CHAPTER 7.PAYROLL
The processing of an employee’s paycheck from gross to net must be done in a strict yet varying regulatory environment. A controller needs to be aware of the regulations that must be followed to ensure compliance and prevent audits that may result in penalties, fines, and interest (varying because the process is controlled by several entities on both the federal and state levels). This chapter includes the following topics:
| Chapter 7: Payroll |
| Payroll Withholdings: Taxes and Benefits Paid by Employees |
| Employee Portion of Social Security Tax |
| Employee Portion of Medicare Tax |
| Federal Income Tax |
| State Income Tax |
| Court-Ordered Withholdings (Garnishments) |
| Garnishment and the Consumer Credit Protection Act |
| Other Withholdings |
| Payroll Taxes, Costs, and Benefits Paid by Employers |
| Employer Portion of the Social Security Tax |
| Employer Portion of Medicare Tax |
| State Unemployment Tax |
| Federal Unemployment Tax (FUTA) |
| Workers’ Compensation Insurance |
| Employer Portion of Insurance (Health, Dental, Vision, Life, Disability) |
| Employer Paid Holidays, Vacations, and Sick Days |
| Employer Contributions to Defined Contribution Plans: 401(k), Savings Plans, and Profit Sharing Plans |
| Employer Contributions to Defined Benefit Plans |
| Employer Contributions to Defined Benefit Plans |
| Post-Retirement Health Insurance |
| The Fair Labor Standards Act (FLSA) |
| Terms Used in the FLSA |
| Recordkeeping |
| Wage and Hour Division (WHD) |
| Violations and Penalties |
| Enforcement ... |
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