Fundamental Payroll Systems and Administration Flashcards
7 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamental Payroll Systems and Administration flashcards as text
Which of the following describes a 'parallel run' during a payroll system implementation?
Answer: Running two payroll systems simultaneously to compare results before fully switching
A parallel run involves processing payroll in both the old and new systems simultaneously to verify that the new system produces accurate results before cutover.
An employer wants to offer employees the option to receive their pay via a payroll card. Which of the following is a key compliance consideration?
Answer: Employees must have a free option to access their full net pay
State and federal consumer protection rules generally require that employees be able to access their full wages without fees, ensuring payroll cards are not a hidden wage reduction.
What is the purpose of reconciling payroll to the general ledger?
Answer: To ensure payroll expense and liability accounts match the amounts processed through payroll
Payroll-to-general-ledger reconciliation confirms that the financial records accurately reflect all payroll transactions, supporting audit readiness and financial accuracy.
Which report would a payroll manager use to verify that all employees in a specific department received the correct pay rate?
Answer: Department earnings report
A department earnings report breaks down wages paid by department, allowing managers to verify pay rates and totals for each employee in that unit.
A payroll system is described as 'cloud-based SaaS.' What does this primarily mean for the employer?
Answer: The software is hosted and maintained by the vendor and accessed via the internet
Cloud-based SaaS (Software as a Service) payroll systems are hosted by the vendor, reducing the employer's IT infrastructure burden and keeping the software automatically updated.
During year-end processing, what is the significance of the 'W-2 cutoff date'?
Answer: The deadline for finalizing all payroll adjustments that must appear on employee W-2 forms
The W-2 cutoff date is the last day to make corrections (such as fringe benefit additions or prior-period adjustments) that need to be captured on the current year's W-2s.
What is the main advantage of using electronic pay stubs over paper pay stubs?
Answer: They reduce printing costs and allow employees to access pay history at any time
Electronic pay stubs lower administrative costs and give employees on-demand access to current and historical earnings and deduction information.
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