Payroll Accounting Exam Practice Tests
Course Introduction
Payroll Accounting is a comprehensive course that explores the principles and practices involved in the calculation and management of employee compensation. Students will learn about regulatory compliance, payroll laws, tax withholdings, wage calculations, timekeeping, and payroll systems. The course also covers topics such as governmental reporting requirements, benefit deductions, payroll journal entries, and the preparation of payroll tax returns. Through practical exercises and real-world examples, participants will gain the knowledge and skills necessary to accurately process payroll and maintain precise payroll records in various organizational 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) An example of an accounting software package that fosters electronic payroll processing is:
A)SageBooks.
B)Quick50.
C)QuickBooks.
D)GreatBooks.
Answer: C
Q2) The Consolidated Appropriations Act included an increase in funding for the ________ program.
A)Medicare
B)E-Verify
C)Child Health and Infant Protection
D)Disability Accommodations
Answer: B
Q3) Which of the following is not an option available to payroll accountants?
A)Payroll preparation through manual,handwritten spreadsheets.
B)Reduced responsibility for accuracy because of outsourcing services.
C)Increased use of paycards as a vehicle for paying employees.
D)Governmentally mandated and monitored payroll outsourcing.
Answer: B
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Chapter 2: Payroll System Procedures
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/74469
Sample Questions
Q1) Computerized payroll records are considered a(n):
A)Open system.
B)Open access.
C)Closed system.
D)Closed access.
Answer: C
Q2) IRS Regulation 26 CFR 1.6001 mandates ________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________.
A)file maintenance;employer
B)payroll review;payroll supervisor
C)check authorization;controller
D)employee time review;department manager
Answer: A
Q3) All executive compensation must be:
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.
Answer: C
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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) The difference between the tipped employee minimum wage and the federal minimum wage is called the ________.
A)Tip allowance
B)Wage credit
C)Tip credit
D)Wage allowance
Answer: C
Q2) Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.91 per hour.His employer claims that since the federal minimum wage is $7.25 per hour,Cole should only receive the federal amount.What is the correct answer in this situation?
A)The employer has the discretion to pay either the federal or the state-designated minimum wage.
B)The employer may choose to pay less than the state-designated minimum wage,based on the employee's qualifications and job description.
C)The employer is correct that the federal minimum wage overrules the state wage.
D)The employer must pay the state-designated minimum wage for the area.
Answer: D
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Chapter 4: Fringe Benefits and Voluntary Deductions
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/74467
Sample Questions
Q1) What is the term for a tax-favorable IRA is set up by or for the employee,and the employer contributes the funds into the account?
A)IRA
B)SIMPLE
C)ESOP
D)SEP
Q2) What is the major limitation of a SIMPLE retirement plan?
A)It is limited to firms with 100 or fewer employees.
B)Employee contributions to the plan are limited.
C)SIMPLE plans are subject to all payroll taxes.
D)SIMPLE plan funds must be invested in stock market securities.
Q3) According to Consumer Credit Protection Act,what is a limit on the amount of a garnishment for consumer credit?
A)It must be less than 50% of an employee's gross earnings.
B)It may be 75% of the employee's disposable income.
C)It must be a minimum of 10% of an employee's annual salary.
D)It cannot exceed 25% of an employee's disposable income.
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Chapter 5: Employee Net Pay and Pay Methods
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70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/74466
Sample Questions
Q1) The percentage method of determining an employee's Federal income tax deductions ________.
A)is used to promote complexity in payroll practices
B)allows payroll accountants to determine Federal income tax for the firm itself
C)is used primarily for high wage earners and computerized payroll programs
D)is less accurate than the results gained from using the wage-bracket method
Q2) The percentage of the Medicare tax withholding ________.
A)is the same for every employee,regardless of income
B)is subject to change based on the firm's profitability
C)changes every year in response to industry needs
D)remains the same for all employees who earn less than $200,000
Q3) Wyatt is a full-time exempt music engineer who earns $130,000 annually and is paid semimonthly.As of December 15,his year-to-date gross pay was $124,583.33.How much will be withheld for FICA taxes for the December 31 pay date? (Social Security maximum wage is $128,400.Do not round intermediate calculations.Round your final answer to 2 decimal places. )
A)$335.83
B)$414.38
C)$352.88
D)$315.18
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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) Hodgdon Industries,a semiweekly schedule depositor,pays its employees semimonthly on the 1st and 15th of the month.Per company policy,employees are paid their annual bonuses on December 14,the final payday of the year for 2017.On Thursday,December 14,the bonuses were paid and the payroll tax liability was $103,850.When are the payroll tax deposits due for the December 14 pay date?
A)Monday,December 18
B)Friday,December 22
C)Wednesday,December 20
D)Friday,December 15
Q2) What factor is not included in an employee's total compensation report?
A)Federal income tax deductions
B)Paid time off like sick and vacation time
C)Health and worker's compensation insurance premiums
D)Bonuses and other incentive programs
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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8
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) 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
Q2) Which columns might an employer include to facilitate employer-share payroll tax General Journal entries? (You may select more than one answer. )
A)Worker's Compensation
B)FUTA
C)SUTA
D)Employer's Federal Income tax
Q3) What is the term for transferring data from the General Journal to the General Ledger?
A)Cross-referencing
B)Ledgering
C)Posting
D)Transcribing
Q4) In the General Ledger,the debit column reflects the balance of the account.
A)True
B)False
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