QBO - Certified QuickBooks ProAdvisor Payroll Setup and Management Questions and Answers

Question 1

A client is hiring their first employee and needs to set them up in QuickBooks Online Payroll.
Which two forms are essential for the client to have the employee complete to ensure federal tax compliance and employment eligibility verification before running the first payroll?

Accepted Answer

Form I-9 and Form W-4

Answer

W-9 and a voided check for direct deposit

Answer

Direct Deposit authorization and an employment contract

Answer

State new hire reporting form and a background check consent

Question 2

A business owner wants to use QuickBooks Online Payroll but prefers a "do-it-yourself" approach where they are responsible for making their own payroll tax payments and filing the associated forms manually outside of the system. Which QuickBooks Online Payroll subscription is designed for this purpose?

Accepted Answer

Core

Answer

Premium

Answer

Elite

Answer

Standalone Payroll

Question 3

Which of the following best describes the process for handling federal and state payroll tax liabilities in QuickBooks Online Payroll Premium and Elite subscriptions?

Accepted Answer

QuickBooks automatically debits the necessary funds from the client's bank account and electronically pays the agencies and files the forms on their behalf.

Answer

QuickBooks calculates the amounts, but the user must manually initiate a bank transfer on each tax agency's website.

Answer

QuickBooks reminds the user of due dates, and the user must print and mail paper checks and forms.

Answer

QuickBooks generates a report of amounts due, which must be given to a third-party payroll service for actual payment and filing.

Question 4

A client runs a marketing agency and frequently uses freelance graphic designers. To ensure proper tracking for 1099-NEC forms at year-end, what is the correct way to set up these individuals in QuickBooks Online?

Accepted Answer

Add them in the 'Vendors' list and collect a Form W-9.

Answer

Add them as employees but mark them as "statutory" and exempt from withholdings.

Answer

Create a journal entry for each payment made to the designers.

Answer

Set them up under the 'Projects' feature without adding them as a vendor.

Question 5

When an administrator navigates to Payroll Settings to create a new pay schedule, they must define how often employees will be paid. What key pieces of information are required to complete the initial setup of a new schedule?

Accepted Answer

The pay schedule's name, the pay frequency, and the pay date for the first payroll.

Answer

The pay schedule's name, the pay frequency, and the bank account for payroll processing.

Answer

The pay schedule's name, the pay frequency, and the daily overtime policy.

Answer

The pay schedule's name, the pay frequency, and the list of employees to be included.

Question 6

A user successfully ran and submitted payroll for the week. The next day, they realize they forgot to include a $100 bonus for one employee. The direct deposit has already been processed and sent. Which of the following is the most appropriate action to take within QuickBooks Online Payroll to pay the employee the missing amount?

Accepted Answer

Run an "Unscheduled" or "Off-cycle" payroll for only the one employee and the bonus amount.

Answer

Delete the entire payroll run and create a new one with the correct amounts.

Answer

Manually write a check to the employee and record it as a regular expense, bypassing the payroll module.

Answer

Adjust the employee's next regular paycheck to include the $100 bonus from the previous period.