Question 1

Form I-9 is issued by the _________________________________to verify employment eligibility in the United States.

Accepted Answer

A)  Internal Revenue Service 
B)  Department of Homeland Security 
C)  Federal Bureau of Investigation 
D)  Department of Labor 
A)  Internal Revenue Service 
B)  Department of Homeland Security 
C)  Federal Bureau of Investigation 
D)  Department of Labor B

Question 2

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Accepted Answer

A)  Performance incentive 
B)  Commission 
C)  Piece-rate 
D)  Nonexempt 
A)  Performance incentive 
B)  Commission 
C)  Piece-rate 
D)  Nonexempt C

Question 3

Which pay frequency has 24 pay periods annually?

Accepted Answer

A)  Weekly 
B)  Biweekly 
C)  Semi-monthly 
D)  Semi-weekly 
A)  Weekly 
B)  Biweekly 
C)  Semi-monthly 
D)  Semi-weekly C

Question 4

Pay rate is the first payroll system decision a company must make.

Accepted Answer

A) True 
 B)False

Question 5

When developing the internal controls and record retention for a payroll system,a company should:

Accepted Answer

A)  Involve all company employees to promote transparency. 
B)  Develop a closed system and alternate employee duties. 
C)  Designate a single employee with the responsibility for pay disbursements. 
D)  Train accounting personnel on a single payroll task. 
A)  Involve all company employees to promote transparency. 
B)  Develop a closed system and alternate employee duties. 
C)  Designate a single employee with the responsibility for pay disbursements. 
D)  Train accounting personnel on a single payroll task.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

For payroll documentation purposes,when an employee needs time away from work:

Accepted Answer

A)  The supervisor should authorize it verbally. 
B)  The employee should email only department colleagues. 
C)  Upper management must approve the request. 
D)  The request should be documented and forwarded to the payroll clerk. 
A)  The supervisor should authorize it verbally. 
B)  The employee should email only department colleagues. 
C)  Upper management must approve the request. 
D)  The request should be documented and forwarded to the payroll clerk.

Question 9

Geoff is the payroll clerk for a firm that maintains its payroll through computerized records on a centralized server.One of his responsibilities is employee file maintenance,including the destruction of records after the retention time has elapsed.His method of purging employee records is to delete the file from the database.What other record destruction procedures should Geoff follow?

Accepted Answer

A)  None. His method is acceptable. 
B)  He should check all other employees' computers to ensure that the record is deleted. 
C)  He should purge the record from the server and all backups. 
D)  He should send an interoffice request to have someone in the information technology department remove the record from the server. 
A)  None. His method is acceptable. 
B)  He should check all other employees' computers to ensure that the record is deleted. 
C)  He should purge the record from the server and all backups. 
D)  He should send an interoffice request to have someone in the information technology department remove the record from the server.

Question 10

IRS Regulation 26 CFR 1.6001 mandates ______________________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________________.

Accepted Answer

A)  File maintenance; employer. 
B)  Payroll review; payroll supervisor. 
C)  Check authorization; controller. 
D)  Employee time review; department manager. 
A)  File maintenance; employer. 
B)  Payroll review; payroll supervisor. 
C)  Check authorization; controller. 
D)  Employee time review; department manager.

Question 11

Separation of duties is not considered a payroll best practice.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not subject to overtime in the process of hourly computations?

Accepted Answer

A)  Time worked in excess of eight hours per day 
B)  Holiday, sick time, and paid time off 
C)  Time worked in excess of 40 hours per week 
D)  Nonexempt employee weekend work 
A)  Time worked in excess of eight hours per day 
B)  Holiday, sick time, and paid time off 
C)  Time worked in excess of 40 hours per week 
D)  Nonexempt employee weekend work

Question 13

All executive compensation must be:

Accepted Answer

A)  Maintained in a file and purged annually. 
B)  Available for inspection by any interested party. 
C)  Annotated as to derivation and benchmarks. 
D)  Reported with the company's financial statements. 
A)  Maintained in a file and purged annually. 
B)  Available for inspection by any interested party. 
C)  Annotated as to derivation and benchmarks. 
D)  Reported with the company's financial statements.

Question 14

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 15

Individuals treated as _________________________________ are processed as vendors.

Accepted Answer

A)  Exempt employees. 
B)  Nonexempt employees. 
C)  Government contract employees. 
D)  Independent contractors. 
A)  Exempt employees. 
B)  Nonexempt employees. 
C)  Government contract employees. 
D)  Independent contractors.

Question 16

Which aspect of internal controls for payroll relates to the Sarbanes Oxley Act?

Accepted Answer

A)  Protecting employee retirement funds 
B)  Limiting the number of employees authorized to disburse payroll 
C)  Cross-training employees and altering duties 
D)  Ensuring the complexity of the audit trail 
A)  Protecting employee retirement funds 
B)  Limiting the number of employees authorized to disburse payroll 
C)  Cross-training employees and altering duties 
D)  Ensuring the complexity of the audit trail

Question 17

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 18

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 19

Which of the following is false about document destruction requirements?

Accepted Answer

A)  Federal legislation required 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 required 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 20

Which of the following is not a purpose of new hire reporting laws?

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.

Form I-9 is issued by the _________________________________to verify employment eligibility in the United States.

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Which pay frequency has 24 pay periods annually?

Pay rate is the first payroll system decision a company must make.

When developing the internal controls and record retention for a payroll system,a company should:

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

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

For payroll documentation purposes,when an employee needs time away from work:

IRS Regulation 26 CFR 1.6001 mandates ______ procedures as they pertain to payroll records,noting that it is the responsibility of the .

Separation of duties is not considered a payroll best practice.

Which of the following is not subject to overtime in the process of hourly computations?

All executive compensation must be:

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

Individuals treated as _________________________________ are processed as vendors.

Which aspect of internal controls for payroll relates to the Sarbanes Oxley Act?

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?

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

Which of the following is false about document destruction requirements?

Which of the following is not a purpose of new hire reporting laws?

Payroll Practices and System Functions

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, Employee Earning Records, and Accounting System Entries

Filters

Exam 2: Payroll System Procedures

Form I-9 is issued by the _________________________________to verify employment eligibility in the United States.

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Which pay frequency has 24 pay periods annually?

Pay rate is the first payroll system decision a company must make.

When developing the internal controls and record retention for a payroll system,a company should:

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

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

For payroll documentation purposes,when an employee needs time away from work:

IRS Regulation 26 CFR 1.6001 mandates ______________________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________________.

Separation of duties is not considered a payroll best practice.

Which of the following is not subject to overtime in the process of hourly computations?

All executive compensation must be:

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

Individuals treated as _________________________________ are processed as vendors.

Which aspect of internal controls for payroll relates to the Sarbanes Oxley Act?

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?

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

Which of the following is false about document destruction requirements?

Which of the following is not a purpose of new hire reporting laws?

Payroll Practices and System Functions

Gross Pay Computation

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

Payroll Register, Employee Earning Records, and Accounting System Entries

Filters

IRS Regulation 26 CFR 1.6001 mandates ______ procedures as they pertain to payroll records,noting that it is the responsibility of the .