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Fundamental Payroll Certification
Employee correct answer Anyone who performs services for you is generally your employee if you can control what work is accomplished and how it is accomplished. Common-law employees correct answer A worker whose services are performed under common-law rules for an employer is his or her employee if that employer controls what and how the job will be done. Independent contractor correct answer A payer has control of the work done by an independent contractor, and not the means and methods of finishing the job. Statutory employee correct answer Workers come under common law rules and are independent contractors by statute for certain employment tax purposes if they fall within any one of several categories. Statutory non-employee correct answer Statutory non-employees fall under two categories. They are real estate agents and direct sellers. Temporary help services and personnel correct answer Employees are hired by temporary help services and send the workers to companies who need employees. Form I-9 (Employment Eligibility Verification) correct answer The purpose of the Form I-9, Employment Eligibility Verification, as required by the U.S. Citizenship and Immigration Service (USCIS) is to verify that a prospective employee is authorized to work in the United States.
Form SS-4 is: correct answer The purpose of Form SS-4, Application for Employer Identification Number, is to apply for issuance of an Employer Identification Number (EIN) for a sole proprietorship, corporation, partnership, estate, trust and other entities. EIN correct answer An Employer Identification Number (EIN) is a nine-digit number (in the format 12-
- intended for use by entities engaged in a trade or business for purposes of filing returns and paying taxes resulting from the trade or business SSN correct answer A Social Security Number (SSN) is an nine-digit number (in the format 123-45-6789) assigned to an individual for purposes of recording earnings as an employee and subsequently verifying eligibility for receipt of retirement or disability benefits. Form SS-5 correct answer The purpose of Form SS-5, Application for a Social Security Card, is for an individual to apply for a Social Security Number. Form SS-8 correct answer The purpose of Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, is to request from the Internal Revenue Service (IRS), a clarification of the status of a worker regarding eligibility for or applicability of federal employment taxes and income tax withholding. Form W-2 correct answer The purpose of Form W-2, Wage and Tax Statement, is for an employer to report to each employee who earned income in the tax year, information regarding the
Form W-4S correct answer The purpose of Form W-4S, Request for Federal Income Tax Withholding From Sick Pay, is to document to a third party payer (as opposed to an employer) the amount of funds to be withheld for federal income tax purposes. Form W-9 correct answer The purpose of Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, is for a payer to obtain the correct identification number of a taxpayer in order to complete and information return to the Internal Revenue Service (IRS). Form 843 correct answer The purpose of Form 843, Claim for Refund and Request for Abatement, is to request that a refund or an abatement be granted for certain taxes, penalties, interest, fees and some additions to taxes previously paid. Form 940 correct answer The purpose of Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, is to report the annual federal unemployment tax liability for employers, subject to the Federal Unemployment Tax Act (FUTA). Form 941 correct answer The purpose of Form 941, Employer's Quarterly Federal Tax Return, is to report by employers to the Internal Revenue Service (IRS) the total amount of wages paid, income taxes withheld and social security and Medicare taxes due (both employee and employer portions). Form 941X correct answer The purpose of Form 941X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, is to amend amounts previously reported on a Form 941,
Employer's Quarterly Federal Tax Return, including any requests for refund. Form 943 correct answer The purpose of Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, is to report by an employer to the Internal Revenue Service (IRS), wages paid, income tax withheld and the employer and employee portions of social security and Medicare taxes due for agricultural employees (farmworkers). Form 944 correct answer Compensation paid to agricultural workers who entered the country using an H-2A visa is not subject to social security and Medicare taxes, neither for employee withholding nor for employer match. Form 944 correct answer The purpose of Form 944, Employer's Annual Federal Tax Return, is to report to the Internal Revenue Service (IRS) by so-called small employers (those with a combined annual liability for income, social security and Medicare taxes of no more than $1,000) the wages paid, federal income taxes withheld and employer and employee share of social security and Medicare taxes due. Form 945 correct answer The purpose of Form 945, Annual Return of Withheld Federal Income Tax, is for payers to report to the Internal Revenue Service (IRS) the amount of federal income tax withheld on the following types of payments: Pensions Military retirement Indian gaming profits Voluntary withholding of certain government payments
the following: Profit-sharing or retirement plans Individual retirement arrangements (IRA) Annuities Pensions Insurance contracts Survivor income benefit plans Disability payments Charitable gift annuities Form 1099-MISC correct answer The purpose of Form 1099-MISC, Miscellaneous Income, is to report to each recipient and the Internal Revenue Service (IRS), by a payer, certain amounts paid to and federal income taxes withheld from each recipient. Form 8233 correct answer The purpose of Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, is to claim an exemption (based upon tax treaty) from the withholding requirements for independent personal services, including any amounts received for scholarship or fellowship income that is not classified as compensatory.
