American Payroll Association (APA) Basic Guide to Payroll, 2019 Edition
The 2019 Edition of American Payroll Association (APA) Basic Guide to Payroll helps you stay up to date with payroll laws, answer employees’ payroll questions, and train your payroll administration staff.
This one-of-a-kind resource delivers plain-English explanations of basic payroll requirements, including payroll laws, payroll regulations, and proper payroll guidelines and policies.
With the 2019 Edition of American Payroll Association (APA) Basic Guide to Payroll you can easily manage all these payroll changes and vital topics:
- How the 2017 tax law influences Payroll in 2019 (see Chapter 2).
- 2019 Social Security taxable wage base (see Chapter 8).
- What is new about the 2018 Form W-2 and a box-by-box explanation (see Chapter 3).
- Form W-4 for 2019 with a corresponding example of how to complete it (see Chapter 4).
- 2019 mileage rate (see Chapter 2).
- Percentage method withholding tables for 2019 and withholding allowance amounts for up to 10 allowances (see Chapter 5).
- Plans for the future Form W-4 (see Chapter 2).
- Explanation of an IRS proposal to aggregate information returns for the electronic filing threshold (see Chapter 2).
- Line-by-line example of how to complete a 4th quarter Form 941 (see Chapter 8).
- An update on the white-collar exemption regulations (see Chapter 2).
- 2019 indexed benefit amounts and pension limits (see Chapter 2).
- The 2019 levy tables (see Chapter 6).
- New law, case, and guidance about the tip credit (see Chapter 2).
- 2019 calendar of due dates for payroll filings and deposits (see Appendix C).
- Explanation of U.S. Supreme Court decision changing how to view a white-collar exemption (see Chapter 2).
- New option for filing employment tax returns (see Chapter 8).
- Return of no match letters (see Chapter 2).
- 2019 amounts for qualified transportation benefits (see Appendix A).
- A revised chapter on payroll technology, including payroll features supported by technology, security concerns, disaster recovery, and payroll solution selection (see Chapter 12).
- 2019 CONUS per diem rates (see Appendix D).
- Focus of ICE's comprehensive strategy to enforce employment eligibility requirements (see Chapter 4).
- 2019 indexed amounts for adoption expenses and thresholds (see Appendix A).
- How to enroll in EFTPS (see Chapter 8).
- 2019 spring and fall examination dates to take the CPP and FPC exams (see Chapter 1).
- Update on the IRS's efforts to prevent W-2 fraud (see Chapter 2).
- Earned income credit maximum amounts and cutoffs for 2019 (see Chapter 4).
- Updated statistics regarding income withholding for child support (see Chapter 6).
- 2019 QSEHRA amounts (see Chapter 2).
- Tax breaks offered to aid hurricane relief efforts (see Appendix A).
- Backup withholding rate for 2019 (see Chapter 10).
- Update on credit reduction states (see Chapter 9).
- IRS clarification on how to handle overwithheld income tax withholding (see Chapter 8).
- Clarification on how to determine compensable travel time (see Chapter 11).
- Explanation of DOL's PAID program for wage and hour violators (see Chapter 2).
- 2019 state minimum wage rates (see Chapter 11).
- Explanation of proposed regulations on the de minimis safe harbor (see Chapter 2).
- Change in procedure regarding lock-in letters (see Chapter 4).
- FICA cost savings for 2019 for independent contractors (see Chapter 10).
- DOL guidance on the exempt status of teachers and guidance counselors (see Chapter 11).
- Alternative withholding method that the IRS intends to eliminate (see Chapter 5).
- Synopsis of a new decision about a gig worker (see Chapter 2).
- 2019 supplemental withholding rate (see Chapter 5).
- DOL guidance about garnishment of lump-sum payments (see Chapter 2).
- Updated directories of federal and state agencies (see Appendix B).
- Temporary extension to the exemption to file a new Form W-4 within 10 days if the number of allowances decreases (see Chapter 4).
- Tips from the IRS to protect computers, email, and other sensitive data (see Chapter 2).
- TIGTA's suggestions for improving the lock-in letter process (see Chapter 4).
