Question 1

Which of the following is not subject to overtime in the process of hourly computations?

Accepted Answer

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

Question 2

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.

Question 3

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

Accepted Answer

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

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

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 weeks

Question 6

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 packet

Question 7

Which of the following is false about document destruction requirements?

Accepted Answer

A)   Federal legislation required 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.

Question 8

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.

Question 9

Which of the following is not a purpose of new hire reporting laws?

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 10

Which pay frequency has 24 pay periods annually?

Accepted Answer

A)   Weekly
B)   Biweekly
C)   Semi-monthly
D)   Semi-weekly C

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Accepted Answer

A)   Performance incentive
B)   Commission
C)   Piece-rate
D)   Nonexempt C

Question 14

IRS Regulation 26 CFR 1.6001 mandates ______________________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________________.

Accepted Answer

A)   File maintenance; employer.
B)   Payroll review; payroll supervisor.
C)   Check authorization; controller.
D)   Employee time review; department manager.

Question 15

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.

Question 16

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 B

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Geoff is the payroll clerk for a firm that maintains its payroll through computerized records on a centralized server.One of his responsibilities is employee file maintenance,including the destruction of records after the retention time has elapsed.His method of purging employee records is to delete the file from the database.What other record destruction procedures should Geoff follow?

Accepted Answer

A)   None. His method is acceptable.
B)   He should check all other employees' computers to ensure that the record is deleted.
C)   He should purge the record from the server and all backups.
D)   He should send an interoffice request to have someone in the information technology department remove the record from the server.

Question 19

Individuals treated as _________________________________ are processed as vendors.

Accepted Answer

A)   Exempt employees.
B)   Nonexempt employees.
C)   Government contract employees.
D)   Independent contractors.

Question 20

Separation of duties is not considered a payroll best practice.

Accepted Answer

A) True 
 B)False

Exam 2: Payroll System Procedures

Which of the following is not subject to overtime in the process of hourly computations?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following is false about document destruction requirements?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a purpose of new hire reporting laws?

Correct Answer
verified

Which pay frequency has 24 pay periods annually?

Correct Answer
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C

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

Correct Answer
verified

All executive compensation must be:

Correct Answer
verified

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Correct Answer
verified
C

IRS Regulation 26 CFR 1.6001 mandates ______ procedures as they pertain to payroll records,noting that it is the responsibility of the .

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified
B

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

Correct Answer
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Correct Answer
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Individuals treated as _________________________________ are processed as vendors.

Correct Answer
verified

Separation of duties is not considered a payroll best practice.

Correct Answer
verified

Exam 2: Payroll System Procedures

Which of the following is not subject to overtime in the process of hourly computations?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

Which of the following is false about document destruction requirements?

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

Which of the following is not a purpose of new hire reporting laws?

Correct AnswerverifiedShow Answer

Which pay frequency has 24 pay periods annually?

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

All executive compensation must be:

Correct AnswerverifiedShow Answer

Stan works for a bakery for which part of his compensation is based on the decoration of wedding and other specialty cakes.His compensation has a ____________ element.

Correct AnswerverifiedC

IRS Regulation 26 CFR 1.6001 mandates ______________________ procedures as they pertain to payroll records,noting that it is the responsibility of the ________________.

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

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

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Individuals treated as _________________________________ are processed as vendors.

Correct AnswerverifiedShow Answer

Separation of duties is not considered a payroll best practice.

Correct AnswerverifiedShow Answer

Correct Answer
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C

Correct Answer
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C

IRS Regulation 26 CFR 1.6001 mandates ______ procedures as they pertain to payroll records,noting that it is the responsibility of the .

Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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