FREE Certified Payroll Professional Questions and Answers
What is one element of a payroll calendar?
Explanation:
The term ""pay frequency"" describes how often employees are paid—weekly, biweekly, or monthly, for example. It is a crucial component of a payroll calendar since it establishes the expected time of employee wage receipt. The frequency of payments may differ based on the policy of the company and the employment regulations of the country or state.
In the parallel testing stage of a new payroll system, which of the following steps is the LEAST important?
Explanation:
Testing the wage attachment process's functionality is the least crucial step in a new payroll system's parallel testing phase. This is because wage attachment procedures are often less frequent than other payroll-related tasks including accurately calculating tax withholding, verifying employee transfers, and employee earnings and deductions. As such, the relevance of testing a wage attachment process's functionality is deemed to be somewhat secondary in comparison to other crucial payroll operations.
Employers are required by the Family and Medical Leave Act to keep records for:
Explanation:
Employers are required by the Family and Medical Leave Act to keep records for three years. This means that for a minimum of three years, businesses are required to maintain records of any leaves of absence taken by staff members for personal or medical reasons, together with the dates of the leaves and the reasons for them. In the event of a disagreement or further inquiry, this provision guarantees that employers maintain accurate and current records of their workers' leave history, which can benefit both parties.
What is the BEST method to manage miscellaneous payments using online input?
Explanation:
Comparing the totals of the online reports to predetermined totals extracted from the source documents is the most effective technique for managing miscellaneous payments with online input. This lowers the possibility of mistakes or fraudulent conduct by guaranteeing that the entire sum put online matches the total amount noted in the original documents. A visual audit of the online activity report may not offer a thorough analysis, and verification of a sample of entered data may not catch all errors. The process of comparing every input source document to the database record by an auditor could be laborious and ineffective.
Included in the user documentation for the payroll system should be:
Explanation:
Information about disaster recovery procedures should be included in the user manual for a payroll system. This is significant because it's critical to have a plan in place to recover the payroll system and guarantee that employee payments are not interrupted in the case of a system breakdown or data loss. By including these processes in the user manual, you can make sure that everyone using the system knows what to do in the event of a crisis and can restore it promptly and effectively.
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?
Explanation:
The entire expense incurred by the business for paying its employees is $300,000, and this amount needs to be recorded in the payroll expense account. Therefore, $300,000 would be the entry to the payroll expense account.
The $120,000 in deductions are not relevant to this entry because they are deducted from the gross earnings to determine the net amount paid to employees.
Athletic facilities provided by employers might not qualify as nontaxable fringe benefits if:
Explanation:
The athletic facility might not be taxable as a fringe benefit if it is situated on the employer's premises. This is because the facility is freely accessible to employees during work hours and is directly provided by the company. The facility might not be eligible for a nontaxable fringe benefit if it was off-site.
What steps must an employer take after receiving notification from the IRS that an employee's Form W-4 is invalid?
Explanation:
When the IRS notifies an employer that a worker's Form W-4 is invalid, the employer is required by law to withhold taxes in accordance with the IRS's information. This implies that the employer ought to modify the employee's withholding amount in accordance with the IRS's guidelines. In order to adhere to tax laws, the employer must follow the guidance supplied by the IRS.
An employee who exceeds the social security pay base and works for multiple employers may:
Explanation:
Employees who work for many employers and make more than the social security wage base are eligible to claim a credit on Form 1040 against their federal income tax. This implies that the amount of excess social security taxes paid can be deducted from their federal income tax burden. The higher taxes paid as a result of exceeding the wage base may be partially offset by this credit.
The primary benefit of developing an in-house system is:
Explanation:
The employer can have total control over the computer system by developing an in-house system. This implies that they can modify and adjust the system to fit their unique demands and specifications. They don't need to rely on outside suppliers or service providers to make the necessary adjustments and updates. This degree of control over the computer system can result in more efficacy and efficiency in its management. Because they fully own and control the system, it also gives the employer a higher sense of security and anonymity.
The payroll accrual entry serves what purpose?
Explanation:
Payroll accrual entries are made to recognize expenses in the period in which they were incurred. This indicates that the entry is being made to reflect the costs associated with unpaid employee salaries and wages that have been earned. It guarantees that the financial statements appropriately depict the company's financial status and performance during that period by recognizing these expenses in the appropriate period.