 In this presentation we will take a look at multiple choice questions related to payroll. First question, which is used by the Internal Revenue Service to keep track of employers? A. W. 2. B. E. S. 4. C. E. I. N. D. W. 4. So let's go through this one more time or again maybe not the last time and see if we can go through the process of elimination which is used by the Internal Revenue Service to keep track of employers. So A. W. 2. Now it's key that when we read this when we read through this these key little terms here employee errs we got to see the errs at the end and it's very easy for us to to possibly have a preconceived notion about what the question might say especially if we first see a W2 down here and misread it as employees or something like that so note that's the first thing to keep in mind here the Internal Revenue Service is trying to track in this case the employer information and so how can they how can they do that obviously when we process anything to the irs they don't really care about our names we're all just a number so which one of these is going to give us that number that's going to basically track who we are as an employer W2 then is an employee type document so typically the employer will send it but it's really there to track the employees and make sure that they can go after them for any unpaid taxes and then B says the ES4 like I'll keep that for now I'm not quite sure what what we're talking about there we possibly might not be on that one C says the EIN number EIN I put number in it but that might sound familiar to us so we'll keep that for now and then D says the W4 which once again that's like an employee form that's the one that employee fills out to track the employees not really the employer so we can probably eliminate A and D and look then at B and C which is the ES4 and the EIN so let's read through it one more time or once or another time which is used by the Internal Revenue Service to keep track of employers is that the EIN or the ES4 and of those two it's actually the EIN number and that's called the employer identification number the EIN number so for the for the IRS to track the employer just like our social security number we're just a number we're a social security number to the IRS the employer has their number for their corporation which if they're sort or their business which is if it's a sole proprietor their social security number or if it's a corporation or a partnership then they're going to have another number and to keep track of the payroll and and so everybody kind of has the same type of number for their payroll processing then there's an EIN number so if we're a sole proprietor we're not going to use our social security number when processing payroll we'll use the EIN number so anybody who has employees needs an EIN employer identification number in order to process the payroll information including the 941s the 940s and then all the W2s and whatnot so correct answer C one more time which is used by the Internal Revenue Service to keep track of employers C EIN number next question which has 26 pay periods in a year A weekly B bi-weekly C semi-monthly or D semi-weekly so let's read through this again and see if we can go through the process of elimination which has 26 pay periods in a year so if we just think about that 26 pay periods in a year well we should kind of know like weekly how many weeks are in a year and this is basically how many pay periods we're gonna have if we're if we're weekly bi-weekly semi-monthly uh we know that there's there's more than 26 weeks in a year there's and we should just know that number if we're doing payroll and it's 50 it's about 52 so so it's not weeks it's gonna be a lot higher on weeks and and semi and B says bi-weekly maybe C says semi-monthly maybe those two are very similar who pro those are probably where the issue lies and D says semi-weekly which isn't even a pay period who gets paid in the middle of the week no one gets paid on Wednesday and Friday really that doesn't happen so we're gonna say that's not it uh you might get paid daily possibly but in some certain but in case the question is between B and C bi-weekly or semi-monthly and this is really really confusion lies most of the time and the way I would think about this is um semi-monthly would be twice a month because we get paid on like the 15th and the 30th or the 31st or whatever and so that's gonna be 12 months in a year times two which is 24 pay periods whereas if we get paid bi-weekly that means every two weeks not necessarily on the 15th or the 30th not necessarily only having two pay periods in a particular month so that's I would think of more of 52 weeks divided by two and that's going to be our 26th so there's actually more pay periods when we get paid every other week bi-weekly than there are when we get paid semi-monthly so B is the correct answer which has 26 pay periods in a year B bi-weekly accounting I don't know anyone in accounting