ADP Tax Reporting and Filing 2

Question 1

What is a W-2c and when must it be issued?

Accepted Answer

A corrected W-2 issued when an error is discovered after the original W-2 was filed or furnished

Answer

A supplemental W-2 for employees with multiple jobs

Answer

A W-2 for contractors who were later reclassified as employees

Answer

A W-2 issued to employees who did not receive their original

Question 2

Which ADP feature notifies the payroll team of upcoming state unemployment tax (SUTA) rate changes?

Accepted Answer

ADP SmartCompliance Tax Rate Notification

Answer

ADP HR Analytics Dashboard

Answer

ADP Time & Attendance Alerts

Answer

ADP Workers' Comp Manager

Question 3

What is the Social Security wage base for 2024 and how does ADP handle employees who exceed it?

Accepted Answer

$168,600; ADP automatically stops Social Security withholding once an employee's YTD wages exceed the wage base

Answer

$160,200; payroll specialists must manually override the withholding

Answer

$147,000; employees must file a separate form to stop withholding

Answer

$168,600; withholding continues on all wages but at a reduced rate

Question 4

An employer receives a penalty notice from the IRS for a late payroll tax deposit. What is the first step using ADP SmartCompliance?

Accepted Answer

Submit the penalty notice through SmartCompliance for ADP's tax filing team to research and respond

Answer

Pay the penalty immediately and record it in QuickBooks

Answer

Contact the IRS directly and dispute the notice

Answer

Amend Form 941 for the affected quarter

Question 5

What is the difference between Form 940 and Form 941 in the context of ADP tax filing?

Accepted Answer

Form 940 is the annual FUTA return; Form 941 is the quarterly return for federal income, Social Security, and Medicare taxes

Answer

Form 940 is filed monthly; Form 941 is filed annually

Answer

Form 940 covers state unemployment taxes; Form 941 covers federal unemployment taxes

Answer

Both forms cover the same taxes but for different-sized employers

Question 6

In ADP, which tax deposit schedule applies to employers with a lookback period tax liability of $50,000 or less?

Accepted Answer

Monthly deposit schedule

Answer

Semi-weekly deposit schedule

Answer

Next-day deposit schedule

Answer

Quarterly deposit schedule