- Tax relief for victims of disasters (see Chapter 2).
- Revised Glossary of payroll terms (see Appendix F).
- IRS priorities for 2019 (see Chapter 2).
- 2019 Circular E and IRS Publication15-B (see Appendix E).
- 2019 Rates at a Glance (see Chapter 2).
The American Payroll Association Basic Guide to Payroll, 2019 Edition, delivers expert answers covering all of these issues—and many more!
Frequently Asked Questions addressed in American Payroll Association (APA) Basic Guide to Payroll:
- What’s new in payroll laws, payroll regulations, payroll cases, IRS announcement regarding payroll, Department of Labor pronouncements about wage and hour laws, and payroll trends?
- How does Payroll comply with federal and state wage-hour laws?
- What are the federal and state requirements for keeping payroll records?
- Are there limitations about how to pay employees or can the employer decide to mandate direct deposit of wages?
- How do I implement the 2019 Federal payroll withholding tables?
- How do I complete and file the 2018 Form W-2?
- What are the advantages and drawbacks of hiring workers who aren’t employees?
- How does Payroll handle withholding from Gross Pay for garnishments, federal tax levies, and child support orders?
- What documents must an employer collect from an employee?
- How does Payroll implement Form W-4?
- What are the due dates for federal employment tax returns?
- What are the CONUS per diem rates for 2019?
- What are the federal employment tax ramifications and the federal wage and hour consequences of providing fringe benefits to employees?
- What are the terms of art and acronyms in Payroll?
- What’s new in payroll technology?
- How does payroll accounting work?
1 INTRODUCTION TO PAYROLL
• Why Payroll Is Important
• Professional Certification
2 WHAT'S NEW IN PAYROLL FOR 2019
• Social Security Wage Base Rises for 2019
• IRS Announces 2019 Payroll Figures
o Qualified Transportation Fringe Benefits
o Adoption Assistance
o Health FSA Amount
o Standard Deduction
o Earned Income Tax Credit
o Income Tax Rates
• How the 2017 Tax Law Influences Payroll in 2019
o Income Tax Rates
o Standard Deduction and Personal Exemption Amounts
o Indexing for Inflation
o Child Tax Credit
o Employer-Provided Benefits
o Paid Family and Medical Leave
• 2019 Form W-4 Will Not Undergo a Major Overhaul
o Lock-In Letters
• What You Should Know About the 2018 Form W-2
o Box 12, Codes GG and HH
o Moving Expense Reimbursements
o Extensions to File
o De Minimis Safe Harbor
• The IRS Proposes Aggregating Information Returns for the Electronic Filing Mandate
• Proposed Rules on Truncated Social Security Numbers Are Not Final Yet
• What the IRS Is Doing to Prevent W-2 Fraud
o Business Email Compromise
o Preventing W-2 Fraud
o Recognizing an IRS Agent
• No Match Letters Are Making a Comeback
• There Are No Credit Reduction States for 2018
• The DOL Has Not Yet Proposed Revised White-Collar Exemption Regulations
o The Basics of the 2016 Regulations
o The Legal and Administrative Challenges to the Regulations
o Revised White-Collar Exemption Regulations
• Pension Plan Limits for 2019 Are Announced
• The Cost of Noncompliance Keeps Rising
• The Supreme Court Gives Employers a Win
• Certified Professional Employer Organizations Are Approved by the IRS
o Rules for CPEOs
o The Application Process
o Annual Verification, Suspension, and Termination
o CPEO v. PEO
• IRS Issues Guidance About the Payroll Tax Research Credit
• Tax Relief Is Offered to Aid Victims of Disasters
• Cash Reimbursements for Transit Benefits Are Restricted in Some Areas
o 2006 Ruling
o Need for Technology Updates
• Guidance Is Issued About Timeliness of Employment Tax Returns
• IRS Finalizes Regulations Implementing the Supreme Court's Decisions About Same-Sex Marriage
o Form W-4 and State Equivalent Forms
• The Affordable Care Act Continues to Have a Major Impact on Payroll in 2019
