Question 1

Computerized payroll records are considered a(n):

Accepted Answer

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

Question 2

Which of the following is subject to overtime in the process of hourly computations, according to FLSA?

Accepted Answer

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

Question 3

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (You may select more than one answer. Single click the box with the
Question mark to produce a check mark for a correct answer and double click the box with
The question mark to empty the box for a wrong answer. Any boxes left with a question
Mark will be automatically graded as incorrect.)

Accepted Answer

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

Question 4

According to the Fair Labor Standards Act, nonexempt workers receive overtime for:

Accepted Answer

A)  Hours worked in excess of 8 per day and 30 per week. 
B)  Hours worked in excess of 40 per week. 
C)  Hours worked in excess of employer-determined rules. 
D)  Hours worked in excess of 9 per day or 35 per week.

Question 5

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

Question 6

Employee ﬁle maintenance is the responsibility of the:

Accepted Answer

A)  State government. 
B)  Payroll vendor. 
C)  Employee. 
D)  Employer.

Question 7

Which of the following is/are purpose(s) of new hire reporting laws? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a
Correct answer and double click the box with the question mark to empty the box for a
Wrong answer. Any boxes left with a question mark will be automatically graded as
Incorrect.)

Accepted Answer

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

Question 8

What is the difference between termination and resignation, as far as ﬁnal pay is concerned?

Accepted Answer

A)  Resignation pay must be paid within one week and termination pay must be the next business day. 
B)  Resignation pay may be paid at the next regular pay date, but termination pay is subject to state law. 
C)  Resignation and termination pay are subject to state regulations. 
D)  Resignation pay must be paid on the next business day and termination pay is due

Question 9

Multistate employers must do which of the following for new hire reporting? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a
Correct answer and double click the box with the question mark to empty the box for a
Wrong answer. Any boxes left with a question mark will be automatically graded as
Incorrect.)

Accepted Answer

A)  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. 
B)  File a report with the state offices for the employee's state of residence. 
C)  Designate which state will receive their new hire reporting. 
D)  File a report with the IRS since they have employees in multiple states.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following items must exist in every employee's payroll ﬁle?

Accepted Answer

A)  Spouse's birth date 
B)  Spouse's social security number 
C)  Employment history 
D)  Occupation

Question 12

A company should assign ________ employee(s) the responsibility for signing payroll checks and disbursements.

Accepted Answer

A)  a limited number of 
B)  only one 
C)  its most responsible 
D)  none of these

Question 13

Georgeanne works in a company for which her primary job function is the sale of company products to consumers. She receives a percentage of each sale as part of her compensation. Her
Compensation contains a ________ element.

Accepted Answer

A)  pay-for-performance 
B)  nonexempt 
C)  commission 
D)  piece-rate

Question 14

________ payroll is processed every two weeks and will usually result in a lower gross pay per pay period than ________ payroll.

Accepted Answer

A)  Biweekly; semimonthly 
B)  Daily; biweekly 
C)  Weekly; monthly 
D)  Semimonthly; biweekly

Question 15

Foreign workers in the United States are subject to new hire reporting regulations.

Accepted Answer

A) True 
 B)False

Question 16

Upon termination from a ﬁrm, the employer must disburse the former employee's ﬁnal pay ________.

Accepted Answer

A)  in accordance with state law 
B)  immediately 
C)  within 24 hours 
D)  at the next scheduled payday

Question 17

The retention period for payroll documents commences:

Accepted Answer

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

Question 18

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

Question 19

Mako was an employee of the Jaeger Corporation. After she voluntarily terminated employment, auditors discovered evidence of fraudulent activity that they traced to her. Mako's records must be
Retained:

Accepted Answer

A)  For 10 years. 
B)  Indeﬁnitely. 
C)  For 15 years. 
D)  For 20 years.

Question 20

Max Johnson was terminated from a company in South Carolina because of a reduction in workforce. Which statement best describes the state's requirements for disbursement of his ﬁnal
Pay?

Accepted Answer

A)  At the next scheduled pay date. 
B)  On the next business day. 
C)  Within two weeks. 
D)  Within 48 hours.

Exam 2: Payroll System Procedures

Computerized payroll records are considered a(n) :