Research

NAME:________Ariana Atwell_________

Payroll Accounting, 2015 Edition

Research Assignment Template

CHAPTER 3

1. Go to http://www.irs.gov/publications/p531/index.html. Use the information below to prepare a short memo.

a. Ristorante Della Patata, a popular local eatery, has recently hired you to do its payroll. Unfortunately, your predecessor left you with no formal method of maintaining employee tip records. You are to meet with your staff this Friday and provide them with information and a recommendation for tip reporting procedures. Prepare a short memo on the methods that can be used and your recommendation as to which method should be used.

There are two methods that can be used to keep track of the tips. You can either (1) keep a tip diary and write every transaction down, (2) keep proof of each tip, for example receipts, or (3) both. There are a few things that need to be on the tip records. It must include, (1) cash tips you get directly from customers or from other employees, (2) tips from credit and debit card charge customers that your employer pays you, (3) the value of any noncash tips you get, such as tickets, passes, or other items of value, (4) the amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips.

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2. Go to http://www.eftps.gov or search for “Electronic Federal Tax Payments” at http://google.com.

b. How long does it take a taxpayer to enroll in the Electronic Federal Tax Payment System (EFTPS)?

It only takes a couple of minutes to enroll. You can enroll on the eftps.com website, it takes your through 4 steps to complete. After you’ve completed that, 7 days later you receive a pin in the mail to set your online account up.

c. What are the advantages of the EFTPS?

Some advantages are, you are able to make payments anytime any day and up to 365 days in advance. You can do it over the phone...