Question 1

Holiday hours,sick time taken,and vacation days are not considered in the worked hours for overtime computation.

Accepted Answer

Holiday hours, sick time taken, and vacation days are not considered as worked hours for overtime computation as they are not actual hours worked. Only the actual hours worked count towards overtime calculation.

Question 2

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

Accepted Answer

Biweekly means every two weeks, so the firm disburses employee compensation every two weeks.

Question 3

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

Accepted Answer

According to the IRS, a worker who is employed to sell life insurance, is considered a statutory employee for tax purposes. This means that the employer pays half of the Social Security and Medicare taxes on their behalf, and the worker pays the other half as self-employment tax.

Question 4

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

Accepted Answer

Semimonthly payroll involves a pay cycle in which pay disbursements occur twice a month, typically on specific dates such as the 1st and the 15th of each month. Biweekly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Question 5

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

Accepted Answer

This is the requirement under the Immigration Reform and Control Act of 1986, which requires employers to complete and retain Form I-9 for each new employee within the first three days of employment and then report the hire to the government using the E-Verify or other means within 20 days of the hire date.

Question 6

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

Accepted Answer

The Fair Labor Standards Act requires that pay period information be documented as part of an employee's payroll file as a means of tracking time worked for overtime compensation purposes. This information helps ensure that an employee is appropriately compensated for their time worked, including any overtime pay they may be entitled to receive.

Question 7

Which of the following is not a commonly used pay frequency?
A) Daily
B) Weekly
C) Monthly
D) Semimonthly

Accepted Answer

The answer of Which of the following is not a...

Question 8

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

Accepted Answer

The two main focuses of payroll procedures are ensuring that the company's payroll needs are met and complying with governmental regulations and rules.

Question 9

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

Accepted Answer

New hire reporting laws are primarily designed to fulfill specific purposes such as ensuring payment of court-ordered obligations, verifying the legal work eligibility of employees, and tracking workers who are subject to licensing regulations. However, keeping track of workers throughout their careers is not a direct purpose of these laws.

Question 10

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

Accepted Answer

All new hires, including foreign workers, are subject to new hire reporting regulations in the United States. This is a federal requirement under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

Question 11

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

Accepted Answer

Semi-monthly pay frequency means paying employees twice a month, usually on the 15th and the last day of the month. This results in 24 pay periods annually, making it the correct choice.

Question 12

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

Accepted Answer

Biweekly pay frequency has 26 pay periods per year because employees are paid once every two weeks (52 weeks/year divided by 2 = 26 pay periods/year). The other options, bimonthly and semi-monthly, have only 24 pay periods per year (making two payments per month) while semi-weekly has 52 pay periods per year (twice a week).

Question 13

Which of the following is not an important decision that an employer must make regarding its payroll procedures?
A) How often to pay employees?
B) How to handle pay advances?
C) How many employees to hire?
D) Which employee benefits to offer?

Accepted Answer

The number of employees to hire is an important decision for an employer overall, but it is not specifically related to payroll procedures. The other options, such as frequency of pay, handling pay advances, and offering employee benefits, are all specific decisions that impact payroll procedures directly.

Question 14

Separation of duties is not considered a payroll best practice.

Accepted Answer

Separation of duties is considered a payroll best practice. It helps to prevent fraud, errors, and conflicts of interest by ensuring that different people are responsible for different aspects of the payroll process, such as entering data, authorizing payments, and reconciling accounts.

Question 15

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

Accepted Answer

U.S. workers in foreign subsidiaries are not automatically exempt from income taxes. The tax laws of the foreign country and the U.S. tax code may both apply, potentially leading to double taxation. However, there are provisions such as the Foreign Earned Income Exclusion and Foreign Tax Credit that can help reduce or eliminate the tax burden for these workers.

Question 16

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

Accepted Answer

The W-4 form is used to determine the amount of federal income tax to withhold from the employee's paycheck, while the I-9 form verifies the employee's eligibility to work in the United States. The other options (A, C, and D) include forms that are either not relevant to a new employee (W-2 is issued at the end of the year, W-3 is an employer's annual transmittal of wage and tax statements) or do not exist (I-8 is not a valid form).

Question 17

What form is the first step in employer documentation?
A) W-4
B) I-9
C) SS-4
D) W-2

Accepted Answer

The answer of What form is the first step in...

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

The answer of Pay rate is the first payroll system...

Question 20

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

Accepted Answer

The answer of Employers may choose to omit the employees'...

Quiz 2: Payroll System Procedures

Holiday hours,sick time taken,and vacation days are not considered in the worked hours for overtime computation.

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

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

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

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

According to the Fair Labor Standards Act,why must pay period information be a part of an employee's payroll file?

Which of the following is not a commonly used pay frequency?

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

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

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

Which pay frequency has 24 pay periods annually?

Which pay frequency has 26 pay periods per year?

Which of the following is not an important decision that an employer must make regarding its payroll procedures?

Separation of duties is not considered a payroll best practice.

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

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?

What form is the first step in employer documentation?

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

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.