1
Q
8821
A
Tax Information Authorization
2
Q
8922
A
Third-Party Sick Pay Recap
3
Q
15397
A
Application for Extension of Time to Furnish Recipient Statements (30 day extension)
4
Q
1094-B
A
Transmittal of Health Coverage Information Returns
5
Q
1094-C
A
Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
6
Q
1095-B
A
Health Coverage
7
Q
1095-C
A
Employer-Provided Health Insurance Offer and Coverage
8
Q
1095-C Due Date
A
February 28 to IRS by paper, March 3 to EEs, March 31 to IRS electronically
9
Q
401K Max catch up 60-63
A
$11,250
$81,250 total max
10
Q
401K Max catch up over 50
A
$7,500
$77,500 total max
11
Q
401K Max contribution
A
$23,500
$70,000 total Max
12
Q
401k Toral Contributions
Under 50
50+
60-63
A
Under 50 = $70k
50+ = $77,500
60-63 = $81,250
13
Q
940 Due Date
A
January 31
14
Q
941 (Schd.D)
A
Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations
15
Q
941 (Schd.R)
A
Allocation Schedule for Aggregate Form 941 Filers
16
Q
941 (Schedule
B)
A
Report of Tax Liability for Semiweekly Schedule Depositors
17
Q
941 Due Date
A
April 30, July 31, October 31, January 31.
10 day extensions for each quarter
18
Q
941-X
A
Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund
19
Q
943-X
A
Adjusted Employer’s Annual Federal Tax Return for Agricultural Employees or Claim for Refund
20
Q
944 Due Date
A
January 31
21
Q
944-X
A
Adjusted Employer’s Annual Federal Tax Return or Claim for Refund
22
Q
945-X
A
Adjusted Annual Return of Withheld Federal Income Tax or Claim for Refund
23
Q
A/P to creditor
Asset, liability, expense
A
Liability
24
Q
Accounting flow
A
TJLF
Transaction
Journal
Ledger
Financial statement
25
ACH flow
Initiation > ODFI > ACH Network > RDFI > Employee
26
Actual Deferral Percentage (ADP) test for 401(k)
The HCE average deferral cannot exceed the NHCE average deferral by more than 2%
27
Adoption Assistance Limit
$17,280 per eligible child
Modified AGI over $299,190 not eligible
28
Annual Lease Value (ALV) Method:
The IRS determines an annual lease value based on the vehicle's fair market value (FMV). This value is multiplied by the percentage of miles driven for personal use.
29
Any asset or expense
Normal balance?
How does it increase?
How does it decrease?
Normal balance: debit
Increases with a debit
Decreases with a credit
30
Any liability or revenue account
Normal balance?
How does it increase?
How does it decrease?
Normal balance: credit
Increases with a credit
Decreases with a debit
31
Applicable Large Employer (ALE)
business or organization that employed an average of at least 50 full-time employees (including full-time equivalents) during the preceding calendar year.
32
Balance sheet formula
Assets = liability + owner's equity
33
Box 12 Code A
Uncollected SS on tips
"Appetizer" "Absent Tips"
34
Box 12 Code AA
Designated Roth contributions to a 401(k) plan
"After All taxes"
35
Box 12 Code B
Uncollected Medicare tax on tips
"Beverage" "Busboys need tips too"
36
Box 12 Code BB
Designated Roth contributions to a 403(b) plan
"Book Bucks" Education
37
Box 12 Code C
Taxable Cost of GTL over $50k
"Casket" "Corpse" "Coffin"
38
Box 12 Code D
Elective deferrals under 401(k)
"Deferral" "can retire and go to Disneyland"
39
Box 12 Code DD
Cost of Employer sponsored health coverage
"Doctors Dollars"
40
Box 12 Code E
Elective deferrals under 403(b) contributions - salary reduction agreement. Can be purchased by public schools and tax exempt charitable, religious and educational organizations. Catch-up Contributions.
