Question 1

For payroll documentation purposes, when an employee needs time away from work:
A)The request should be documented and forwarded to the payroll clerk.
B)Upper management must approve the request.
C)The supervisor should authorize it verbally.
D)The employee should email only department colleagues.

Accepted Answer

Documenting the request and forwarding it to the payroll clerk ensures accurate payroll records and compliance with company policies or legal requirements.

Question 2

Which of the following is subject to overtime in the process of hourly computations, according to
FLSA?
A)Time worked in excess of 40 hours per week
B)Nonexempt employee weekend work
C)Holiday, sick time, and paid time off
D)Time worked in excess of eight hours per day

Accepted Answer

Under the Fair Labor Standards Act (FLSA), overtime is calculated based on time worked in excess of 40 hours per week. Choices B, C, and D are not automatically subject to overtime without exceeding the 40-hour weekly threshold.

Question 3

Which of the following is a purpose of new hire reporting? (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)Communications of ethics violations for clerical workers
B)COBRA benefits administration
C)Child support obligations tracking
D)Immigration agency tracking

Accepted Answer

The answer of Which of the following is a purpose...

Question 4

Which items must be contained in every hiring packet issued by an employer?
A)Descriptions of beneﬁts and enrollment forms
B)No items are mandated for issuance in a hiring packet.
C)Forms W-4 and I-9
D)Employment contract with start date and pay agreement

Accepted Answer

The answer of Which items must be contained in every...

Question 5

Which entity bears the responsibility for gaining approval for a foreign worker visa so a foreign employee may work legally in the United States?
A)The U.S. State Department
B)The employer
C)The employee
D)The employer's home country

Accepted Answer

The employer is responsible for obtaining approval for a foreign worker visa, such as sponsoring the employee for the visa and completing the necessary paperwork and processes with U.S. immigration authorities.

Question 6

An employer must have an employee complete Form W-4:
A)Each year, upon the employee's anniversary with the ﬁrm.
B)Every January 1.
C)At the time of hire.
D)Before each pay disbursement.

Accepted Answer

Form W-4 is required at the time of hire to determine the amount of taxes to withhold from an employee's paycheck.

Question 7

Which of the following factors assist employers in determining employee pay rates? (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)Company location
B)Industry benchmarks
C)Employee age
D)Employee skill

Accepted Answer

Company location, industry benchmarks, and employee skill are relevant factors in determining pay rates. Location can affect the cost of living and thus wages; industry benchmarks provide a comparison against what others in the same sector are paying; and employee skill reflects the value the employee brings to the company. Employee age is not a valid factor due to age discrimination laws.

Question 8

Josh, who is 21 years of age, is a new employee of XYZ Company. To establish his identity and employment authorization, he could present:
A)His library card and birth certiﬁcate.
B)His current United States passport.
C)His driver's license and ATM card.
D)His college transcript and driver's license.

Accepted Answer

A current United States passport is a List A document that establishes both identity and employment authorization under the Form I-9 requirements.

Question 9

Which of the following is a necessary element in an accounting system? (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)Audit review
B)Internal control
C)Internal review
D)Audit control

Accepted Answer

The answer of Which of the following is a necessary...

Question 10

When a payroll clerk receives an approved request for an employee's time away from work, he or she should:
A)Destroy the document in accordance with privacy laws.
B)Immediately place it in the employee's ﬁle.
C)Contact the employee to verify the request.
D)Attach it to the employee's time collection report for the pay period.

Accepted Answer

The approved request for time away should be attached to the employee's time collection report to ensure accurate payroll processing for that pay period.

Question 11

Georgeanne works in a company for which her primary job function is the sale of company products to consumers. She receives a percentage of each sale as part of her compensation. Her compensation contains a ____  element.
A)pay-for-performance
B)nonexempt
C)commission
D)piece-rate

Accepted Answer

Commission is a form of pay-for-performance compensation in which an employee receives a percentage of each sale they make.

Question 12

A company should restrict access to payroll ﬁles (paper and/or electronic) as a part of ____.
A)FATCA requirements
B)audit trail requirements
C)compliance with company policy
D)ﬁle security internal controls

Accepted Answer

Restricting access to payroll files is a part of file security internal controls to protect sensitive information from unauthorized access and ensure data integrity.

