ADP Cheat Sheet 2026

The 30 highest-yield ADP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following best defines 'disposable earnings' for garnishment purposes? → Earnings remaining after legally required deductions
2. If a new hire declines benefits during open enrollment in ADP, what action should the payroll specialist take? → Document the waiver and ensure no benefit deductions are set up for the employee
3. Which IRS form reports the cost of employer-sponsored health coverage for W-2 reporting purposes, and where is it listed? → The cost is reported in Box 12 of Form W-2 using code DD
4. In ADP, which tax deposit schedule applies to employers with a lookback period tax liability of $50,000 or less? → Monthly deposit schedule
5. In ADP, when should a payroll specialist stop withholding for a garnishment order? → Only when instructed by the issuing agency or court via a release or satisfaction notice
6. What should a payroll specialist do in ADP when they receive a garnishment order for an employee who has already terminated employment? → Forward the order to the issuing agency and notify them of the termination
7. An employee's group term life insurance coverage exceeds $50,000. How is the imputed income reported? → Added to taxable wages on the W-2 in Box 12 with code C
8. Which deduction type must always be withheld AFTER taxes are calculated, making it a 'post-tax' deduction? → Roth 401(k) contribution
9. When processing payroll, how does ADP ensure tax compliance? → By automatically applying the latest federal, state, and local tax rates.
10. Which ADP report confirms that an employee's year-to-date benefit deductions match their benefit elections on file? → Benefits Enrollment vs. Deductions Reconciliation Report
11. Which of the following is an employer’s responsibility for wage garnishments? → Deducting the correct amount from an employee’s paycheck.
12. Which report is used to verify employee hours before processing payroll? → Timecard Summary Report
13. Which ADP feature allows payroll specialists to track the total amount withheld and remitted for a specific garnishment order over time? → Deduction Balance Tracking / Garnishment Detail Report
14. How should a payroll specialist handle an employee who voluntarily requests a deduction for a personal loan repayment to their employer? → Set it up as a voluntary deduction coded appropriately in ADP
15. In ADP, when an employee elects a dependent care FSA, what is the 2024 IRS contribution limit for a married couple filing jointly? → $5,000
16. What is the purpose of ADP’s Employee Self-Service (ESS) feature? → To allow employees to view their pay statements and tax forms.
17. What is the typical employer administrative fee that states may allow for processing a wage garnishment? → $1 to $5 per payment
18. Which type of deduction is classified as a 'pre-tax' deduction that reduces an employee's federal taxable wages? → Section 125 cafeteria plan contribution
19. How can you troubleshoot login issues in ADP systems? → Reset the password using the "Forgot Password" feature.
20. Which ADP report best supports the preparation of workers' compensation premium audits? → Payroll Detail by Workers' Compensation Code Report
21. What type of reports can be generated using ADP systems for HR and payroll management? → Payroll summary and register reports.
22. In ADP, which benefit type requires Section 125 Cafeteria Plan setup to allow pre-tax employee contributions? → Health Savings Account (HSA)
23. Under the FLSA, what is the maximum number of hours a non-exempt employee can work in a workweek before overtime pay is required? → 40 hours
24. What does 'benefits in kind' mean in the context of ADP payroll and why does it matter? → Non-cash compensation (like a company car) that must be valued and added to taxable wages
25. What is the IRS deadline for employers to furnish W-2 forms to employees each year? → January 31
26. Which ADP feature notifies the payroll team of upcoming state unemployment tax (SUTA) rate changes? → ADP SmartCompliance Tax Rate Notification
27. Which ADP feature allows payroll data to be exported directly to accounting software such as QuickBooks or SAP? → ADP General Ledger Interface with configurable file export formats
28. What is required to comply with the Affordable Care Act (ACA) as an employer? → Offering affordable health insurance to employees working 30+ hours per week.
29. Which ADP report is most useful for auditing benefit deduction amounts against carrier invoices? → Benefits Deduction Summary Report
30. When processing student loan garnishments under the Higher Education Act, what is the maximum percentage of disposable pay that can be withheld? → 15%