"Education or Elect a school President"
41
Box 12 Code EE
Designated Roth contributions under a government 457(b) plan
"Elected Executives"
42
Box 12 Code F
Section 408(k)(6) Salary reduction Simplified Employee Pension (SEP) plan
"Fall" SEPtember in in the Fall
"Frank gets a pension"
43
Box 12 Code FF
Qualified small employer health reimbursement agreement
"Free Funds HRA"
44
Box 12 Code G
457(b) Deferred compensation plan for government employees or tax exempt organizations
"Government"
45
Box 12 Code GG
Qualified equity grants under 83 (i)
"Great Grant"
46
Box 12 Code H
501(c) Deferrals to a tax exempt organization plan - pension plans created before 1959
"Happy Days"
47
Box 12 Code HH
Aggregate deferrals under Sec 83(i)
"Held Holdings"
48
Box 12 Code I
Not used at this time
49
Box 12 Code II
Medicare waiver payments excluded from income
"Ignored Income Medicaid"
50
Box 12 Code J
Non-taxable Sick pay - 3rd party sick pay payments
"Job Sick Pay" "Jammies"
51
Box 12 Code K
20% excise tax on excess Golden parachute payments
"20 Karat"
52
Box 12 Code L
Substantiated EE business expense reimbursements (non-taxable)
"logged expenses" "buying Lots of supplies" "Lexus, lincoln" (non-taxable use of cars)
53
Box 12 Code M
Uncollected SS or taxable cost of GTL over $50k
"Missed SS tax"
54
Box 12 Code N
Uncollected Medicare tax on taxable cost of GTL over $50k
"No medicare tax"
55
Box 12 Code P
Qualified Moving expenses paid to active military members
Excludable from income
"Packing" "Pack & Move"
56
Box 12 Code Q
Non-taxable combat pay for military employers
"Quarrel"
57
Box 12 Code R
ER contributions to Archer Medical Savings Account
"Robin Hood" "aRcher"
58
Box 12 Code S
Deferred 408 (p) SIMPLE Retirement plan
"Simple"
59
Box 12 Code T
Adoption Assistance
"Toddlers or Teens"
60
Box 12 Code V
Income from exercise of non statutory stock options
"Vested, Value"
61
Box 12 Code W
EE+ER Health Savings Account contributions
"in case I need a Walker" "Wellness"
62
Box 12 Code Y
Deferrals under a Section 409(a) nonqualified deferred plan- earnings on current and prior year deferrals
"Yet to pay 409A"
IRS has currently suspended this
63
Box 12 Code Z
Section 409(a) - Income on 409A nonqualified deferred compensation plan
64
Box 12 Codes NOT Used
I, O, U, X
"I Owe You Xnothing"
65
Cash
Asset, liability, expense
Asset
66
Cents-per-mile Rule:
For 2025, this method uses a rate of 70 cents per mile for all personal miles driven. This method can only be used if the vehicle is regularly used in business or driven at least 10,000 miles per year.
ER provided fuel is 5.5 centers per mile
67
Child Labor Records Retention
3 years
68
Child Support Max - no arrears, no second family
0.6
69
Child Support Max - no arrears, yes second family
0.5
70
Child Support Max - yes arrears, no second family
0.65
71
Child Support Max - yes arrears, yes second family
0.55
72
COBRA Durations of Coverage
18 months - job loss, reduction in hours
29 months - disability
36 months - family events
73
Commuting Rule:
This method applies a flat fee of $1.50 per one-way commute ($3.00 round trip). It requires a written policy restricting personal use to commuting only.
74
Commuting Valuation Rate
$1.50 ($3 roundtrip)
75
Computer Professional Wage
27.63
76
Contributions owed to a company Benefit Plan
Asset, liability, expense
Liability
77
Delivery equipment
Asset, liability, or expense
Asset
78
Dependent Care Limit
$5k Single
$2,500 married filing separately
79
Education Assistance Limit
5250
80
EEO-1
Employer Information Report
81
EEO-1 Reports Retention
1 year
82
EEOC Personnel Files Record Retention
1 year after termination
83
Employer paid benefit costs
Asset, liability, or expense
Expense
84
Employers share of payroll taxes
Asset, liability, expense
Expense
85
ER Shared Responsibility Penalty
No Coverage: $2,970 x number of FTE less first 30
Coverage Not Affordable: $4,460 per EE receiving premium tax credit
86
ERISA Benefits Records Retention
6 years
87
Exempt Employees
(acronym)
CAPES
Computer Professionals
Administrative
Professional
Executives
Sales Persons
88
Failure to deposit taxes on time
2% if deposited within 5 days of the due date
5% if deposited within 6-15 days of the due date
10% if deposited more than 15 days after the due date
15% if not paid within 10 days of IRS delinquency Notice
10% if not deposited correctly
89
Failure to file and pay taxes
The failure to file penalty is decreased by 0.5% of the unpaid tax
90
Failure to file W-2 or 1099s (or provide to employees)
2024 forms, filed in 2025:
$60 per return if corrected within 30 days of the due date. Max penalties $664,500 ($232,500 for small businesses).
$130 per return if more than 30 days after the due date, but before August 1 if the same year as due. Max penalties of $1,993,500 ($664,500 for small businesses).
$330 per return if not corrected by August 1. Max penalties of $3,987,000 ($1,329,000 for small businesses).
[$340 for 2025 returns due in 2026]
For timely filed returns, that are incorrect or incomplete, no penalty for up to 10 returns or 0.5% of total returns filed for the year, corrected before 8/1- whichever is greater.
91
Failure to file/Late Returns penalty
5% of tax shown on the return, reduced by any timely deposits, for each month (or fraction of month) that the return is late. Up to a 25% maximum. Increases to 15% with a 75% max, if late filing is fraudulent.
92
Failure to pay taxes penalty
0.5% of any unpaid tax each month (or fraction of month) the payment is late, based on the return due date. 25% maximum penalty.
0.5% additional per month for unpaid tax not shown on the return, but that the IRS has issues a notice for, if paid within 21 calendar days. If amount owed is $100k or more, the timeframe for payment decreases to 10 business days. 25% max penalty.
