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Mod 4 MOP Ch 8.3/8.4
Banking & Payroll
| Question | Answer |
|---|---|
| Absolute accuracy | Correctness that is 100 percent |
| Interest | Money paid by the bank to depositors in return for the bank's use of the depositor's money |
| Check | An order to a bank to pay a specific amount of money. |
| Check negotiable requirements | 1)State the specific amount paid 2) Made payable to the payee 3)Carry the name of the bak that is making the payment 4) Date 5) Signature |
| Postdated checks | A check dated in the future and cannot be cashed until that date. |
| Predated checks | Check dated in the past and is acceptable only if the date is within a six-month period before the date on which you receive it. |
| Third-party checks | A check written to the practice for a patients bills/services by a person unknown to the practice. |
| Checks annotated "paid in full" | Should not be accepted by the practice as the amount of the check could be lower than the balance due. |
| Blank endorsement | Signature of the person to whom the check is payable is placed on the back of the check. |
| Full endorsement | The person, company, account number or bank to which the check is breing transferred, followed by the payee's name. |
| Restrictive endorsement | Will list "for deposit" only on back of check along with the bank, person and account number |
| Deposit | Checks and cash placed into a bank account belonging to the practive. |
| Returned checks | Checks that are rejected by the bank due to missing signature, NSF or missing date. |
| NSF | nonsufficient funds |
| Bank reconciliation | Comparing the transactions on a bank statement to the checkbook transactions and balance |
| Electronic banking | Banking by computer; accuracy and efficient |
| E-signature | Unique identifier or "signature" created for each person through computer code. |
| Petty cash fund | Small amount of cash to be used for small expenses to eliminate writing a check. |
| Payroll | The total earnings of all the employees in the practice. |
| EIN | Employer Identification Number-enables the IRS to track the financial activity of employers in meeting payroll and tax obligations. |
| Direct earnings | Salaries or wages paid to employees |
| Salary | Fixed amounts paid regardless of hours worked |
| Wages | Pay based on an hourly or daily specific rate |
| Form W-4 | List withholdings, completed by employee at beginning of employement |
| FICA | Federal Insurance Contributions Act- Governs the Social Security system |
| FICA Tax | Requires a certain amount of money be withheld for Social Security and Medicare. Employee and employer each pay half of the required contribution. |
| Congress | Can change the FICA amount yearly. |
| Gross earnings | Pre-tax earnings |
| Net earnings | Earnings after taxes |
| FUTA | Federal Unemployment Tax Act-helps out of work people for a specified time as they seek new employment. |
| EFT | Electronic Funds Transfer |
| Deductions | Amounts of money withheld from earnings. |
| ADP | Automatic Data Processing-Service that processses payroll for an employer. |
| Net pay statement | Itemized statement listing gross pay, deductions and net pay that is provided to an employee. |
| Voluntary deductions | Amounts withheld/subtracted from gross earnings at the employee's request. |
| Banking duties | 1)Accepting valid checks in payment for services rendered 2) Depositing cash, checks, money orders etc into practice's accounts. 3) Reconciling bank statements |
| FICA payments by an employer | Must be paid to federal government monthly. |
| Indirect earnings | Paid leaves or specific employer-paid benefit programs (vacation pay) |
Created by:
ROSSMIBOA
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