Question 1

Which items must be contained in every hiring packet issued by an employer?

Accepted Answer

A)  Forms W-4 and I-9 
B)  Employment contract with start date and pay agreement 
C)  Descriptions of benefits and enrollment forms 
D)  No items are mandated for issuance in a hiring packet 
A)  Forms W-4 and I-9 
B)  Employment contract with start date and pay agreement 
C)  Descriptions of benefits and enrollment forms 
D)  No items are mandated for issuance in a hiring packet D

Question 2

It is considered a best practice to assign one employee all payroll duties.

Accepted Answer

A) True 
 B)False  False

Question 3

Payroll records that contain evidence of fraud or other illegal action must be ______________________.

Accepted Answer

A)  retained for two years. 
B)  destroyed immediately. 
C)  retained indefinitely. 
D)  released to law enforcement officials. 
A)  retained for two years. 
B)  destroyed immediately. 
C)  retained indefinitely. 
D)  released to law enforcement officials. C

Question 4

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes (Select all that apply)?

Accepted Answer

A)  Federal penalties for not remitting all taxes due 
B)  Erosion of available cash because of overpayments to employees 
C)  Increased stakeholder approval due to employee overpayments 
D)  An increase in legal proceedings initiated by employees 
A)  Federal penalties for not remitting all taxes due 
B)  Erosion of available cash because of overpayments to employees 
C)  Increased stakeholder approval due to employee overpayments 
D)  An increase in legal proceedings initiated by employees

Question 5

Computerized payroll records are considered a(n):

Accepted Answer

A)  Open system. 
B)  Open access. 
C)  Closed system. 
D)  Closed access. 
A)  Open system. 
B)  Open access. 
C)  Closed system. 
D)  Closed access.

Question 6

Which of the following is true about document destruction requirements (Select all that apply)?

Accepted Answer

A)  Federal legislation requires documents to be retained for two years after the employee's termination. 
B)  Personnel records must be maintained for three years after termination. 
C)  Union employees' records must be retained for five years after termination. 
D)  State legislation requires records to be retained for a minimum of eight years after termination. 
A)  Federal legislation requires documents to be retained for two years after the employee's termination. 
B)  Personnel records must be maintained for three years after termination. 
C)  Union employees' records must be retained for five years after termination. 
D)  State legislation requires records to be retained for a minimum of eight years after termination.

Question 7

The retention period for payroll documents commences:

Accepted Answer

A)  At the time an employee is hired. 
B)  When an employee's first pay is disbursed. 
C)  Once the employee completes one year of service. 
D)  When an employee terminates employment. 
A)  At the time an employee is hired. 
B)  When an employee's first pay is disbursed. 
C)  Once the employee completes one year of service. 
D)  When an employee terminates employment.

Question 8

Upon termination,which of the following must be included in an employee's final pay?

Accepted Answer

A)  Hours worked 
B)  Vacation previously paid. 
C)  Severance pay 
D)  Sick time accrued but not used. 
A)  Hours worked 
B)  Vacation previously paid. 
C)  Severance pay 
D)  Sick time accrued but not used.

Question 9

A payroll review process increases in complexity when:

Accepted Answer

A)  The company is has few departments and few employees. 
B)  The company is not geographically dispersed. 
C)  The company is centralized and uses one location. 
D)  The company has multiple departments and many employees. 
A)  The company is has few departments and few employees. 
B)  The company is not geographically dispersed. 
C)  The company is centralized and uses one location. 
D)  The company has multiple departments and many employees.

Question 10

Multistate employers must do which of the following for new hire reporting (Select all that apply)?

Accepted Answer

A)  File a report with the state offices for the employee's state of residence 
B)  File a report with the IRS since they have employees in multiple states 
C)  Designate which state will receive their new hire reporting 
D)  File a new-hire report with both the state that contains the firm's headquarters and the state that
Is the employee's primary residence 
A)  File a report with the state offices for the employee's state of residence 
B)  File a report with the IRS since they have employees in multiple states 
C)  Designate which state will receive their new hire reporting 
D)  File a new-hire report with both the state that contains the firm's headquarters and the state that
Is the employee's primary residence

Question 11

When a payroll clerk receives an approved request for an employee's time away from work,he or she should:

Accepted Answer

A)  Immediately place it in the employee's file. 
B)  Attach it to the employee's time collection report for the pay period. 
C)  Destroy the document in accordance with privacy laws. 
D)  Contact the employee to verify the request. 
A)  Immediately place it in the employee's file. 
B)  Attach it to the employee's time collection report for the pay period. 
C)  Destroy the document in accordance with privacy laws. 
D)  Contact the employee to verify the request.

Question 12

Personnel in certain full-time occupations are classified as ____________________ instead of independent contractors.

Accepted Answer

A)  Contract employees 
B)  Executive workers 
C)  Statutory employees 
D)  Non-statutory workers 
A)  Contract employees 
B)  Executive workers 
C)  Statutory employees 
D)  Non-statutory workers

Question 13

Natalie is involuntarily terminated by a company in Alabama.According to state regulations,when must she receive her final pay?

Accepted Answer

A)  On the next business day 
B)  No standardized state guidelines exist 
C)  Within seven business days 
D)  At the next schedule payday 
A)  On the next business day 
B)  No standardized state guidelines exist 
C)  Within seven business days 
D)  At the next schedule payday

Question 14

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Accepted Answer

A) True 
 B)False

Question 15

If a firm pays its employees biweekly,how often does it disburse employee compensation?

