FREE Certified Payroll Professional Questions and Answers

Question 1

What steps must an employer take after receiving notification from the IRS that an employee's Form W-4 is invalid?

Accepted Answer

Withhold based on data from the Internal Revenue Service

Answer

Employers are not required to alter exemptions unless an employee notifies them in writing using a new Form W-4.

Answer

At the end of the quarter, the employer ought to send a notice asking the worker to get in touch with the IRS to resolve the issue.

Answer

As long as the employee is getting paid, all further Forms W-4 have to be sent to the IRS.

Question 2

What is the BEST method to manage miscellaneous payments using online input?

Accepted Answer

A comparison between the totals from the online report and the predetermined totals from the source documents

Answer

Every input source document is compared by an auditor to the database record.

Answer

Validation of a sample of the data entered

Answer

The online activity report visual audit

Question 3

Employers are required by the Family and Medical Leave Act to keep records for:

Accepted Answer

3 years

Answer

6 months

Answer

24 weeks

Answer

5 years

Question 4

The primary benefit of developing an in-house system is:

Accepted Answer

The entire computer system is controlled by the employer

Answer

Explaining company policies and procedures saves time.

Answer

Expenses are lowered and a fair distribution is possible.

Answer

A company does not engage outsiders in its daily operations.

Question 5

The payroll accrual entry serves what purpose?

Accepted Answer

Recognizing expenses in the period during which they were incurred

Answer

To go back and change a prior period's entry

Answer

To go back and fix an incorrect entry

Answer

Recognizing costs at the period for which they were paid

Question 6

In the parallel testing stage of a new payroll system, which of the following steps is the LEAST important?

Accepted Answer

Evaluating a wage attachment process functionality

Answer

The confirmation of staff members who were moved from the old system to the new one

Answer

Verifying the correctness of employee wages and deductions

Answer

The confirmation of employee tax withholding computations

Question 7

The pay period's payroll register indicates $300,000 in gross earnings and $120,000 in deductions.  What will be the entry to the payroll expense account?

Accepted Answer

$300,000

Answer

$280,000

Answer

$320,000

Answer

$200,000

Question 8

What is one element of a payroll calendar?

Accepted Answer

Pay frequency

Answer

Social security numbers

Answer

Hire dates

Answer

Total remuneration

Question 9

Included in the user documentation for the payroll system should be:

Accepted Answer

Information about the methods for disaster recovery

Answer

Documents related to the project development

Answer

A copy of the RFP

Answer

The conversion of the payroll system's history

Question 10

Athletic facilities provided by employers might not qualify as nontaxable fringe benefits if:

Accepted Answer

The facility is on the employer's property.

Answer

The facility is provided at no significant additional expense to the employer, other than labor.

Answer

The facility is a de minimus fringe.

Answer

The facility's use, including its quantity, duration, and commercial purpose, must be verified by the employer.