o Reporting Health Care Coverage
o Marketplace Notices
o Flexible Spending Arrangements
o Taxability of Benefits
o Taxes on Health Plan Rebates
• Small Employers Have the Option to Offer a New Type of HRA
• DOL Implements New Test for Interns
o Circuit Court Cases
o The DOL’s New Test
• Some Jurisdictions Enact Paid Sick Leave and Paid Family and Medical Leave
• Here’s What Is Going On with Form I-9 and E-Verify
o Form I-9
o Extension of Employment Authorization Documents
o Letting Undocumented Workers Go
• States Target Undocumented Workers
• Worker Classification Issues
o Economic Reality Was the Focus of DOL Guidance—For a Limited Time
o DOL Teams Up with IRS and States
o One State Took the Classification Matter Into Its Own Hands
o Employee, Independent Contractor, or Both
o Worker Classification Mattered for Overtime
• The Gig Economy May Change How Worker Classification Is Viewed
• New Cases Present Different Joint Employer Tests
• DOL Issues Guidance About Garnishment of Lump-Sum Payments
• The Uniform Wage Garnishment Act is Awaiting Passage by the States
• Here’s an Update on Child Support
• Why E-Filing of Employment Tax Returns Is Lagging Behind
• What to Do If You Appoint an Agent
o Letter Ruling
• Employment Tax Liability When Payroll Is Outsourced
o TIGTA Report
o Statute of Limitations
o Monitoring Outsourced Payroll Duties
• Protect Your Valuable Information
o Wireless Access
o Social Security Numbers
o State Action
o Data Breach Notification
o Practical Tips
o Computer Security
o Protecting the Workplace
• What the IRS Is Examining in Employment Tax Audits
o Executive Perks
• IRS Is Looking for Wage Recharacterizations
• Wage-Hour Happenings
o Supreme Court Decision and State Law
o DOL Opinion Letters
o New Law Addresses Baseball
o New Compliance Office Opened and Merger of DOL Proposed
o Comp Time Being Considered
o Cash in Lieu of Benefits Included in Overtime Rate
o The “Fissured” Workplace
o Hot Goods
o Final Rules on Companions and Live-In Domestics
o Student Athletes
o Court Decisions
• Recent Developments Regarding Tipped Employees
o New Law
o DOL’s Reaction to New Law
o A Major Case and Then a DOL Opinion on the 80/20 Rule
o Tips or Service Charge
o Proposed Regulations
o Underreporting of Tips
o Handling Costs of Charged Tips
o Tip Jar Proceeds
• DOL Extends Its PAID Program
• Tidbits of News Are Issued by the IRS
o Priorities for 2018-2019
o IRSAC Update
o Resolving Employment Tax Disputes
o Computation of Penalty for Intentional Disregard
o Penalties for W-2 Errors
o Employment Taxability of Electric Vehicle Charging
o California Penalties Not Wages
o Checking on Address Changes
o Voluntary Withholding
o Virtual Currency
o Vetoed Change to Form 941
o Limit on Daily Issuance of EINs
o Substitute 941 for Misclassified Workers
• How to Prepare for Disasters
• Mileage Rate Increases a Few Cents for 2019
o Company Car Valuation Figures
• 2019 Rates at a Glance
• State Unemployment Wage Bases for 2019
3 HOW TO SAVE TIME AND TROUBLE FILING THE 2018 FORM W-2
• What’s New
• The Format
o Substitute Form
• State Wage and Tax Statement Deadlines
• Reporting the Correct Name and SSN
o How to Verify
o Reasons for a Mismatch
o What to Do if a Mismatch Occurs
• Furnishing Form W-2 to Employees
o When to Furnish
o How to Furnish
• Filing With the SSA
o Electronic Submission
¿ Business Services Online
¿ Online Wage Reporting for Small Employers
¿ Electronic Data Transfer
o Extension for Filing
• Penalties for W-2 Filing Errors
• How to Report Retirement Plan Contributions and Deferred Compensation
o Retirement Plans
o Deferred Compensation
o Simplified Employee Pensions
• How to Report Noncash Fringe Benefits
o Company Cars
¿ Option Not to Withhold Income Tax
¿ The 100% Personal Use Option
o Subsidized Meals
• How to Handle Other Benefits and Payments
o Adoption Assistance Payments
