FREE ADP Payroll Processing Questions and Answers

Question 1

What information is required to set up a new employee in the ADP payroll system?

Accepted Answer

All of the above

Answer

Setting up a new employee in the ADP payroll system requires a comprehensive set of personal and employment details to ensure accurate payroll processing and tax compliance. This includes the employee's Social Security Number (SSN) for tax identification, bank account details for direct deposit, job title and hire date for employment records, and marital status and withholding allowances for correct tax deductions. All these pieces of information are critical for a complete and compliant setup.

Question 2

How do you handle a payroll error after processing has completed?

Accepted Answer

Reverse the payroll batch and rerun it.

Answer

When a significant payroll error is discovered after processing has completed, the most direct and comprehensive solution is to reverse the entire payroll batch and then rerun it correctly. This method ensures that all affected calculations, deductions, and tax filings are accurately corrected within the system. While issuing a manual check or making corrections in the next run can address immediate payment issues, reversing and rerunning the batch provides a cleaner and more accurate record within the payroll system itself.

Question 3

What happens if payroll taxes are filed late?

Accepted Answer

Employers face penalties and interest charges.

Answer

Filing payroll taxes late has serious consequences for employers. The IRS and state tax authorities impose significant penalties and interest charges on overdue tax payments. These financial repercussions can be substantial and negatively impact an organization's budget, underscoring the importance of timely and accurate payroll tax compliance.

Question 4

Which report is used to verify employee hours before processing payroll?

Accepted Answer

Timecard Summary Report

Answer

Before processing payroll, it is crucial to verify employee hours to ensure accuracy. The Timecard Summary Report provides a consolidated view of all recorded hours for each employee, typically pulled from timekeeping systems. This report allows payroll specialists to review, confirm, and make any necessary adjustments to hours worked before the final payroll calculation, preventing errors in paychecks.

Question 5

When processing payroll, how does ADP ensure tax compliance?

Accepted Answer

By automatically applying the latest federal, state, and local tax rates.

Answer

ADP ensures tax compliance by leveraging its robust system to automatically apply the most current federal, state, and local tax rates to payroll calculations. This automation significantly reduces the risk of errors associated with manual updates and ensures that employers are withholding and remitting the correct tax amounts. Additionally, ADP often handles the generation and filing of required tax forms, further streamlining compliance.

ADP - ADP Certified Payroll Specialist Practice Test

ADP - ADP Certified Payroll Specialist Practice Test

FREE ADP Payroll Processing Questions and Answers