Accepted Answer

A)  Twice per week 
B)  Every week 
C)  Every two weeks 
D)  Every three weeks 
A)  Twice per week 
B)  Every week 
C)  Every two weeks 
D)  Every three weeks

Question 16

Which of the following parties does not legally have access to a firm's payroll records?

Accepted Answer

A)  The IRS 
B)  State revenue department employees 
C)  All employees of the firm 
D)  The Department of Homeland Security 
A)  The IRS 
B)  State revenue department employees 
C)  All employees of the firm 
D)  The Department of Homeland Security

Question 17

Ibrahim is the payroll accountant for a firm.He notes that the firm has hired a new employee.What forms must he collect from the new employee?

Accepted Answer

A)  W-2 and I-9 
B)  W-4 and I-9 
C)  W-4 and I-8 
D)  W-3 and I-9 
A)  W-2 and I-9 
B)  W-4 and I-9 
C)  W-4 and I-8 
D)  W-3 and I-9

Question 18

A payroll accountant is preparing the final pay for a commission-based salesperson who has been terminated from the firm.What will happen to the salesperson's commission that have been earned but not paid?

Accepted Answer

A)  The salesperson must receive termination pay immediately and forfeits all unpaid commissions. 
B) 
The salesperson's final pay is delayed to allow for computation of commissions. 
C)  The final pay must include all commissions earned,in accordance with any pay agreement. 
D)  The employee must receive final non-commission pay immediately,but any commission pay will be delayed. 
A)  The salesperson must receive termination pay immediately and forfeits all unpaid commissions. 
B) 
The salesperson's final pay is delayed to allow for computation of commissions. 
C)  The final pay must include all commissions earned,in accordance with any pay agreement. 
D)  The employee must receive final non-commission pay immediately,but any commission pay will be delayed.

Question 19

Which of the following is/are purpose(s)of new hire reporting laws (Select all that apply)?

Accepted Answer

A)  To ensure payment of court-ordered obligations like garnishments and child support. 
B)  To keep track of workers throughout their careers. 
C)  To ensure that the employee may legally work in the United States. 
D)  To keep track of workers and professionals who are subject to licensing regulations. 
A)  To ensure payment of court-ordered obligations like garnishments and child support. 
B)  To keep track of workers throughout their careers. 
C)  To ensure that the employee may legally work in the United States. 
D)  To keep track of workers and professionals who are subject to licensing regulations.

Question 20

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Accepted Answer

A) True 
 B)False

Which items must be contained in every hiring packet issued by an employer?

It is considered a best practice to assign one employee all payroll duties.

Payroll records that contain evidence of fraud or other illegal action must be ______________________.

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes (Select all that apply)?

Computerized payroll records are considered a(n):

Which of the following is true about document destruction requirements (Select all that apply)?

The retention period for payroll documents commences:

Upon termination,which of the following must be included in an employee's final pay?

A payroll review process increases in complexity when:

Multistate employers must do which of the following for new hire reporting (Select all that apply)?

When a payroll clerk receives an approved request for an employee's time away from work,he or she should:

Personnel in certain full-time occupations are classified as ____________________ instead of independent contractors.

Natalie is involuntarily terminated by a company in Alabama.According to state regulations,when must she receive her final pay?

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

If a firm pays its employees biweekly,how often does it disburse employee compensation?

Which of the following parties does not legally have access to a firm's payroll records?

Ibrahim is the payroll accountant for a firm.He notes that the firm has hired a new employee.What forms must he collect from the new employee?

A payroll accountant is preparing the final pay for a commission-based salesperson who has been terminated from the firm.What will happen to the salesperson's commission that have been earned but not paid?

Which of the following is/are purpose(s)of new hire reporting laws (Select all that apply)?

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Payroll Practices and System Fundamentals

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters

Exam 2: Payroll System Procedures

Which items must be contained in every hiring packet issued by an employer?

It is considered a best practice to assign one employee all payroll duties.

Payroll records that contain evidence of fraud or other illegal action must be ______________________.

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes (Select all that apply)?

Computerized payroll records are considered a(n):

Which of the following is true about document destruction requirements (Select all that apply)?

The retention period for payroll documents commences:

Upon termination,which of the following must be included in an employee's final pay?

A payroll review process increases in complexity when:

Multistate employers must do which of the following for new hire reporting (Select all that apply)?

When a payroll clerk receives an approved request for an employee's time away from work,he or she should:

Personnel in certain full-time occupations are classified as ____________________ instead of independent contractors.

Natalie is involuntarily terminated by a company in Alabama.According to state regulations,when must she receive her final pay?

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

If a firm pays its employees biweekly,how often does it disburse employee compensation?

Which of the following parties does not legally have access to a firm's payroll records?

Ibrahim is the payroll accountant for a firm.He notes that the firm has hired a new employee.What forms must he collect from the new employee?

A payroll accountant is preparing the final pay for a commission-based salesperson who has been terminated from the firm.What will happen to the salesperson's commission that have been earned but not paid?

Which of the following is/are purpose(s)of new hire reporting laws (Select all that apply)?

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Payroll Practices and System Fundamentals

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, employees Earning Records, and Accounting System Entries

Filters