Payroll Management 2015 Book - CPE Store

1 Payroll Management 2015 Edition Steven M. Bragg i Table of Contents Chapter 1 Payroll Management .. 1 Learning Objectives .. 1 1 Payroll Cycle Duration .. 1 Streamlined Timekeeping .. 3 Electronic Payments .. 4 Employee Self-Service .. 4 Manager Self-Service .. 4 Transaction Error Analysis .. 5 Staff Training Program .. 5 The Payroll Calendar .. 6 Information 7 Summary .. 8 Review Questions .. 9 Review Answers .. 10 Chapter 2 Definition of an Employee .. 11 Learning Objectives .. 11 11 The Employee Defined .. 11 Employee Withholding Liability .. 12 The Independent Contractor Designation.

2 12 The W-2 Contractor .. 13 The Salesperson Designation .. 14 Employees of Exempt 14 Ministers .. 15 Employee Scenarios .. 15 People in Business for Themselves .. 15 Family Employees .. 15 Working off the Books .. 16 Summary .. 17 Review Questions .. 18 Review Answers .. 19 Chapter 3 Employee Time Tracking .. 20 Learning Objectives .. 20 20 Time Tracking Scope .. 20 Employee Exclusions .. 21 Data Collection Scope .. 22 Handwritten Time Sheets .. 23 Time Cards .. 24 Computerized Time Clocks .. 24 Biometric Time Clocks .. 26 Web-Based Time Tracking .. 26 Smart Phone Time Tracking.

3 27 Time Keeping Methods Usage Grid .. 28 Automated Time Tracking Reminders .. 28 Summary .. 28 Review Questions .. 30 Review Answers .. 31 Chapter 4 Employee Compensation .. 32 Learning Objectives .. 32 Table of Contents ii 32 The Difference between Salaries and Wages .. 32 The Work Week .. 33 Compensation Definition .. 34 Supplemental Wages .. 34 Commission Calculations .. 35 Commissions Based on Cash Receipts .. 36 Final Commission Calculations .. 37 Employee Business Expense 37 Golden Parachute Payments .. 38 Hourly Rate Plan .. 38 Idle Time .. 39 Overtime Pay .. 39 Payments in Kind.

4 40 Piece Rate Pay .. 40 Salaries Paid for Partial Periods .. 41 Sick Pay .. 42 Tips .. 42 Vacation Pay .. 43 The Minimum Wage .. 44 Summary .. 45 Review Questions .. 46 Review Answers .. 47 Chapter 5 Employee Benefits .. 48 Learning Objectives .. 48 48 The Provider and Recipient of Benefits .. 48 Adoption Assistance .. 48 Athletic Facilities .. 49 Cell Phones Provided by Employer .. 49 De Minimis Benefits .. 49 Disability Insurance .. 50 Educational Assistance .. 50 Employee Discounts .. 51 Flexible Spending Accounts .. 51 Health Savings Account .. 54 Leaves of Absence .. 55 Life Insurance.

5 56 Lodging on Business Premises .. 57 Meals .. 58 Medical 59 Medical Insurance COBRA .. 60 Moving Expense 61 No-Additional-Cost Services .. 62 Pension 63 Defined Contribution Plan .. 63 Defined Benefit Plan .. 64 Personal Retirement Account .. 65 Retirement Planning Services .. 66 Stock Options .. 66 Stock Purchase Plans .. 67 Transportation Benefits .. 68 Tuition Reduction .. 68 Vacation Benefit Reporting .. 69 Workers Compensation Insurance .. 69 Working Condition Benefits .. 70 Table of Contents iii Vehicles .. 70 Education .. 71 Outplacement Services .. 71 How to Value 72 Cents per Mile.

6 72 Commuting .. 72 Lease 73 Unsafe Conditions Commuting .. 75 Rules for Withholding, Depositing, and Reporting Benefits .. 75 Benefit Authorization Form .. 76 Taxability of Benefits .. 77 Summary .. 78 Review Questions .. 79 Review Answers .. 80 Chapter 6 Payroll Deductions .. 81 Learning Objectives .. 81 81 Deductions for the Corporate Benefits Package .. 81 Deductions for Payments to Third Parties .. 83 Charitable Contributions .. 84 Garnishments Overview .. 84 Child Support Garnishment .. 85 Student Loan Garnishment .. 85 Tax Garnishment .. 85 Union Dues .. 87 Deductions for Financing Repayments.

7 87 The Reduction of Deductions .. 88 Garnishment Processing .. 89 Deduction Management by Employees .. 89 Summary .. 90 Review Questions .. 91 Review Answers .. 92 Chapter 7 Payroll Taxes .. 93 Learning Objectives .. 93 93 Income Tax Withholding .. 93 Social Security Tax .. 96 Medicare Tax .. 97 Calculating Withholdings .. 98 Wage Bracket 98 Percentage 99 Annualized Wages Method .. 100 Average Estimated Wages Method .. 103 Cumulative Wages Method .. 103 Part-Year Employment Method .. 103 Other Methods .. 104 Earnings Not Subject to Payroll Taxes .. 104 Employee Taxes Paid by the Employer.

8 105 The Earned Income Credit .. 106 Tax Deductions for the Self-Employed Person .. 107 The Common Paymaster Rule .. 108 Payroll Taxes for a Successor Employer .. 109 Payroll Taxes for Part-Time Employees .. 109 State Payroll Taxes .. 109 Totalization Agreements .. 110 Table of Contents iv Summary .. 110 Review Questions .. 111 Review Answers .. 112 Chapter 8 Tax Remittances .. 113 Learning Objectives .. 113 113 Types of Tax Deposit Schedules .. 113 Monthly Deposit Schedule .. 114 Semiweekly Deposit Schedule .. 114 Federal Unemployment Deposit Schedule .. 115 $100,000 Next-Day Deposit Rule.

9 115 Accuracy of Deposits Rule .. 116 Deposits not on Business Days .. 116 Remittance Method .. 117 The Form 941 Quarterly Federal Tax Return .. 117 Form 941 Discrepancies .. 122 Prior Period Adjustments .. 123 Federal Tax Deposit Penalties .. 123 Trust Fund Recovery Penalty .. 124 State Tax Remittances .. 125 Local Tax Remittances .. 125 Summary .. 125 Review Questions .. 127 Review Answers .. 128 Chapter 9 Unemployment Taxes .. 129 Learning Objectives .. 129 129 Responsibility for Unemployment Tax Payments .. 129 FUTA Tax Calculation .. 129 FUTA Tax Deposits .. 130 FUTA Tax Payment Timing.

10 130 FUTA Tax Reporting .. 130 State Unemployment Taxes .. 131 Unemployment Benefit Claims .. 135 Calculation of the State Unemployment Tax Rate .. 136 Voluntary Unemployment Contributions .. 136 Transferring an Unemployment Experience 137 Summary .. 138 Review Questions .. 139 Review Answers .. 140 Chapter 10 Payments to Employees .. 141 Learning Objectives .. 141 141 Payments with Cash .. 141 Payments by Check .. 143 Payments by Direct Deposit .. 144 Payments by Pay Card .. 145 Flexible Spending Account Debit Cards .. 146 Unclaimed 146 IRS Letter Forwarding .. 146 Summary .. 148 Review Questions.