Question 1

Which of the following is an example of a typical exempt salaried employee?

Accepted Answer

A) Operations Manager. 
B) Accounting Clerk. 
C) Administrative Assistant. 
D) Machine Operator. 
A) Operations Manager. 
B) Accounting Clerk. 
C) Administrative Assistant. 
D) Machine Operator.

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

Well-designed internal controls promote: (You may select more than one answer. )

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 4

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

Question 5

The IRS stipulates that no more than ________ percent of a company's employees may be leased employees.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
A) 10 
B) 20 
C) 30 
D) 40

Question 6

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 7

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is an option for destruction purposes? (You may select more than one answer. )

Accepted Answer

A) Shredding 
B) Discarding 
C) Pulping 
D) Burning 
A) Shredding 
B) Discarding 
C) Pulping 
D) Burning

Question 8

Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom.According to FATCA,how much of his wages may Allen exclude from United States' taxes,according to 2018 guidelines?

Accepted Answer

A) None 
B) $46,500 
C) $79,850 
D) $104,100 
A) None 
B) $46,500 
C) $79,850 
D) $104,100

Question 9

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 10

Which of the following is true about document retention requirements per the IRS statute of limitations?

Accepted Answer

A) Federal legislation requires documents to be retained for two years after the employee's termination. 
B) Payroll records must be maintained for three years after termination. 
C) Union employees' records must be retained for five years after termination. 
D) State legislation requires records to be retained for a minimum of eight years after termination. 
A) Federal legislation requires documents to be retained for two years after the employee's termination. 
B) Payroll records must be maintained for three years after termination. 
C) Union employees' records must be retained for five years after termination. 
D) State legislation requires records to be retained for a minimum of eight years after termination.

Question 11

Which of the following is/are purpose(s)of new hire reporting laws? (You may select more than one answer. )

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 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Employers may choose to omit the employees' Social Security numbers in their employee files.

Accepted Answer

A) True 
 B)False

Question 15

Leased employees must have the following characteristics: (You may select more than one answer. )

Accepted Answer

A) They must work full-time. 
B) They must work part-time. 
C) The recipient company must substantially direct their work activities. 
D) A formal agreement between the employee and employer must exist. 
A) They must work full-time. 
B) They must work part-time. 
C) The recipient company must substantially direct their work activities. 
D) A formal agreement between the employee and employer must exist.

Question 16

Which pay frequency has 24 pay periods annually?

Accepted Answer

A) Weekly 
B) Biweekly 
C) Semimonthly 
D) Semiweekly 
A) Weekly 
B) Biweekly 
C) Semimonthly 
D) Semiweekly

Question 17

Which of the following factors assist employers in determining employee pay rates? (You may select more than one answer. )

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

Question 18

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Accepted Answer

A) True 
 B)False

Question 19

For payroll documentation purposes,when an employee needs time away from work:

Accepted Answer

A) The supervisor should authorize it verbally. 
B) The employee should email only department colleagues. 
C) Upper management must approve the request. 
D) The request should be documented and forwarded to the payroll clerk. 
A) The supervisor should authorize it verbally. 
B) The employee should email only department colleagues. 
C) Upper management must approve the request. 
D) The request should be documented and forwarded to the payroll clerk.

Question 20

Stan works for a bakery for which part of his compensation is paid based on the number of decoration of wedding and other specialty cakes.His compensation has a ________ element.

Accepted Answer

A) performance incentive 
B) commission 
C) piece-rate 
D) nonexempt 
A) performance incentive 
B) commission 
C) piece-rate 
D) nonexempt

Which of the following is an example of a typical exempt salaried employee?

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

Well-designed internal controls promote: (You may select more than one answer. )

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

The IRS stipulates that no more than ________ percent of a company's employees may be leased employees.

All executive compensation must be:

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is an option for destruction purposes? (You may select more than one answer. )

Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom.According to FATCA,how much of his wages may Allen exclude from United States' taxes,according to 2018 guidelines?

The retention period for payroll documents commences:

Which of the following is true about document retention requirements per the IRS statute of limitations?

Which of the following is/are purpose(s)of new hire reporting laws? (You may select more than one answer. )

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

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

Employers may choose to omit the employees' Social Security numbers in their employee files.

Leased employees must have the following characteristics: (You may select more than one answer. )

Which pay frequency has 24 pay periods annually?

Which of the following factors assist employers in determining employee pay rates? (You may select more than one answer. )

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

For payroll documentation purposes,when an employee needs time away from work:

Stan works for a bakery for which part of his compensation is paid based on the number of decoration of wedding and other specialty cakes.His compensation has a ________ element.

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

Which of the following is an example of a typical exempt salaried employee?

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

Well-designed internal controls promote: (You may select more than one answer. )

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

The IRS stipulates that no more than ________ percent of a company's employees may be leased employees.

All executive compensation must be:

A firm needs to destroy paper payroll records after the end of the retention period.Which of the following is an option for destruction purposes? (You may select more than one answer. )

Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom.According to FATCA,how much of his wages may Allen exclude from United States' taxes,according to 2018 guidelines?

The retention period for payroll documents commences:

Which of the following is true about document retention requirements per the IRS statute of limitations?

Which of the following is/are purpose(s)of new hire reporting laws? (You may select more than one answer. )

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

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

Employers may choose to omit the employees' Social Security numbers in their employee files.

Leased employees must have the following characteristics: (You may select more than one answer. )

Which pay frequency has 24 pay periods annually?

Which of the following factors assist employers in determining employee pay rates? (You may select more than one answer. )

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

For payroll documentation purposes,when an employee needs time away from work:

Stan works for a bakery for which part of his compensation is paid based on the number of decoration of wedding and other specialty cakes.His compensation has a ________ element.

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