ADP Payroll Accounting and Reconciliation 2

Question 1

What is the difference between a payroll void and a payroll reversal in ADP?

Accepted Answer

A void cancels a check before it is processed by the bank; a reversal recalls a direct deposit after it has been submitted to the ACH network

Answer

Voiding a check cancels it before bank processing, while an ACH reversal is initiated after direct deposit funds have been transmitted, recalling the erroneous payment through the banking network.

Question 2

Which ADP report best supports the preparation of workers' compensation premium audits?

Accepted Answer

Payroll Detail by Workers' Compensation Code Report

Answer

Workers' compensation audits require detailed payroll data sorted by classification codes; ADP's Payroll Detail by Workers' Compensation Code Report provides this breakdown.

Question 3

If the bank account reconciliation shows a discrepancy between the net payroll amount and the amount transferred, what is the most likely cause?

Accepted Answer

An uncashed paycheck, a reversed direct deposit, or a bank error not yet reflected in ADP

Answer

Bank reconciliation discrepancies in payroll often result from outstanding checks, ACH reversals, or timing differences between ADP's transfer records and the bank's posting.

Question 4

What is the significance of the ADP 'off-cycle' payroll run and when is it typically used?

Accepted Answer

An off-cycle run processes payments outside the normal pay schedule, typically for corrections, final paychecks, or bonus payments

Answer

Off-cycle payrolls in ADP allow employers to issue payments outside the regular schedule for corrections, termination pay, or special bonuses without waiting for the next regular pay period.

Question 5

What is a 'suspense account' in the context of payroll accounting and why is it a problem?

Accepted Answer

A temporary holding account for transactions that cannot be immediately classified; unresolved suspense balances distort financial statements

Answer

Suspense accounts hold unclassified payroll transactions temporarily; leaving balances in suspense distorts financial reporting and must be resolved promptly.

ADP - ADP Certified Payroll Specialist Practice Test

ADP - ADP Certified Payroll Specialist Practice Test

ADP Payroll Accounting and Reconciliation 2