Question 1

Which pay frequency has generally 26 pay periods per year?
A)Bimonthly
B)Semimonthly
C)Semi-weekly
D)Biweekly

Accepted Answer

Biweekly pay frequency means employees are paid every two weeks, resulting in 26 pay periods per year (52 weeks per year divided by 2).

Question 2

Why must pay period information be a part of an employee's payroll ﬁle?
A)To document satisfaction of court-ordered obligations.
B)As a means of ensuring pay equality among employees.
C)To ensure that the employee receives all compensation earned.
D)As a means of tracking time worked for overtime compensation purposes.

Accepted Answer

D

Question 3

Why is it important for an employer to classify a worker as either an employee or an independent contractor?
A)For reimbursement purposes
B)For child support obligations purposes
C)For government tracking purposes
D)For tax reporting purposes

Accepted Answer

Classifying a worker as either an employee or an independent contractor is crucial for tax reporting purposes. This classification affects how the employer withholds income taxes, pays Social Security and Medicare taxes, and reports wages to the government. It also determines whether the worker is eligible for benefits and protections under employment law.

Question 4

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

Accepted Answer

Semimonthly payroll involves pay disbursements twice per month, often on the 1st and 15th, whereas biweekly payroll occurs every two weeks.

Question 5

If a ﬁrm pays its employees biweekly, how often does it disburse employee compensation?
A)Every two weeks
B)Twice per week
C)Every three weeks
D)Every week

Accepted Answer

Biweekly payment means that the firm pays its employees every two weeks.

Question 6

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?
A)W-4 and I-8
B)W-4 and I-9
C)W-2 and I-9
D)W-3 and I-9

Accepted Answer

The correct forms are W-4, which is used for determining the amount of federal income tax to withhold from the employee's paycheck, and I-9, which is used to verify the employee's identity and authorization to work in the United States.

Question 7

Foreign workers in the United States are subject to new hire reporting regulations.

Accepted Answer

Foreign workers in the United States, like all employees, are subject to new hire reporting regulations, which require employers to report new employees to a designated state agency shortly after they are hired. This helps in enforcing child support orders among other purposes.

Question 8

Which pay frequency has 24 pay periods annually?
A)Semi-weekly
B)Weekly
C)Semimonthly
D)Biweekly

Accepted Answer

Semimonthly pay frequency results in 24 pay periods annually, as employees are paid twice a month.

Question 9

The two focuses of payroll procedures are company needs and governmental rules.

Accepted Answer

Payroll procedures are designed to meet the specific needs of the company, such as managing employee compensation and benefits, while also ensuring compliance with governmental rules and regulations regarding taxation and employee rights.

Question 10

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

Accepted Answer

U.S. workers in foreign subsidiaries are subject to U.S. income taxes on their worldwide income, but they may qualify for certain exclusions or credits for taxes paid to foreign governments.

Question 11

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

Accepted Answer

Distributing payroll duties among multiple employees can help prevent fraud and errors, ensuring checks and balances within the system.

Question 12

What forms are required when an employee is hired? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)SS-4
B)I-9
C)W-2
D)W-4

Accepted Answer

B) The I-9 form is required for verifying the identity and employment authorization of individuals hired for employment in the United States.D) The W-4 form is used by employers to determine the correct amount of tax withholding to deduct from employees' wages.

Question 13

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Accepted Answer

The answer of A worker who sells life insurance on...

Question 14

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

Accepted Answer

The first payroll system decision a company must make often involves choosing between a manual, in-house computerized, or outsourced payroll system, rather than determining pay rates.

Question 15

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

Accepted Answer

Employers are generally required to include employees' Social Security numbers in their records for tax and identification purposes.

Question 16

Which of the following is/are purpose(s) of new hire reporting laws? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
A)To keep track of workers and professionals who are subject to licensing regulations.
B)To ensure payment of court-ordered obligations like garnishments and child support.
C)To keep track of workers throughout their careers.
D)To ensure that the employee may legally work in the United States.

Accepted Answer

The answer of Which of the following is/are purpose(s) of...

Question 17

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

Accepted Answer

In the United States, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires employers to report newly hired employees to a designated state agency within 20 days of their start date, although some states may have more stringent requirements.

Question 18

Which pay frequency has 12 pay periods?
A)Daily
B)Monthly
C)Semimonthly
D)Weekly

Accepted Answer

Monthly pay frequency has 12 pay periods in a year, as there are 12 months in a year.

Question 19

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

Accepted Answer

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

Question 20

Which of the following items must exist in every employee's payroll ﬁle?
A)Spouse's birth date
B)Spouse's social security number
C)Employment history
D)Occupation

Accepted Answer

The answer of Which of the following items must exist...

Quiz 2: Computing Wages and Salaries

Which pay frequency has generally 26 pay periods per year?

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

Why is it important for an employer to classify a worker as either an employee or an independent contractor?

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

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

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?

Foreign workers in the United States are subject to new hire reporting regulations.

Which pay frequency has 24 pay periods annually?

The two focuses of payroll procedures are company needs and governmental rules.

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

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

A worker who sells life insurance on a full-time basis is considered a statutory employee.

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

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

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

Which pay frequency has 12 pay periods?

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

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