may be eligible for
unemployment benefits.
Who pays into unemployment tax - ANSThe federal tax is not withheld from the employees
wages. It is paid 100% by employer. Most states only the employer is responsible for paying.
Disability Insurance tax - ANSExists in 5 states. California, Hawaii, New Jersey, New York, and
Rhode Island).
Who pays into disability tax - ANSBoth employees and employers.
, Employee benefits - ANSEmployers are not required to provide benefit plans, but most do to
attract and retain good employees.
What is a TIN - ANSTaxpayer identification identification number that is provided by and
independent contractor. The company has no responsibility to withhold taxes from payments.
Employers obligation for independent contractors - ANSGive the contractor a completed form
1099-NEC (no employee compensation) when paying the contractor $600 or more during the
calendar year at the end of the year.
Form 1099 NEC - ANSStates how much the contractor was paid for services rendered during
the past calendar year. A copy must also be sent to the IRS.
Common law test - ANSA worker is a common law employee if the employer has the right to
control what work will be done and how it will be done. If an individual is subject to the control of
the company only as to what results are to be accomplished and not as to the details by which
those results are accomplished the Individual is not an employee.
Employee - ANS1. Required to comply with the employers instructions about when, where and
how to work.
2. Works exclusively for the employer.
3. Hired by the employer.
4. Subject to dismissal; can quit without liability.
5. Has a continuing relationship with the employer.
6. Work done personally.
7. Paid wages; reimbursed for expenses; participated in company's fringe benefits programs.
8. Furnished tools, equipment, materials, and training.
9. If an outside salesperson: company provides leads; sets terms and conditions of the sale,
assigns a territory, and controls the sales process.
Independent contractor - ANS1. Sets own hours; determines own sequence of work.
2. Can work for multiple employers; services available to the public.
3. Is self employed.
4. A contract governs how the relationship can be served.
5. Works by the job.
6. Permitted to employ assistants.
7. Performs services under the workers business name.
8. Payment by the job; opportunity for profit and loss.
9. Furnishes own tools, equipment, and training substantial investment by worker.
10. Controls the sales process and terms.
Three categories the IRS must consider when applying the common law test. - ANS1. Behavior
control
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AllLegitExams. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.54. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now