Question 1

Contemporary payroll practices reflect:

Accepted Answer

A)   The increased use of manual payroll accounting systems.
B)   The decrease in labor costs that reflects the effect of the economic recession.
C)   The strategic use of payroll data as a company planning tool.
D)   The replacement of accounting personnel with computerized systems.

Question 2

Which Act extended medical benefits for certain terminated employees?

Accepted Answer

A)   ADEA
B)   COBRA
C)   OSHA
D)   ERISA

Question 3

The Current Tax Payment Act changed employer remittance of taxes by:

Accepted Answer

A)   Instituting the mandatory transfer of payroll tax liabilities.
B)   Legislating the amounts of tax withheld from each employee.
C)   Requiring employers to remit taxes at specific times during the year.
D)   Calling for employers to remit only the current portions of taxes due.

Question 4

Jonathan is the payroll accountant for Terrafirm Company.The company has experienced a rise in business that has increased Jonathan's workload to more than double his original amount.Because of the business increase,he has not been able to engage in the continuing professional education (CPE) that his payroll certification requires.When asked by his employer,Jonathan claims to be current with his CPE.According to the AICPA Code of Ethics,which of the following most closely describes the principle that Jonathan has violated?

Accepted Answer

A)   Objectivity
B)   Due Care
C)   Responsibilities
D)   Public Interest

Question 5

The ________________mandated that employers verify an employee's legal ability to work in the United States.

Accepted Answer

A)   Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
B)   Health Insurance Portability and Accountability Act of 1996.
C)   American Reinvestment and Recovery Act of 2009.
D)   Immigration Reform and Control Act of 1986.

Question 6

Within how many days after initially commencing work must an employer report a new employee,according to PRWOR?

Accepted Answer

A)   7
B)   10
C)   20
D)   30

Question 7

The largest challenge to companies that use manual payroll processing is:

Accepted Answer

A)   Integrating current tax tables.
B)   Obtaining accurate employee data.
C)   Maintaining accurate personnel records.
D)   Filing appropriate governmental reports.

Question 8

Companies may use _____________ and ____________ to allow employees to have secure,rapid access to their compensation.

Accepted Answer

A)   Cash;Checks.
B)   Cash;Direct Deposit.
C)   Direct Deposit;Paycards.
D)   Paycards;Checks.

Question 9

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 10

Paycards represent a trend in employee compensation that alleviates the employee's need for:

Accepted Answer

A)   Filing data about time worked.
B)   Bank account establishment.
C)   Functional literacy.
D)   Workplace competence.

Question 11

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

Accepted Answer

A) True 
 B)False

Question 12

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Accepted Answer

A) True 
 B)False

Question 13

Employment legislation during the 1930s included which of the following Acts:

Accepted Answer

A)   FLSA,FUTA,and FICA
B)   ADEA,Davis-Bacon Act,and FLSA
C)   Walsh-Healey Act,FICA,and ERISA
D)   FUTA,ADA,and FLSA

Question 14

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?

Accepted Answer

A)   Salaried exempt workers may only work eight hours per day.
B)   Salaried nonexempt workers must not work overtime hours.
C)   Salaried exempt workers must work between 45 and 50 hours per week.
D)   Salaried nonexempt workers are eligible for overtime pay.

Question 15

Which of the following is true about independent contractors?

Accepted Answer

A)   They receive more company benefits than other workers.
B)   They are not subject to any provisions of payroll laws.
C)   They may not work any overtime hours.
D)   They must provide proof of employment insurance before commencing work.

Question 16

Which of the following is a payroll accountant's responsibility?

Accepted Answer

A)   Wage negotiations with prospective employees.
B)   Construction contract negotiations with governmental entities.
C)   Preparation for corporate safety audits.
D)   Preparation of payroll tax returns.

Question 17

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:

Accepted Answer

A)   55.
B)   50.
C)   45.
D)   40.

Question 18

___________________ is required under the Davis-Bacon Act for companies who do business with the federal government.

Accepted Answer

A)   Manual payroll.
B)   Certified payroll.
C)   Outsourced payroll.
D)   Computerized payroll.

