Ch_2 - Payroll Accounting 2009 Bernard J. Bieg and Judith...

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Payroll Accounting 2009 Payroll Accounting 2009 Bernard J. Bieg and Judith A. Toland Bernard J. Bieg and Judith A. Toland Developed by Lisa Swallow, CPA CMA MS Developed by Lisa Swallow, CPA CMA MS 0
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  provides for  two types of coverage Enterprise coverage includes all EE if Two or more work in interstate commerce  and $500,000 or more annual gross sales or produce goods for interstate commerce Plus many nonprofits (schools, public agencies, etc.) regardless of annual sales  volume OR Individual employee coverage EE whose company may not meet enterprise coverage, but are in a fringe  occupation For example: drive for fleet that transports goods, but annual  revenues = $225,000 Many   family businesses are exempt!           0
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An employer is an individual who “acts  directly/indirectly in the interest of an employer” in  relation to an employee An individual is an employee if he/she performs  services in a covered employment Common-law IRS test based on  Behavioral control Financial control Relationship between two parties  Statutory nonemployees considered self-employed Direct sellers and licensed real estate agents 0
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Domestic help includes nannies, gardeners,  chauffeurs, etc.  These employees must earn minimum wage and  overtime if: Work more than 8 hours/week  or if Earn at least $1,000 in a calendar year Live in domestics need not be paid overtime 0
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Includes all rates of pay including, but not limited to Commissions Bonuses and severance pay On-call or differential  Exceptions to minimum wage  Training wage for first 90 calendar days of employment for newly hired EE  under age 20 Retail or service establishments and farms employing FT students -  85% FT students employed at their own university -  85%  Student learners at Vocational/Technical school -  75%  Physically or mentally impaired employees  with certification 0
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Minimum wage $6.55 until July 24, 2009 then to $7.25  [This  text uses $7.25 in all calculations!] Living wage 100+ cities have local laws requiring Employers that do  business with government to pay a ‘living wage’ Attempts to keep working poor’s wages on track with cost of  living
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“Tipped employee” regularly averages $30/month in tips  Small Business Job Protection Act froze minimum tipped wages at  $2.13/hour,  therefore  tip credit = $5.12/hour EE still must make $7.25/hour when combining tips/wages  (7.25 x 40 =  $290  minimum weekly gross ) Examples of tips received for 40-hour work week
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This document was uploaded on 01/20/2010.

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Ch_2 - Payroll Accounting 2009 Bernard J. Bieg and Judith...

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