Shared Flashcard Set

Details

Final
Final
333
Management
Professional
09/23/2010

Additional Management Flashcards

 


 

Cards

Term
What is the main purposes of the Time Sheet?
Definition
Accolades
Term
What are the main purposes of the Check and Earnings Statement
Definition
Total comp (gross)
Term
What are the main purposes of the Payroll Journal?
Definition
Wages:
Term
What are the main purposes of the Department Summary?
Definition
Exempt v. Non-exempt employees
Term
What are the main purposes of the Cash Requirements reports?
Definition
Earnings.. Expect to get it in your __________.
Term
What are the main purposes of the Employee Earnings Record?
Definition
Other Items - go ___ to the check and then come ____ –
Term
On what reports can you find employee's net pay?
Definition
CASH REWARDS & Gift cards (deductable or not?)
Term
On what report can you find an employee's social security number?
Definition
Taxable Comp is:
Term
On what report can you find an employee's marital status and exemptions?
Definition
FICA:
Term
On what report can you find an employee's current payroll adjustment amount?
Definition
SS WAGE BASE LIMIT (CAP):
Term
On what reports can you find the client's total social security witheld for the pay period?
Definition
Medicare Wage base limit:
Term
On what reports can you find the client's total federal tax liability for the month?
Definition
Futa limit:
Term
On what report can you find the client's total payroll expense for the pay period?
Definition
401K exempt from ________ taxes but not _______ taxes
Term
What is the equation for federal tax liability?
Definition
Section 125 is exempt from _______________.
Term
List the equations to calculate the employer's portion of the Social Security and Medicare.
Definition
Net Pay is:
Term
When does a client incur liability, on the period end date or on the check date?
Definition
Federal Income Tax is based on: (which is on your W-4)
Term
What four quarter comprise te lookback period used to determine an employer's federal deposit status for the current year?
Definition
Employer must call the check information in _____ hours before the check is cut.
Term
What are two types of federal depositors?
Definition
Federal Liability is made up of:
Term
What criteria is the depositor determination based on?
Definition
EIC:
Term
When is the deposit due date for each depositor?
Definition
EIC - the employer can ask for a ____ and then:
Term
How does the IRS classify new busienss
Definition
TREAT EIC as a ______ when computing tax liability
Term
What is the purpose of the Form 8109?
Definition
Social Security is paid by:
Term
What is the purpose of the Form 941 and when is it due?
Definition
Who is responsible for paying SSN, Medi and FIT?
Term
How often is FUTA liabilities deposited?
Definition
Over ________penalties assessed last year – and the avg penalty is between __________
Term
When is the Form 940 Due?
Definition
FLSA:
Term
List three examples of clients who may not use Taxpay
Definition
The basis for the calculation of Federal Income Tax Withheld is:
Term
When are funds transferred from the client's account for taxpay?
Definition
Employee Social Security Withheld is calculated by:
Term
When are the funds transferred from the client's account for direct deposit?
Definition
Federal Tax Liability = 941 Liability = Federal with holdings – which consists of:
Term
Describe EFTPS
Definition
Look Back Period is:
Term
What is readychex?
Definition
you are a MONTHLY Depositor if:
Term
When are readychex funds transferred from the client's account.
Definition
When is Monthly Depositor deposited?
Term
What is the Chase Pay Card Plus?
Definition
Brand New Business is what kind of depositor?
Term
What is Workers Comp Insurance?
Definition
You are a semi-weekly depositor if:
Term
How is worker's comp premium calculated?
Definition
How are SW deposit dates deterimined?
Term
Identify two purposes of the WC report?
Definition
Deposit periods and due dates are designated as follows:
Term
Describe the WC payment service?
Definition
When coutning deposit date - Holidays/Weekends are:
Term
Describe in detail the Paychex Garnishment Payment Service?
Definition
Federal Liability is paid by:
Term
Abbot's Cookie Shop has 14 employees and subscribes to the Enhanced Package on a weekly basis. What will paychx bill them every period?
Definition
E/R w/h fed. Tax income, SS and Medicare are required to file a _________
Term
Notes from the Midterm
Definition
When is the liability officially reconciled and closed?
Term
The 401K adjustment is taxable for which of the following federal taxes?
Definition
How does FUTA work?
Term
Which of the following deductions is exempt from FUTA tax?
Definition
How do you calculate FUTA?
Term
When I FUTA taxes due when over $500?
Definition
What is the FUTA credit?
Term
On what date are fed. Tax liabilities incurred?
Definition
SUI rate?
Term
3. If a company has $62K worth of liability in the look back period – what type of fed tax liability depositor will they be?
Definition
What form is FUTA reconciled on?
Term
The IRS assesses a new business as a ____ depositor
Definition
How is SUI calculated?
Term
4. Mario’s pizza has the following liabilities. Pls calculate their fed tax liability
Definition
Sui is deposited when and how?
Term
5. ER = Tax compensation x ____ - employee Medicare.
Definition
What is part of the Payroll Essentialls Package?
Term
6. Kris P crème is a SW fed. Tax depositor. On 10/8 he incurred $36K in fed tax liability. When is that tax due?
Definition
What is part of the Payroll ENHANCED package?
Term
Which form is used to reconcile fed tax liability?
Definition
What is part of the Entrepreneur package?
Term
What form is used to make fed. Tax deposits at the bank?
Definition
Paytoll is the foundation of paychex and the service includes?
Term
9. What form is used to reconcile futa tax liability and when filed?
Definition
Taxpay is…
Term
In the case of Sui, rates _____.
Definition
What is the Paychex amount charged for tWC service?
Term
For fed tax liability a new company would be a ____.
Definition
When does the premium audit take place for WC?
Term
Which quarters make the 2010 look back period?
Definition
What is exempt from WC figures?
Term
Which report can a client use to reconcile negotiable payroll checks drawn from his account?
Definition
Report colors mean?
Term
Which report show can show totals by check date or period to end date?
Definition
When are the reports generated?
