Podcast
Questions and Answers
The Form W-2 is also known as a ______ statement.
The Form W-2 is also known as a ______ statement.
withholding
Employee’s ______ records are used to prepare the W-2 forms.
Employee’s ______ records are used to prepare the W-2 forms.
earnings
The Form W-2 provides information on employee’s ______ and tax withholdings for the year.
The Form W-2 provides information on employee’s ______ and tax withholdings for the year.
earnings
The ______ form permits employer to list total deductions, and to reconcile the gross earnings, deductions, and the net pay.
The ______ form permits employer to list total deductions, and to reconcile the gross earnings, deductions, and the net pay.
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If the firm issues 250 or more forms, the W-2 must be ______ electronically.
If the firm issues 250 or more forms, the W-2 must be ______ electronically.
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The employer must send a copy of the W-2 form to the ______ administration.
The employer must send a copy of the W-2 form to the ______ administration.
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Employee’s earnings and tax ______ are reported on Form W-2.
Employee’s earnings and tax ______ are reported on Form W-2.
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Employers submit Form W-3 to the ______ Administration along with copies of Form W-2.
Employers submit Form W-3 to the ______ Administration along with copies of Form W-2.
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Payroll taxes can be deposited electronically through the ______ System.
Payroll taxes can be deposited electronically through the ______ System.
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Employers with annual federal tax deposits exceeding $ ______ must use the EFTPS.
Employers with annual federal tax deposits exceeding $ ______ must use the EFTPS.
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A preprinted government form, Form 941, is used by employers to report ______ tax information.
A preprinted government form, Form 941, is used by employers to report ______ tax information.
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The frequency of tax deposits depends on the ______ liability.
The frequency of tax deposits depends on the ______ liability.
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The due date is extended to February 10 if all ______ deposits were made on time.
The due date is extended to February 10 if all ______ deposits were made on time.
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Information needed to fill out this form comes from individual ______ records and state unemployment tax returns filed during the year.
Information needed to fill out this form comes from individual ______ records and state unemployment tax returns filed during the year.
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The ______ company calculates the actual premium if the actual premium is more than has been paid.
The ______ company calculates the actual premium if the actual premium is more than has been paid.
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At the end of the year the ______ company calculates the actual premium if the actual premium is more than has been paid.
At the end of the year the ______ company calculates the actual premium if the actual premium is more than has been paid.
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Typically paid by employers with a few ______ at the end of the year the insurance company calculates the actual premium.
Typically paid by employers with a few ______ at the end of the year the insurance company calculates the actual premium.
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From January through November they pay the actual ______ due based on an audit of the month’s wages.
From January through November they pay the actual ______ due based on an audit of the month’s wages.
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Study Notes
Payroll Tax and Reporting
- An employer is responsible for paying the difference in taxes if they did not deduct enough from an employee's earnings, which is debited to the payroll tax expense account.
- Form 941 is used to report payroll tax information to the Internal Revenue Service.
W-2 Forms
- A W-2 form, also known as a Withholding Statement, is provided to each employee by January 31 for the previous calendar year's earnings.
- The form provides information on employee earnings and tax withholdings for the year.
- Employers may use a standard or IRS-approved substitution form, which allows for listing total deductions and reconciling gross earnings, deductions, and net pay.
Distribution of W-2 Forms
- 4-6 copies of the W-2 form are prepared: one for the Social Security Administration, one for the employee to attach to their federal tax return, one for the employee's records, one for the employer's records, and additional copies if necessary.
Payroll Tax Deposits
- Payroll taxes can be deposited through a check at a Federal Reserve Bank or any other financial institution, but electronic deposits are the preferred method.
- The Electronic Federal Tax Payment System (EFTPS) is required for businesses with annual federal tax deposits exceeding $200,000.
- Employers who fail to use EFTPS when required are subject to a 10% penalty.
- The frequency of deposits depends on tax liability and the lookback period, which is a four-quarter period ending on June 30th of the preceding year.
Workers' Compensation Insurance
- Workers' Compensation Insurance provides benefits to employees injured on the job and is typically more expensive for employees with dangerous jobs.
- Insurance premiums can be paid in advance or through monthly/quarterly payments, with the actual premium calculated at the end of the year.
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Description
Test your knowledge of important payroll tax forms and statements, including Form 941, Form W-2, and Form W-3. Learn about the purpose and content of each form and how they are used to report tax information to the Internal Revenue Service. Brush up on your understanding of social security, medicare, and employee income tax withholding.