o Agricultural Labor, Payments to Foreign Workers
o Deceased Employees, Payments to
o Dependent Care Assistance
o Educational Assistance Payments
o Golden Parachute Payments
o Group-Term Life Insurance
¿ Employee Coverage
¿ Spousal and Dependents’ Coverage
¿ Former Employees’ Coverage
o Health Care Coverage
o Medical Savings Accounts
o Military Personnel, Payments to
o Moving Expense Reimbursements
o QSEHRA Benefits
o Qualified Equity Grants
o Sick Pay
o State and Local Employees, Payments to
o Stock Options
o Travel and Other Business Expense Payments
o How to Handle Per Diem and Other Fixed Allowances
o How to Handle Temporary Assignments
• Correcting Estimated Benefits
• Form W-2 and Notifying Employees About the Earned Income Credit (EIC)
• Step-by-Step Instructions for the 2018 Form W-2
• On the W-2 Horizon
• How to Avoid W-2 Discrepancies
• The Form W-2c
o How to Correct Identification Information
o How to Correct Income and Tax Amounts
o Step-by-Step Explanation of Form W-2c
o Filing the Forms W-2c and W-3c
4 HOW TO MANAGE PAYROLL AND HR DATA
• Establishing Payroll Records on Employees
• What to Get From New Employees
• How to Cope With the Immigration Law Rules
o Form I-9
• The Employee’s Withholding Allowance Certificate—Form W-4
• State Withholding Allowance Certificates
• When to Get a New Form W-4
• Electronic Forms W-4
• When to Give Effect to New Forms W-4
• What to Do With Invalid Forms w-4
• Send Forms W-4 to the IRS Only When Requested
• Let Employees Beware: Filing a False W-4 May Be Seen as Tax Evasion
• How to Handle Frivolous Forms W-4
• How Long to Retain Forms W-4
• Who Can Claim Exemption From Withholding
• Requirements for Exempt Status
• How an Employee Must Complete FormW-4
• What Allowances Can an Employee Claim?
• How to Use the Worksheets and Complete the Form W-4
• Special Procedures for Nonresident Aliens
• Why Certain Current Employees Should File a New Form W-4 in 2019
• Mid-Year Corrections in Withholding
• Taking Advantage of Tax Credits Through Withholding
• New Hire Reporting
• State New Hire Reporting
• The Refundable Earned Income Credit
• Who Can Claim the EIC
• How to Notify Employees About the EIC
• Changing Basic Information on Employee Records
• Name Changes
• Employee Relocation
• Pay Rate Changes
• Payroll and the Family and Medical Leave Act
• Reasons for Leave
• Employee Eligibility
• Leave Time
• Recordkeeping Requirements
• Health Coverage Maintenance
• Fair Labor Standards Act Implications
• School Employees
• Public Employees
• Military Leave
• How to Take Advantage of a Valuable Hiring Credit
• The Work Opportunity Tax Credit
• Targeted Groups
5 WITHHOLDING TAXES FROM GROSS PAY
o Federal Tax Withholding
o Income Tax Rates
o Social Security
• Methods of Withholding Federal Income Tax
o Wage-Bracket Method
o Percentage Method
o Annualized Wages Method
• How and When to Use Cumulative Withholding
o Sales Employees
o Summer Workers
• Withholding on Supplemental Payments
o How to Withhold
o Low-Income Employees
o Commissions and Draws
o Signing Bonus
o Severance Pay
o Vacation and Sick Leave
• Determining the Payroll Period
o Sales Commissions
o Optional Method
• How to Withhold on Noncash Fringe Benefits
o Special Accounting Rule
o Company Cars
o How to Value Personal Use of a Company Car
• How to Withhold on Business Expense Advances and Reimbursements
o An Accountable Plan
o How to Handle Business Expense Allowances
o When to Withhold
• How to Withhold on Sick Pay
o Third-Party Sick Pay
• How to Pick Up the Employee’s Share of Tax
6 NONTAX DEDUCTIONS FROM GROSS PAY
• Cafeteria Plans
o Salary Reduction Agreements
o A Cafeteria Plan in Action
o Flexible Spending Arrangements
o Mid-Year Changes
o Dependent Care Assistance
o Health FSA
o Adoption Assistance
o Other Qualified Benefits
o Group-Term Life Insurance
o Long- and Short-Term Disability Insurance
o Savings Plans