93
Financial statements
Balance sheet - shows financial position
Income statement - shows profitability
Cash flow statement - source of Revenue and destination of expenses
Statement of shareholders Equity - shows total Capital belonging to the owners. Retained earnings
94
Five steps in project management:
initiate (define the challenge)
plan (determine how to resolve the challenge)
execute (complete the task)
control (monitor the plan)
close (finish)
95
FLSA Governs
(acronym)
MOE CPR
Minimum Wage
Overtime
Equal Pay for Equal Work
Child Labor Restrictions
Public Service Contracts
Recordkeeping
96
FMLA Records Retention
3 years
97
For employers with automated payroll systems?
Worksheet 1A.
Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems
98
For manual payroll systems using 2020 or later Forms W-4. Percentage Method
Worksheet 4.
Employer’s Withholding Worksheet for Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
99
For manual payroll systems using 2020 or later Forms W-4. Wage Bracket
Worksheet 2.
Employer’s Withholding Worksheet for Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2020 or Later
100
For manual payroll systems using pre-2020 Forms W-4. Percentage Method
Worksheet 5.
Employer’s Withholding Worksheet for Percentage Method Tables for Manual Payroll Systems With Forms W-4 From 2019 or Earlier
101
For manual payroll systems using pre-2020 Forms W-4. Wage Bracket
Worksheet 3.
Employer’s Withholding Worksheet for Wage Bracket Method Tables for Manual Payroll Systems With Forms W-4 From 2019 or Earlier
102
For purposes of this nondiscrimination test, highly compensated employees include:
The five highest-paid officers
An owner of more than 10% of the employer’s stock
The top-paid 25% of employees
103
Foreign Earned Income & Housing Cost Exclusions
US Residents who qualify can exclude the first $130,000 (2025 limit) of foreign earned income from their gross income
104
Foreign Earned Income Exclusion Limit
130000
105
Form 1040A
U.S. Individual Income Tax Return
106
Form 1040-ES
Estimated Tax for Individuals
107
Form 1040EZ
Income Tax Return for Single and Joint Filers With No Dependents
108
Form 1040X
Amended U.S. Individual Income Tax Return
109
Form 1041
U.S. Income Tax Return for Estates and Trusts
110
Form 1041-ES
Estimated Income Tax for Estates and Trusts
111
Form 1042
AnnualWithholdingTax Return for U.S.Source Income of Foreign
Persons
112
Form 1042-S
Foreign Person's U.S. Source Income Subject to Withholding
113
Form 1042-T
Annual Summary and Transmittal of Forms 1042-S
114
Form 1095-A
Health Insurance Marketplace Statement
115
Form 1096
Annual Summary and Transmittal of U.S. Information Returns
116
Form 1098-E
Student Loan Interest Statement
117
Form 1099-B
Proceeds from Broker and Barter Exchange Transactions
118
Form 1099-C
Cancellation of Debt
119
Form 1099-DIV
Dividends and Distributions
120
Form 1099-G
Certain Government Payments
121
Form 1099-INT
Interest Income
122
Form 1099-K
Merchant Card and Third-Party Network Payments
123
Form 1099-LTC
Long-Term Care and Accelerated Death Benefits
124
Form 1099-MISC
Miscellaneous Income
125
Form 1099-NEC
Non-employee Compensation, when paying the contractor $600 or more during the calendar year stating how much the contractor was paid for services rendered
126
Form 1099-OID
Original Issue Discount
127
Form 1099-Q
Payments From Qualified Education Programs (Under Sections
529 and 530)
128
Form 1099-R
Distributions From Pensions, Annuities, Retirement or Prof-
it-Sharing Plans, IRAs, Insurance Contracts, Etc
129
Form 1099-S
Proceeds From Real Estate Transactions
130
Form 1099-SA
Distributions From an HSA,Archer MSA, or Medicare Advantage
MSA
131
Form 14039
Identity Theft Affidavit
132
Form 2032
Contract Coverage Under Title II of the Social Security Act
133
Form 2159
Payroll Deduction Agreement
134
Form 2555
Foreign Earned Income
135
Form 2555-EZ
Foreign Earned Income Exclusion
136
Form 2678
EmployerlPayer Appointment of Agent
137
Form 2848
Power of Attorney and Declaration of Representative
138
Form 3903
Moving Expenses
139
Form 4070
Employee's Report of Tips to Employer
140
Form 4419
Application for Filing Information Returns Electronically
141
Form 4797
Sales of Business Property
142
Form 4852
Substitute for Form W-2, Wage and Tax Statement, or Form
1099R, Distributions From Pensions, Annuities, Retirement or
Profit-Sharing Plans, IRA's Insurance Contracts, Etc.
