APA APA Payroll Technology & Systems 2

Question 1

What is the purpose of a payroll reconciliation report generated by payroll software?

Accepted Answer

To verify that payroll totals match general ledger entries

Answer

A payroll reconciliation report confirms that payroll amounts posted to the general ledger match actual payroll disbursements and tax liabilities.

Question 2

In payroll systems, what does a 'positive pay' file submitted to a bank help prevent?

Accepted Answer

Check fraud by verifying check details before payment

Answer

A positive pay file sends issued check details to the bank, which then matches presented checks against the file to detect unauthorized or altered checks.

Question 3

Which data element is essential in a payroll master record to ensure correct federal tax withholding?

Accepted Answer

Employee's W-4 filing status and allowances

Answer

The W-4 filing status and withholding information directly determines the federal income tax withheld from each paycheck.

Question 4

What is the recommended approach when a payroll software vendor issues a critical tax table update mid-year?

Accepted Answer

Apply the update immediately before the next payroll run

Answer

Critical tax table updates should be applied before the next payroll run to ensure withholding calculations comply with current IRS rates and brackets.

Question 5

Which reporting feature in payroll software helps identify employees who have not yet submitted a new W-4 after a life event?

Accepted Answer

Stale W-4 or missing W-4 exception report

Answer

A stale or missing W-4 exception report flags employees whose withholding information may be outdated or incomplete.

(APA) American Payroll Association Certification Practice Test

(APA) American Payroll Association Certification Practice Test

APA APA Payroll Technology & Systems 2