o Cash-or-Deferred Arrangements/401(k) Plans
o Payroll Reporting Responsibilities
• Wage Garnishments
o Keeping Track of Involuntary Deductions and Remittances
o What Is Garnishment
• Withholding for Child Support
o The Standardized Income Withholding Order
o Electronic IWO
o Interstate Orders for Child Support Withholding
o Bankruptcy and Child Support
o Medical Support
o Chart: State Provisions on Child Support Withholding
o Chart: States Participating in Electronic Child Support Options
• Federal Tax Levies
o How One Employer Handled a Levy
o 2019 Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income—Forms 668-W(ACS), 668-Wc(DO), and 668-W(ICS)
o What About Independent Contractors?
• Handling Creditor Garnishments
o Garnishment Restrictions
o Garnishment for Federal Nontax Debt
o Student Loans
o Discharging and Garnishment
• Wage Assignments
7 HOW TO PAY EMPLOYEES
• Traditional Versus Automated Timekeeping
o Automated Time and Attendance Systems
o Automation and Compliance
o How Automated T&A Works
o Streamlining Payroll
o Automating Exempts’ Hours
o Time Recording Procedures
o Methods of Recording Hours
o Checking Time Data for Accuracy
• Recordkeeping Requirements of Payroll Laws
o How Records You Must Keep Anyway Can Protect Your Company
o Fingertip Guide to Payroll Recordkeeping
o Record Retention
o Wage and Hour Records
o FICA and FUTA Taxes
• Chart: What Federal Records Must Be Kept
• Computation of Pay Rates
o General Rules for Computing Pay
o Computing Overtime
o Computing Earnings
o Computing Gross Pay
o Computing Net Pay
• Payroll Check Requirements and Procedures
o The Payroll Account
o Issuing Employee Paychecks
o How and When to Pay Employees
o Chart: When to Pay Employees
o Direct Deposit
o Chart: Direct Deposit and Payroll Card Options for Pay
o Payroll Cards
o Earnings Statement
o Chart: What Must Be Included on Employees’ Pay Stubs
o Why It’s Vital to Pay an Employee’s Final Wages Promptly
o When You Must Pay a Departing Employee
o Chart: When to Pay Terminated Employees
o Uncashed and Unclaimed Paychecks
o Procedure for Recording Unclaimed Checks
o States’ Retention Schedules for Unclaimed Wages
o Chart: Length of Time Until Unclaimed Wages Are Presumed Abandoned
8 FICA AND INCOME TAX DEPOSITS AND RETURNS
• Federal Insurance Contributions Act (FICA) Taxes
o Additional Medicare Tax
o Wages Defined
o Covered Employment
o FICA Savings Through a “Common Paymaster”
• What to File and Where
• How to File Form 941
• General Federal Deposit Rules
• Frequency of Deposits
o Large Employers
o Semiweekly Rule
o The Safe Harbor Rule
o Next-Day Deposits for the Largest Employers
o Medium-Size Employers
o Small Employers
• How to Fill Out Form 941
o How to Complete Form 941’s Schedule B
o Schedule D
• How to Fill Out Form 944
• Form 941-X
o How to Complete Form 941-X
• How to Correct Under- and Overreporting
o Correcting Underreported Tax
o Correcting Overreported Tax
o Correcting Underreported and Overreported Amounts for the Same Tax Period
o Filing Tips
o Errors Uncovered by Audit
o Misclassified Workers
o FICA Tax Considerations
o Income Tax Withholding Considerations
o How to Make Tax Adjustments When You Pay Out Too Much Compensation
• Deposits of Taxes Withheld From Nonpayroll Items
o Deposit Schedule
o Tax Deposits
• How to Avoid Personal Liability for Employment Taxes
o Off-Site Officer Was Still Responsible
o “Good Faith” Saves Two Officers
o President Found Liable for Unpaid Trust Fund Taxes Even Though CFO Embezzled Funds
o Owner Sentenced to Prison for Employment Tax Fraud
o Why You Can’t Outsource Your Payroll Tax Responsibility
o Company “Outsiders” May—Or May Not—Be Liable
¿ A Lender Bank Is Held Liable
¿ When Employers Share “Responsibility”
o An Option of Relief for Small Employers
9 FEDERAL AND STATE UNEMPLOYMENT
• The Federal Unemployment Tax Act (FUTA)
o Which Employers Are Liable Under FUTA?