143
Form 4868
Application for Automatic Extension ofTime to File U.S.Individual
Income Tax Return
144
Form 5329
Additional Taxes on Qualified Plans (including IRAs) and Other
Tax-Favored Accounts
145
Form 5405
First-Time Homebuyer Credit and Repayment of the Credit
146
Form 5498
IRA Contribution Information
147
Form 5498-ESA
Coverdell ESA Contribution Information
148
Form 5498-SA
HSA, Archer MSA, or Medicare Advantage MSA Information
149
Form 5695
Residential Energy Credits
150
Form 6251
Alternative Minimum Tax - Individuals
151
Form 668-D
Release of Levy
152
Form 668-W
Notice of Levy on Wages, Salary, and Other Income
153
Form 673
Statement for Claiming Exemption From Withholding on Foreign
Earned Income Eligible for the Exclusion(s) Provided by Section
911
154
Form 7004
Application for Automatic 6-Month Extension of Time to File Cer-
tain Business Income Tax, Information, and Other Returns
155
Form 8027
Employer's Annual Information Return ofTip Income and Allocat-
ed Tips
156
Form 8027-T
TransmittalofEmployer'sAnnualInformationReturnofTipIncome
and Allocated Tips
157
Form 8109-B
Federal Tax Deposit Coupon
158
Form 8233
Exemption From Withholding on Compensation for Independent
(and Certain Dependent) Personal Services of a Nonresident
Alien Individual
159
Form 8332
Release / Revocation of Release of Claim to Exemption for Child
by Custodial Parent
160
Form 843
Claim for Refund and Request for Abatement
161
Form 8508
Request for Waiver From Filing Information Returns Electronical-
ly/Magnetically
162
Form 8606
Nondeductible IRAs
163
Form 8615
Tax for Certain Children Who Have Investment Income of More
Than $1,900
164
Form 8655
Reporting Agent Authorization
165
Form 8802
Application for United States Residency Certification
166
Form 8809
Application for Extension of Time to File Information Returns (30 day extension)
167
Form 8812
Child Tax Credit
168
Form 8814
Parents' Election To Report Child's Interest and Dividends
169
Form 8815
Exclusion of Interest From Series EE and I U.S. Savings Bonds
Issued After 1989 (For Filers With Qualified Higher Education
Expenses)
170
Form 8818
Optional Form To Record Redemption of Series EE and I U.S.
Savings Bonds Issued After 1989 (For Individuals With Qualified
Higher Education Expenses)
171
Form 8822
Change of Address
172
Form 8829
Expenses for Business Use of Your Home
173
Form 8839
Qualified Adoption Expenses
174
Form 8846
Credit for Employer Social Security and Medicare Taxes Paid on
Certain Employee Tips
175
Form 8853
Archer MSAs and Long-Term Care Insurance Contracts
176
Form 8857
Request for Innocent Spouse Relief
177
Form 8880
Credit for Qualified Retirement Savings Contributions
178
Form 8888
Allocation of Refund (Including Savings Bond Purchases)
179
Form 8917
Tuition and Fees Deduction
180
Form 8919
Uncollected Social Security and Medicare Tax on Wages
181
Form 8938
Statement of Specified Foreign Financial Assets
182
Form 8962
Premium Tax Credit (PTC)
183
Form 8965
Health Coverage Exemptions
184
Form 940
Employer's Annual Federal Unemployment (FUTA) Tax Return
185
Form 941
Employer’s Quarterly Federal Tax Return
186
Form 943
Employer's Annual FederalTax Return for Agricultural Employees
187
Form 943-A
Agricultural Employer's Record of Federal Tax Liability
188
Form 944
Employer's ANNUAL Federal Tax Return
189
Form 945
Annual Return of Withheld Federal Income Tax
190
Form 945-A
Annual Record of Federal Tax Liability
191
Form 9465
Installment Agreement Request
192
Form 94l
Employer's QUARTERLY Federal Tax Return
193
Form 94lc
Supporting Statement to Correct Information
194
Form 94l-M
Employer's Monthly Federal Tax Return
195
Form 9779
Business Enrollment Form for EFTPS
196
Form I-9
Employment Eligibility Verification
197
Form SS-4
Application for Employer Identification Number
198
Form SS-5
Application for a Social Security Card
199
Form SS-8
Determination of Worker Status for Purposes of Federal Employ-
ment Taxes and Income Tax Withholding
200
Form SSA 131
Employer Report of Special Wage Payments
201
Form SSA 1945
Statement ConcerningYour Employment in a Job Not Covered by
Social Security
202
Form W-2
Wage and Tax Statement
203
Form W-2c
Corrected Wage and Tax Statement
204
Form W-3
Transmittal of Wage and Tax Statements
205
Form W-3c
Transmittal of Corrected Wage and Tax Statements
206
Form W-4
Employee's Withholding Allowance Certificate
207
Form W-4P
Withholding Certificate for Pension or Annuity Payments
208
Form W-4S
Request for Federal Income Tax Withholding From Sick Pay
209
Form W-5
Earned Income Credit Advance Payment Certificate
210
Form W-7
Application for IRS Individual Taxpayer Identification Number
211
Form W-8BEN
Certificate of Foreign Status of Beneficial Owner for United States
Tax Withholding
212
Form W-9
Request for Taxpayer Identification Number and Certification
213
FSA contribution limit
3300
214
Full Time employee under ACA
at least 30 hours per week or 130 hours per month
215
FUTA Rate
6%
May get credit for up to 5.4%
Federal Unemployment Tax Act
216
FUTA Taxes Payable
Asset, liability, or expense
Liability
217
Garnishment Priority Order
1) Child support/alimony - only if received first, then it's after
2) Federal tax levies
3) State/local tax levies
4) Student loans
5) Commercial/creditor garnishments
218
Gross Up Formula
Desired Net Pay / (100% - Total % of all taxes)G
219
GTL Insurance Rate
50000
220
GTL Monthly Imputed Income Formula
[(Total Coverage - $50k) / 1,000] x IRS Table Rate - EE contributions
221
Highly compensated employee limit
160000
222
Hours Worked Retention
3 years
223
How do you decrease A/P?
