HAC Healthcare Payroll & Compensation Accounting Flashcards

A hospital uses a cost-per-hour metric to manage staffing. If total productive labor hours are 120,000 and direct labor cost is $4,800,000, what is the cost per productive hour?

Answer: $40.00

$4,800,000 ÷ 120,000 hours = $40.00 per productive hour, a key benchmark for staffing efficiency analysis.

Which federal tax deposit schedule applies to a hospital whose payroll tax liability was $75,000 in the lookback period?

Answer: Semi-weekly depositor

Employers whose total payroll tax liability exceeded $50,000 during the IRS lookback period must deposit taxes on a semi-weekly schedule.

For healthcare employees who receive tips (e.g., food service staff), the employer is required to:

Answer: Withhold FICA taxes on reported tips

Employers must withhold and remit employee FICA taxes on all reported tip income, and also pay the employer's matching FICA share on those tips.

What is the primary purpose of a paid time off (PTO) liability account on a hospital's balance sheet?

Answer: To represent the estimated cost of earned but unused employee leave

The PTO liability reflects the obligation to compensate employees for leave they have earned but not yet taken, requiring ongoing accrual as PTO is earned.

A critical access hospital offers a defined benefit pension plan. Under ASC 715, which amount is reported on the balance sheet?

Answer: The funded status (projected benefit obligation minus plan assets)

ASC 715 requires the funded status—projected benefit obligation minus the fair value of plan assets—to be recognized as an asset or liability on the balance sheet.

Which of the following is an example of a non-cash compensation benefit that must be included in an employee's W-2 gross income?

Answer: Personal use of a hospital-owned vehicle

Personal use of a company vehicle is a taxable fringe benefit that must be valued using IRS methods and included in the employee's W-2 as compensation.