Term
Which type of check is non-negotiable?
Definition
What reports are generated?
Term
16. Which clients may not use taxpay?
Definition
o Timesheet info:
Term
Which report lists all the electronic services a client uses?
Definition
Different ways to get paid?
Term
Whose signature is on Readychex
Definition
o Paycheck and Earnings Statement –
Term
The payroll enhanced includes everything in the payroll essentials package plus what other product?
Definition
What are the elements of a live checK?
Term
Whose address is the record of address when a client participates in the State unemployment Insurance Service?
Definition
What element of the live check protect against fraud?
Term
21. Tax liability but not yet deposited is called _________.
Definition
Payroll Journal is:
Term
22. Which of the following is NOT a feature of the Paychex State Unemploy. Insurance?
Definition
Dept summary (for whole company) is:
Term
23. Which reports shows the grand total that will be transferred from the client’s account for taxpay?
Definition
Cash requirements report:
Term
Which report helps a client post his totals to his GL?
Definition
New/Rehire report
Term
WC Report must be received at least _________.
Definition
o Retirement Plan Summary –
Term
How can the WC report be used?
Definition
o Worker’s Compensation Report
Term
If WC is through State farm – who is their insurance agent?
Definition
o Employee Earnings Record
Term
Will there be a premium audit at the end of their policy?
Definition
What is filed quarterly?
Term
Who can sell WC Insurance?
Definition
What is filed annualy?
Term
Which report can a client find the debit amount for his Paychex worker’s comp premium each pay period?
Definition
Basic components of a load:
Term
Who is responible to reconcile all neg. payroll for a client who uses check signing
Definition
In a load , what does MISC include?
Term
What day will funds be deducted for Tax pay?
Definition
In a load, what tax returns do we need?
Term
What day will funds be deducted for Readychex?
Definition
In a load what deposits do we need?
Term
What day will funds be deducted for Tax pay?
Definition
In a load what do we need for Employee gross to net totals –
Term
What day will the funds be deducted for Paychex WC payment service?
Definition
In a load what do we need for Employer gross to net totals –
Term
List 4 components of what you would pick up from an existing business owner when setting him up with Paychex?
Definition
How are SW deposit dates deterimined?
Term
Calculate SUI premium
Definition
Deposit periods and due dates are designated as follows:
Term
When is FUTA due?
Definition
When coutning deposit date - Holidays/Weekends are:
Term
When does Paychex make a taxpay clients deposits?
Definition
Federal Liability is paid by:
Term
Which type of check is non-negotiable?
Definition
E/R w/h fed. Tax income, SS and Medicare are required to file a _________
Term
Which report can show totals by check date or period end date?
Definition
When is the liability officially reconciled and closed?
Term
Which report lists all the electronic services a client uses?
Definition
How does FUTA work?
Term
Which report can a client use to find the debit amount for his Paychex WC premium each pay period?
Definition
How do you calculate FUTA?
Term
When are Paychex WC payment service’s funds debited ?
Definition
What is the FUTA credit?
Term
Feature v. Purpose
Definition
SUI rate?
Term
Purpose/Feature of Payroll journal, dept summary, cash requirements report, employee earnings record, timesheet.
Definition
What form is FUTA reconciled on?
Term
Accolades
Definition
How is SUI calculated?
Term
Total comp (gross)
Definition
Sui is deposited when and how?
Term
Wages:
Definition
What is part of the Payroll Essentialls Package?
Term
Exempt v. Non-exempt employees
Definition
What is part of the Payroll ENHANCED package?
Term
Earnings.. Expect to get it in your __________.
Definition
What is part of the Entrepreneur package?
Term
Other Items - go ___ to the check and then come ____ –
Definition
Paytoll is the foundation of paychex and the service includes?
Term
CASH REWARDS & Gift cards (deductable or not?)
Definition
Taxpay is…
Term
Taxable Comp is:
Definition
What is the Paychex amount charged for tWC service?
Term
FICA:
Definition
When does the premium audit take place for WC?
Term
SS WAGE BASE LIMIT (CAP):
Definition
What is exempt from WC figures?
Term
Medicare Wage base limit:
Definition
Report colors mean?
Term
Futa limit:
Definition
When are the reports generated?
Term
401K exempt from ________ taxes but not _______ taxes
Definition
What reports are generated?
Term
Section 125 is exempt from _______________.
Definition
o Timesheet info:
Term
Net Pay is:
Definition
Different ways to get paid?
Term
Federal Income Tax is based on: (which is on your W-4)
Definition
o Paycheck and Earnings Statement –
Term
Employer must call the check information in _____ hours before the check is cut.
Definition
What are the elements of a live checK?
Term
Federal Liability is made up of:
Definition
What element of the live check protect against fraud?
Term
EIC:
Definition
Payroll Journal is:
Term
EIC - the employer can ask for a ____ and then:
Definition
Dept summary (for whole company) is:
Term
TREAT EIC as a ______ when computing tax liability
Definition
Cash requirements report:
Term
Social Security is paid by:
Definition
New/Rehire report
Term
Who is responsible for paying SSN, Medi and FIT?
Definition
o Retirement Plan Summary –
Term
Over ________penalties assessed last year – and the avg penalty is between __________
Definition
o Worker’s Compensation Report
Term
FLSA:
Definition
o Employee Earnings Record
Term
The basis for the calculation of Federal Income Tax Withheld is:
Definition
What is filed quarterly?
Term
Employee Social Security Withheld is calculated by:
Definition
What is filed annualy?
Term
Federal Tax Liability = 941 Liability = Federal with holdings – which consists of:
Definition
Basic components of a load:
Term
Look Back Period is:
Definition
In a load , what does MISC include?
Term
you are a MONTHLY Depositor if:
Definition
In a load, what tax returns do we need?
Term
When is Monthly Depositor deposited?
Definition
In a load what deposits do we need?
Term
Brand New Business is what kind of depositor?