o What Are Wages Under FUTA?
o Claiming the FUTA Credit for State Tax Paid
• Federal Unemployment Tax Payments
o How to Deposit FUTA Taxes
o When Tax Deposits Are Due
o Examples of Unemployment Tax Deposits
o Credit for Timely State Tax Payments
• What to File and When
o Due Date
• How to Complete Form 940
• How to File Form 940
• How to Correct a Form 940
• Experience Rating for State Unemployment Tax
o How a Good Experience Rating Maximizes the FUTA Credit
o How the States Determine Experience Rating
¿ Reserve Ratio Method
o Benefit Ratio Method
o Benefit Wage Ratio Method
o Payroll Stabilization Method
• How to Save Unemployment Taxes
o Voluntary Tax Contributions
• Deadlines for Voluntary Unemployment Tax Contributions
o Hold Down Benefits Paid to Ex-Employees
• How “Making” an Employee Quit Can Leave Your Company Liable for Benefits
o Promptly and Properly Respond to Requests for Information
o Work Sharing
• The California Plan
• How Joint Accounts Can Cut Your Unemployment Tax Liability
• How to Prepare or an Unemployment Benefits Eligibility Hearing
• Don’t Overstate the Number of Employees on State Unemployment Reports
• How to Handle Unemployment Taxes When Employees Work in More Than One State
• Reciprocal Unemployment Coverage
• How to Get More Information
10 PAYROLL ADVANTAGES—AND PITFALLS—OF HIRING WORKERS WHO ARE NOT YOUR EMPLOYEES
• Where the Savings Come From
• Who Is an Independent Contractor?
o The Reasonable Basis Tests
o The Common-Law Rules and the Revised 20-Factor Test
o The Factor Test
o Characteristics of Independent Contractor Status
o How the IRS’s Guidelines Work
• Audit Subject Selection
• How to Resolve Your Worker Classification Disputes
o Classification Settlement Program
o Voluntary Classification Settlement Program
¿ Early Referral to Appeals
o How to Get Your Day in Court
• Penalties for Misclassifying Workers
• Some Typical Independent Contractors
o Who Is Not an Independent Contractor?
o What to Include and Exclude in Your Worker Contracts
o Don’t Get Burned on Benefits—The Microsoft Case
• “Control” Case Studies
o How to Get Government Approval for YOUR Payroll Tax Breaks
o Form SS-8
• Backup Withholding
o The B-Notice Process
• When Employment Status Is Set by Law
o Statutory Non-employees
o Statutory Employees
• Independent Contractors and Unemployment Taxes
o Who Is an Independent Contractor for State Unemployment Tax Purposes?
• Independent Contractors and Federal Wage-Hour Law
• Leased Workers
o Is Employee Leasing Right for Your Company?
o Selecting Benefits
• Whose Employee Is the Leased Worker?