Debit
224
How do you decrease accounts receivable?
Credit
225
How do you decrease capital?
Debit
226
How do you decrease cash?
Credit
227
How do you decrease miscellaneous expenses?
Credit
228
How do you decrease owner's drawing account?
Credit
229
How do you decrease prepaid insurance?
Credit
230
How do you decrease rent expense?
Credit
231
How do you decrease revenue?
Debit
232
How do you decrease supplies?
Credit
233
How do you increase accounts payable?
Credit
234
How do you increase accounts receivable?
Debit
235
How do you increase capital?
Credit
236
How do you increase cash?
Debit
237
How do you increase miscellaneous expenses?
Debit
238
How do you increase owner's drawing account?
Debit
239
How do you increase prepaid insurance?
Debit
240
How do you increase rent expense account?
Debit
241
How do you increase Revenue?
Credit
242
How do you increase supplies?
Debit
243
How many years should employers keep Copy D of Forms W‑2?
at least four years.
244
HSA family limit and with catch up
$8,550 with catch up $9,550
245
HSA single limit and with catch up
$4,300 with catch up $5,300
246
I-9 Retention
For the later of three years after the date of hire or one
year after the date of termination.
247
Income statement formula
Revenue - expenses = net income or loss
248
ISO Exercise Taxation
No tax implications under the regular federal tax system, but the spread is income for the alternative minimum tax (AMT) calculation.
249
ISO Grant Taxation
No tax
250
ISO Sale Taxation
When you sell the company stock, the gain or loss is taxed as a short or long-term capital gain or loss depending on how long you held the shares after the exercise date
251
ISO Vesting Taxation
No tax
252
Length of Service Awards
For Non-Cash Awards:
The total value of awards received by an employee in a year does not exceed $1,600 under a qualified plan.
For non-qualified plans, the limit is $400 for all awards received in a year.
253
Loan payable to bank
Asset, liability, expense
Liability
254
Lock-In Letter Effective Date
At least 45 days after the day of the letter
255
Lock-In letter employee challenge
Provide a new W-4 and written statement directly to the irs.
At least 45 days, generally 60
256
Lock-In Letter notice to employee
Within 10 business days of receipt if still employed
257
Maintenance for computers
Asset, liability, expense
Expense
258
Max annual compensation for retirement plans
350000
259
Medicare Rate
1.45%
additional .9% over $200k
No wage limit
260
Mortgage payable to bank
Asset, liability, or expense
Liability
261
Moving Mileage Rate
.21 cents
262
Notice 972CG
Notice of Proposed Civil Penalty
263
NQSO Exercise Taxation
Spread between exercise price and current value is taxable at ordinary income for income tax. Payroll taxes also apply.
264
NQSO Grant Taxation
No tax
265
NQSO Sale Taxation
Gain or loss is taxed as a short or long-term capital gain or loss depending on how long you held the shares after the date of exercise
266
NQSO Vesting Taxation
No tax
267
Office furniture
Asset, liability, expense
Asset
268
Office supply costs
Asset, liability, expense
Expense
269
Opportunity Wage
(EE under 20, 1st 90 days)
4.25
270
OSHA Logs Records Retention
5 years
271
OT Premium
(RROP x 0.50) x OT Hours
272
OT Rate
RROP x 0.50
273
Payroll Records Retention
3 years
274
Per Diem High Low Rates
High-low method uses fixed rates: $225 for CONUS cities and $319 for high-cost localities.
275
Petty cash
Asset, liability, expense
Asset
276
Piecework OT Rate
(Total Piecework Earnings / Total Hours Worked) x 0.50
277
Piecework Rate Formula
Gross Pay = Number of Units Produced x Rate Per Unit
278
Qualified Parking Limit
325
279
RROP Formula
Total Weekly Compensation / Total Hous Worked
280
Schedule A (Form 1040)
Itemized Deductions
281
Schedule A (Form 940)
Multi-State Employer and Credit Reduction Information
282
Schedule B (Form 1040A or 1040)
Interest and Ordinary Dividends
283
Schedule B (Form 94l)
Report of Tax Liability for Semiweekly Schedule Depositors
284
Schedule C (Form 1040)
Profit or Loss from Business (Sole Proprietorship)
285
Schedule D (Form 1040)
Capital Gains and Losses
286
Schedule D (Form 94l)
Report of Discrepancies Caused by Acquisitions, Statutory Merg-
ers, or Consolidations
287
Schedule E (Form 1040)
SupplementalIncomeandLoss(Fromrentalrealestate,royalties,
partnerships, S corporations, estates, trusts, REMICs, etc.)
