ADP Payroll Accounting and Reconciliation

Question 1

What is the purpose of a payroll journal entry in ADP and which accounts are typically affected?

Accepted Answer

To record the payroll expense, tax liabilities, and net pay; accounts include Wages Expense, Payroll Tax Expense, FICA Payable, Federal Income Tax Payable, and Cash

Answer

Payroll journal entries in ADP record gross wages, deductions, tax liabilities, and net pay, affecting multiple expense and liability accounts in the general ledger.

Question 2

In ADP, which module or feature maps payroll data to the employer's general ledger accounts?

Accepted Answer

ADP General Ledger (GL) Interface

Answer

The ADP General Ledger Interface maps payroll earnings, deductions, and taxes to the employer's specific chart of accounts for seamless accounting system integration.

Question 3

What is payroll reconciliation and how frequently should it be performed?

Accepted Answer

The process of comparing payroll register totals to tax filings, bank statements, and the general ledger; it should be performed each pay period and at quarter-end

Answer

Payroll reconciliation involves matching payroll register data against tax filings, bank transactions, and the general ledger and should occur each pay period to catch errors early.

Question 4

When reconciling payroll, what does a variance between gross wages on the payroll register and wages on Form 941 typically indicate?

Accepted Answer

A missed adjustment such as a correction, voided check, or non-taxable wage exclusion that was not properly recorded

Answer

Variances between the payroll register and Form 941 usually indicate an adjustment, voided transaction, or non-taxable exclusion that was not consistently handled in both records.

Question 5

What is the role of an 'accrued payroll' journal entry at month-end?

Accepted Answer

To recognize wages earned but not yet paid by the end of the accounting period in the company's financial statements

Answer

Accrued payroll entries record the liability for wages earned during the accounting period but not yet paid, ensuring accurate financial statements under accrual accounting.

ADP - ADP Certified Payroll Specialist Practice Test

ADP - ADP Certified Payroll Specialist Practice Test

ADP Payroll Accounting and Reconciliation