Question 19

Which law requires a company to use certified payroll?

Accepted Answer

A)   Walsh-Healey Public Contracts Act
B)   Copeland Anti-Kickback Act
C)   Davis-Bacon Act
D)   Sarbanes-Oxley Act

Question 20

The U.S.v.Windsor case repealed an Act and affected payroll tax withholdings for certain employees.Which Act did Windsor repeal?

Accepted Answer

A)   OSHA
B)   ARRA
C)   ATRA
D)   DOMA

Exam 1: Payroll Practices and System Fundamentals

Within how many days after initially commencing work must an employer report a new employee,according to PRWOR?

Correct Answer
verified

Correct Answer
verified

The U.S.v.Windsor case repealed an Act and affected payroll tax withholdings for certain employees.Which Act did Windsor repeal?

Correct Answer
verified

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

Correct Answer
verified

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Correct Answer
verified

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

Correct Answer
verified

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:

Correct Answer
verified

Employment legislation during the 1930s included which of the following Acts:

Correct Answer
verified

Companies may use _ and to allow employees to have secure,rapid access to their compensation.

Correct Answer
verified

Which of the following is true about independent contractors?

Correct Answer
verified

The ________________mandated that employers verify an employee's legal ability to work in the United States.

Correct Answer
verified

The largest challenge to companies that use manual payroll processing is:

Correct Answer
verified

Which Act extended medical benefits for certain terminated employees?

Correct Answer
verified

The Current Tax Payment Act changed employer remittance of taxes by:

Correct Answer
verified

Contemporary payroll practices reflect:

Correct Answer
verified

Which law requires a company to use certified payroll?

Correct Answer
verified

___________________ is required under the Davis-Bacon Act for companies who do business with the federal government.

Correct Answer
verified

Which of the following is a payroll accountant's responsibility?

Correct Answer
verified

Paycards represent a trend in employee compensation that alleviates the employee's need for:

Correct Answer
verified

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?

Correct Answer
verified

Exam 1: Payroll Practices and System Fundamentals

Within how many days after initially commencing work must an employer report a new employee,according to PRWOR?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S.v.Windsor case repealed an Act and affected payroll tax withholdings for certain employees.Which Act did Windsor repeal?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Worker's Compensation Act of 1935 legislated the payment of worker's compensation insurance.

Correct AnswerverifiedShow Answer

Payroll accounting systems may involve an integrated software package that contains business-planning tools.

Correct AnswerverifiedShow Answer

The Age Discrimination in Employment Act of 1967 prevented mandatory retirement for workers over the age of:

Correct AnswerverifiedShow Answer

Employment legislation during the 1930s included which of the following Acts:

Correct AnswerverifiedShow Answer

Companies may use _____________ and ____________ to allow employees to have secure,rapid access to their compensation.

Correct AnswerverifiedShow Answer

Which of the following is true about independent contractors?

Correct AnswerverifiedShow Answer

The ________________mandated that employers verify an employee's legal ability to work in the United States.

Correct AnswerverifiedShow Answer

The largest challenge to companies that use manual payroll processing is:

Correct AnswerverifiedShow Answer

Which Act extended medical benefits for certain terminated employees?

Correct AnswerverifiedShow Answer

The Current Tax Payment Act changed employer remittance of taxes by:

Correct AnswerverifiedShow Answer

Contemporary payroll practices reflect:

Correct AnswerverifiedShow Answer

Which law requires a company to use certified payroll?

Correct AnswerverifiedShow Answer

___________________ is required under the Davis-Bacon Act for companies who do business with the federal government.

Correct AnswerverifiedShow Answer

Which of the following is a payroll accountant's responsibility?

Correct AnswerverifiedShow Answer

Paycards represent a trend in employee compensation that alleviates the employee's need for:

Correct AnswerverifiedShow Answer

What is the difference in pay practices between salaried exempt and salaried nonexempt workers?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Companies may use _ and to allow employees to have secure,rapid access to their compensation.

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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