Introduction to Payroll Test Preparation
Course Introduction
Introduction to Payroll provides students with a comprehensive overview of payroll processes and practices within organizations. The course covers essential topics such as the calculation of employee wages, deductions, and benefits, as well as employer responsibilities regarding tax withholdings and compliance with federal and local labor laws. Students will gain practical experience using payroll software, preparing payroll registers, and completing payroll reports. By the end of the course, students will understand the fundamental principles of payroll management and how to apply them in real-world business settings.
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
Source URL: https://quizplus.com/quiz/74470
Sample Questions
Q1) Employers must request a(n)________ for the Internal Revenue Service to track a firm's payroll tax obligations.
A)Social Security Number
B)Employer Registration Number
C)Tax Identification Number
D)Employer Identification Number
Answer: D
Q2) Jonathan is the payroll accountant for Terrafirm Company.The company has experienced a rise in business that has increased Jonathan's workload to more than double his original amount.Because of the business increase,he has not been able to engage in the continuing professional education (CPE)that his payroll certification requires.When asked by his employer,Jonathan claims to be current with his CPE.According to the AICPA Code of Ethics,which of the following most closely describes the principle that Jonathan has violated?
A)Objectivity
B)Due Care
C)Responsibilities
D)Public Interest
Answer: B
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3
Chapter 2: Payroll System Procedures
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/74469
Sample Questions
Q1) 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.
A)piece-rate
B)commission
C)pay-for-performance
D)nonexempt
Answer: B
Q2) Which of the following parties does not legally have access to a firm's payroll records?
A)The IRS
B)State revenue department employees
C)All employees of the firm
D)The Department of Homeland Security
Answer: C
Q3) The two focuses of payroll procedures are company needs and governmental rules.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Gross Pay Computation
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly)as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates.His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month.During the month of June,he decorated eight wedding cakes with a total retail value of $2,650.What is Andre's gross pay for the first week in July? (Do not round intermediate calculations.Round your answer to 2 decimal places. )
A)$1,427.53
B)$1,485.96
C)$1,239.42
D)$1,526.78
Answer: C
Q2) The payroll register is a confidential company document.
A)True
B)False
Answer: True
Q3) Any employee may request a payroll draw against future earnings.
A)True
B)False Answer: False
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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) Tanesha works part-time for a governmental agency and is given a car for work-related and commute purposes.During the last calendar year,she worked 150 days and had a commute of 35 miles each direction.What is the amount of the company-car fringe benefit that will appear on her W-2? (Do not round intermediate calculations,only round final answer to two decimal points. )
A)$15,750.00
B)$3,937.50
C)$7,875.00
D)$5,906.25
Q2) What is the difference between a defined benefit and a defined contribution retirement plan?
A)Defined contribution plans allow employees to contribute a set amount toward their retirement plan while employed.
B)Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement.
C)Defined benefit plans limit employee contributions while employed.
D)Defined benefit plans allow employees to set aside money on a tax-exempt basis.
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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) Which of the following statements is/are true about Social Security tax deductions from gross pay? (You may select more than one answer. )
A)Section 125 deductions are not subject to Social Security tax.
B)The tax rate is 6.0%.
C)The tax is computed on all earnings.
D)The wage base is $128,400.
Q2) The wage-bracket of determining federal tax withholding yields more accurate amounts than the percentage method.
A)True
B)False
Q3) Renee is a salaried exempt employee who earns an annual salary of $64,200,which is paid semimonthly.She is married with four withholding allowances.What is her total FICA tax liability per pay period? (Do not round intermediate calculations.Round your final answer to 2 decimal places. )
A)$165.85
B)$38.79
C)$204.64
D)$409.28
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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) Van Buuren Enterprises had payroll tax liability of $42,450 during the lookback period.How frequently will the firm deposit its payroll taxes?
A)Monthly
B)Annually
C)Semiweekly
D)Next Business Day
Q2) Francesca earns $2,400 per pay period.Compute the FICA taxes for both employee and employer share.What is the total FICA tax liability for Francesca's pay per pay period? (Assume that Francesca has not met the FICA wage base. )
A)$297.60
B)$332.40
C)$218.40
D)$367.20
Q3) Mandatory employer-paid payroll taxes are known as statutory deductions.
A)True
B)False
Q4) Form 940 is the report of tax liability for monthly schedule depositors.
A)True
B)False
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Chapter 7: The Payroll Register, employees Earnings
Records, and Accounting System Entries
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72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/74464
Sample Questions
Q1) If a firm accrues the payroll due but not paid at the end of a financial period,what should it do on the first day of the next financial period?
A)It should create a reversing entry in the General Journal.
B)It should disburse the accrued pay to the employees.
C)It should create a reminder about the accrual to ensure accuracy of computations on the next pay date.
D)It should make a note to create the reversing entry at the end of the next financial period.
Q2) Which of the following reports links the accounting and the human resources departments?
A)Form 941
B)Payroll register
C)Employee earnings record
D)Labor reports
Q3) Which of the following is an example of a liability account?
A)Cash
B)Payroll Taxes Expense
C)Salaries and Wages Expense
D)FUTA Payable
Page 9
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