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
What is the Social Security wage base limit for 2024?
Answer: $168,600
The Social Security wage base for 2024 is $168,600; earnings above this amount are not subject to the 6.2% Social Security tax.
An employer with a FUTA tax liability of $400 in Q1, $300 in Q2, and $400 in Q3, and $150 in Q4 — when must FUTA deposits be made?
Answer: Quarterly whenever accumulated liability exceeds $500
FUTA deposits are required quarterly when the accumulated liability exceeds $500; amounts of $500 or less may be carried forward.
Which IRS form must be submitted to correct errors on previously filed Forms W-2?
Answer: Form W-2c
Form W-2c (Corrected Wage and Tax Statement) is used to correct errors on a previously issued Form W-2.
Under the Affordable Care Act, employers with 50 or more full-time equivalent employees must offer health coverage or face penalties. This is known as:
Answer: The employer shared responsibility provision (Pay or Play)
The ACA's employer shared responsibility provision (commonly called 'Pay or Play') requires applicable large employers to offer affordable minimum essential coverage or pay penalties.
An employee who works in multiple states during a payroll period — how should the employer typically handle state income tax withholding?
Answer: Withhold for each state based on the wages earned or days worked in each state
Employers generally must withhold state income tax for each state where work is performed, allocating wages based on the proportion of work done in each state.
Which of the following correctly describes a 'payroll register'?
Answer: A detailed record of each employee's gross pay, deductions, and net pay for a specific pay period
A payroll register is a detailed summary document showing gross pay, all deductions (taxes, benefits, garnishments), and net pay for each employee in a given pay period.
An employee receives a relocation reimbursement of $8,000 from their employer. Under current tax law (post-TCJA through 2025), how is this treated for payroll tax purposes?
Answer: Taxable wages subject to federal income tax and FICA withholding
The Tax Cuts and Jobs Act (TCJA) suspended the qualified moving expense exclusion for 2018-2025 (except active military), making employer-paid relocation fully taxable wages.