Question 1

Regarding the use of incentives,commissions and bonuses in payroll,which of the following statements is false?

Accepted Answer

All of the statements are true, so none of them are false. Using incentives, commissions, and bonuses requires linking systems, bonus schemes need to be well-designed, and there is potential for negative outcomes from incentive schemes.

Question 2

Which type of payroll report lists the voluntary deductions for each employee?

Accepted Answer

The deduction register lists the voluntary deductions for each employee. The payroll register lists the total amount of pay and taxes for each employee. The earnings statement shows an individual employee's gross pay, taxes and deductions, and net pay. The federal W-4 form is a document that employees complete to specify their federal tax withholding.

Question 3

Companies that specialize in processing payroll are known as

Accepted Answer

Companies that specialize in processing payroll are known as payroll service bureaus.

Question 4

What step can be taken to reduce the distribution of fraudulent paychecks?

Accepted Answer

The answer of What step can be taken to reduce...

Question 5

Why is a separate payroll account used to clear payroll checks?

Accepted Answer

A separate payroll account is used for internal control purposes to help limit any exposure to loss by the company by isolating payroll transactions from other financial activities.

Question 6

Which type of payroll report includes the details of the current paycheck and deductions as well as year-to-date totals?

Accepted Answer

The earnings statement (also known as paycheck stub or pay stub) includes detailed information about the employee's current paycheck, including gross and net pay, as well as the specific amounts and types of deductions. It also includes year-to-date totals of earnings and deductions, which helps employees keep track of their overall compensation and tax withholdings. The payroll register is a summary report of all payroll transactions, while the deduction register only shows information about deductions. The federal W-4 form is not a payroll report, but a tax withholding form that employees fill out to determine how much federal income tax should be withheld from their paychecks.

Question 7

One good way to eliminate paper paychecks is to

Accepted Answer

Direct deposit is a method of paying employees electronically, directly into their bank accounts. This eliminates the need for paper paychecks.

Question 8

Which activity below is not performed by the HRM?

Accepted Answer

The answer of Which activity below is not performed by...

Question 9

What is not a desired result of an employee bonus/incentive system?

Accepted Answer

Creating a culture where employees might recommend unnecessary services to customers to earn a bonus can harm the company's reputation and customer trust.

Question 10

The sales department administrative assistant has been assigning phone order sales to her brother-in-law,a company sales person.Company policy is to pay commissions only on orders directly received by sales people,not on orders received over the phone.The resulting fraudulent commission payments might best have been prevented by requiring that

Accepted Answer

Requiring sales commission statements to be supported by sales order forms signed by the customer and approved by the sales manager would ensure that commissions are only paid for orders directly received by salespeople. This would prevent fraudulent commission payments for orders received over the phone by the sales department administrative assistant's brother-in-law. The sales manager's approval would also provide an additional layer of oversight to prevent such fraudulent activities. Options B, C, and D do not necessarily address the issue of ensuring commissions are only paid for sales directly received by salespeople.

Question 11

Which type of payroll report contains information such as the employees' gross pay,payroll deductions,and net pay in a multicolumn format?

Accepted Answer

The answer of Which type of payroll report contains information...

Question 12

Which department should have the sole ability to provide information to the AIS about hiring,terminations,and pay rate changes?

Accepted Answer

HRM (Human Resource Management) should have the sole ability to provide information to the AIS (Accounting Information System) about hiring, terminations, and pay rate changes. This is because HRM is responsible for maintaining accurate records of employee information, including personal and employment details, which affect payroll processing. They are also responsible for ensuring compliance with legal and regulatory requirements related to employment, which requires access to confidential employee information. Therefore, it is important that HRM controls the entry and maintenance of employee records in the AIS.

Question 13

Which of the following is not one of the major sources of input to the payroll system?

Accepted Answer

While checks to insurance and benefits providers may be processed through the payroll system, they are not considered a major source of input. The major sources of input are payroll rate changes, time and attendance data, and withholdings and deduction requests from employees.

Question 14

This organization provides payroll processing as well as other HRM services,such as employee benefit design and administration.

Accepted Answer

A Professional Employer Organization (PEO) provides comprehensive HR services, including payroll processing, employee benefits design, and administration.

Question 15

These are used to transmit time and attendance data directly to the payroll processing system.

Accepted Answer

Electronic time clocks are designed to transmit time and attendance information directly to payroll processing systems. Badge readers and magnetic cards are also used for electronic timekeeping, but they require additional software and systems integration to transmit data to payroll processing.

Question 16

For recording time spent on specific work projects,manufacturing companies usually use a

Accepted Answer

Job time tickets are specific to tracking time spent on individual work projects, making them the best choice for manufacturing companies. Time cards, time clocks, and labor time cards may be used to track overall hours worked or attendance, but do not provide the level of detail needed for individual projects.

Question 17

In the payroll system,checks are issued to

Accepted Answer

Checks in a payroll system can be issued to employees for their salaries, to banks for direct deposit transactions, and to government agencies for tax withholdings or other deductions.

Question 18

Experts estimate that on average the costs associated with replacing an employee are about ________ that of the employee's annual salary.

Accepted Answer

Experts estimate that the costs associated with replacing an employee are about one and one-half times the employee's annual salary, considering recruitment, training, and lost productivity.

Question 19

Which of the following deductions is not classified as a voluntary deduction?

Accepted Answer

Social security withholdings are mandatory deductions required by law, while the other options are voluntary deductions that the employee can choose to participate in or not.

Question 20

Payroll deductions fall into the broad categories of ________ and ________.

Accepted Answer

Payroll deductions are typically divided into two categories: mandatory deductions, which include payroll tax withholdings such as Social Security and Medicare taxes, and voluntary deductions, which include things like health insurance premiums and retirement plan contributions. Choice A correctly identifies these two broad categories of payroll deductions. Choice B is incorrect because it lists specific taxes rather than the broader categories of mandatory deductions. Choice C is incorrect because it lists unemployment taxes as a category, which is a subset of payroll taxes, and income taxes as the other category, which is incorrect. Choice D is incorrect because it lists voluntary deductions and income taxes as the two categories, which is incomplete and not accurate.

Quiz 15: The Human Resources Management and Payroll Cycle