These are the questions that are must often asked during our QuickBooks Payroll Course with the answers.
1. What are the four most commonly associated forms with payroll Tax Reporting?
941, 940, UCT6, W-2
2. What is the difference between Gross pay and Net pay on a paycheck?
Gross pay is before taxes and deducted; net pay is after.
3. What are the forms required to have filled out when hiring a new employee?
W-4, I9, Florida new hire form
4. Why would you choose to use QuickBooks Payroll instead of using outsourced payroll service such as ADP?
To have more control of your payroll, less expensive, integration w/QuickBooks
5. What type of expenses (and/or liabilities) does the employer accrue on every paycheck
Florida unemployment tax, social security, Medicare, federal unemployment tax, federal withholding.
6. Where can you find the percentage or amount to withhold federal taxes for each employee? What is the IRS publication?
Publication I5 tax tables.
7. What are the two types of unemployment taxes? What are the common tax rates? Wghat is the wage limit that the tax is subject to?
Federal (940) First $7000 per employee, are taxed at 0.6% or 0.8%
State (UCT6) First $7000 per employee, are taxed 2.02%-5.4%
8. Where in QuickBooks can you go to, to view all employees? How do you change or edit their information?
Employee center. Select employee, right click and click on “Edit”
9. How do you recalculate Gross pay and taxes by inputting a net amount on a paycheck?
When creating a paycheck, click on unlock net pay and modify the net pay.
10. What are the different frequency of payments for the 941 form? What dollar value typically affects it?
Per pay period, monthly or quarterly. If taxes are greater than $2500 per quarter.
11. How do you request an UT number with the state?
Apply online at www.myflorida.com or file form DR-1
12. What is the difference between an employee and an independent contractor? What forms do you give them at the end of the year?
– Employee: W2, subject to the will & control of the employer
– Contractor: 1099, not subject to the will & control of the employee
13. What is the procedure for preparing 1099’s via QuickBooks?
– Make sure the expense accounts are mapped to box 7 on 1099
-Make sure vendors are marked as 1099 eligible plus tax ID
– Print logs after reviewing above intro.
14. When is the 941 form, 940 form, UCT-6 form, and W-2 due?
941 &UCT-6: Quarterly / 940&W-2: Annually
Hector Garcia, RTRP
QuickBooks ProAdvisor & Registered Tax Return Preparer
QuickBooks Training Courses, South Florida