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PRDV204: Payroll Applications

Unit 10: Payroll Tax: Returns and Penalties  

Just as an employee has to file a tax return reflecting the payroll activity that happened for the previous year, an employer also has to file a series of returns to identify and report the payroll activity that has happened for a specified period.  Among the reports an employer has to submit are the FUTA (Federal Unemployment Tax) and SUTA (State Unemployment Tax).  The collection of these taxes is an expense an employer incurs on the behalf of each person who is considered an employee.  The money collected is deposited into an account and is the foundational source for paying unemployment insurance to eligible former employees. In addition to developing an understanding of the returns an employer has to submit, you will also obtain a foundational understanding of the penalties that are applied when compliance to the reporting requirements does not happen.

Unit 10 Time Advisory
This unit should take you approximately 3 hours to complete.

☐    Subunit 10.1: 90 minutes

☐    Subunit 10.2: 48 minutes

☐    Subunit 10.3: 17 minutes

☐    Subunit 10.4: 25 minutes

Unit10 Learning Outcomes
Upon successful completion of this unit, the student will be able to:
- Understand the basics of payroll tax returns and explain compliance penalties.

10.1 Tax Workshop- Lessons 6 Through 9   - Lecture: IRS.gov’s "Small Business/Self-Employed Virtual Small Business Tax Workshop"

Link: IRS.gov’s "[Small Business/Self-Employed Virtual Small
Business Tax Workshop](http://www.irsvideos.gov/virtualworkshop/)"
(Flash)  

 Instructions: To review this part of the course click on the link
above.  In this part of the course you will be provided with
detailed information on making federal tax deposits.  This section
of the course will continue the nine-part lesson on understanding
the various aspects of tax.  For this part of the course you should
review the Introduction, as well as lessons 6 through 9.  You are
greatly encouraged to take notes as you go through the lessons of
the workshop.  During the workshop you will have the opportunity to
respond to some scenario questions that are designed to support your
learning and comprehension of this material.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

This lecture should take you approximately 90 minutes to complete.

10.2 Understanding Unemployment Insurance   10.2.1 Unemployment Insurance Defined   - Reading: US Department of Labor’s "Unemployment Insurance Tax Topic"

Link: US Department of Labor’s "[Unemployment Insurance Tax
Topic](http://www.workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp)"
(HTML)

Instructions: To review this part of the course click on the link
above. In this part of the course you will be provided with an
overview of the Federal Unemployment Tax Act and the State
Unemployment Tax Act.  These pieces of legislation are responsible
for the unemployment benefits eligible employees receive when they
are no longer employed by the employer.  Within this reading there
are a number of hyperlinks that will direct you to additional
content.  You will have to click on each hyperlink individually to
obtain the information embedded within the reading.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

10.2.2 Understanding FUTA and SUTA   - Reading: YouTube: National Park Community College's "09-B, FUTA, SUTA"

Link: YouTube: National Park Community College's "[09-B, FUTA,
SUTA](http://www.youtube.com/watch?v=Q5ENTYV0S0I&feature=plcp)"
(YouTube)

Instructions: To review this part of the course click on the link
above.  In this part of the course you will receive instruction on
the basic calculations of FUTA and SUTA.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

This lecture should take you approximately 8 minutes to complete.

10.3 Are There Any Penalties?   10.3.1 Penalty and Tax Rules   - Reading: Payrollpenalty.com’s "Does my penalty qualify for reduction?"

Link: Payrollpenalty.com’s "[Does my penalty qualify for
reduction?](https://www.payrollpenalty.com/taxpenalty/HelpPages/QualifyingTaxRules.aspx)"
(HTML)

Instructions: To review this part of the course click on the link
above.  In this part of the course you will be provided with
detailed information on understanding penalties associated with
making a deposit that is less than the actual amount due.  You are
provided with two examples, identified as example A and example B,
to support your understanding of this part of the course.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

This reading should take you approximately 15 minutes to complete

10.3.2 What is the 98% Rule?   - Reading: Payrollpenalty.com’s "What is the 98% Safe Harbor Rule?"

Link: Payrollpenalty.com’s "[What is the 98% Safe Harbor
Rule?](https://www.payrollpenalty.com/taxpenalty/HelpPages/WhatIs98SafeHarbor.aspx)"
(HTML)

Instructions: To review this part of the course click on the link
above. In this part of the course you will be provided with detailed
information on making federal tax deposits.  This section of the
course will explain who must make deposits, when the deposits should
happen, and how they are made.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

10.4 Payroll Applications End Assessment   - Assessment: Dwmbeancounter.com: Dave Marshall’s "Payroll Basics 2"

Link: Dwmbeancounter.com: Dave Marshall’s "[Payroll Basics
2](http://www.dwmbeancounter.com/BCTutorSite/TestLectures/Tests/Quizzes/Payroll/PR2.html)"
(Flash)

Instructions: To review this part of the course click on the link
above. This assessment is not graded. You should view this
assessment as a review. After answering each question you will
receive a “correct” or “incorrect” notification. You are greatly
encouraged to take notes as you work through and complete this
assessment.

Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.

This assessment should take you approximately 25 minutes to
complete.

Final Exam   - Final Exam: The Saylor Foundation’s “PRDV204 Final Exam” Link: The Saylor Foundation's “PRDV204 Final Exam” (HTML)
 
Instructions: Log into your Saylor Foundation School account in order to access this exam. If you do not yet have an account, you will be able to create one, free of charge, after clicking the link.

 Terms of Use: The images used in this exam are adapted from [2013
Minnesota Withholding Tax
Tables](http://www.revenue.state.mn.us/Forms_and_Instructions/2012/wh_tables_13.pdf).