Definition
In a load what do we need for Employee gross to net totals –
Term
You are a semi-weekly depositor if:
Definition
In a load what do we need for Employer gross to net totals –
Term
Timesheet - purpose
Definition
Purpose: helps clients prepare for the next payroll reporting session and recod of personal information.
Term
Timesheet - Feature
Definition
Features: - maritial status and # of exemptions; name; SSN; list of pay-per-period and ytd adjustment amount; control totals; rates of pay/salary
Term
Check and Earnings Statement - purpose
Definition
Purpose: provides payment for services rendered; provides earnings documentation
Term
Check and Earnings Statements - features
Definition
Features: pay-per-period and year to date totals; marital status and number of exmptions; safety paper; check logo; check stub messaging
Term
Three types of checks processed by Paychex?
Definition
1) Negotiatable payroll checks: ReadyChex and Employer check signing 2) Direct Deposit - non-negotiable and 3) Cas Payroll Checks - non-negotiable
Term
Equation for Net Pay ?
Definition
wages/salary + other earnings + (Reimbursements + other payments) - Taxes + EIC - Deductions
Term
some examples for Net Pay?
Definition
Cash awards and Charge Tips
Term
When is an employer's liability incurred?
Definition
on the check date
Term
The components of federal tax liability is:
Definition
* Federal Income Tax, *Employee’s Soc Sec, * Employer’s SS (6.2% up to 106,800) (So, you take the taxable compensation and multiply by 12.4% then back out the employer’s SS). * Employees’ Medicare * Employer's Medicare (1.45%)
Term
When is an employer a monthly depositor?
Definition
If less than $50K was deposited in federal tax liability during the lookback period
Term
Federal tax liabilites incurred throughout the year are reconciled on what form?
Definition
Form 941
Term
Federal tax liability amounts are paid with _________
Definition
a Federal Tax Deposit Coupon, Form 8109
Term
How often does Paychex calculate a client's federal tax liability?
Definition
Every pay period
Term
What is the equation to determine the employer's social security expense?
Definition
SS tax. Comp x 12.4% - employee SS withheld (6.2%)
Term
What is the equation to determine the employer's medicare expense?
Definition
medicare taxable compensation x 2.9% - employee medicare withhheld (1.45%)
Term
The two federal tax deposit frequencies are:
Definition
monthly and semiweekly
Term
Explain a monthly depositor
Definition
is a federal tax deposit frequency for someone who reported 50K or less in federal liability during the lookback period. Deposits are due on the 15th of the following month.
Term
Explain a semiweekly depositor
Definition
is a federal tax deposit frequency for someone who reports more than 50K in fed. Liab. During the LB period. If check date is: Sat - Tues then deposits are due the current fri. If check date is Wed-Fri then deposits are due the following wed.
Term
Who is responsible to pay FUTA
Definition
the employer
Term
what are the tax rates for unemployment taxes?
Definition
gross rates - 6.2%
Max credit - 5.4%
Net Rate - .8%
Term
What is the taxable wage base for unemploy taxes?
Definition
7K per employee per year
Term
when is the liability for unemployment taxes deposited?
Definition
If the deposit exceeds $500 at the end of the quarter, it must be deposited wit form 8109 by the last day of the month following the end of the quarter. FUTA liability canot be rolled over into the new year.
Term
Under what circumstances is liability carried over to the next quarter?
Definition
When the total accumulated FUTA liability is $500 or less at the end of the quarter may be carried over into the next quarter
Term
How is the payment of unemployment liability made?
Definition
With Form 8109
Term
What tax returns must be filed to reconcile the liabilities deposited?
Definition
Form 940
Term
When must the tax returns be filed (their frequency and due date)
Definition
Annually, at the end of the month the following the end of the year (Jan. 31)
Term
What tax rate does an employer have the most control over?
Definition
SUI
Term
Employers can reduce their SUI rate by _______
Definition
Having a good experience rating or making a voluntary contribution
Term
How is SUI calculated?
Definition
SUI taxable wages x SUI Tax rate
Term
How often is SUI deposited?
Definition
Quarterly
Term
What is the purpose of the Department Summary report?
Definition
* Provides payroll data to be used in posting to the general ledger.
* Aids in budgeting process
Term
What are the features of the Department Summary report?
Definition
* payroll totals by dept
*employer tax expense
*deducations and adjustments broken down by dept.
*pay per perdiod; quarter to date; month to date; and year to date totals
Term
Decribe the Tax Pay service:
Definition
Taxpay deposits a client's federal, state and local taxes and files his tax returns. Taxpay also provides clients with a toll free number to call for answers to SUI questions.
Term
What is Open Liability?
Definition
Open Liability is incurred but not yet deposited (because the deposit period is not closed).
Term
How long is the approval period for Taxpay?
Definition
The approval period is 72 hours.
Term
What happens during the approval period for Taxpay?
Definition
Paychex ensures that they fed. Id number and the employer name match the name and ID number registered with the IRS.
Term
If a client uses Readychex/direct deposit, which one output report regarding the bank reconciliation would you want to cover and why?
Definition
The Cash requirements report because the lump sum debits are provided for each product.
Term
If a client uses Check Signing, which one output report regarding the bank reconciliation would you want to cover and why?
Definition
You would want to cover the payroll journal because it provides each individual check number and net pay amount.
Term
What products are included in the Entrepreneur package?
Definition
Payroll, Taxpay, direct deposit, check signing, readychex, check insertion, new hire reporting, garnishment payment service, general ledger report or GL reporting service; online reports; SUI service (SUIS); worker's comp report; time off accrual service
Term
List the features of the SUI service?
Definition
*Unemployment Claims Administration
*Auditing Charge Statements
*Toll Free Number
Term
Features of the Unemployment Claims Administration in SUI service?
Definition
* Prompt claim response - by deadline
*Prehearing preparation and support - Paychex contacts client and tells them of hearing and helps with paperwork
*Voluntary Contribution anaylsis: we complete a rate analysis for SUI clients and indicates whether a vol. contrib. is beneficial
Term
Features of the Auditing Charge Statements in SUI service?
