Essentials of Federal Payroll Taxes Benefits and New Hire Reporting
Author/Moderator:
Beth Stenberg, CPA
Publisher:
AICPA
Availability:
In Stock
Description
Avoid the havoc from the burden of employee payroll administration on your
small business clients. This course is designed to provide you with practical
pointers for managing the payroll tax and reporting function. This course also
shows how to handle reporting and withholding requirements for employee
benefits. Learn the requirements in the new hire reporting. Understand how to
avoid the frequent penalties in payroll tax reporting while decreasing the load
of payroll tax administration.
Objectives:
Understand IRS requirements for new hire reporting
Prepare timely and accurate reports for employees
Make timely payroll tax deposits and payments
Become familiar with handling household employment tax reporting
Prerequisite: None
Table of Contents
Chapter 1
Overview, Update, and Reference Guide
Learning Objectives
Introduction
Payroll Tax Dates – 2006
Recent Changes – 2006
Recent Changes – 2005
Recent Changes – 2004
Forms
Publications
Social Security and Other References
Information Resources
TeleTax Topics
E-mail Notification of Tax Topics
Chapter 2
Employer Responsibilities
Recent Changes
Employer Responsibilities
Determining Employers
Obtain an Employee Identification Number
What If an Entity Changes Locations?
Hiring New Employees
Verify Employee Eligibility
Agricultural Recruiters and Referrers for a Fee
Who Is Exempt from Completing Form I-9?
How to Complete Form I-9
Temporary Regulations Regarding Acceptable Documents
What if Newly Hired Employee Is under Age 18 or Is Handicapped?
Audits by the Department of Homeland Security
Retention
Automated Verification under SAVE
Form I-9 Discrepancies
Missing Form I-9
Unauthorized Employee
Form I-9 Penalties
Civil Penalties
Criminal Penalties
Other Resources
Obtain Name and Social Security Number
Social Security Verification
Obtain Form W-4
New Hire Reporting
W-5 Required Notice
Obtain Form W-5, Earned Income Tax Credit Advance Payment Certificate
Record Retention
Appendix – Form SS-4, Form I-9 including Instructions, Form W-4, and Form W-5
Chapter 3
Withholding Federal Income Tax, Withholding and Accruing Social Security and Medicare Tax, and Accruing Federal Unemployment Tax
Learning Objectives
Introduction
Federal Employment Taxation
Federal Income Taxes
Exempt from Federal Income Tax Withholding
Signing the W-4
Employer’s Identifying Information
Electronic Submission
Withholding Methods
One-Half Rule for Mixed Employment
Social Security and Medicare Taxes
Social Security and Medicare Tax Rate
Advance Payment for the Earned Income Credit (EIC)
Required Notice
Determining the Amount of the Advance Payment of EIC
Wage Bracket Method
Percentage Method
Special Situation for Withholding Federal Employment Taxes
Wages from Tips
Supplemental Wages
Social Security and Medicare Taxes Paid by the Employer
How to Calculate the Increased Wages (Gross Up)
Accruing Federal Unemployment (FUTA) Tax
What Organizations Are Exempt from FUTA?
When Does the Organization Have to Pay FUTA?
Accumulating FUTA Tax
Depositing FUTA Tax
Appendix – Form W-4 and Form W-5
Chapter 4
Taxable versus Non-Taxable Wages and Other Compensation
Learning Objectives
Introduction
Recent Changes – 2006
Accrued Leave Payment
Allowances and Reimbursements
Accountable Plan
Nonaccountable Plan
Per Diem or Other Fixed Allowance
Back Pay Awards
Bonuses and Awards
Commissions
Cost-of-Living Allowance or Pay Differential
Disability Retirement Payments
Fringe Benefits
Taxable Fringe Benefits
Nontaxable Fringe Benefits
Golden Parachute
Idle Time Payments
Interest-Free and Below-Market-Interest-Rate Loans
Household Workers
Leave Sharing Plans
Nonqualified Deferred Compensation Plans
Note Given for Services
Salary
Scholarship and Fellowship Payments
Severance Payment
Sickness and Injury Payment
Simplified Employee Pension (SEP) Contributions and SIMPLE Retirement Plans
Social Security and Medicare Taxes Paid by the Employer
How to Calculate the Increased Wages (Gross Up)
Supplemental Unemployment Benefits
Supplemental Wages
Tax Sheltered Annuities
Temporary Work Assignments
Tips
Daily Tip Records
What Does the Employer Do with the Tip Information?
