Question 1

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

Accepted Answer

U.S. workers in foreign subsidiaries are not exempt from all income taxes. They may still be subject to taxes in both the foreign country and in the United States, depending on the specific tax laws and agreements in place between the two countries.

Question 2

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

Accepted Answer

The federal government requires employers to report new hires to the state within 20 days of the employee's start date. This is to help enforce child support obligations and prevent fraudulent use of public assistance programs. Some states may have more specific reporting requirements.

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

Payroll procedures must align with both the needs of the company and the relevant government regulations.

Question 5

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

Accepted Answer

Assigning one employee all payroll duties can lead to errors, fraud, and lack of checks and balances. It's best to have multiple people involved for oversight and accuracy.

Question 6

Which pay frequency has 26 pay periods per year?
A)Bimonthly
B)Biweekly
C)Semimonthly
D)Semiweekly

Accepted Answer

The answer of Which pay frequency has 26 pay periods...

Question 7

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 new employee needs to fill out a W-4 for federal income tax withholding and an I-9 to verify their eligibility to work in the United States. Therefore, choice B is the correct option. W-2 and W-3 are forms provided by the employer at the end of the year for tax reporting purposes. I-8 is not a standard form related to employment or taxation.

Question 8

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

Occupation is a necessary part of an employee's payroll file to determine job role and pay rate.

Question 9

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

Accepted Answer

The first payroll system decision a company must make is typically related to choosing the payroll system or software itself, not the pay rate.

Question 10

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

Accepted Answer

The answer of Only regular working hours are considered as...

Question 11

Which of the following is/are purpose(s)of new hire reporting laws? (You may select more than one 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.

Accepted Answer

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

Question 12

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

Accepted Answer

If an employer pays employees semimonthly, they typically pay them twice a month, which means there are 24 pay periods annually (12 months x 2 pay periods per month).

Question 13

What forms are required when an employee is hired? (You may select more than one answer. )
A)W-4
B)I-9
C)SS-4
D)W-2

Accepted Answer

The W-4 form is used by employees to indicate their tax situation to their employer, and the I-9 form is used to verify the identity and employment authorization of individuals hired for employment in the United States.

Question 14

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

Accepted Answer

All employees, including foreign workers, are subject to new hire reporting regulations in the United States. This requires employers to report information on newly hired or rehired employees, including their name, address, Social Security number, and other identifying information, to state agencies within a specified timeframe.

Question 15

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

Accepted Answer

According to the IRS regulations, a worker who sells life insurance on a full-time basis is considered a statutory employee. This means that the employer is not required to withhold Social Security and Medicare taxes from their wages, but the employee is still responsible for paying their share of these taxes.

Question 16

Which of the following are important decisions that an employer must make regarding its payroll procedures? (You may select more than one answer. )
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

Employers must decide how often to pay their employees and whether or not to offer pay advances. The number of employees to hire and which employee benefits to offer are also important decisions, but they are not directly related to payroll procedures.

Question 17

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

Pay period information is necessary for tracking time worked by an employee. This information is needed to determine if an employee has worked overtime and needs to be compensated accordingly.

Answer: B 
 Pay period information is also necessary to ensure that the employee receives all the compensation they have earned. This information helps to prevent underpayment or overpayment of wages.

Answer: C 
 Pay period information cannot ensure pay equality among employees as it is only a record of time worked and compensation earned. Other factors will impact pay equality, such as job roles, experience, and skills.

Answer: D 
 While pay period information can document satisfaction of court-ordered obligations, this is only relevant if court-ordered obligations exist. It is not a primary reason why pay period information is necessary for an employee's payroll file.

Question 18

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 on specific dates, such as the 15th and 30th.

Question 19

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 pay means that the employees are paid once every two weeks. Therefore, the firm disburses employee compensation every two weeks.

Question 20

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.

Quiz 2: Payroll System Procedures

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

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?

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

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

Which pay frequency has 26 pay periods per year?

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?

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.

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

Which of the following is/are purpose(s) of new hire reporting laws? (You may select more than one answer. )

Which pay frequency has 24 pay periods annually?

What forms are required when an employee is hired? (You may select more than one answer. )

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

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

Which of the following are important decisions that an employer must make regarding its payroll procedures? (You may select more than one answer. )

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

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?

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