Ch 11 - Payroll Reporting Topics

Question 1

When is an employer required to use EFTPS for tax deposits?

Answer 1

If annual federal tax deposits are more than $200K

Question 2

What is the penalty if an employer who is required to submit tax deposits by EFTPS does not submit by this method?

Answer 2

subject to 10% penalty

Question 3

what decides the frequency of federal tax deposits?

Answer 3

amount of tax liability compared to liability threshhold in lookback period

Question 4

What is the lookback period?

Answer 4

four-quarter period ending on June 30 of preceding year

Question 5

What is the frequency of federal tax deposits when amount owed is less than liability threshold?

Answer 5

due quarterly with payroll tax return, form 941

Question 6

What is frequency of federal tax deposits when amount owed is more than liability threshold? (2)

Answer 6

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

Question 7

When are payments due for employers on the monthly federal tax deposit schedule?

Answer 7

15th day of following month

Question 8

When are payments due for employers on the semiweekly payment schedule for federal tax deposits?

Answer 8

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

Question 9

What is the payment schedule for an employer with no lookback period, and amount owed is $25K or more?

Answer 9

Monthly Deposit Schedule rule

Question 10

What is the payment schedule for employers with an accumulated tax liability of $100K or more on any day?

Answer 10

Deposit is due next banking day, even if already on monthly or semeweekly deposit schedul

Question 11

What is the entry to record employer’s share of social security and Medicare taxes at end of each pay period? (3)

Answer 11

1. debit payroll taxes expense

2. credit soc sec payable, medicare payable

Question 12

What is the entry to record the payment of payroll taxes? (4)

Answer 12

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

Question 13

what are the monthly payroll accounting tasks? (3)

Answer 13

1. individual earnings records updated
2. taxes prepared and deposited via EFTPS or Form 8109
3. tax deposit recorded in cash payments journal

Question 14

What are quarterly payroll accounting tasks? (3)

Answer 14

1. total individual earnings records
2. Quarterly Summary of Earnings Records
3. Quarterly Federal Tax Return

Question 15

Where can exceptions to the requirement to filing the Employer Quarterly Federal Tax Return, 941?

Answer 15

Publication 15, Circular E

Question 16

What information is found on the Employer Quarterly Federal Tax Return, Form 941? (3)

Answer 16

1. employee earnings
2. tax liability for each month in quarter
3. deposits made

Question 17

What programs are administrated by the Social Security Administration? (3)

Answer 17

1. Old Age and Survivors Program
2. Disability Insurance Program
3. Supplemental Security Income program

Question 18

When is Employer Quarterly Federal Tax Return, Form 941 due? (2)

Answer 18

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

Question 19

If an employee quits in the middle of the year, when can they receive their W-2?

Answer 19

within 30 days after request or after final wage payment, whichever is later

Question 20

When are employers required to file W-2’s electronically?

Answer 20

If they issue 250 or more W-2’s

Question 21

How many copies of each W-2 are prepared, and who are distributed to? (5)

Answer 21

1. 4 copies
2. 1 to employer to send to SSA
3. 1 to employee for fed tax return
4. one for employee’s records
5. one for employer’s records