Question 1

Which type of payroll report lists the voluntary deductions for each employee?
A) payroll register
B) deduction register
C) earnings statement
D) federal W-4 form

Accepted Answer

The deduction register lists all the voluntary deductions for each employee. The payroll register shows the gross pay, net pay, and taxes withheld for each employee. The earnings statement shows the employee's gross pay, deductions, and net pay for each pay period. The federal W-4 form is a tax withholding form completed by the employee, not a report generated by the payroll system.

Question 2

Which of the following is generally not a major sourceDifficulty : of input to a payroll system?
A) payroll rate changes
B) time and attendance data
C) checks to insurance and benefits providers
D) withholdings and deduction requests from employees

Accepted Answer

Checks to insurance and benefits providers are typically outputs of a payroll system, not inputs. Inputs typically include information such as time and attendance data, payroll rate changes, and withholdings and deduction requests from employees.

Question 3

Payroll deductions fall into the broad categories of ________ and ________.
A) payroll tax withholdings; voluntary deductions
B) unemployment; social security taxes
C) unemployment taxes; income taxes
D) voluntary deductions; income taxes

Accepted Answer

The two broad categories of payroll deductions are payroll tax withholdings (which include social security, Medicare, and federal income taxes) and voluntary deductions (such as health insurance premiums, retirement contributions, and charitable contributions). Option B is incorrect because social security taxes are a type of payroll tax withholding, not a separate category. Option C is incorrect because unemployment taxes fall under the category of payroll tax withholdings, not a separate category. Option D is incorrect because income taxes are a type of payroll tax withholding and do not fall under a separate category.

Question 4

Which of the following is not a benefit of using a payroll service bureau or a professional employer organization?
A) freeing up of computer resources
B) increased internal control
C) reduced costs
D) wider range of benefits

Accepted Answer

Increased internal control is not typically a benefit of using a payroll service bureau or professional employer organization (PEO). The other options listed (freeing up computer resources, reduced costs, wider range of benefits) are commonly cited benefits of working with a payroll service bureau or PEO.

Question 5

An effective way an organization can eliminate paper paychecks while maintaining adequate accounting records is to
A) pay in cash only.
B) pay with money orders.
C) use direct deposit.
D) use Electronic Funds Transfer.

Accepted Answer

The answer of An effective way an organization can eliminate...

Question 6

Which activity below is not performed by Human Resources management (HRM)?
A) compensation
B) training
C) discharge
D) recruitment and hiring

Accepted Answer

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

Question 7

Which type of payroll report includes the details of the current paycheck and deductions as well as year-to-date totals?
A) payroll register
B) deduction register
C) earnings statement
D) federal W-4 form

Accepted Answer

An earnings statement, also known as a pay stub, includes the details of the current paycheck (gross pay, taxes withheld, and net pay) as well as year-to-date totals for each category. A payroll register is a summary of all employee paychecks, while a deduction register only lists the details of each deduction. A federal W-4 form is completed by employees to determine the amount of taxes to be withheld from their paychecks.

Question 8

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)
A) elective plan.
B) menu options benefit plan.
C) flexible benefit plan.
D) buffet plan.

Accepted Answer

The term "cafeteria" approach refers to the ability of employees to select benefits from a menu of options, much like selecting items from a cafeteria. This type of plan is also commonly known as a flexible benefit plan.

Question 9

For recording time spent on specific work projects,manufacturing companies usually use a
A) job time ticket.
B) time card.
C) time clock.
D) labor time card.

Accepted Answer

Manufacturing companies typically use job time tickets to record time spent on specific work projects. These tickets allow employees to track the time they spend on a particular job, including the start and end time, as well as any breaks or interruptions. This information is then used to calculate payroll and allocate labor costs to specific jobs or projects, making it an essential tool for managing the manufacturing process. While time cards and time clocks can also be used to track employee hours, they are less effective for recording job-specific data. Similarly, a labor time card may be used for tracking labor costs, but it may not provide the necessary level of detail for job costing purposes.

Question 10

Which type of payroll report contains information such as the employees' gross pay,payroll deductions,and net pay in a multicolumn format?
A) payroll register
B) deduction register
C) employee earnings statement
D) federal W-4 form

Accepted Answer

A payroll register is a multicolumn document that provides detailed information about each employee's gross pay, deductions, and net pay for a specific pay period.

