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
Which file format is the US banking standard for submitting direct deposit payroll transactions to the ACH network?
Answer: NACHA (CCD/PPD format)
NACHA (National Automated Clearing House Association) format, using entry types like PPD (Prearranged Payment and Deposit) or CCD, is the US standard for direct deposit ACH transactions.
What is 'data masking' used for in a payroll system?
Answer: Obscuring sensitive data (e.g., SSNs) in non-production environments to protect privacy
Data masking replaces sensitive data such as Social Security numbers with fictitious but realistic-looking values in test or development environments so real employee data is never exposed.
A company wants to give employees access to earned wages before payday. Which payroll technology enables this?
Answer: Earned Wage Access (EWA) / on-demand pay platforms
Earned Wage Access (EWA) platforms integrate with payroll systems to allow employees to withdraw a portion of already-earned wages before the scheduled pay date.
What is the difference between a payroll 'register' and a payroll 'journal'?
Answer: A register shows individual employee pay details; a journal records accounting entries for the general ledger
The payroll register is a detailed listing of each employee's gross pay, deductions, and net pay per period, while the payroll journal records the aggregate accounting entries posted to the general ledger.
Which system feature automatically prevents a payroll run from processing if total gross payroll exceeds a predefined threshold?
Answer: Payroll control total / threshold alert
A payroll control total or threshold alert automatically flags or blocks a payroll run when the calculated total gross wages deviate significantly from the expected amount, preventing large errors.
When migrating historical payroll data to a new system, which data set is MOST critical to validate for accuracy?
Answer: Year-to-date (YTD) tax withholding and earnings balances
YTD earnings and tax withholding balances are critical because errors will cause incorrect W-2 calculations and potentially trigger IRS penalties at year-end.
A payroll system's 'time-and-attendance integration' automatically flags which of the following for supervisor review?
Answer: Punch anomalies such as missed punches, early/late arrivals, and overtime thresholds
Time-and-attendance integrations are configured with rules that automatically flag exceptions like missed clock-ins, unapproved overtime, or shift deviations for supervisor review before payroll processes.