Friday, January 6, 2017

Bookkeeper Quiz..

Are you up to date?
See for yourself with this bookkeeper’s quiz.

The quiz below is based on just one recent issue of The General Ledger from the American Institute of Professional Bookkeepers 

See if you are up to date. Scroll down for answers. 

1.    If you want to make or receive payments via ACH, your bank is currently required only to be able to _____ (send/receive) same-day ACH payments, not to _____ (send/receive) them.
2.    Can you now make same-day ACH payroll tax deposits to the IRS? (yes/no) income tax deposits? (yes/no)
3.    If the owner’s children were hired during 2016 and no FIT or FICA was withheld, must they still have W-2s?
4.    When company practice differs from written company policy, the courts rely on company _____ (practice/policy). 
Questions 5-6: If an employee received taxable third-party sick pay during 2016:
5.    Must the amount(s) be included on the W-2? 
6.    The third party (insurer or administrator) must provide to your firm, the employer, a statement that includes taxable amounts paid and FICA or FIT withheld during calendar 2016 no later than __/__/__ (month/date/year).
Questions 7-8: If your company implements a wellness plan and distributes rewards to employees who participate:
7.    Can your firm take an expense deduction for the premiums for the wellness plan? 
8.    Must rewards distributed to your employees be included in gross income subject to employment taxes?
9.    Substantiation rules for deducting business use of personal vehicles are very strict. If documentation and other evidence is lacking, can expenses be estimated?
10. The best way to avoid having deductions for business use of a personal vehicle contested by the IRS, and perhaps the courts, is to maintain a detailed _____ log or similar record of the miles driven, who was visited, and the purpose of the visit for each trip.

 Answer Key
9-10 correct            You’re up to date. 
6-8 correct            You’re missing information affecting your job. Join now to keep current.
5 or less correct   Too busy to stay current? 

1.    receive, send
2.    no, no
3.    yes
4.    practice
5.    yes
6.    1/15/17
7.    yes
8.    yes
9.    yes
10.  contemporaneous