Fundamental Payroll Certification Fundamental Payroll Audits and Record Retention 3

Question 1

Which federal agency is primarily responsible for enforcing FLSA recordkeeping requirements?

Accepted Answer

Department of Labor Wage and Hour Division

Answer

The Department of Labor's Wage and Hour Division enforces FLSA provisions, including recordkeeping requirements.

Question 2

A payroll audit reveals that an employee's Form W-4 on file is from 2015 and has not been updated. What action should the employer take?

Accepted Answer

Request an updated Form W-4 but continue withholding per the existing form until a new one is submitted

Answer

Employers may continue using an existing W-4 until the employee submits a new one; the old form remains valid.

Question 3

Under ERISA, how long must plan administrators generally retain retirement plan records?

Accepted Answer

6 years

Answer

ERISA requires that plan records sufficient to determine benefits be retained for at least 6 years after the filing date of documents based on the records.

Question 4

During an internal payroll audit, an auditor tests whether terminated employees were removed from payroll promptly. This control primarily prevents which risk?

Accepted Answer

Overpayment to former employees or ghost employee fraud

Answer

Ensuring timely removal of terminated employees prevents unauthorized payments to individuals no longer employed.

Question 5

Which payroll record element is specifically required by the FLSA for non-exempt employees but NOT generally required for exempt employees?

Accepted Answer

Hours worked each workday and workweek

Answer

FLSA requires precise daily and weekly hours worked to be recorded for non-exempt employees to support overtime calculations.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Audits and Record Retention 3