Allocated Tips
Workers’ Compensation
Special Rules for Certain Employees
Appendix – Form 4070A, Schedule H of Form 1040, and Form 8027
Chapter 5
Fringe Benefit Exclusion Rules
Recent Changes
What Is a Fringe Benefit?
Fringe Benefits – Tax Free?
Exclusion #1 – Accident or Health Insurance Plans
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #2 – Achievement Awards
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #3 – Adoption Assistance
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employee
Taxability of Benefit
Exclusion #4 – Athletic Facilities
Description of Benefit
Who Is Eligible?
Taxability of Benefit
Exclusion #5 – De Minimis Benefits
Description of Benefit
Who Is Eligible?
Taxability of Benefit
Exclusion #6 – Dependent Care Assistance
Description of Benefit
Who Is Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #7 – Educational Assistance
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #8 – Employee Discounts
Description of Benefit
Who Is Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #9 – Employee Stock Options
Description of Benefit
Who Is Eligible?
Taxability of Benefit
Exclusion #10 – Group Term Life Insurance
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Key Employees
Taxability of Benefit
Exclusion #11 – Lodging
Description of Benefit
Who Is Not Eligible?
Taxability of Benefit
Exclusion #12 – Meals
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #13 – Moving and Relocation
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Taxability of Benefit
Exclusion #14 – No-Additional Cost Services
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #15 – Retirement Planning Services
Description of Benefit
Highly Compensated Employees
Exclusion #16 – Transportation
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #17 – Tuition Reduction
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Exclusion #18 – Working Condition Benefit
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Taxability of Benefit
Summary
Appendix – Selected Forms
Chapter 6
Other Items Called Fringe Benefits and Benefit Valuation
Learning Objectives
Introduction
Recent Changes
Cafeteria Plans
Description of Benefit
Who Is Eligible?
Who Is Not Eligible?
Highly Compensated Employees
Key Employees
Taxability of Benefit
Flexible Spending Arrangements
Who Is not Eligible?
Highly Compensated Employees and Key Employees
Taxability of Benefit
Qualified Retirement Plans
Description of Benefit
Taxability of Benefit
Tax-Sheltered Annuity 403(b) Plans
Description of Benefit
Taxability of Benefit
Simplified Employee Pension (SEP) Contributions and SIMPLE Retirement Plans
Pension and Annuity Distributions
Periodic Payments
Nonperiodic Payments
Eligible Rollover Distribution
Payments to Foreign Persons and Payments outside the United States
Nonqualified Retirement Plans
Elective Deferrals
Description of Benefit
Highly Compensated Employees
Taxability of Benefit
Sickness and Injury Payment
Group-Term Life Insurance
Allowances
Worker’s Compensation
Description of Benefit
Taxability of Benefit
Valuation of Fringe Benefits
General Valuation Rule
Special Valuation Rules
Employer Provided Vehicles
Flights on Employer-Provided Aircraft
Withholding, Depositing, and Reporting Taxable Noncash Fringe Benefits
Appendix – Form W-4P
Chapter 7
Tax Deposits
Deposit Requirements
Determining Monthly versus Semiweekly Deposit Status
Monthly Depositors
Semiweekly Depositors
$100,000 Next-Day Deposit Rule
How Does An Organization Make a Deposit?
Payments to an Authorized Financial Institution
Electronic Federal Tax Payment (EFTPS)
Making Payments with Quarterly Form 941, Annual Form 940
FUTA Tax Deposits
Penalties
Accuracy for Deposits Rule
Averaged Failure to Deposit Penalty
Special Trust Account
A Good Reason to Sign Up for EFTPS
Appendix – Form 8109-B and Publication 966
Chapter 8
Quarterly Form 941 Reporting and Annual Form 940 Reporting
Form 941 Filing Requirements
Recent Changes to Form 941 Reporting
Exempt from Filing Form 941
Payment of Employment Taxes by Disregarded Entities
Completing Form 941
Earned Income Tax Credit
Reporting Adjustments on Form 941 and Form 941c
Current Period Adjustments
Prior Period Adjustments
Selling, Transferring or Closing the Business – Schedule D Form 941
Form 941-M
Completing Form 941-M
Requesting a Refund for Overreported Prior Period Liabilities
Collecting Underwithheld Taxes from Employees
Refunding Overwithheld Taxes from Employees
Overpayment of Wages
Reconciling Form 941, Form W-2, and Form W-3
Filing Late Forms 941 for Prior Years
Failure to File Form 941 and Failure to Pay Penalties
Form 940 Reporting Requirements
Recent Changes to Form 940 Liability and Reporting
Form 940 Reporting Requirements
Credit for Contributions Paid to a State Fund
Completing Form 940
Form 940-V
When Can an Organization Use Form 940-EZ?
