ADP Tax Reporting and Filing 1 — Questions and Answers
Question 1: Which ADP service automates federal, state, and local payroll tax deposits and filings on behalf of the employer?
- ADP SmartCompliance Tax Filing (Correct answer)
- ADP HR Pro
- ADP Time & Attendance
- ADP Direct Deposit Manager
Correct answer: ADP SmartCompliance Tax Filing
ADP SmartCompliance Tax Filing manages all federal, state, and local payroll tax deposits, filings, and agency correspondence on the employer's behalf.
Question 2: What is the IRS deadline for employers to furnish W-2 forms to employees each year?
- January 31 (Correct answer)
- February 28
- March 15
- April 15
Correct answer: January 31
The IRS requires employers to furnish W-2 forms to employees by January 31 of the year following the tax year.
Question 3: In ADP, what does the 941 reconciliation process verify?
- That the total wages and taxes on Form 941 match the amounts in the payroll register for the quarter (Correct answer)
- That all employees have been enrolled in direct deposit
- That benefit deductions match carrier invoices
- That vacation accruals are correctly calculated
Correct answer: That the total wages and taxes on Form 941 match the amounts in the payroll register for the quarter
Form 941 reconciliation compares quarterly wages and tax amounts on the 941 against the payroll register to ensure accuracy before filing.
Question 4: When must an employer deposit FUTA (federal unemployment) taxes if the liability exceeds $500 by the end of a quarter?
- By the last day of the month following the end of the quarter (Correct answer)
- By January 31 for the entire year
- By the 15th of the month following the end of the quarter
- Annually with Form 940
Correct answer: By the last day of the month following the end of the quarter
FUTA deposits are required by the last day of the month following the quarter end when accumulated FUTA liability exceeds $500.
Question 5: What is the purpose of Box 12 on Form W-2 and how many different codes can be reported?
- Box 12 reports various compensation and benefit amounts using codes A through HH, with up to four codes per W-2 (Correct answer)
- Box 12 reports only pre-tax health insurance contributions
- Box 12 is used exclusively for retirement plan contributions
- Box 12 reports state and local tax withholding amounts
Correct answer: Box 12 reports various compensation and benefit amounts using codes A through HH, with up to four codes per W-2
Box 12 uses lettered codes (A through HH) to report various types of compensation and benefits; a single W-2 can have up to four Box 12 entries.
Question 6: What ADP tool generates a W-2 preview report before year-end to allow corrections?
- ADP W-2 Preview and Audit Report (Correct answer)
- ADP Payroll Register Year-to-Date
- ADP Tax Liability Summary
- ADP Employee Master Report
Correct answer: ADP W-2 Preview and Audit Report
ADP's W-2 Preview and Audit Report lets payroll specialists review W-2 data before final production so errors can be corrected before filing.
ADP Tax Reporting and Filing 1
Which ADP service automates federal, state, and local payroll tax deposits and filings on behalf of the employer?