Deck 8: Employees and Payroll

Question 1

To turn on QBO Time Tracking preferences a user must complete the following steps?

A)Select the Create(+)icon and under Account and Settings select Advanced.In the Time Tracking section check both the Add Service field to timesheets and Make Single-Time Activity Billable to Customer to display On.Lastly,select the first day of the work week.
B)Select the Gear icon and under Account and Settings select Advanced.In the Time Tracking section use the Edit Pencil and check both the Add Service field to timesheets and Make Single-Time Activity Billable to Customer to display On.Lastly,select the first day of the work week.
C)Select the Create(+)icon and under Account and Settings select Advanced.In the Time Tracking section check both the Add Service field to timesheets and Make Single-Time Activity Billable to Customer to display On.Lastly,QBO will assume the first day of the work week is Monday.Edit it if the week starts on a different day.
D)Select the Gear icon and under Manage Users select Company.In the Time Tracking section use the Edit Pencil and check both the Add Service field to timesheets and Make Single-Time Activity Billable to Customer to display On.Lastly,select the first day of the work week.

Answer 1

B

Question 2

In QBO,Single Time Activity is one way to track time.It is used to:

A)invoice customers for billable time related to specific projects.
B)enter time billable to specific customers.Then time is added to the customer's invoice.
C)enter time worked by each specific employee during a week.
D)time one activity and enter the time data.The time is then recorded on the employee's weekly timesheet.

Answer 2

D

Question 3

Which of the following is FALSE regarding payroll tax forms?

A)Payroll tax forms are used to summarize the amount of payroll withholdings that have been collected and remitted.
B)All of the following are payroll tax forms: Form 940,Form 941,Form 944,and Form 1040
C)Payroll tax forms are filed for withholdings from employee pay and employer income tax expenses.
D)Form W-2 is provided to the employee and form W-3 is filed with the Social Security Administration.

Answer 3

B

Question 4

In QBO,the weekly timesheet can be used to bill time to a specific customer.The time can then be transferred to a specific customer's invoice by completing the following steps:

A)Select Customer Name in drop-down Customer List,and select Service from the drop-down Services List.Check Billable and enter in a Description,and Time.
B)Select Item in drop-down Service List,and select Billable from the drop-down Services List.Enter in a Description,and Time.
C)Select Customer Name in drop-down Customer List,and select Billable from the drop-down Services List.Enter in a Description,and Time.
D)Select Customer Name in drop-down Customer List,and select Item from the drop-down Items List.Check Billable and enter in a Description,and Time.

Question 5

Which of the following describes the QBO Mobile Payroll app?

A)It offers employers the convenience of running payroll from their device (Apple or Android)and is synced with QBO.
B)It is a reference tool for employers to answer complicated employee payroll tax questions from their device.
C)It allows employees the opportunity to review their payroll and contest any issues from their mobile device.
D)It provides the opportunity for employees to receive their tax forms on their device to automatically upload to the IRS.

Question 6

What two payroll taxes are the responsibility of the employer?

A)Employer share of FICA and Employer share of unemployment taxes
B)Employer share of FICA and Employee share of FICA
C)Employer share of FUTA and Employee share unemployment taxes
D)Employer share of FICA and Employee income taxes

Question 7

What is the appropriate status of individual performing work matched with tax form?

A)Owner and employee - Paycheck - Form W-2; Contractor - Vendor Payment - Form 1099-MISC.
B)Employee - Paycheck - Form W-2; Owner - Dividend/Distribution - Owner's tax return; Contractor - Vendor Payment - Form 1099-MISC.
C)Employee - Paycheck - Form 1099-MISC; Owner - Dividend/Distribution - Owner's tax return; Contractor - Vendor Payment - Form W-2.
D)Employee - Vendor Payment - Form W-2; Owner - Dividend/Distribution - Owner's tax return; Contractor - Paycheck - Form 1099-MISC.

Question 8

What payroll tax form meets the following description: Filed with the IRS,this form summarizes the amount of federal income tax,Social Security,and Medicare withheld from employee paychecks for the quarter?

A)Form 940
B)Form 941
C)Form 944
D)Form 990

Question 9

Why is the status of an individual performing work very important to QBO Time Tracking?

A)QBO tracks time for employees and does not track time for work performed by subcontractors or owners.
B)The status of an employee refers to full-time or part-time employees.Part-time employees receive a MISC form for their work vs.full-time employees receive a paycheck.
C)The status of an employee determines whether an individual receives a paycheck,a vendor payment or an owner withdrawal for the work they performed.
D)QBO will transfer employee time to sales invoices,however,subcontractors and owners will have to be added to sales invoices manually.

