Question 1

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

Accepted Answer

The Immigration Reform and Control Act mandates that employers must complete and retain Form I-9 for each individual they hire for employment in the United States, and new hires must be reported within 20 days of hire.

Question 2

Which of the following is a potential consequence of incorrect calculation of employee time for payroll purposes? (Select all that apply.)

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. Increased stakeholder approval due to employee overpayments is not a potential consequence of incorrect calculation of employee time for payroll purposes.

Question 3

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?

Accepted Answer

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

Question 4

Which of the following factors assist employers in determining employee pay rates? (Select all that apply.)

Accepted Answer

The answer of Which of the following factors assist employers...

Question 5

A payroll review process increases in complexity when:

Accepted Answer

When a company has multiple departments and many employees, there are more factors to consider in the payroll review process, such as different pay rates, varying hours worked, overtime, bonuses, and benefits. This requires a more complex payroll system and more detailed record-keeping.

Question 6

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

Accepted Answer

According to the Fair Labor Standards Act (FLSA), nonexempt employees who work more than 40 hours in a week are entitled to overtime pay. Time worked in excess of eight hours per day (option A) or weekend work (option D) may result in extra compensation or differential pay, but they are not explicitly subject to overtime requirements under FLSA. Holiday, sick time, and paid time off (option B) are not considered time worked for purposes of calculating overtime pay, as they are not actual work hours.

Question 7

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 2016 guidelines?

Accepted Answer

According to the 2016 guidelines under the Foreign Earned Income Exclusion (FEIE), Allen can exclude up to $101,300 of his foreign earned income from U.S. taxes.

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:

Accepted Answer

The best choice would be for Josh to present his current United States passport as it establishes both his identity and employment authorization. The other options do not provide sufficient proof of employment authorization.

Question 9

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

Accepted Answer

It is important to have internal controls in place to ensure that payroll checks and disbursements are handled responsibly. Assigning the responsibility to only one person can create a risk of error, fraud or abuse. Therefore, a limited number of employees, ideally from different departments, should be assigned the responsibility to ensure proper checks and balances.

Question 10

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

Accepted Answer

Classifying a worker as either an employee or an independent contractor is important for tax reporting purposes. This classification affects the employer's responsibility to pay and withhold taxes, as well as the worker's eligibility for certain benefits and protections, such as workers' compensation and unemployment insurance. Therefore, it is crucial for employers to properly classify their workers to comply with tax laws and avoid legal and financial consequences.

Question 11

Which of the following is a necessary element in an accounting system? (Select all that apply.)

Accepted Answer

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

Question 12

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

Accepted Answer

According to IRS regulations, an employer is required to have a new employee complete Form W-4 at the time of hire. This form helps the employer determine the appropriate amount of federal income tax to withhold from the employee's paycheck.

Question 13

Multistate employers must do which of the following for new hire reporting? (Select all that apply.)

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

Outsourcing the payroll process:

Accepted Answer

Outsourcing the payroll process can relieve the company of certain task completion, such as data entry and processing, but the company still has a responsibility to review and ensure accuracy in the payroll. Therefore, option B is the best choice. The company cannot fully relinquish its liability for payroll accuracy, even with outsourcing.

Question 16

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.

Accepted Answer

Georgeanne's compensation contains a commission element, as she receives a percentage of each sale she makes. Piece-rate refers to a set rate of pay for each unit of work completed, pay-for-performance refers to performance-based bonuses or incentives, and nonexempt refers to employees who are eligible for overtime pay under the Fair Labor Standards Act.

Question 17

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

Accepted Answer

The employer bears the responsibility for gaining approval for a foreign worker visa so a foreign employee may work legally in the United States. The employer must submit the necessary paperwork and prove that the foreign worker is qualified for the job and that there are no qualified Americans available for the position.

Question 18

Which of the following is a purpose of new hire reporting? (Select all that apply.)

Accepted Answer

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

Question 19

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

Accepted Answer

It is important to document any requests for time off for payroll purposes. This documentation should be forwarded to the payroll clerk to ensure accurate tracking of the employee's time and pay. Verbal authorizations or limited communication through email may not provide adequate documentation or approval for payroll purposes. Upper management approval may be necessary for extended periods of leave or special circumstances, but documenting the request and providing it to the payroll clerk should be the first step.

Question 20

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

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

Quiz 2: Payroll System Procedures

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