Definition
Monitoring of benefit charge stateemnts: Paychex reviews and monitors the employer's benfit charge statements to ensure proper charging on the claim.
Term
What are the benefits of the Toll Free Number of the SUI service?
Definition
Paychex staffs a support line of fully trained specialists on call during regular business hours. Unemployment specialists provide peace of mind
Term
What is Taxpay?
Definition
is the service that deposits a client's federal, state and local taxes and files his tax return. Taxpay also provides clients with a toll free numer to call for answers to SUI questions.
Term
What is the debit day for Taxpay?
Definition
Check Date
Term
Specific Features/Procedures of Taxpay
Definition
The client is reponsible for any tax payment notices received from Paychex until he is live on taxpay.
Clients excluded from taxpay: Form 943, form 941M and multi-client numbers using one fed. ID number
Term
When should client call in for taxpay?
Definition
2 days before
Term
What is the approval period for taxpay and what happens?
Definition
* 3 business days - but banking holidays delay it. During the process, HRS verifies client name and EIN with the IRS to ensure accuracy. *
Term
What day is Direct Deposit debited?
Definition
Day before Check day
Term
What is the definition of direct deposit?
Definition
eliminates the need to cash a payroll check. Payroll funds are electonically transferred from the client's accont to the employee's account.
Term
What date is day is the chase pay card debited?
Definition
Day before Check day
Term
What is the defin of Chase Pay card?
Definition
Chase pay card plus provies the same benefits as direct deposit to employees who do not have a bank account.
Term
What are the features of the Direct Deposit?
Definition
DD clients must allow 48 hours b/w payroll reporting day and the check date.
When a client's employee's use direct deposit, the centralized direct deposit report will be provided at no charge each period.
Term
If a client chooses direct deposit - do all employees have to use it?
Definition
No
Term
If a client chooses chase card - do all employees have to use it?
Definition
No
Term
What are the features of Chase Pay Card Plus?
Definition
When a client's employees use Chase Pay card plus, the centralized direct deposit report will be provided at no charge at no charge each pay period
Term
When is the debit day for Chase card?
Definition
Day before Check day
Term
How much time must be allowed between payroll reporting and the check date for check pay card plus?
Definition
48 hours
Term
Ready chex is:
Definition
a service that allows a paychex client to distribute negotiable checks to employees withuot the admin hassle of negotiable check reconciliation.
Term
When is the debit day for Readychex?
Definition
Day before Check day
Term
Features/procedures for readychex?
Definition
Client must allow 48 hours b/w payroll reporting day and the check date.
Sr. vp of finance - John Morphy signs readychex
Term
Garnishment service is:
Definition
Paychex calculates garnishments, witholds required payments and makes agency payments for the client
Term
Garnishment service debit date is:
Definition
Day before Check day
Term
Features/Procedures for Garnishment Services:
Definition
Cllients must process payroll 48 hours before check date.
*client receives a separate garnishment detail report for each employee on the service.
Term
Cash Requirements report purpose is:
Definition
to provide a record of payroll liabilities and expenses.
Term
Cash requirements report features are:
Definition
* total cash required for payroll obligations. *transaction dates and amount for each product. * itemized list of payroll services that are not handled by EFT. * Tax deposit amounts and due dates. * Bank account information regarding Paychex products.
Term
New Hire Report's purpose is:
Definition
*Provides a complete record of new hire info and *helps clients remain in compliance with fed. Law.
Term
New Hire Report's features are:
Definition
*employee name and SSN
Term
Worker's Compensation rates are set how?
Definition
By each state
Term
What is the purpose of WC insurance?
Definition
WC's laws are intended to provide the financial means necessary to allow a worker injured on the job to be "made whole. "
Term
What happens at the end of a WC insurance plan year?
Definition
once a policy expires, a premium audit is conducted to determine the earned premium for the policy period that just ended.
Term
And insurance company is also referred to as ______
Definition
a carrier
Term
What is the WC report service?
Definition
WC report provides a client with a tool for budgeting and tracking premiums. The client retains his own insurance company and makes payments. A sales rep can sell the WC report.
Term
What is the WC payment service?
Definition
it provides the client with insurance, calculates premiums every check date and electronically debits the premium from the client's account. Paychex automcatically pays the premium to the carrier on the client's behalf, and the client rec's the WC report monthly. It is sold by a licensed insurance rep through PX agency.
Term
How does the WC report assist an employer in a premium audit?
Definition
The Worker's Comp report assists and employer during an audit by providing the actual premium owed to date, thus eliminating any surprises at the end of the policy period.
Term
What features can be found on the WC report that can aid in tracking WC premiums?
Definition
* regular and OT wages and other wages *total wages *excluded overtime *excluded wages * subject wages *job classification codes *current rate * curren premium *month to date premium * premium to date premium.
Term
Does a client who uses a paychex WC payment service still receive a premium audit from insurance carrier?
Definition
Yes
Term
What is the equation to calculate a WC premium?
Definition
renumeration (subject wages) x rate / $100
Term
If a client's WC policy does not expire for 10 months -what do you do?
Definition
set him up on WC report now and let client know that that Paychex agency will call him 60 days before his policy expires to discuss the Paychex WC payment Service
Term
A client who uses the WC report service must receive the report at least…
Definition
Quarterly
Term
A client who uses the WC payment service must receive the report at least…
Definition
monthly
Term
Why is a voided check necessary for the new load component?
Definition
To encode client's checks with the proper routing, transit, and account number.
Term
why are hardcopy prood fo the federal and state ID numbers necessary for the new load component?
Definition
To have clear documentation of federal and state ID numbers so we can properly produce tax forms.
Term
Why are personal and payroll (QTD and YTD) information for all active and terminated employees?
Definition
To verify withholdings and adjustments for all active employees so we can calculate net pay and to gather all employee information (terminated and active) so we can produce accurate forms w-2
Term
Why is the SUI rate for the current year necessary for the new load component?