• Will It Pay to Use Independent Contractors and Leased Employees?
o Cash Flow Benefits
• How to Avoid Hidden Traps When Using Non-employees
11 HOW TO COMPLY WITH THE FEDERAL AND STATE WAGE-HOUR LAWS
• Coverage Under the FLSA
o Individual Coverage
o Enterprise Coverage
o Child Labor
o Independent Contractors
o Temporary Employees
o Undocumented Workers
• Minimum Wage
o Special Classes of Employees
o Deductions from the Minimum Wage
o Permitted Deductions
o Prohibited Deductions
o Regular Rate Defined
o Computing the Regular Rate
o The Workweek
o Advantageously Setting the Workweeks
o Allocating Hours
o Fluctuating Workweek
• Hours Worked
o Before and After the Workday
o Sleeping Time
o On-Call Time
o Training Time
o Exempt Employees
• White-Collar Employees
o Executive Employees
o Administrative Employees
o Professional Employees
o Computer Employees
o Outside Sales Employees
• Docking Employees’ Pay
o Reduced Workweek
o Public Employees
o Docking and the FMLA
o Correcting Docking
• Penalty for Noncompliance
o Executives’ Personal Liability
o Child Labor
• State Wage-Hour Laws
o 2019 State Minimum Wage Rates
o State Overtime Provisions
12 PAYROLL TECHNOLOGY
• Introduction to Payroll Technology
• Payroll Features Supported by Technology
o Effective Dating
o API (Application Programming Interface)
o Geocodes (Location)
o Geofencing (Access Location)
o SMS (Short Message Service)/Text
o Digital Currencies (Points, Cryptocurrency, Bitcoin, and Virtual)
• Security Concerns
o Application (Screens and Fields)
o Third-Party Access
o Security Breach (Threat Modeling)
• Disaster Recovery
• Payroll Solution Selection
o Payroll Service Provider
o Payroll Software
o Software Service Platforms
• Chart: Comparisons of Platform Solutions
13 PAYROLL ACCOUNTING
• Uses of Payroll Data
o Types of Accounts
o Accounting Terminology
o Accounting Entries
o Accruals and Reversals
o Fiscal Year Versus Calendar Year
o The Flow of Accounting Information
o Balancing Payroll Entries
o Reconciling the Payroll Account
o Payroll Reporting Errors and the IRS
o IRS Underpayment Notices
• Appendix A FINGERTIP GUIDE TO BENEFITS
• Adoption Expense Assistance
• Advances and Drawing Accounts
• Back-Pay Awards
• Bicycle Commuting
• Cafeteria Plans
• Cash-or-Deferred Plans
• Cell Phone
• Club Dues
• Consultants’ Fees
• Dependent Care Assistance Plans
• Directors’ Fees
• Disability Insurance
• Discounts for Employees
• Dismissal and Severance Pay
• Educational Assistance
• Employment Agency Fees
• Fringe Benefits
• Gyms at Work
• Health Insurance Premiums
• Health Reimbursement Arrangements
• Health Savings Accounts
• Identity Protection Services
• Idle Time (Standby) Pay
• Individual Retirement Arrangements (IRAs)
• Jury Duty Pay
• Leave Donations
• Life Insurance
• Loans With Low Interest
• Long-Term Care Insurance
• Meals Furnished by the Employer
• Medical Expense reimbursements
• (Archer) Medical Savings Accounts
• Military Differential Pay
• Moving Expense Reimbursements
• On-Call Pay
• Prizes and Awards
• Retirement Plan Distributions
• Retirement Planning Services
• Roth 401(k)
• Sick Pay
• Student Loan Repayment
• Supplemental Unemployment Benefits
• Tips and Gratuities
• Transit Passes
• Travel and Entertainment Expenses
• Uniform Allowances
• Vacation Pay
• Van Pooling
• Wages Paid After Death
• Wages Paid by Successor Employers
• Wellness Program Benefits
• Appendix B DIRECTORY OF STATE AND FEDERAL AGENCIES
• State Income Tax Administrative Offices
• State Unemployment Administrative Offices
• State Child Support Administrative Offices
• State Labor Departments
• Federal Wage and Hour Offices
• Federal Electronic Filing Information
• Appendix C 2019 FEDERAL PAYROLL TAX CALENDAR
• Appendix D THE 2019 FEDERAL PER DIEM RATES
• Appendix E EMPLOYER’S TAX GUIDES
• Appendix F GLOSSARY
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