288
Schedule H (Form 1040)
Household Employment Taxes (For Social Security, Medicare,
Withheld Income, and Federal Unemployment (FUTA) Taxes)
289
Schedule K-1 (Form 1041)
Beneficiary's Share of Income, Deductions, Credits, etc.
290
Schedule R (Form 940)
Allocation Schedule for Aggregate Form 940 Filers
291
Schedule SE (Form 1040)
Self-Employment Tax
292
SF-329B
United States Government Wage Garnishment Order
293
Short Term Disability EE and ER Funded
Only ER portion taxable
EE out for 10 months, receives $2k a month. ER contributed $28k, EE contributed $12k in a post-tax payroll deduction.
$28k ER + $12k EE = $40,000 total premium
$28,000/$40,000 = .7 (70%)
$2k monthly x 70% = $1400 taxable benefit each month
294
Short Term Disability tax after 6 months
Not subject to FIT
Yes to FICA and FUTA
295
Short Term Disability tax through 6 months
Subject to FIT, FICA, and FUTA.
6 months is based on last day of month worked, not last day worked
296
SS Rate Employee
0.062
297
SS Wage Limit
176100
298
SS-4
Application for Employer Identification Number
299
Statement of retained earnings formula
Beginning retained earnings + net incomeoss - income distributed = ending retained earnings
Income Distributed- dividends paid
Ending retained earnings- equity
300
Statutory Employee
(acronym)
DISH
Drivers
Insurance Salesperson
Salesperson
Homeworkers
FIT not w/held
SS & Medicare are w/held
FUTA not w/held
301
Statutory Non-Employee
(acronym)
REDS
Real Estate Agents
Direct Sales
No taxes w/held
302
Stock Qualifying and Disqualifying sale
Qualifying: you must hold your stock for at least two years from the grant date and at least one year after exercise. Pay on the gain. Income tax, not payroll tax
Disqualifying: anything else
303
Substantial presence test requirements:
Substantial presence test requires presence in the U.S. at least 31 days this year and 183 days over a 3-year period (current year + 2 years prior).
Days this year, plus 1/3 of the days last year, plus 1/6 of the days two years ago must total at least 183 to qualify as a resident alien.
304
Supplemental % < 1 million
0.22
305
Supplemental % > 1 million
0.37
306
Take home pay for federal tax levy purposes
Gross - voluntary and involuntary deductions - deductions that are condition of employment IE union dues = Take Home Pay
307
Tax advantages for U.S. expatriates:
A U.S. citizen and resident alien can credit withheld foreign taxes from U.S. FITW. The foreign earned income and housing cost exclusions reduce taxable
income for U.S. citizens and certain resident aliens.
308
Tax Returns Retention
4 years
309
Taxes withheld but not yet deposited
Asset, liability, expense
Liability
310
The bona fide residence test:
Duration: You must reside in a foreign country for an uninterrupted period that includes at least one full tax year. (January 1-December 31).
Tax Home: Your tax home (main place of business) must be in the foreign country.
311
The physical presence test:
Requirement: 330 full days in a foreign country (or countries) during a 12-month period.
12-Month Period: Can start on any day and does not need to be a calendar year; it is simply 12 consecutive months.
Travel Days: Days spent traveling over international waters or in the U.S. do not count towards the 330 days.
312
The side in which an account increases on is called what?
Normal balance
313
Timecard & Schedule Retention
2 years
314
Tip Wage
Tip Credit
$2.13 Wage
$5.12 Wage credit
315
Tipp Allocation Rate %
8% of gross receipts
316
Tuition Assistance Limite
$5,250 per year
317
Union dues deducted but not yet paid
Asset, liability, expense
Liability
318
Vanpool / Transportation Limit
325
319
W-2
Wage and Tax Statement
320
W-2 Box 1
FIT Total taxable wages, tips, and other compensation.
321
W-2 Box 10
Dependent care benefits.
Anything over $5k is also reported in Boxes 1, 3, and 5.
322
W-2 Box 11
Nonqualified plans distributions.
323
W-2 Box 12
Codes (like D for 401(k) deferrals, DD for health coverage cost, W for HSA contributions) for specific benefits/deferrals.
324
W-2 Box 13
Checkboxes for Statutory Employee, Retirement Plan, and Third-Party Sick Pay.
325
W-2 Box 14
Other information (e.g., union dues, educational assistance), employer-specific.
326
W-2 Box 15
State and State Employer's ID Number.
327
W-2 Box 16
State wages, tips, etc..
328
W-2 Box 17
State income tax withheld.
329
W-2 Box 18
Local wages, tips, etc..
