Certified Payroll Professional - 2023

Certified Payroll
Professional - 2023
2023 Adoption Assistance Amount - $14,300


2023 Commuting Valuation Amount - $1.50/way; $3.00/round-trip


2023 Computer Professional Wage - $27.63/hour


2023 Dependent Care Limit - $5,000 ($2,500 married filing separate)


2023 Education Assistance Amount - $5,250


2023 Foreign Earned Income Exclusion - $107,600 per person


2023 Fuel Rate (Employer Provided) - $0.055(5.5cents per mile)


2023 FSA Contribution Limit - $2,750 max employee, + $500 max employer


2023 Group Term Life Insurance Limit - $50,000


2023 HSA Contribution Limit - $3,550 - individual, $7,100 - family


2023 MSA High Deductible Amounts - $2,350 to $3,550 (individual); $4,750 to
$7,100 (family)


2023 Medicare Rate - 1.45% (employee & employer)
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Additional 0.9% (EE only) for earnings over $200,000
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2023 IRS Mileage Rate - $0.575/mile (57.5 cents per mile)
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2023 Federal Minimum Wage - $7.25 per hour
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,2023 Opportunity Wage - $4.25 per hour (for EEs under 20, 1st 90 days)
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2023 Transporation/Vanpool/Parking Exclusion - $270 per month
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2023 Social Security Rate - 6.2% (Employee & Employer)
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2023 Social Security Wage Limit - $137,700
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2023 Supplemental Withholding Rate less than $1 million - 22%
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2023 Supplemental Withholding Rate greater than $1 million - 37%
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g 2023 Tip Wage/Credit - $2.13 per hour and credit: $5.12 per hour
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2023 Tip Allocation Rate - 8% of gross receipts
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2023 401(k) Maximum Contribution - $19,500
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2023 401(k) Catch-up Contribution (> age 50) - $6,500
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What are the 6 employer obligations according to IRC? - Withhold income tax
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Withhold social security tax g g g




Withhold Medicare tax g g




Pay employer's share of social security tax
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Pay employer's share of Medicare
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Pay federal unemployment taxes (FUTA)
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What is the key to the "Common Law Test" in determining employee vs. independent
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g contractor? - The Right to Control g g g g g




- Behavior Controls g




- Financial Controls g




- Type of Relationship
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Statutory Employees fall into four categories. What are these categories? - D - Drivers
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, I - Insurance Salespersons
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S - Salesperson
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H - Homeworkers
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What are the two categories of Statutory Nonemployees? - (REDS)
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Real Estate Agents g g




Direct Sellers g




What form does a Statutory Employee receive at year-end? What form does a
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Statutory Nonemployee receive at year-end? - Statutory Employee - W-2
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Statutory Nonemployee - 1099 g g g




What does the FLSA regulate? - C - Child Labor
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R - Recordkeeping
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E - Equal Pay for Equal Work
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W - Wages (minimum wage & overtime pay)
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What are the IRS penalties for unintentionally inaccurately classifying an employee as
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g an independent contractor? - 1.5% of wages if no FIT was withheld (3% if a 1099
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was not filed) g g




20% of employee's share if SS or Medicare was not filed (40% if 1099 was not filed -
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g employer share must also be paid) g g g g g




What is the penalty if an employee is intentionally classified as an independent
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contractor? - Full amount of FIT and 100% of employee & employer shares of SS and
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g Medicare


What is the retention requirement of a Form I-9? - 3 years from date of hire or 1 year
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g from date of termination, whichever is longer
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What information is proved in each of the document lists for the Form I-9? - List A -
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Identity and work authorization g g g




List B - Identity g g g




List C - Work authorization g g g g