Amending Form 940 Returns
Filing Options for Both Form 941 and Form 940
Appendix A – Annual Compliance Checklist
Appendix B – Form 941, Form 941V, Form 941c, Schedule B of Form 941, Schedule D of Form 941,
Form 941-M, Form 940, Form 940-V, Form 940-EZ
Chapter 9
Form W-2, Wage and Tax Statements and Form W-3, Transmittal of Wage and Tax Statements Reporting
Learning Objectives
Introduction
What’s New in the Last Few Years
Recent Changes
Changes for the Calendar Year 2005 Filing
Changes for the Calendar Year 2004 Filing
Who Is Required to File Forms W-2 and W-3?
Where Paper Filers Mail the Forms W-2 and W-3
Why a Six Part Form?
If the Employee’s Name Is Not Correct
Extension of Time to File
Filing Options
By Paper
Electronic Online Filing
Electronic or Magnetic Diskette Filing
Processing of Forms W-2
Notice to Employee
Refund
Earned Income Credit (EIC)
Clergy and Religious Workers
Corrections
Credit for Excess Taxes
When Organizations Cease Operations during a Year
Using Paper Substitute W-2s for Wages Paid in 2005
Completing Form W-2
Form W-3
Completing Form W-3
What Does the SSA Do with the Information?
Correcting Forms W-2 and W-3
Penalties
Reporting Various Situations on W-2
Employer Pays Employee’s Portion of Social Security and Medicare Taxes
Employer Pays Household or Agricultural Workers Portion of Social Security and Medicare Taxes
Per Diem or Other Fixed Allowance
Uncollected Taxes on Tips
Adoption Benefits
Archer MSA
Clergy and Religious Workers
Wages Paid to Deceased Employee before and after Death
Payments Made to Election Workers
Golden Parachute Payments
Group-Term Life Insurance
Moving Expenses
Nonqualified Deferred Compensation Plans
Repayment of Wages
SIMPLE Retirement Account
How to Get Questions Answered
Appendix – Form W-2, Form W-3, and Publication 1141
Chapter 10
Other Annual Reporting
Learning Objectives
Introduction
Recent Changes to Form 943 Reporting
Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees Filing Requirements
Who Must File?
Exceptions
Where to Mail or Deliver Form 943
Completing Form 943
Reporting Adjustments on Line 8
Adjustment for Fractions of Cents
Adjusting Social Security and Medicare Tax Withholding
Adjusting Federal Tax Liability
Earned Income Tax Credit
Potential Penalties
Record Retention
Appendix – Form 943, Form 941c, Page 21 of Publication 51
Chapter 11
Ethics Focus: Taxation
Ethics Overview
Interpretation 101-3
Key Ethical Dilemmas and Judgment Calls
Addressing Ethical Dilemmas
Available Resources
Chapter 12
Latest Developments
Appendix A – Publications 15, 15-A, 15-B, 51, 531, and 926
http://www.cpa2biz.com/browse/product_details.jsp;jsessionid=LyGhW5rnkvpQtLLG3m7pS1ndQBj0LyplqVPnPqJsH5CpDP45PHDB!1859593646!1246211097?PRODUCT%3C%3Eprd_id=845524441760260&FOLDER%3C%3Efolder_id=282574488338435&bmUID=1223853274929
NASBA Field of Study:
Taxes
Level:
Basic
Recommended CPE Credit:
12
To receive your AICPA member discount,
Sign In now, or
Register using your AICPA membership number.
0
Customer Service
Customer Service
Customer Service
Back to Browsing Products