BPA Payroll Accounting

What does OSHA stand for and what do they do?

Occupational Safety and Health Administration; enforces safety and health standards in the workplace.

What does FICA stand for?

Federal Insurance Contributions Act

What is the FICA tax?

A mandatory payroll deduction taken out of working adults' salaries to pay for older American's Social Security retirement and Medicare benefits.

How many times are you paid per year on a semimonthly pay period?

24

How many times are you paid per year on a biweekly pay period?

26

How many times are you paid per year on a weekly pay period?

52

How many times are you paid per year on a monthly pay period?

12

What is the overtime working rate?

1.5%

What does time-and-a-half refer to?

Being paid 1.5x the amount your normal salary

What is the rate for Medicare Tax?

1.45% on all wages

What is the rate for Social Security Tax?

6.2% on first $100,000

What is the rate for State Unemployment Tax?

5.4%(also depends on the state)

What is the rate for Federal Unemployment Tax?

0.8% ($7,000 ceiling)

What is gross pay?

The pay before taxes and other mandatory deductions are taken out

What is net pay?

The pay after taxes and other mandatory deductions are taken out

What is Medicare?

Federal health insurance for people over 65, with disabilities, or with illness. INCOME DOESN'T MATTER!

Employee Earnings Record

A record that details an employee's payroll history

941 Form

The Employer's Quarterly Federal Tax Form; form used by employers to report employment taxes, withholding amounts, deposit amounts, and amounts due to the IRS.

Payroll Register

A form that lists all employee payroll information over a specific payroll period, helps keep track of employee payroll information.

Payroll Ledger

An organization system that tracks all of a company's financial transactions, including expenses, assets, liabilities, revenues, and equity(think CD/ADE/LER(C-LER, D-ADE))

Payroll

The reimbursement that employees are given by their employers for their services

I9 Form

A form used for verifying the identity and employment authorization of individuals hired for employment in the United States

W-2 Form

The form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year; reports an employee's annual wages and the amount of taxes withheld from his or her paycheck.

W-4 Form

Otherwise known as the "Employee's Withholding Allowance Certificate" is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.

Salary

The money paid for employee services(Doesn't matter how many hours are put in, you are paid this amount no matter what)

Wages

The money paid for employee services based on hourly/daily work(It matters how much money is put in)

What is Medicaid?

A State and Federal program that provides health coverage if you have very low income

What are some required deductions from your payroll?

federal income tax, Medicare tax, Social Security tax, state tax

Employers must send out W-2 Forms by what date?

January 31

What status would have the highest amount of federal income tax withheld?

Single, 0 exemptions

How do you journalize the unemployment tax?

Debiting the unemployment tax(Expenses--ADE) and crediting the cash(Money coming out = negative money)

1040 Form

The form that individuals use to file their annual income tax returns.

When does the Fiscal Year start?

October 1

When does the Fiscal Year end?

September 30

How many regular hours do you work on a biweekly payroll?

80

What is the total rate of gross income for self-employment tax?

15.3%

FICA tax consists of what two things?

Social Security and Medicare