Question 1

Which pay frequency has 26 pay periods per year?

Accepted Answer

A)   Bimonthly
B)   Biweekly
C)   Semimonthly
D)   Semi-weeklyE) B) and C)
F) A) and B)

Question 2

What types of records does IRS Regulation 26 CFR 1.6001 cover? (Select all that apply.)

Accepted Answer

A)   Manual pay records
B)   Computerized pay records
C)   Outsourced payroll records
D)   Independent contractor remittanceE) B) and C)
F) None of the above

Question 3

Ibrahim is the payroll accountant for a firm. He notes that the firm has hired a new employee. What forms must he collect from the new employee?

Accepted Answer

A)   W-2 and I-9
B)   W-4 and I-9
C)   W-4 and I-8
D)   W-3 and I-9E) None of the above
F) B) and C)

Question 4

________ payroll is processed every two weeks and will usually result in a lower gross pay per pay period than ________ payroll.

Accepted Answer

A)   Weekly; monthly
B)   Semimonthly; biweekly
C)   Biweekly; semimonthly
D)   Daily; biweeklyE) None of the above
F) B) and C)

Question 5

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 theseE) B) and C)
F) None of the above

Question 6

When a payroll clerk receives an approved request for an employee's time away from work, he or she should:

Accepted Answer

A)   Immediately place it in the employee's file.
B)   Attach it to the employee's time collection report for the pay period.
C)   Destroy the document in accordance with privacy laws.
D)   Contact the employee to verify the request.E) All of the above
F) B) and C)

Question 7

Computerized payroll records are considered a(n) :

Accepted Answer

A)   Open system.
B)   Open access.
C)   Closed system.
D)   Closed access.E) A) and B)
F) None of the above

Question 8

What forms are required when an employee is hired? (Select all that apply.)

Accepted Answer

A)   W-4
B)   I-9
C)   SS-4
D)   W-2E) A) and D)
F) All of the above

Question 9

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 10

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 receives overtime only when she works past 40 hours in any given week.
D)   She is not eligible for overtime pay.E) C) and D)
F) A) and B)

Question 11

Personnel in certain full-time occupations are classified as ________ instead of independent contractors.

Accepted Answer

A)   Contract employees
B)   Executive workers
C)   Statutory employees
D)   Non-statutory workersE) A) and B)
F) A) and C)

Question 12

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 LaborE) None of the above
F) A) and B)

Question 13

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

Accepted Answer

A)   Before each pay disbursement.
B)   Each year, upon the employee's anniversary with the firm.
C)   Every January 1.
D)   At the time of hire.E) A) and B)
F) None of the above

Question 14

Outsourcing the payroll process:

Accepted Answer

A)   Relieves the company of the task completion and the review process.
B)   Relieves the company of certain task completion but not the review process.
C)   Relieves the company of all liability for payroll completion and accuracy.
D)   Relieves the company of the review process but not the task completion.E) A) and B)
F) A) and C)

Question 15

If a firm pays its employees biweekly, how often does it disburse employee compensation?

Accepted Answer

A)   Twice per week
B)   Every week
C)   Every two weeks
D)   Every three weeksE) A) and B)
F) B) and C)

Question 16

U.S. workers in foreign subsidiaries are exempt from all income taxes.

Accepted Answer

A) True 
 B)False

Question 17

Verification of hours worked and pay accuracy is part of the ________.

Accepted Answer

A)   Disbursement cycle
B)   Accounts payable reconciliation
C)   CEO's responsibility
D)   Payroll review processE) None of the above
F) All of the above

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Payroll records that contain evidence of fraud or other illegal action must be ________.

Accepted Answer

A)   retained for two years
B)   destroyed immediately
C)   retained indefinitely
D)   released to law enforcement officialsE) None of the above
F) All of the above

Exam 2: Payroll System Procedures

Which pay frequency has 26 pay periods per year?

Correct AnswerverifiedShow Answer

Ibrahim is the payroll accountant for a firm. He notes that the firm has hired a new employee. What forms must he collect from the new employee?

Correct AnswerverifiedShow Answer

________ payroll is processed every two weeks and will usually result in a lower gross pay per pay period than ________ payroll.

Correct AnswerverifiedShow Answer

What forms are required when an employee is hired? (Select all that apply.)

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What types of records does IRS Regulation 26 CFR 1.6001 cover? (Select all that apply.)

Correct AnswerverifiedShow Answer

U.S. workers in foreign subsidiaries are exempt from all income taxes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a payroll clerk receives an approved request for an employee's time away from work, he or she should:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Personnel in certain full-time occupations are classified as ________ instead of independent contractors.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Verification of hours worked and pay accuracy is part of the ________.

Correct AnswerverifiedShow Answer

If a firm pays its employees biweekly, how often does it disburse employee compensation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Computerized payroll records are considered a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Outsourcing the payroll process:

Correct AnswerverifiedShow Answer

Payroll records that contain evidence of fraud or other illegal action must be ________.

Correct AnswerverifiedShow Answer

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payroll is processed every two weeks and will usually result in a lower gross pay per pay period than payroll.

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