Question 1

Employee ﬁle maintenance is the responsibility of the:

Accepted Answer

A)  State government.
B)  Payroll vendor.
C)  Employee.
D)  Employer. D

Question 2

Upon termination from a ﬁrm, the employer must disburse the former employee's ﬁnal pay____
.

Accepted Answer

A)  in accordance with state law
B)  immediately
C)  within 24 hours
D)  at the next scheduled payday A

Question 3

Pay rate is the ﬁrst payroll system decision a company must make.

Accepted Answer

A) True 
 B)False  False

Question 4

It is considered a best practice to assign one employee for all payroll duties.

Accepted Answer

A) True 
 B)False

Question 5

Adrienne is a nonexempt employee who works for a ﬁrm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for her work situation?

Accepted Answer

A)  She must be compensated for all hours worked past 8 in a single day.
B)  She will receive overtime pay when working more than 10 hours during a shift.
C)  She is not eligible for overtime pay.
D)  She receives overtime only when she works past 40 hours in any given week.

Question 6

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

Accepted Answer

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

Question 7

An employer must have an employee complete Form W-4:

Accepted Answer

A)  Each year, upon the employee's anniversary with the ﬁrm.
B)  Every January 1.
C)  At the time of hire.
D)  Before each pay disbursement.

Question 8

Leased employees must have the following characteristics: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

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

Question 9

The retention period for payroll documents commences:

Accepted Answer

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

Question 10

Form I-9 is issued by the ____ to verify employment eligibility in the United States.

Accepted Answer

A)  Internal Revenue Service
B)  Department of Homeland Security
C)  Federal Bureau of Investigation
D)  Department of Labor

Question 11

Why must pay period information be a part of an employee's payroll ﬁle?

Accepted Answer

A)  To document satisfaction of court-ordered obligations.
B)  As a means of ensuring pay equality among employees.
C)  To ensure that the employee receives all compensation earned.
D)  As a means of tracking time worked for overtime compensation purposes.

Question 12

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

Accepted Answer

A)  FATCA requirements
B)  audit trail requirements
C)  compliance with company policy
D)  ﬁle security internal controls

Question 13

Which aspect of internal controls for payroll relates to the Sarbanes-Oxley Act?

Accepted Answer

A)  Protecting employee retirement funds
B)  Cross-training employees and altering duties
C)  Limiting the number of employees authorized to disburse payroll
D)  Ensuring the complexity of the audit trail

Question 14

A payroll accountant is preparing the ﬁnal pay for a commission-based salesperson who has been terminated from the ﬁrm. What will happen to the salesperson's commissions that have been earned but not paid?

Accepted Answer

A)  The employee must receive ﬁnal non-commission pay immediately, but any commission pay will be delayed.
B)  The ﬁnal pay must include all commissions earned, in accordance with any pay agreement.
C)  The salesperson's ﬁnal pay is delayed to allow for computation of commissions.
D)  The salesperson must receive termination pay immediately and forfeits all unpaid commissions.

Question 15

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

Accepted Answer

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

Question 16

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 2019 guidelines?

Accepted Answer

A)  $46,500
B)  $79,850
C)  $105,900
D)  None

Question 17

What is the difference between termination and resignation, as far as ﬁnal pay is concerned?

Accepted Answer

A)  Resignation pay must be paid within one week and termination pay must be the next business day.
B)  Resignation pay may be paid at the next regular pay date, but termination pay is subject to state law.
C)   Resignation and termination pay are subject to state regulations.
D)  Resignation pay must be paid on the next business day and termination pay is due immediately.

Question 18

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Accepted Answer

A) True 
 B)False

Question 19

What types of records does IRS Regulation 26 CFR 1.6001 cover? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Accepted Answer

A)  Manual pay records
B)  Outsourced payroll records
C)  Independent contractor remittance
D)  Computerized pay records

Question 20

Which of the following is subject to overtime in the process of hourly computations, according to
FLSA?

Accepted Answer

A)  Time worked in excess of 40 hours per week
B)  Nonexempt employee weekend work
C)  Holiday, sick time, and paid time off
D)  Time worked in excess of eight hours per day

Exam 2: Computing Wages and Salaries

Employee ﬁle maintenance is the responsibility of the:

Upon termination from a ﬁrm, the employer must disburse the former employee's ﬁnal pay____ .

Pay rate is the ﬁrst payroll system decision a company must make.

It is considered a best practice to assign one employee for all payroll duties.

Adrienne is a nonexempt employee who works for a ﬁrm that has an elected workweek composed of four 10-hour days and pays overtime after 40 hours worked per week. What is the rule about overtime for her work situation?

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

An employer must have an employee complete Form W-4:

The retention period for payroll documents commences:

Form I-9 is issued by the ____ to verify employment eligibility in the United States.

Why must pay period information be a part of an employee's payroll ﬁle?

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

Which aspect of internal controls for payroll relates to the Sarbanes-Oxley Act?

A payroll accountant is preparing the ﬁnal pay for a commission-based salesperson who has been terminated from the ﬁrm. What will happen to the salesperson's commissions that have been earned but not paid?

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

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 2019 guidelines?

What is the difference between termination and resignation, as far as ﬁnal pay is concerned?

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Which of the following is subject to overtime in the process of hourly computations, according to FLSA?