Definition
to code the system to calculate SUI taxes correctly and to properly balance the load
Term
Why are forms 941 for the lookback period and the remander of the previous year necessary for the new load component?
Definition
to verify federal tax deposit frequency and to optain lookback information for future years.
Term
Why are the federal and state tax returns for the previous quarter within the current year necessary as a new load component?
Definition
To use as a reference when balancing loads?
Term
Why are federal and state deposits made in the current quarter necessary as a new load component?
Definition
to check previously deposited taxes against tax liabilities incurred so Paychex can guarantee the accuracy of the client's current-quarter and eyar-end tax returns.
Term
Why is the SUI tax deposits made in the current year necessary for the new load component?
Definition
To use as a reference when balancing load and to ensure all prior liabilities incurred have been paid properly.
Term
Why are FUTA deposits made in the current year necessary as a new load component?
Definition
to use as a reference when balancing the load and to ensure all prior liabilities incurred have been paid properly.
Term
Why are the YTD and quarter to date company totals (ex: wages, withholdings, adjustments, and net pay) necessary as a new load component?
Definition
To balance the new load and to properly calculate employer and employee tax forms at the end of the year.
Term
Why are the company totals for each pay period in the current quarter (ex: each employee's wages, withholdings, adjustments and net pay) necessary as a new load component?
Definition
To ensure Paychex prepares the client's Forms 941 properly.
Term
If a client cannot provide the necessary Forms 941, with the new load, what type of depositor will Paychex automatically code them as?
Definition
Semi-weekly depositor
Term
If you pick up a new load in August of this year - which forms would you need to pick up?
Definition
Q3 and Q4 of 2008; Q1, Q2, Q3 and Q4 of 2009; Q1 and Q2 of 2010.
Term
Salesforce - what does the contact record contain?
Definition
Person information - and the color is purple
Term
Salesforce - what does the Oppty record contain
Definition
Sales deal information and the color is yellow
Term
Sakes force - what does the activity record contain?
Definition
tasks or calendar events and the color is green
Term
Sales force - what does the Prospect-client record contain?
Definition
Business information and the color is blue
Term
Salesforce - what does the lead record contain?
Definition
Initial lead information and the color is orange
Term
Salesforce - what record would you calculate your revenue?
Definition
Opportunity record
Term
Salesforce - when you make contact with a key decision maker - you should ____ the lead record?
Definition
Convery
Term
Salesforce - what is a lead?
Definition
When the decision maker has not been contacted.
Term
Salesforce - what is a prospect-client?
Definition
A prospect is a lead you have contacted and the client is someone who uses Paychex products.
A PROSPECT-CLIENT record includes essential business information for prospects and clients.
Term
Salesforce - what is a contact
Definition
A contact is an employee of the prospect or client
Term
Sales force - What is an opportunity?
Definition
A revenue generating event
Term
Salesforce - what is the home tab for?
Definition
activities are tasks and calendar events. Tasks are to do activities and calendar events are activities that are date and time specific.
Term
Salesforce - what is referral account?
Definition
The referal account includes essential business information for referral sources
Term
Salesforce - what is referral contacts?
Definition
A person within a CPA firm, financial institute or insurance company who refers business to Paychex.
Term
Salesforce - what are the 4 basic rules?
Definition
1. Always search first
2. always start with a lead
3. Use custom links to record activity
4. Ask yourself - what did I do and what do I need to do when entering activity.
Term
Salesforce - what record let's you track your sales deal?
Definition
The Opportunity record
Term
The status of an oppty is either pending, ____ or ____.
Definition
Sold or not sold
Term
A calender event must be a type ______ and must be related to an ______ in order to e considered an end-user presentation and be counted as a presentation for your weekly activity.
Definition
type Presentation-initial and must be related to an OPPORTUNITY
Term
What are 3 ways you should ever create that end-user presentation?
Definition
1. The "convert with opp and mtg" utton on the lead/orange record.
2. The create opportunity and meeting button on the contact/purple record
3. The create initial presentation custom link o the oppty/yellow record.
Term
What exists on every record to record activity?
Definition
Custom Links
Term
If you use the convert with oppty and meeting button to convert my lead, what records will always be created?
Definition
A prospect-client, a contact, an oppty, and a calendar event of your initial presentation.
Term
Paychex offers two types of section 125 plans they are:
Definition
125 plans are provided only through employers (through the payroll deduction) 1. POP – premium only plan (which is sold by the payroll sales rep) o 2. FSA – Flexible spending account (which is sold by human resource services sales rep).
Term
Information about FSA:
Definition
* is a way to reduce taxes on out of pocket medical, dental, vision and dependent care expenses. * Each pay period an amount specified by the participant is deducted from their paycheck without being taxed.
* This money is placed into a flex spending account *The participant pays for out of pocket expenses and submits a claim for the same amount *The participant then receives a reimbursement
Term
What is Section 125A exempt from?
Definition
Sect. 125 is exempt from ALL taxes including fica, fit and futa!
Term
When can you NOT be eligible for a POP:
Definition
IF AN OWNER – YOU CANNOT PARICIPATE IN THE 125 Plan –
o An employee can though!!
o Even if you have 6 people in the business – if 2 are owners.. then only 4 can get the Sect. 125 plan
Term
Is a Sole Proprieter eligible for Section 125?
Definition
owner is only one in the business and is considered self-employed and not an employee of the company, the employer is NOT eligible to participate in a section 125 plan. (because they feel like it’s double dibbing because you can write it off at the end of the year.)
Term
Is a Partnership eligible for Section 125?
Definition
– a partnership is defined as a contract between two or more people to open and participate in a business with proportional sharing of the profits and losses between them. o Since partners are considered self-employed and are not employees of the company, they are NOT eligible and they get tax benefits from the write off of the 125. NOR CAN THEIR FAMILY!
Term
Is a S Corp Eligible for Section 125?
