Payroll Processing & Administration Flashcards
7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Payroll Processing & Administration flashcards as text
An employee terminates employment in California on a Wednesday. Under California Labor Code, when must the employer issue the final paycheck?
Answer: Immediately at the time of termination
California requires that involuntarily terminated employees receive their final paycheck immediately upon termination.
Which of the following correctly describes the 'lookback period' used to determine an employer's payroll tax deposit schedule?
Answer: The 12-month period ending June 30 of the prior year
The IRS lookback period is July 1 through June 30 of the year preceding the current calendar year, used to classify depositors as monthly or semi-weekly.
A nonresident alien employee on a visa works in the US. Which withholding adjustment is typically required when using the percentage method for federal income tax?
Answer: Add an additional flat dollar amount per IRS Publication 15 before applying the tables
IRS Publication 15 requires adding a specific additional amount to nonresident alien employees' wages before applying the standard withholding tables.
Under the FLSA, what is the correct overtime premium rate for hours worked over 40 in a workweek?
Answer: 1.5× the regular rate of pay
The FLSA mandates overtime pay at 1.5 times (time and one-half) the employee's regular rate of pay for hours over 40 in a workweek.
An employee receives a $5,000 bonus. The employer uses the supplemental wage flat withholding rate. What federal income tax rate applies (as of 2024)?
Answer: 22%
The IRS flat supplemental withholding rate for supplemental wages up to $1 million is 22%.
Which of the following fringe benefits is subject to FICA and federal income tax withholding?
Answer: Group-term life insurance coverage exceeding $50,000
The cost of group-term life insurance coverage exceeding $50,000 is imputed income subject to FICA taxes (and income tax withholding).
A company discovers it under-withheld Social Security tax from an employee in a prior quarter. What is the employer's liability?
Answer: The employer is liable for both the employer and employee shares of the under-withheld Social Security tax
Employers are ultimately liable for both the employer and employee shares of FICA taxes, even if the employee's share was not withheld.