Question 1

Which pay frequency has 24 pay periods annually?

Accepted Answer

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

Question 2

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.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

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.

Question 6

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

Question 7

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.

Question 8

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

Question 9

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.

Question 10

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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.

Question 17

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.

Question 18

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

Question 19

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.

Question 20

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.

Exam 2: Payroll System Procedures

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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. )

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The retention period for payroll documents commences:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All executive compensation must be:

Correct AnswerverifiedShow 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?

Correct AnswerverifiedShow Answer

Which pay frequency has 24 pay periods annually?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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