Definition
this type of business is one whose shareholders report the corp’s taxable income (loss) on their personal income tax returns, similar to a partnership. * Any shareholders owning more than 2% of a sub-chapter S corp are considered self-employed individuals and are NOT eligible to participate in a section 125 plan. NOR CAN THEIR FAMILY!
o Smaller company – and they can’t have more than 25 e/e’s. The partners run their personal losses through their personal tax income forms.
Term
Is a LLC eligible for Section 125?
Definition
are treated as partnerships however some choose to be corp’s.
o If the LLC is structured as a corporation- files a form 1120, then all members and employees are allowed to participate in the plan. Key employees and their family members are tested to determine eligibility. * If the LLC is structured as a partnership - files form 1065, only the actual employees of the LLC are allowed to participate. Generally, the LLC members are not allowed to participate since they are considered to be partners. * IF THEY CAN’T PARTICIPATE – NEITHER CAN THEIR FAMILY!
Term
Is a C Corp Eligible for Section 125?
Definition
o All employees are eligible from a C-corp. However, the key employees and their family members are tested to determine eligibility. (Key employees can’t if they put in more than 25% of the total plan)
Term
Key Employee test:
Definition
the 25% key employee test verifies that key employees do not contribute more than 25% of the total contributions to a company’s section 124 plan during the year. This testing must be performed every year to ensure the plan is in compliance with the IRS.
Term
Who is a Key Employer?
Definition
* A greater than 5% shareholder/owner in the corporation
* Greater than 1% shareholder/owner who has an annual compensation of more than $150K per year
* A family member (spouse, parent, children) of any of the above shareholders/owners, * An officer of the employer having an annual compensation greater than $160,000
Term
The Attribution Rule:
Definition
o Under the IRS attribution rule, the owner’s spouse, children, and parents are considered indirect owners of the company are ineligible to participate in that company’s plan. (1 generation up, 1 generation down and spouses) Specifically, family members of sole proprietors, partners, and more than 2% shareholders in a sub chapter S corp. are not legible to participate in a section 125 plan.
Term
Controlled Ownership –
Definition
* If a company or individual has at least 80% ownership in or control of another company – typically these companies use separate fed id numbers. * If you have a controlling interest in one company, and you are offering the POP to one company, you HAVE to offer it to the other companies.
Term
Price and Components of the Section 125 Pop Service:
Definition
$480 a month
o PASTA 25 =
Term
Plan Document (component for section 125)
Definition
(kinda like the service agreement for the 125 plan but in IRS lingo).
• So we will give it to you and you keep it on your shelf. So, if we ever audit you – it shows that you are legit.
Term
Adoption Agreement (component for Section 125)
Definition
company specific to that business. – 1 pg document. So this along with the Plan document.
Term
Summary plan description (component for Section 125)
Definition
Document that summarizes and describes the plan document. This must be distributed to participants within 90 days of their enrollment plan’ as required by ERISA.
Term
Toll Free Number: (component for Section 125)
Definition
Customer Service number on how health insurance goes.
• 1-800-472-0072
Term
Additions or deletions to Section 125:
Definition
when you make a change to your plan. It can be an addition or deletion of a person on your plan. These are done either when there are qualifying events or are a new hire or terminated employee.
Term
25% Key Employee Test:
Definition
Which only pertains to a corporation. Paychex performs the test semiannually. The plan must be compliant by Dec. 31st of that year.
• A part of the Paychex Section 125 plan, the 25% Key employee test is conducted at the time the case is first submitted to HRS Operations. It is then conducted semi-annually. The results are mailed to clients in April and Oct. Copies of these results should be retained by the clients.
Term
Accolades
Definition
* Fortune 500 company
* Top 125 training
*Ephisphere most ethical company and CFO
* AICPA – give a 6 month money back guarantee and 1st month free payroll.
Term
Total comp (gross)
Definition
= wages/salary (hourly rate x hours + Overtime – which is 1.5% times hourly ) + earnings and other items
Term
Wages:
Definition
is (hourly rate x hours + Overtime – which is 1.5% times hourly ) as well as commission and bonus
Term
Exempt v. Non-exempt employees
Definition
*  Exempt is exempt from overtime
 * Non-exempt can have overtime
Term
Earnings.. Expect to get it in your __________.
Definition
Earnings – expect to get it in net pay (ex: Charge tip)
Term
Other Items - go ___ to the check and then come ____ –
Definition
go IN to the Check and then COME OUT!
(instantly been received… such as a cash tip), more examples are: PUCC & gift card as well as a possible cash reward
Term
CASH REWARDS & Gift cards (deductable or not?)
Definition
* Cash reward can be either taxable or not – If it is gift or something (ex: A turkey or gift card) it goes in as an item but then it is backed out at the end of the computation
BUT CASH REWARD that is actual cash must be added in as another item. (if got it already comes out!)
Term
Taxable Comp is:
Definition
= total comp – exempt comp (such as sec. 125 and 401K)
Term
FICA:
Definition
(SS + Medicare) 7.65% because SS is 6.2% and Medicare is 1.45%
Term
SS WAGE BASE LIMIT (CAP):
Definition
cap at 106,800 which is a wage base limit
Term
Medicare Wage base limit:
Definition
* There is no limit in Medicare
Term
Futa limit:
Definition
7K is the max
Term
401K exempt from ________ taxes but not _______ taxes
Definition
401K is only exempt from FIT so must taxable for FICA and must still compute FICA with 401K
- If you eat Special K then you are going to be FIT.
Term
Section 125 is exempt from _______________.
Definition
Section 125 is exempt from FICA and FIT taxes
Term
Net Pay is:
Definition
Net Pay = wages/salary + other earnings - taxes + EIC + reimbursements –
Term
Federal Income Tax is based on: (which is on your W-4)
Definition
1)      Income
2) Frequency of Pay
3) Marital State
4) Deductions
Term
Employer must call the check information in _____ hours before the check is cut.
Definition
Employer must call the check information in 48 hours before the check is cut.
