Practice Test Geeks(CPM) Certified Payroll Manager Practice Test
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Payroll Systems and Technology Flashcards

7 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Payroll Systems and Technology flashcards as text

  1. Which data encryption standard is most commonly required for payroll data transmitted over the internet?

    Answer: TLS (Transport Layer Security)

    TLS (Transport Layer Security) is the industry standard protocol for encrypting payroll and other sensitive data transmitted over the internet.

  2. A company is implementing a new HRIS. What is the primary advantage of selecting a system with an open API?

    Answer: It allows seamless integration with third-party applications

    An open API allows the HRIS to connect and exchange data with third-party applications like time-tracking, benefits, and accounting software.

  3. What is the purpose of a 'sandbox environment' in payroll system implementation?

    Answer: To test system changes without affecting live payroll data

    A sandbox environment is an isolated testing environment where system changes, updates, and configurations can be tested without impacting the live production payroll system.

  4. When converting from one payroll system to another, parallel processing means:

    Answer: Running both old and new systems simultaneously to compare results

    Parallel processing involves running both the legacy and new payroll systems at the same time to validate that the new system produces identical results before full cutover.

  5. Which type of payroll system deployment model stores all data and software on the vendor's remote servers?

    Answer: Cloud-based (SaaS)

    A cloud-based or SaaS (Software as a Service) payroll system stores all data and applications on the vendor's remote servers, accessible via the internet.

  6. What is the role of a 'checksum' in payroll data file transfers?

    Answer: To verify data integrity by detecting transmission errors

    A checksum is a calculated value used to verify data integrity, ensuring that a payroll file was not corrupted or altered during transmission.

  7. Which feature in modern payroll software automatically updates tax tables when federal or state rates change?

    Answer: Automatic tax table updates / compliance updates

    Automatic tax table or compliance update features ensure the payroll system reflects current federal, state, and local tax rates without requiring manual intervention.