Payroll Accounting Questions with Complete Correct Answers | Grade A+

Circular E Ans: Also known as Publication 15. An employer's tax guide written by the IRS. Includes due dates for payroll forms, tables to calculate tax withholding, a summary of regulations, and IRS contact information. Form SS-4 Ans: Used to obtain an Employer Identification Number (EIN) Form SS-5 Ans: Used to obtain a Social Security number Personal Responsibility and Work Opportunity Act of 1996 Ans: Enables better enforcement of child-support laws. Employers can satisfy the provisions of this act by submitting the newly hired employee's W-4 Form to the state. Form W-4 Ans: Indicates the number of tax allowances being claimed. This provides the employer with information necessary to calculate both federal income tax withholding and applicable state income tax withholding. Immigration Reform and Control Act of 1986 Ans: Intended to reduce illegal employment of foreign workers in the U.S. Form I-9 Ans: Completed by the employee; acceptable documents are verified by the employer This document verifies that the employee is permitted to work in the United States. E-verify Ans: Compares information from employee with that possessed by various government agencies such as the Social Security Administration and the United States Department of Homeland Security. Employee Earnings Record Ans: Contains key employee and payroll information. Summarizes annual payroll figures. Facilitates completion of payroll tax forms. People employed by large businesses with revenues greater than $500,000, governmental agencies (local, state, or federal), hospitals, schools, and domestic workers and employees working for interstate commerce businesses must do what? Ans: pay the minimum wage Which groups of people are exceptions to the federal minimum wage requirement? Ans: Workers with disabilities, full-time students, young workers, tipped employees, student learners. What are the pay restrictions for a full-time student when working for specific employers (colleges and universities, agriculture, and retail or service stores)? Ans: May be paid 85% of the current minimum wage rate, and are limited to a maximum of 8 hours/day, 20/hours/week while school is in session. What are the pay restrictions for a young worker (under 20 years old)? Ans: May be paid $4.25/hour for the first 90 days of employment, as long as they do not replace another employee. The pay then reverts to the federal minimum after 90 days or after the employee turns 20, whichever occurs first. What are the pay restrictions for a tipped employee? Ans: May be paid $2.13/hour, as long as their tips, when added to this amount, equal or exceed the federal minimum wage. They must receive at least $30 in tips per month. Any deficit will be made up by the employer.