Term
Federal Liability is made up of:
Definition
* Federal Income Tax, *Employee’s Soc Sec, * Employer’s SS (6.2% up to 106,800) (So, you take the taxable compensation and multiply by 12.4% then back out the employer’s SS). * Employees’ Medicare * Employer's Medicare (1.45%)
Term
EIC:
Definition
earned income credit (only for people who don’t make a lot of money) but this is SUBTRACTED at the end.
Term
EIC - the employer can ask for a ____ and then:
Definition
the person can ask for a w-5 and the employer fills it out and signs it. The Employer then assumes the responsibility of paying the $200 over your pay periods. So, if weekly pay then it would be broken up over 52 weeks.
Term
TREAT EIC as a ______ when computing tax liability
Definition
* EIC is a reimbursement and would not be taxed so you would add it at the end and that’s all. TREAT IT LIKE A REIMBURSEMENT!! (And e/r must put on W3)
Term
Social Security is paid by:
Definition
Social Security is paid by both employee and employer
Term
Who is responsible for paying SSN, Medi and FIT?
Definition
-          The Medicare, SSN and FIT is retained by the employer who is then responsible for paying that money to the IRS (along with their match)
Term
Over ________penalties assessed last year – and the avg penalty is between __________
Definition
Over 8 million penalties assessed last year – and the avg penalty is between 3-5K
Term
FLSA:
Definition
fed labor law that was set up to protect the employees
Term
The basis for the calculation of Federal Income Tax Withheld is:
Definition
the employee’s marital status, number of exemptions, taxable compensation for federal income tax and pay frequency.
Term
Employee Social Security Withheld is calculated by:
Definition
is calculated by multiplying social security taxable compensation by 6.2%. This social Security wage base limit changes every year.
Term
Federal Tax Liability = 941 Liability = Federal with holdings – which consists of:
Definition
+ EE Soc Sec (6.2%)
+ ER Soc Sec (6.2%)
+ EE Med (1.45%)
+ER Med (2.9 – 1.45%)
- EIC
Term
Look Back Period is:
Definition
when the IRS looks back to see how much of the federal tax periods have you incurred (normally the last 2 quarters and first 2 quarters of the previous years). This information is on the 941 and we add up all their liability and figure out if they would be monthly or SW.
Term
you are a MONTHLY Depositor if:
Definition
If lookback period is between 0-50K in tax liability.
Term
When is Monthly Depositor deposited?
Definition
So, the entire liability is paid once on the 15th of the next month. If the 15th is a weekend then it goes to the next business day.
Term
Brand New Business is what kind of depositor?
Definition
Brand new businesses are always monthly depositors since they have 0 in tax liability from the previous look back period.
Term
You are a semi-weekly depositor if:
Definition
-          If it’s more than 50K in federal tax liability for the look back period, the employer is a semi-weekly depositor.
Term
How are SW deposit dates deterimined?
Definition
The deposit due dates are determined by the deposit period the check date falls in. AND Semi-weekly depositors always have at least 3 banking days from the end of the deposit period to make a deposit.
Term
Deposit periods and due dates are designated as follows:
Definition
* If the check date is a Saturday, Sunday, Monday, or Tuesday, the taxes must be deposited by the current Friday.
* If the check date is Wed, Thurs or Fri – the taxes must be deposited by the following Wed.
Term
When coutning deposit date - Holidays/Weekends are:
Definition
• Remember not to count the weekends –since they are bank holidays.
• If in the first pay period and the next few days are a holiday then you get an extra day to pay.
Term
Federal Liability is paid by:
Definition
o The Form 8109 Coupon is how the liability is paid now – but that is about to go away. They now fill out the 8109 coupon and then pay at the bank.
Term
E/R w/h fed. Tax income, SS and Medicare are required to file a _________
Definition
Form 941 quarterly and must be signed, postmarked and sent to the IRS before the last day of the following month at the end of the quarter. If due on a holiday r weekend - then due date is next bus. Date
Term
When is the liability officially reconciled and closed?
Definition
You then reconcile what your liability should have been and then the IRS compares it to what was paid to them. If they don’t match up – then an issue. If they match up – then closed for the quarter.
Term
How does FUTA work?
Definition
*Initially, was more of an insurance program. If the employees work, then the employer pays a contribution to the IRS. It is a fund that they employer’s can use in case they become unemployed. *The Federal Gov. - - > pays ½ of the unemployment for someone after 13 weeks.
Term
How do you calculate FUTA?
Definition
When hire someone - .8% of the first $7,000 ($56) that is paid to the employer. (So it is TAXABLE at .8%) Once the 7K is taxed at .8% - you can’t tax again. * Gross Rate at 6.2%
Term
What is the FUTA credit?
Definition
*Credit – (if SUI payment paid on time… you get a credit capped at 5.4%) So, when you subtract 6.2 – 5.4% = .8%
Term
SUI rate?
Definition
– each state has a different SUI rate! And the state assigned the rate once a year (from Jan 1 - Dec 31) and some from (July 1 - June 30) based on the employer's experience rating. You can buy the rate down and new employers have the lowest rates.
Term
What form is FUTA reconciled on?
Definition
On the 940 at the end of the year. Must be filed on or before the last day of the month following the end of the year (Jan 31)
Term
How is SUI calculated?
Definition
Determine the SUI tax comp for each employee.
*calculate company total for SUI tax comp for each quarter and then multiply the SUI tax comp for the company by the tax rate (__%)
Term
Sui is deposited when and how?
Definition
It is deposited every QUARTER regardless of the deposit amount (same schedule as FUTA) and is reconciled on a state specific tax return.
Term
What is part of the Payroll Essentialls Package?
Definition
*payroll *taxpay * direct deposit * check signing *readychex *check insertion new hire report *garnishment payment service *GL or GL reporting service *online reports *HR benefits essentials and Labor law compliance poster kit
Term
What is part of the Payroll ENHANCED package?
Definition
all that's included with Essentialls plus SUI service (SUIS)
Term
What is part of the Entrepreneur package?
Definition
all that's included with Essentialls plus SUI service (SUIS) and workers comp report and time off accrual service.
