Payroll 101: Best Practices And Compliance

Putting yourself in the person's shoes is a step to provide excellent customer service because it allows you to empathize with the customer and understand their perspective. By doing so, you can better address their concerns, provide appropriate solutions, and ensure their satisfaction. This step helps in building a positive relationship with the customer and enhancing their overall experience.

Each employee must complete a W4 form that identifies their withholding status and number of exemptions.

The correct answer is "Check employee bank accounts." This is not a year-end activity because it is a regular task that should be done throughout the year to ensure accurate and timely payment to employees. Year-end activities typically involve tasks such as printing W2's, cleaning up data in the payroll system, and reviewing audit reports to ensure compliance and accuracy in financial records.

The Common Law Test should be used to determine how to classify employees. The employer’s determination affects the entire relationship between the employer and the worker.

Holiday pay is not a type of supplemental wages.

Mortgage deductions are not a type of garnishment.

Supplemental wages must be taxed at a higher federal income tax rate (flat 25%) than regular wages. Some states have a higher rate as well.

All but nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) require employers to withhold income tax from employee’s wages.

Each state does have a mandated pay frequency that is the minimum frequency by which employers must pay its employees

Supplemental wages paid in excess of $1 million must be taxed at a rate of 35%.