Introduction to Payroll Exam Preparation Guide
Course Introduction
Introduction to Payroll provides students with a foundational understanding of payroll processes, procedures, and compliance requirements in business settings. The course covers key topics such as employee classification, wage and salary calculations, statutory deductions, record-keeping, and employer responsibilities regarding tax remittance and reporting. Students will gain practical knowledge in preparing payroll documentation, managing payroll schedules, and navigating relevant employment laws and regulations. By the end of the course, learners will be equipped with the essential skills to support accurate and efficient payroll operations within an organization.
Recommended Textbook
Payroll Accounting 2019 5th Edition by Jeanette Landin
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7 Chapters
526 Verified Questions
526 Flashcards
Source URL: https://quizplus.com/study-set/3734
Page 2
Chapter 1: Payroll Practices and System Fundamentals
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Which of the following is true about independent contractors within the context of payroll?
A)They are employees of the company.
B)A temporary working relationship must exist.
C)Tools and facilities are provided by the employer.
D)The worker controls hours worked and exercises judgment.
Answer: D
Q2) A(n)_____ allows the Internal Revenue Service to keep track of employers.
A)SS-4
B)ES-4
C)EIN
D)W-4
Answer: C
Q3) What is the most significant challenge pertaining to payroll that small businesses face?
A)Availability of payroll-trained personnel.
B)Availability of accounting resources.
C)Accessibility of free on-site payroll software.
D)Accessibility of on-site payroll guidance.
Answer: A
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Chapter 2: Payroll System Procedures
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) Multistate employers must do which of the following for new hire reporting? (You may select more than one 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
Answer: A,C,D
Q2) Well-designed internal controls promote: (You may select more than one answer. )
A)Legal compliance and file integrity.
B)Opportunities for defalcation.
C)Protection against embezzlement.
D)Audit trail support.
Answer: A,C,D
Q3) The two focuses of payroll procedures are company needs and governmental rules.
A)True
B)False
Answer: True
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Chapter 3: Gross Pay Computation
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Lawrin is a real-estate salesperson whose compensation is commission-only.She earns a 3% commission on the sale price of each house that she sells and receives 1.5% commissions at the end of each month (the broker retains the rest per the employment agreement).During the month of July,Lawrin sold two houses totaling $385,420.What is her gross pay for the month of July?
A)$5,620.00
B)$5,781.30
C)$11,562.00
D)$8,623.50
Answer: B
Q2) Which of the following is always true about tipped employees?
A)The minimum wage for tipped employees is consistent among all states.
B)They have the opportunity to earn tips from patrons as a regular part of their job.
C)They only earn occasional tips from other employees.
D)They must earn more than 50% of their income from tips.
Answer: B
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Chapter 4: Fringe Benefits and Voluntary Deductions
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Under the special accounting rule,benefits provided in the last quarter of the year may be reported during the following year.
A)True
B)False
Q2) What method(s)may be used to determine the fair market value of the personal use of a company car? (You may select more than one answer. )
A)Appraised value rule
B)Replacement value rule
C)Commuting rule
D)Cents-per-mile rule
Q3) According to the Affordable Health Care Act,employers with ________ or more employees are required to file an informational return with the IRS and a detailed summary to the employees.
A)10
B)50
C)100
D)150
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6
Chapter 5: Employee Net Pay and Pay Methods
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) From the employer's perspective,which of the following is a challenge of paying employees by direct deposit?
A)Reduction in payroll processing costs.
B)Secure processing of employee compensation.
C)Vulnerability of data to computer attacks.
D)Employee self-maintenance of personnel records.
Q2) Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.
A)True
B)False
Q3) What role does the employer play regarding an employee's federal withholding tax?
A)Collector and depositor
B)Reporter and depositor
C)Collector and verifier
D)Verifier and reporter
Q4) Charitable contributions are an example of post-tax voluntary deductions.
A)True
B)False
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Chapter 6: Employer Payroll Taxes and Labor Planning
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Which of the following documents could contain annual compensation report data?
(You may select more than one answer. )
A)Employee questionnaires
B)Vendor invoices
C)Payroll tax reports
D)Employee earnings report
Q2) PCD Inc.operates as a Nevada business.The SUTA wage base for Nevada is $28,200.PCD Inc.'s SUTA tax rate is 4.5%.The employees' annual earnings for the past calendar year are as follows: Annabelle $36,750,Beatrice $24,880,Michael
$42,200,Howard $26,500.
What is PCD Inc.'s SUTA tax liability for the year?
A)$5,864.85
B)$4,850.10
C)$6,037.82
D)$4,733.72
Q3) Employers who inadvertently fail to file quarterly or annual reports may be subject to monetary penalties.
A)True
B)False
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Page 8
Chapter 7: The Payroll Register, employees Earnings
Records, and Accounting System Entries
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72 Verified Questions
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Sample Questions
Q1) On December 1,20XX,Riley Sanders invested $250,000 to open Sanders Enterprises.What is the General Journal entry to record this transaction?
A)Debit R.Sanders Capital,$250,000;Credit Cash,$250,000
B)Debit Revenue,$250,000;Credit Cash,$250,000
C)Debit Cash,$250,000;Credit Revenue,$250,000
D)Debit Cash,$250,000;Credit R.Sanders Capital,$250,000
Q2) What is the primary purpose of a labor report?
A)It depicts the ideal distribution of labor in a firm.
B)It designates where labor is used in a firm.
C)It communicates departmental profitability.
D)It is a report designed to be read by parties external to the firm.
Q3) As of the June 11 pay date,the General Ledger account for Burling Mills has a balance of $14,289 in its Federal withholding tax payable account.A credit of $16,250 is recorded on the June 25 pay date.What is the balance in the account?
A)Debit $1,961
B)Debit $30,539
C)Credit $1,961
D)Credit $30,539
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