Term
Paytoll is the foundation of paychex and the service includes?
Definition
checks, management reports and tax return filings.
Term
Taxpay is…
Definition
the payment of the client's federal, state and local tax deposits and quarterly and annual filing of fed. Forms 941 and 940 and state and local tax returns.
Term
What is the Paychex amount charged for tWC service?
Definition
o Paychex asks for $75 up front – and a one time only deal and the next year you are automatically renewed.
Term
When does the premium audit take place for WC?
Definition
* 1 year later – premium audit takes place and if the e/r lowballed the estimate, then e/r ends up owing a premium again. And then, the rep will then ask what they expect to pay next year (and it can’t be less than the year before)
Term
What is exempt from WC figures?
Definition
o Meals, sect 125, etc… are all exempt for the worker’s comp figures and a lot of people don’t back those out so the employer pays on an inflated figure (they essentially get cheated). And Paychex does not do that!
Term
Report colors mean?
Definition
REPORTS: All green are for employers - - All blue is for employees
Term
When are the reports generated?
Definition
o Reports are generated for EVERY pay period (except E/E earnings report) o If check date is on a Friday, the reports that they get normally come the day after the call date. So, if they call payroll in on Monday – they would get the reports on Tuesday.
Term
What reports are generated?
Definition
*they would get the earnings statement, department summary, cash requirements, payroll journal, timesheet, (And GL – only if they are on one of the packages and they subscribe to it)
Term
o Timesheet info:
Definition
*The purpose of the timesheet is to help you prepare for your next week’s payroll. * Broken out by departments – alphabetically * And, at the bottom – there is all of our information as well as an appt that was made for our payroll specialists to call them. * The right side is all of your deductions.
Term
Different ways to get paid?
Definition
*Top of the statement is the check and the bottom is the statement
Different ways to get paid: • Direct deposit (Non-negotiable check (dead check!)
and No bank info (the one in the book ) • Pay card (Chase)
• Live Check
Term
o Paycheck and Earnings Statement –
Definition
*Top of the statement is the check and the bottom is the statement*Bottom has all the personal info of the employee - the check is perforated. *
Term
What are the elements of a live checK?
Definition
o Check sign – Employer’s signature is lasered on and cut off their own account and they reconcile.
o Ready Chex – drawn from Paychex’s account and signed by out CFO  Helps against fraud, etc. * Regular o Regular checks – we send it to them and they sign it and they reconcile it.
Term
What element of the live check protect against fraud?
Definition
* On the bottom of the check – the line at the bottom is made up of the word paychex but if you copy it – it comes out as “VOID” instead of Paychex. Also, the back of the check has a little place that if you rub it says “Paychex” but if it is copied – the heat of the copier makes it disappear.
Term
Payroll Journal is:
Definition
* It can help answer questions for the employee if they have questions. * Businesses can see what they are spending and who is making the most money, etc. * Shows all Tax liabilities, checks that you will need to reconcile (balance check book). * Main purpose of this report is to act as a bank reconcile and to help employee’s answer questions. * Total Tax Liability is also computed on the bottom.
Term
Dept summary (for whole company) is:
Definition
* Summary of the company’s earnings, deductions, withholdings and your net pay by department * They would like this for audits and bookkeeping. (It’s the company’s “books” essentially). *This is the only report that is more towards accounting – and the one that the client should allow the CPA to have access to. * Good way to do bookkeeping is through the Department Summary or go one step higher and use the General Ledger.
Term
Cash requirements report:
Definition
 The top figure is your total payroll responsibility is on the top of the page. (with the exception of our invoice for the administration of payroll, etc).
Term
New/Rehire report
Definition
 They have 20 days from hiring date to advise the gov of the new employee but we do it for them.
Term
o Retirement Plan Summary –
Definition
 We only provide this if they are NOT on our 401K plan.
 These records are for the record keeper
Term
o Worker’s Compensation Report
Definition
The subject wages are an important line because it shows the client that they are paying the right amount and also shows the amount that needs to be paid MINUS 401K and Sec 125
Term
o Employee Earnings Record
Definition
ONLY GET THIS QUARTERLY – goes up to 18 months of history
*You can see all the employees information for that quarter.
• It can help with unemployment and worker’s compensation claim forms. *• Also helps with disability claim forms, wage confirmation (loans), HR management tool, helps gage days off used,
Term
What is filed quarterly?
Definition
o Quarterly reports: 941, state and local
Term
What is filed annualy?
Definition
Annual – W2, W3 (summary of w2’s) or 1099 and 1096; 940
Term
Basic components of a load:
Definition
Misc ; tax returns that have to do with payroll; deposits; and e/e and e/r gross to net
Term
In a load , what does MISC include?
Definition
* W4: employee Personal information, SSN, etc * Federal and State ID number (employee) – EIN – must be a recent document (within the past 2 years) * SUI rate (TARG – on intranet). GREAT reference tool to know what forms to look for – for any state
 Voided check (CAN’T USE DEPOSIT SLIP!) * Letter from the bank on bank letterhead with routing and transit number.
Term
In a load, what tax returns do we need?
Definition
 941 ‘s - For lookback so• Q1 (from last year 2009)
• Q2 (from 2 years ago – 2008) • Q’s 3 & 4 of 2009 (for 2011 lookback)
o 941’s for any completed quarters this year
 State unemployment and/or state withholding – if they have it
Term
In a load what deposits do we need?
Definition
*Federal Tax Liability – only quarter because all other documents are on the 941. *FUTA deposits for the year * SUI – for the year because not every state is the same. Some only reconcile annually and some do it quarterly *State tax liability (withholding) for the quarter (current)
Term
In a load what do we need for Employee gross to net totals –
Definition
• Need it for the current year (in order to do W2’s)
• AS WELL as for the quarter (in order to properly do the 941 and other quarterly reports for that quarter).
Term
In a load what do we need for Employer gross to net totals –
Definition
• Need it current year (year to date)
• As well as quarterly
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