Module 2 - Basic Payroll Terms Assessment Questions PDF

**[Module 2- Basic Payroll Terms- assessment/Survey Questions]** **[Assessment]** **Match the term to the definition...** **Payroll Processing** -- Describes the preparation of paychecks (including withholding and deductions), distribution of paychecks, and payment of payroll taxes. **W-2 employ...

**[Module 2- Basic Payroll Terms- assessment/Survey Questions]** **[Assessment]** **Match the term to the definition...** **Payroll Processing** -- Describes the preparation of paychecks (including withholding and deductions), distribution of paychecks, and payment of payroll taxes. **W-2 employee** - Means payroll taxes are automatically deducted from your paycheck and then paid to the government through your employer. The employee will receive a W2 at the end of the year. **1099 Independent Contractor** - A natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or within a verbal agreement. \... The report of the money paid is recorded on a 1099 form at the end of the year; independent contractors do not have income taxes withheld like regular employees. **Hourly Wage** -a rate an employer agrees to pay a worker per hour worked **Salary Wage** - the employee receives regular pay on a regular basis, and that this amount doesn\'t fluctuate in regard to the quality or quantity of work actually performed. Usually an employer offers an Annual Wage that is then broke into a "Salaried Amount" and paid equally over the number of pays in the current calendar year. **Commission Wage** - sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services. It can be paid as a percentage of the sale or as a flat dollar amount based on sales volume. Employers often use sales commissions as incentives to increase worker productivity. **Federal Minimum Wage -** Provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is \$7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both. **Prevailing Wage** -- A required wage to be paid to skilled trades employees on public improvement construction projects. It is the sum of a basic hourly rate of pay plus an additional predetermined amount based on the rate of contributions irremovably made by a contractor or subcontract to a terms third party, pursuant to a fund, plan or program. **Wage for Tipped Employee** - The American federal government requires a wage of at least \$2.13 per hour be paid to employees that receive at least \$30 per month in tips. If wages and tips do not equal the federal minimum wage of \$7.25 per hour during any pay period, the employer is required to increase cash wages to compensate. (Minimum Tip) **Direct Tips** - Tips received in cash **Held Tips** - Typically tips paid on credit cards that are paid to the employee on payroll **Wage Garnishment** -- A legal procedure in which a person\'s earnings are required by court order to be withheld by an employer for the payment of a debt **Holiday Pay** - Any form of paid time off, such as a government-declared holiday **Sick Pay** -- Time off from work that workers can use to stay home to address their health and safety needs without losing pay. **Overtime Pay** - Provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. **Overtime work -** Authorized and approved hours of work performed by an employee in excess of eight hours in a day or in excess of 40 hours in an administrative workweek, and includes irregular or occasional overtime work and regular overtime work. **Workweek** - Means the days and hours within an administrative workweek which make up the employee\'s regularly scheduled 40-hour workweek. **Administrative workweek -** A period of seven consecutive calendar days. **Shift Differential Pay** - Extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). An integral part of each eligible employee\'s gross compensation and is subject to the same payroll deductions and payroll charges as regular salary or wages. **Night shift differential -** The differential paid the employee when the majority of regularly scheduled non-overtime hours worked fall between 3 p.m. and 8 a.m. **Fair Labor Standards Act** - A United States law which sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay and limitations on child labor. **Payroll Period** - A recurring length of time over which employee time is recorded and paid (e.g., weekly, bi-weekly, semi-monthly, monthly) **Pay Date** - The actual date wages are paid for a specific pay period. **Bonus Pay** - Compensation over and above the amount of pay specified as a base salary or hourly rate of pay. **Payroll Record** - The records maintained by the employer about the number of hours worked, salaries and wages, bonuses and commissions, health and pension plans, sick pay and pension pay and finally deductions on the payroll for all the employees. **FICA** **Tax**- **Federal Insurance Contributions Act** -- A United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare---federal programs that provide benefits for retirees, the disabled, and children of deceased workers. **Medicare Tax** - A tax deducted from employees\' paychecks that goes to pay for medical benefits for people over 65 years of age. This tax is paid by both employee and employer. **Federal Tax Withholding** - The amount of tax that an employer is required to withhold from an employee\'s paycheck. This amount is determined by the number of exemptions that an employee claims on his/her taxes and the amount of income that is being paid to the individual. **Local Income Tax Withholding** - A tax assessed and levied by a local authority such as a county or municipality, and is used to fund a wide range of civic services from garbage collection to sewer maintenance. The amount of local taxes may vary widely from one jurisdiction to the next. **Courtesy Tax Withholding** - An optional service employers may choose to provide as a convenience to their employees. An employee\'s local residence taxes are withheld and remitted by the employer on the employee\'s behalf. **School District Tax withholding** - Ohio employers also have the responsibility to withhold this tax from the pay of employees who reside in a school district that has enacted such a tax. **Employee Tax Liability** - The amount of money you owe to tax authorities. Tax authorities include your local, state, and federal governments. Tax liability is a legally binding debt, meaning you must pay the taxes you owe or you could face government penalties. **Employer Tax Liability** - An employer is required to withhold a specified percentage from each payment of wages to each employee to collect currently the Fica and Medicare tax liabilities owed on those wages. The employer must also pay the employer portion (in the same amount as the tax withheld from the employee\'s wages) of these taxes. No withholding exemptions are taken into account in determining the amounts withheld or paid. The combined amounts must then be remitted in a timely manner to the federal government. **[Survey]** 1. How comfortable are you with basic payroll terms? - Very comfortable, comfortable, somewhat comfortable, not comfortable