Payroll Accounting 2007, Chapter 5 Net Activities 5-3

Payroll Accounting 2007, Chapter 5 Net Activities 5-3

Payroll Accounting, 2010 Edition

Net Activities

CHAPTER 5

1. The Department of Labor has a section on federal unemployment at

http://www.workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp. What is the maximum amount of federal unemployment taxes an employer will pay per worker in a given year?

2. The Department of Labor provides a map with links to state unemployment departments at http://www.servicelocator.org/OWSLinks.asp. Using current information, choose the state you live in and one neighboring state.

a. Compare the rates between your state and the neighboring state. How do the rates differ?

b. How can an employer decrease their experience rating?

3. Go to http://www.nccusl.org/nccusl/uniformact_summaries/uniformacts-s-meta.asp and read the article “Model Employment Termination Act” discussing wrongful termination. Next go to http://www.frascona.com/resource/jhl494wt.htm and read “Wrongful Termination of Employees.”

a. What do you think constitutes wrongful termination?

b. Have you ever been wrongfully terminated from a job? Why do you think it was wrongful?

c. What does the term “employment at will” mean?

4: Go the United States Railroad Retirement Board site http://www.rrb.gov/forms/opa/ib2/ib2_ann_components.asp and take a look at the RRB Form IB-2: Employee and Spouse Annuities. Then take a look at the current payroll tax withholding. http://www.rrb.gov/AandT/pl/pl0803.asp
Discussion:

a. How much is currently withheld from railroaders’ checks?

b. Can employees enrolled in the Railroad Retirement Tax Act ever receive less than they would have under social security?

c. What are some of the differences between social security and the Railroad Retirement Tax Act?

5. Go to the California State Disability Insurance page at http://www.edd.ca.gov/ .

a. What does the California Disability Insurance program cover?

b. How is the California Disability Insurance program funded?

c. Cliff Benson had a skiing accident, and the doctor told him he must not work for the next four weeks. Cliff earns $3,000 per month.

·  How long must Cliff wait before collecting disability insurance?

·  How much will Cliff be able to collect?

·  What is the maximum length of time Cliff could collect disability insurance if his doctor tells him he is unable to work?

·  Is his disability check taxable?