Question 10

All of the following are payroll liabilities except:

A)Federal income taxes withheld from employee paychecks
B)State income taxes withheld from employee paychecks
C)FICO Employer's annual credit assessment
D)FICA Social Security and Medicare including both the employee and employer portion

Question 11

What is NOT true regarding QBO time tracking?

A)A user must turn on QBO time tracking preferences before entering time.
B)QBO provides two different ways to track time: Single Time Activity and Weekly Timesheet.
C)Single Time Activity is not automatically added to an employee's Weekly Timesheet.Usually,Single Time Activity is used by subcontractors vs.employees.
D)A Weekly Timesheet is used to enter time worked by each employee during the week and includes time billable to customers.

Question 12

The status of an individual performing work is very important and determines what tax form and how payments are recorded.Which of the following is TRUE?

A)An employee receives a paycheck and a form W-2; a contractor receives a vendor payment and also a form W-2.
B)An employee receives a paycheck and a form W-2; a contractor receives a vendor payment and a form 1099-MISC.
C)An employee receives a paycheck and a form W-2; a contractor receives a vendor payment and files an owner tax return.
D)An employee receives a paycheck and a form W-2; an owner receives a dividend or distribution payment and a form 1099-MISC.

Question 13

Which of the following is NOT true regarding QBO Payroll?

A)To use QBO Payroll requires a subscription to QBO Payroll service.
B)If a user subscribes to QBO Payroll service,QBO will send email reminders when payroll should be run.
C)QBO Payroll offers the option of printing checks or using direct deposit to an employees' bank account.
D)QBO Mobile Payroll app for Android or Apple devices allows a user to run payroll from their device,and QBO is considering adding the capability to sync with QBO.

Question 14

In QBO Payroll Processing,what are the four main types of tasks?

A)Enter Time,Pay Employees,Pay Payroll Liabilities and Set Up Employees List
B)Enter Time,Pay Employees,Pay Payroll Liabilities and Turn on Payroll
C)Enter Time,Pay Employees,Pay Payroll Liabilities and Turn on Time Tracking
D)Enter Time,Pay Employees,Pay Payroll Liabilities and Process Payroll Forms

Question 15

The most time-consuming task involved in payroll set up is preparing the QBO Employee List.The Employee List contains information such as:

A)Basic employee information such as: name,address,phone number,salary or wage rate,and social security number.
B)Employee basic information and their status as a full-time or part-time.
C)Employee basic information and their status as an employee,owner,or subcontractor.
D)Employee name,address,wage rate,and employee status.Social security and other information is legally private and is not obtained.

Question 16

How is Federal Tax Form 944 different from Federal Tax Form 941?

A)Tax form 944 is used by very small companies to summarize federal income tax,Social Security,and Medicare withheld from employee paychecks for the year vs.quarterly.
B)Tax form 944 is used by very small companies to summarize federal income tax,Social Security,and Medicare withheld from employee paychecks for the quarter vs.annually.
C)Tax form 944 summarizes federal unemployment tax owed for the year vs.form 941 summarizes federal income tax,Social Security,and Medicare withheld from employee paychecks for the year.
D)Tax form 944 is used by very small companies to summarize federal income tax,Social Security,and Medicare withheld from employee paychecks for the year vs.tax form 941 which summarizes all of an employer's W-2 forms.

Question 17

Which selection below is FALSE regarding payroll?

A)Payroll involves preparing employee paychecks.
B)Payroll involves paying independent contractors as well as employees.
C)Payroll involves withholding the appropriate amount in taxes.
D)Payroll is paying the company's share of payroll taxes.

Question 18

What payroll tax form meets the following description: Before the end of January,an employer must provide this form to employees to summarize amounts paid for salaries,wages,and withholdings for the year?

A)Form W-2
B)Form W-3
C)Form 940
D)Form 944

Question 19

What are the 2 main aspects of using QBO Employee and Payroll?

A)Setting up payroll and Processing payroll
B)Payroll taxes and Payroll Reporting
C)Payroll payment and Payroll reporting
D)Employee hiring and Employee dismissal

Question 20

What is true regarding FUTA?

A)It is a payroll tax owed by the business and reported annually on a tax form 940.
B)It is a payroll tax owed by the business and reported quarterly on form 941 and annually on tax form 944.
C)It is a payroll tax owed by the business and reported quarterly on form 940.
D)It is a payroll tax shared by the employer and employee and reported quarterly on form 941 and annually on tax form 944.