<p> Payroll Accounting, 2008 Edition Net Activities CHAPTER 3</p><p>1. Go to http://www.irs.gov/businesses/small/article/0,,id=163720,00.html and http://www.irs.gov/publications/p531/ix01.html Il 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 maintain- ing 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 presentation on the methods that can be used and your recommendation as to which method should be used.</p><p>2. Go to a search engine such as http://www.google.com/ or http://www.ask.com/. Type “why safeguard social security number.” Discuss the following questions: a. Why is it important to safeguard your social security number?</p><p> b. What can you do to safeguard your social security number?</p><p> c. Discuss what you would do if your identity were stolen.</p><p>3. Go to http://www.eftps.gov. a. How long does it take a taxpayer to enroll in the Electronic Federal Tax Pay- ment System (EFTPS)?</p><p> b. What are the advantages of the EFTPS?</p><p>4. You are a 20-year-old accounting student. Your father operates the family farm rais- ing lettuce and melons. He pays workers on a piece basis and hires them for six weeks per year. In addition to hiring seasonal workers for harvest, he pays you a salary for keeping the farm’s books. Using a search engine such as http://www.google.com/, find the answers to the fol- lowing questions: a. What form does your father need to use to report FICA taxes for his harvest workers?</p><p> b. How often must your father file for his seasonal harvest workers?</p><p> c. What are your father’s FICA tax liability and filing requirements for you?</p><p>3-1 3-2 Payroll Accounting 2007, Chapter 3 Net Activities</p><p>5. Go to http://www.ssa.gov/pubs/10022.html . Discuss the following questions: a. How is self-employment income treated differently than income earned when you work for an employer?</p><p> b. How do you report self-employment income?</p>