330
W-2 Box 19
Local income tax withheld.
331
W-2 Box 2
Total federal income tax withheld.
332
W-2 Box 20
Locality Name.
333
W-2 Box 3
Social Security wages do not include tips and allocated tips (up to the annual limit).
The amount in box 3 plus box 7 should total $176,100 or less
334
W-2 Box 4
Social Security tax withheld (6.2%).
Should not exceed $10,918.20
335
W-2 Box 5
Medicare wages and tips (no income limit).
336
W-2 Box 6
Medicare tax withheld (1.45% + 0.9% additional over $200k).
337
W-2 Box 7
Social Security tips (if applicable).
338
W-2 Box 8
Allocated tips (rarely used).
339
W-2 Box 9
Shaded (not used) on the 2025 Form W-2
340
W-2 Box A
Employee's Social Security Number (SSN)
SSN may be truncated on copies b, c, and 2. Copy a must contain full SSN
341
W-2 Box B
Employer Identification Number (EIN).
Include the hyphen
342
W-2 Box C
Employer's Name, Address, and ZIP Code.
343
W-2 Box D
Control number: this box is optional. An employer may use this box to identify individual forms W2
344
W-2 Box E
Employee's Name, Address, and ZIP Code.
Use first initial instead of first name if EE's name will not fit in the space. Do not show titles or academic degrees at the beginning or end.
Enter a suffix, like junior or senior, only if it appears on the employees Social Security card
345
W-2 Copy 1
ER files with state tax departments, due dates vary from January 31 to the last day of February
346
W-2 Copy 2
EE's copy for state tax department
347
W-2 Copy A
ER files with the Social Security Administration by January 31 when filing paper forms or when filing electronically
Paper copies must be organized alphabetically by last name or numerically by SSN
348
W-2 Copy B
EE's copy for IRS, furnish by January 31
349
W-2 Copy C
EE's copy for personal records, furnish by January 31
350
W-2 Copy D
retained by the employer
351
W-2 Void
Only found on copy a.
Check box only if info on form is incorrect. Use only when filing paper forms W2 with the SSA
352
W-2G
Certain Gambling Winnings
353
W-4
Employee's Withholding Allowance Certificate
354
W-4 Forms Retention
4 years
355
W-4R
Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions
356
W-4V
Voluntary Withholding Request
357
Wages paid
Asset, liability, expense
Expense
358
Wages payable (not yet paid)
Asset, liability, expense
Liability
359
What amounts are subject to federal tax levy?
Employees take home pay minus exempt amount in IRS publication 1494
360
What happens if the due date falls on a holiday or weekend?
When the due date for filing or providing Form W‑2 copies falls on a Saturday, a Sunday, or legal holiday, the due date is extended until the next business day.
361
What is EXERCISE in Stock Options?
The exercise of a stock option takes place when an employee acquires the company’s stock at the fixed price when the option was granted. Depending on the type of stock option exercised, there may or may not be tax consequences for the employee at the time of exercise.
362
What is GRANT in Stock Options?
A stock option grant occurs when an employer gives an employee the right to acquire the stock in the future at a fixed price. The employer may place various restrictions on the grant. Generally, there are no tax consequences to the employee at the time the option is granted.
363
What is SALE in Stock Options?
A sale occurs on the date the employee sells the stock. The tax consequences of the sale for the employee depend on the type of option, the length of time the employee has owned the stock, and the price for which the stock was purchased and sold.
364
What is SPREAD in Stock Options?
The spread is the difference between the fixed price offered at the time of the grant for a statutory stock option and the price when the employee sells the stock. For a nonstatutory stock option, the spread is the difference between the price offered at the time of the grant and the FMV of the stock on the day the exercise takes place.
365
What is the Cobra applicable premium method?
total cost (employer + employee shares) to the plan for covering similar beneficiaries, plus a 2% administrative fee (102%)
366
What is the modified Cobra premium method?
ERs report the cost of employer-provided health coverage on Form W-2 when they subsidize COBRA coverage. It allows employers to use a "good faith estimate" of the premium or, if the premium is unchanged from the prior year, use the previous year's premium rate.
367
What is the premium charged method?
Under this method, the reportable cost for a specific period is exactly what the insurance company charges the employer for that employee’s coverage (including any dependents) for that period.
368
What is VESTING in Stock Options?
A process of earning the right to exercise your options
369
What journal entry is made to record the deposit of federal income tax?
Accounts are FIT payable and cash
Debit FIT payable
Credit cash
370
What worksheets are for 2019 or older W-4s?
1A, 3, and 5
371
What worksheets are for 2020 or newer W-4s?
1A, 2, and 4
372
Worker Misclassification Penalty Intentional
ERs may pay 100% of the matching FICA taxes, 100% of the employee’s share of FICA, 1.5%–3% of wages, and $50 per unfiled W-2.
Criminal Penalties: Willful misclassification can result in up to $1,000 in fines per misclassified worker and up to one year in prison.