Question 11

Experts estimate that,on average,the costs associated with replacing an employee are about ________ the employee's annual salary.
A) one-quarter of
B) one-half of
C) one and one-half times
D) twice

Accepted Answer

Studies and research have shown that replacing an employee is an expensive process. It is estimated that the cost associated with finding, recruiting, and training a new employee can be about one and a half times the cost of the employee's annual salary. This is because the cost comprises of direct costs such as advertising, recruitment, and training, as well as indirect costs such as the loss of productivity and the time spent by co-workers in assisting and mentoring the new employee. Therefore, option C is the best choice.

Question 12

Companies that specialize in processing payroll are known as
A) paycheck distribution companies.
B) payroll service bureaus.
C) professional employer organizations.
D) semi-governmental organizations.

Accepted Answer

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

Question 13

Pay rate information should be stored in
A) employees' personnel files.
B) employee subsidiary ledgers.
C) the payroll master file.
D) electronic time cards.

Accepted Answer

Pay rate information should be stored in the payroll master file, which acts as a central repository for all payroll-related data. Storing this information in individual employees' personnel files or electronic time cards could result in inconsistencies and inaccuracies, while employee subsidiary ledgers are typically used to track more detailed information such as overtime and benefits.

Question 14

________ are used to transmit time and attendance data directly to the payroll processing system.
A) Badge readers
B) Electronic time clocks
C) Magnetic cards
D) none of the above

Accepted Answer

Electronic time clocks are specifically designed to record and store employee time and attendance data. They can be connected to a payroll processing system, allowing for efficient and accurate payroll processing. Badge readers and magnetic cards can also be used to record time and attendance data, but they may require additional steps to transfer the data to the payroll system.

Question 15

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?
A) title companies
B) payroll service bureau
C) professional employer organization
D) paycheck distribution companies

Accepted Answer

Professional employer organizations provide both payroll processing and other HRM services, including employee benefit design and administration. Title companies deal with real estate transactions, paycheck distribution companies only distribute paychecks, and while payroll service bureaus do provide payroll processing, they may not offer the full HRM suite of services that professional employer organizations do.

Question 16

Which department should have the sole ability to provide information to the AIS about hiring,terminations,and pay rate changes?
A) payroll
B) timekeeping
C) production
D) HRM

Accepted Answer

Human Resource Management (HRM) should have the sole ability to provide information to the AIS about hiring, terminations, and pay rate changes as they are the department responsible for managing an organization's workforce and employment policies. Payroll and timekeeping may have some involvement in managing this information, but it should ultimately be controlled by HRM. Production is not directly involved in managing employee information and should not be responsible for providing this data to the AIS.

Question 17

Who does the payroll system issue checks to?
A) employees and to banks participating in direct deposit
B) a company payroll bank account
C) government agencies
D) All of the above are correct.

Accepted Answer

The payroll system issues checks to employees and banks participating in direct deposit, as well as to a company payroll bank account and government agencies for various taxes and deductions. Therefore, choice D which states "All of the above are correct" is the best answer.

Question 18

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?
A) Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses.
B) Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured.
C) Incentive schemes can result in undesirable behavior.
D) All of the above are true.

Accepted Answer

All the statements are true regarding the use of incentives, commissions, and bonuses in the payroll system.

Question 19

Identify the item below that is not a desired result of an employee bonus systems.
A) Employees may recommend unnecessary services to customers in order to exceed set sales quotas and earn a bonus.
B) Employees may look for ways to improve service.
C) Employees may analyze their work environment and find ways to cut costs.
D) Employees may work harder and may be more motivated to exceed target goals to earn a bonus.

Accepted Answer

Employees recommending unnecessary services to customers in order to receive a bonus is not a desired outcome as it may lead to dishonest behavior and harm the reputation of the company.

Question 20

Which of the following is not classified as a voluntary deduction?
A) pension plan contributions
B) social security withholdings
C) insurance premiums
D) deductions for a charity organization

Accepted Answer

Social security withholdings are mandatory deductions that all employees are required to contribute towards. The other options listed (pension plan contributions, insurance premiums, and deductions for a charity organization) are all voluntary deductions that an employee can choose to participate in or not.

Quiz 15: The Human Resources Management and Payroll Cycle

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

Which of the following is generally not a major sourceDifficulty : of input to a payroll system?

Payroll deductions fall into the broad categories of and .

Which of the following is not a benefit of using a payroll service bureau or a professional employer organization?

An effective way an organization can eliminate paper paychecks while maintaining adequate accounting records is to

Which activity below is not performed by Human Resources management (HRM) ?

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

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)

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

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

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

Companies that specialize in processing payroll are known as

Pay rate information should be stored in

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

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?

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

Who does the payroll system issue checks to?

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

Identify the item below that is not a desired result of an employee bonus systems.

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