Question 1

The retention period for payroll documents commences:

Accepted Answer

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

Question 2

When developing the internal controls and record retention for a payroll system, a company should:

Accepted Answer

A)  Involve all company employees to promote transparency. 
B)  Develop a closed system and alternate employee duties. 
C)  Designate a single employee with the responsibility for pay disbursements. 
D)  Train accounting personnel on a single payroll task. 
A)  Involve all company employees to promote transparency. 
B)  Develop a closed system and alternate employee duties. 
C)  Designate a single employee with the responsibility for pay disbursements. 
D)  Train accounting personnel on a single payroll task.

Question 3

The two focuses of payroll procedures are company needs and governmental rules.

Accepted Answer

A) True 
 B)False

Question 4

Upon termination, which of the following must be included in an employee's final pay?

Accepted Answer

A)  Hours worked. 
B)  Vacation previously paid. 
C)  Severance pay. 
D)  Sick time accrued but not used. 
A)  Hours worked. 
B)  Vacation previously paid. 
C)  Severance pay. 
D)  Sick time accrued but not used.

Question 5

Only regular working hours are considered as the worked hours for overtime computation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is/are purpose(s) of new hire reporting laws? (Select all that apply.)

Accepted Answer

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

Question 7

Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classifications most accurately describes Abigail's employment status?

Accepted Answer

A)  Independent contractor 
B)  Exempt employee 
C)  Nonexempt employee 
D)  Statutory employee 
A)  Independent contractor 
B)  Exempt employee 
C)  Nonexempt employee 
D)  Statutory employee

Question 8

Well-designed internal controls promote: (Select all that apply.)

Accepted Answer

A)  Legal compliance and file integrity. 
B)  Opportunities for defalcation. 
C)  Protection against embezzlement. 
D)  Audit trail support. 
A)  Legal compliance and file integrity. 
B)  Opportunities for defalcation. 
C)  Protection against embezzlement. 
D)  Audit trail support.

Question 9

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 9 per day or 35 per week. 
D)  Hours worked in excess of employer-determined rules. 
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 9 per day or 35 per week. 
D)  Hours worked in excess of employer-determined rules.

Question 10

All executive compensation must be:

Accepted Answer

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. 
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.

Question 11

Which of the following parties does not legally have access to a firm's payroll records?

Accepted Answer

A)  The IRS 
B)  State revenue department employees 
C)  All employees of the firm 
D)  The Department of Homeland Security 
A)  The IRS 
B)  State revenue department employees 
C)  All employees of the firm 
D)  The Department of Homeland Security

Question 12

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (Select all that apply.)

Accepted Answer

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

Question 13

A company should restrict access to payroll files (paper and/or electronic) as a part of ________.

Accepted Answer

A)  File security internal controls 
B)  Audit trail requirements 
C)  Compliance with company policy 
D)  FATCA requirements 
A)  File security internal controls 
B)  Audit trail requirements 
C)  Compliance with company policy 
D)  FATCA requirements

Question 14

Which of the following are important decisions that an employer must make regarding its payroll procedures? (Select all that apply.)

Accepted Answer

A)  How often to pay employees 
B)  How to handle pay advances 
C)  How many employees to hire 
D)  Which employee benefits to offer 
A)  How often to pay employees 
B)  How to handle pay advances 
C)  How many employees to hire 
D)  Which employee benefits to offer

Question 15

Which of the following factors assist employers in determining employee pay rates? (Select all that apply.)

Accepted Answer

A)  Employee skill 
B)  Company location 
C)  Employee age 
D)  Industry benchmarks 
A)  Employee skill 
B)  Company location 
C)  Employee age 
D)  Industry benchmarks

The retention period for payroll documents commences:

When developing the internal controls and record retention for a payroll system, a company should:

The two focuses of payroll procedures are company needs and governmental rules.

Upon termination, which of the following must be included in an employee's final pay?

Only regular working hours are considered as the worked hours for overtime computation.

Which of the following is/are purpose(s) of new hire reporting laws? (Select all that apply.)

Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classifications most accurately describes Abigail's employment status?

Well-designed internal controls promote: (Select all that apply.)

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

All executive compensation must be:

Which of the following parties does not legally have access to a firm's payroll records?

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (Select all that apply.)

A company should restrict access to payroll files (paper and/or electronic) as a part of ________.

Which of the following are important decisions that an employer must make regarding its payroll procedures? (Select all that apply.)

Which of the following factors assist employers in determining employee pay rates? (Select all that apply.)

Payroll Practices and System Fundamentals

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters

Exam 2: Payroll System Procedures

The retention period for payroll documents commences:

When developing the internal controls and record retention for a payroll system, a company should:

The two focuses of payroll procedures are company needs and governmental rules.

Upon termination, which of the following must be included in an employee's final pay?

Only regular working hours are considered as the worked hours for overtime computation.

Which of the following is/are purpose(s) of new hire reporting laws? (Select all that apply.)

Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classifications most accurately describes Abigail's employment status?

Well-designed internal controls promote: (Select all that apply.)

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

All executive compensation must be:

Which of the following parties does not legally have access to a firm's payroll records?

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (Select all that apply.)

A company should restrict access to payroll files (paper and/or electronic) as a part of ________.

Which of the following are important decisions that an employer must make regarding its payroll procedures? (Select all that apply.)

Which of the following factors assist employers in determining employee pay rates? (Select all that apply.)

Payroll Practices and System Fundamentals

Gross Pay Computation

Fringe Benefits and Voluntary Deductions

Employee Net Pay and Pay Methods

Employer Payroll Taxes and Labor Planning

The Payroll Register, Employees Earnings Records, and Accounting System Entries

Filters