373
Worker Misclassification Penalty Unintentional
40% of the employee's share of social security and Medicare taxes
374
Five Basic Management Skills
Skill 1: Planning and Organizing
Skill 2: Staffing
Skill 3: Directing
Skill 4: Controlling
Skill 5: Reporting
375
Five Project Management Steps For A Successful Implementation
Initiation, Planning and Design, Executing, Monitoring and Controlling, and Closing
376
Eight critical stages of the change process
1. Establish a sense of urgency.
2. Form a powerful guiding coalition. 3. Create a vision.
4. Communicate the vision.
5. Empower others to act on the vision.
6. Plan for and create short-term wins.
7. Consolidate improvements and produce more improvements.
8. Institutionalize new approaches.
377
Four Stages of Team Development:
Forming
Storming
Norming
Performing
378
Immigrant Visas vs Nonimmigrant Visas
Immigrant visas are sought by individuals who wish to become lawful permanent residents of the U.S.
Nonimmigrant visas are sought by those who are in the country for a more temporary reason.
379
What is a tax treaty with another country?
An agreement between the U.S. and another country to avoid double income taxation for nonresident aliens
380
What is the daily base housing amount for the foreign housing cost exclusion for 2025?
$56.99
381
What is a Totalization Agreement?
An international treaty between the U.S. and a foreign country designed to eliminate dual Social Security tax coverage and taxation for workers assigned abroad. These agreements ensure workers only pay social security taxes to one country—typically where they work—and allow workers to combine credits from both countries to qualify for benefits.
382
The Lawful Permanent Resident Test is also known as the:
green card test
383
T or F: An employer files 300 Forms W-2 with the SSA. The employer also has 10 Forms W-2c to file. The Forms W-2c must be filed using the same method used to file Forms W-2.
False - Forms W-2c do NOT have be filed using the same method used to file Forms W-2. Employers filing 250 or more Forms W-2c must file electronically.
384
An employee received a paycheck on Friday and died on Saturday prior to cashing the paycheck. What, if anything, should the payroll department do?
A. Reissue the check to the employee's beneficiary.
B. Reissue the check without the federal income tax withholding.
C. Reissue the check with no tax withholding.
D. Nothing, the check was received by the employee.
A. Reissue the check to the employee's beneficiary.
A deceased employee's uncashed check needs to be reissued to the employee's beneficiary defined by the probate laws in the employee's state of residence. As the check was constructively received by the employee there is no change to the taxation or reporting.
385
Form 941 is considered to be timely filed EXCEPT when:
A. delivered by an IRS approved private delivery service by the due date.
B. delivered by an unapproved delivery service by the due date.
C. delivered to the IRS by the due date.
D. postmarked by the due date.
B. delivered by an unapproved delivery service by the due date.
386
T or F: If the total tax liability for the quarter is less than $2,500, a monthly depositor can pay the taxes with Form 941.
True - If the total tax liability for the current or prior quarter is less than $2,500, an employer can deposit the taxes using EFTPS or pay the taxes with Form 941.
387
Electronic tax deposits may be submitted using all of the following payment methods EXCEPT:
A. EFTPS-Direct.
B. EFTPS-Through a Financial Institution.
C. Federal Tax Collection Service.
D. Federal Wire Transfer Service.
D. Federal Wire Transfer Service.
388
Principles of customer service
Reliability
Responsiveness
Assurance
Empathy
Tangibles
389
Basic Management Skills
Planning/ Organizing
Staffing
Directing
Controlling
Reporting
390
Project Management Steps
Initiation
Planning & Design
Execution
Monitor
Closure
391
Team Building Flow
Forming
Storming
Norming
Performing
392
An employee earns $2,882.50 semimonthly, claims single, 1 dependent on Part 3 of Form 668-W. The IRS exempts $837.50 each pay period for a federal levy. The employee's combined withholding for federal income, social security, and Medicare taxes is $854.66. The employee has no other deductions. The employee owes $1,200.00 in back taxes. What is the maximum deduction for the federal levy each pay period?
Amount Subject to Levy:
Gross Earnings - Exempt Amount - Mandatory W/Holding = Subject Amount
$2,882.50 - $837.50 - $854.66 = $1,190.34
Maximum Deduction: The lower of the amount subject to levy ($1,190.34) or the total back taxes owed ($1,200.00).
The maximum deduction for the federal levy is $1,190.34 per pay period.
CPP Bootcamp 2025
flashcards
Decks in class (22)
# Cards
-
Module 192
-
Module 3130
-
Module 291
-
W-2 Box 12 Codes31
-
Taxable or Nontaxable Wages34
-
Tips, Rates, Formulas81
-
Module 4102
-
Module 549
-
Module 697
-
Module 748
-
Module 834
-
Module 913
-
Module 1015
-
Forms143
-
Calculating Pay13
-
Calculating Federal Income Tax18
-
Calculating Social Security and Medicare Taxes3
-
IRS Publication 15-T7
-
W-2 Copies & Boxes34
-
941 Reporting29
-
Payroll Source Book Questions595
-
Combined Notes392
