Card Set Information
Laws Payroll Taxes
Summarizes laws relating to work and employment.
Fair Labor Standards Act
Min wage = $7.25 / hour,
State & Fed, then take higher of the two,
Pay periods, rest, meals, lodging, uniforms, etc.
Fed Insurance Contributions Act (FICA)
Tax on EEs and ERs ,
Social Security & Medicare.
What is Fed Unemployment Tax Act (FUTA)?
Tax on ERs used to pay state and Fed unemployment program.
SUTA used to pay state unemployment benefits.
Civil Rights Act of 1964
Establishes Equal Empl Opportunity, forbiding discrimination re: hiring, firing, compensating, based on race, color, religion, gender, or natl origin.
If ER not covered by Civ Rights Act, has a contract with US Govt. Fed govt has banned discrimination on
based on race, color, religion, gender, or natl origin.
Age Discrimination in Employment Act
Prohibits ERs from disctriminating based on age. Provides protection for all workers over 40. ERs must keep records.
Fed Personal Responsibility and Work Opportunity Reconciliation Act
All states must establish new-hire reporting programs. Name, address, SS #.
Helps in enforcement of child support. Reduces fraud in unempl, workers comp.
Immigration Reform & Control Act
Bars ERs from hiring unauthorized aliens. ERs must file I-9 form on aliens hired.
Family and Medical Leave Act
Requires ERs to grant workers unpaid leave for family medical emergency for as many as 12 weeks.
ERs can exempt:
highest 10% earners
those who haven't worked a year.
Employee Retirement Income Security Act (ERISA)
Co, has a pension fund, all EEs over 21 who have worked for 1 year must have pension.
- right to share in retirement fund even if terminated before retirement age. Once vested, EE has right to receive pension even if not working for firm at that time.
Workers Compensation Laws
Protects EEs and dependents against losses due to work-relate injury, illness or death.
Rate variable depending on exposure of EE. Office worker less than machine worker.
Multicolumn form used to assemble and summarize data at end of each payroll period. Provides detailed listing of Co's complete payroll for that period.
What is EE
Provides complete info about accumulated earnings of each EE.
ERs use EE earnings record to prepare Form W-2, Wage and Tax Statement.
Benefits paid to retired workers.
EE and ER must contribute to taxes while employed.
What is Medicare?
Medical health insurance for retired workers.
EE and ER must contribute while working.
What are Federal Income Taxes?
Taxes withheld by ER based on %age of gross pay.
What is the
Americans with Disabilities Act
of 1990 (ADA)?
Prohibits ERs with ≥ 15 EEs from discriminating against qualified persons with disabilities because of their disability.
Accommodations for disabled must be provided.
What is the
Walsh-Healey Public Contracts Act
Provides minimum wage for all laborers on US govt contracts ≥ $10k.
What about ER drug testing of new EEs?
ERs can consult state laws.
Can be used in limited situations.
New hire Reporting
Successful applicant notified of starting date, time, where to report. Hiring notice is sent to Payroll Dept to add him to payroll.
Info is pay rate, SS#, nr of WH on W-4 .
Workers Compensation Insurance
Insurance paid to workers injured, ill, or die
on the job
What is Temporary Disability Insurance (TDI)?
Provides for workers in case of illness or pregnancy
outside of work
Gives up to 26 weeks.
FOr pregnancy, 6 weeks, but can add another 6 weeks with FMLA.
You get a %age of salary, and ERs can supplement with vacation, sick leave, etc.
HR pre-hire questions?
Type of work sought,
Not allowed pre-hire questions:
Civil rights laws re:
race, color, religion, gender, natl origin, or age.
(Are allowed if are bona fide occupational qualifications.)
Not allowed Testing of pre-hires:
Allowed to ask for age, but must then include stmt that ADEA prohibits age discrimination.
HR Investigative Consumer Report
Contains info about character, reputation, mode of living.
ER must notify in writing that this is being sought.
HR Application Form
Type of ee desired,
HR Hiring Notice
Nr of withholding allowances on W-4.
Contains info on all EEs pay rates, gross pay, deductions, net pay for pay period and YTD.
General Journal entries,
to prove satisfaction of FLSA.
What is EE Earnings Register?
Payroll info on each EE.
Info for each pay period and YTD.
Used to prepare W-2.
Amount of wages paid to each worker. ER must provide to EE at end of year.