Question 13

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (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)Federal penalties for not remitting all taxes due.
B)Erosion of available cash because of overpayments to employees.
C)An increase in legal proceedings initiated by employees.
D)Increased stakeholder approval due to employee overpayments.

Accepted Answer

Incorrect calculation of employee time for payroll purposes can lead to federal penalties for not remitting all taxes due, erosion of available cash because of overpayments to employees, and an increase in legal proceedings initiated by employees. Overpayments or underpayments can result in compliance issues, financial discrepancies, and disputes, but are unlikely to increase stakeholder approval.

Question 14

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 2019 guidelines?
A)$46,500
B)$79,850
C)$105,900
D)None

Accepted Answer

According to the Foreign Earned Income Exclusion (FEIE) under the Foreign Account Tax Compliance Act (FATCA) for the year 2019, Allen can exclude up to $105,900 of his foreign earned income from U.S. taxes.

Question 15

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.
A)nonexempt
B)commission
C)piece-rate
D)performance incentive

Accepted Answer

The answer of Stan works for a bakery for which...

Question 16

A company should assign employee(s) the responsibility for signing payroll checks and disbursements.
A)a limited number of
B)only one
C)its most responsible
D)none of these

Accepted Answer

Assigning a limited number of employees the responsibility for signing payroll checks and disbursements helps in maintaining control and accountability within the company's financial processes.

Question 17

The ____ mandated that new hires must be reported within ____ days to state authorities.
A)Fair Labor Standards Act; 30
B)Immigration Reform and Control Act; 20
C)Davis-Bacon Act; 28
D)Civil Rights Act; 25

Accepted Answer

The Immigration Reform and Control Act mandates that new hires must be reported within 20 days to state authorities. This is part of the requirements to ensure compliance with immigration laws and employment eligibility verification.

Question 18

Multistate employers must do which of the following for new hire reporting? (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)File a new-hire report with both the state that contains the firm's headquarters and the state that is the employee's primary residence.
B)File a report with the state offices for the employee's state of residence.
C)Designate which state will receive their new hire reporting.
D)File a report with the IRS since they have employees in multiple states.

Accepted Answer

The answer of Multistate employers must do which of the...

Question 19

Outsourcing the payroll process:
A)Relieves the company of certain task completion but not the review process.
B)Relieves the company of the review process but not the task completion.
C)Relieves the company of all liability for payroll completion and accuracy.
D)Relieves the company of the task completion and the review process.

Accepted Answer

Outsourcing the payroll process allows a company to delegate the tasks associated with payroll processing to a third party. However, the company remains responsible for reviewing the work to ensure accuracy and compliance with relevant laws and regulations. The outsourcing firm handles the execution of payroll tasks, but the ultimate responsibility for correctness and legal compliance stays with the company.

Question 20

Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classiﬁcations most accurately describes Abigail's employment status?
A)Nonexempt employee
B)Independent contractor
C)Statutory employee
D)Exempt employee

Accepted Answer

The answer of Abigail is a full-time worker whose primary...

Quiz 2: Computing Wages and Salaries

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

Which of the following is subject to overtime in the process of hourly computations, according to FLSA?

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

Which entity bears the responsibility for gaining approval for a foreign worker visa so a foreign employee may work legally in the United States?

An employer must have an employee complete Form W-4:

Josh, who is 21 years of age, is a new employee of XYZ Company. To establish his identity and employment authorization, he could present:

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

Georgeanne works in a company for which her primary job function is the sale of company products to consumers. She receives a percentage of each sale as part of her compensation. Her compensation contains a ____ element.

A company should restrict access to payroll ﬁles (paper and/or electronic) as a part of ____.

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 2019 guidelines?

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.

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

The mandated that new hires must be reported within days to state authorities.

Outsourcing the payroll process:

Abigail is a full-time worker whose primary occupation involves extensive overnight travel to visit wholesaler sites on the behalf of a single company. Which of the following classiﬁcations most accurately describes Abigail's employment status?