Payroll Administration and Management Flashcards
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Read the first 7 Payroll Administration and Management flashcards as text
Under the Consumer Credit Protection Act (CCPA), what is the maximum amount that can be garnished from an employee's disposable earnings for an ordinary creditor garnishment?
Answer: The lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage
CCPA limits ordinary (non-child support) garnishments to the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum hourly wage.
An employee claims exempt from federal income tax withholding on Form W-4. By what date must a new exempt W-4 be filed each year to maintain exempt status?
Answer: February 15
Exempt status claimed on Form W-4 expires annually and must be renewed by February 15 of each year to remain valid.
Which of the following correctly describes the 'look-back period' used to determine an employer's federal tax deposit schedule?
Answer: The 12 months ending June 30 of the prior year
The IRS look-back period is July 1 through June 30 of the year before the current calendar year, used to classify employers as monthly or semi-weekly depositors.
What is the IRS 'next-day deposit rule' and when does it apply?
Answer: Employers must deposit on the next business day when accumulated tax liability reaches $100,000 or more on any single day
If an employer accumulates $100,000 or more in employment taxes on any one day, those taxes must be deposited by the next business day.
Which payroll record retention requirement does the FLSA establish for basic employment records such as time cards and wage computations?
Answer: 2 years
FLSA requires that supplementary records such as time cards, work schedules, and wage computations be kept for at least 2 years.
A company pays an employee a $10,000 signing bonus when they are hired. When must the employer withhold payroll taxes on this amount?
Answer: When the bonus is paid to the employee
Payroll taxes must be withheld and deposited in the period the wages are actually paid, not when they are earned or accrued.
What does the term 'constructive receipt' mean in payroll administration?
Answer: Income is taxable when it is made available to the employee without restriction, even if not yet collected
Under the constructive receipt doctrine, income is considered received (and taxable) when it is credited to or set apart for an employee without restriction, regardless of when they actually take possession.