CPP SECTION 7

Process-manage the process of preparing payroll. Developin policy & procedures & Auditing People-Manageing Poeple. Hiring, delegating, Employee developement, communication. Proficiency-emain current on law. retain core knowledge about payroll.

Federal, state & local govt entities,exempt organizations, private corps & businesses

1.Employee was 5% owner any time this year or previous year 2. Employee received more than $115,000 in pay for previous year -IRS gives ignore test option if the employee was not also in the top 20% of employees when ranked by pay for the preceding year.

May be employed by parent or in specific occupations-acting, newspaper carrier, babysitting Parents may not employ in hazardous industry

Employee repays net amount Reverse wages and taxes from payroll system to make sure W-2 is correct If employee repays after 941 filed for the quarter-file form 941X

Amount remaining after deductions

Amount before deductions.

Employee can not recover overpaid federal withholding tax Employee should repay GROSS-they had benefit of overwitheld FIT amount reported on Fotm W-2 and applied to employer's tax liability issue form W-2C to correct SS & Meducare Wages & taxes, refund employee overheld SS & Medicare but do not adjust federal wages or FIT on W-2C. FIle form 941X to claim refund of overpaid SS & Medicare

Payment received in current year for employment in previous year Portion of Back Pay for Personal Injury, Interest, Penalties & Legal fees is NOT WAGES Report as Federal, SS & Medicare wages in year paid.

Age Discrimination Act, Americans with DIsability Act, Equal Pay Act, FLSA, state minimum wage laws SSA credits to employee's record in the year paid

SSA credits to employee's record in the period wages relate to. "Payment for back wages negotiated between an employee and employer WITHOUT an award, determination or court sanction or govt agency"

Payments to employeein current year for services in prior year Report on current year W-2 as normal wage

Nontaxable- clothes required as a condition and not suitable for everyday wear. Upkeep of items is also non taxable Post office uniform, safety shoes, hard hats, work gloves, cash allowances under accountable plan for excludable items

Shirts with company logos' white dress shirt/black pants, cash allowances for nonexcludable clothing or uniforms

Do NOT include in wages if: Employee must have incurred expense while performing services fro the employer Expenses must be substantiates w/in