Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

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 employeesE) A) and B)
F) A) and C)

Question 3

Multistate employers must do which of the following for new hire reporting (Select all that apply) ?

Accepted Answer

A)   File a report with the state offices for the employee's state of residence
B)   File a report with the IRS since they have employees in multiple states
C)   Designate which state will receive their new hire reporting
D)   File a new-hire report with both the state that contains the firm's headquarters and the state thatIs the employee's primary residenceE) C) and D)
F) B) and C)

Question 4

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 SecurityE) A) and C)
F) B) and D)

Question 5

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 officials.E) A) and B)
F) A) and D) C

Question 6

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.E) A) and D)
F) B) and D)

Question 7

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) C) and D)
F) A) and B)

Question 8

Which items must be contained in every hiring packet issued by an employer?

Accepted Answer

A)   Forms W-4 and I-9
B)   Employment contract with start date and pay agreement
C)   Descriptions of benefits and enrollment forms
D)   No items are mandated for issuance in a hiring packetE) C) and D)
F) A) and B) D

Question 9

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) A) and C)
F) None of the above

Question 10

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 11

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 commission that have been earned but not paid?

Accepted Answer

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

Question 12

A payroll review process increases in complexity when:

Accepted Answer

A)   The company is has few departments and few employees.
B)   The company is not geographically dispersed.
C)   The company is centralized and uses one location.
D)   The company has multiple departments and many employees.E) A) and B)
F) None of the above

Question 13

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) A) and D)
F) A) and C)

Question 14

Natalie is involuntarily terminated by a company in Alabama.According to state regulations,when must she receive her final pay?

Accepted Answer

A)   On the next business day
B)   No standardized state guidelines exist
C)   Within seven business days
D)   At the next schedule paydayE) All of the above
F) A) and D)

Question 15

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 16

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.E) B) and C)
F) A) and D)

Question 17

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.E) B) and C)
F) A) and B)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true about document destruction requirements (Select all that apply) ?

Accepted Answer

A)   Federal legislation requires documents to be retained for two years after the employee's termination.
B)   Personnel 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.E) A) and D)
F) B) and D)

Question 20

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) B) and C)
F) All of the above

Exam 2: Payroll System Procedures

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

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

Multistate employers must do which of the following for new hire reporting (Select all that apply) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

The retention period for payroll documents commences:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which items must be contained in every hiring packet issued by an employer?

Correct AnswerverifiedD

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

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

Correct AnswerverifiedShow Answer

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 commission that have been earned but not paid?

Correct AnswerverifiedShow Answer

A payroll review process increases in complexity when:

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

Natalie is involuntarily terminated by a company in Alabama.According to state regulations,when must she receive her final pay?

Correct AnswerverifiedShow Answer

Computerized payroll records are considered a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true about document destruction requirements (Select all that apply) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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False

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