QBO Payroll Setup and Management 2

Question 1

When setting up a new employee in QuickBooks Online Payroll, which section is used to enter federal and state withholding allowances?

Accepted Answer

Withholding

Answer

Pay Types

Answer

Deductions & Contributions

Answer

Employment Info

Question 2

A company wants to pay employees a non-taxable car allowance. What is the correct way to set this up in QBO Payroll?

Accepted Answer

Add a non-taxable reimbursement pay type

Answer

Add it as a taxable wage pay type

Answer

Create a deduction item

Answer

Record it as a company contribution

Question 3

What happens to payroll taxes when a payroll run is voided in QuickBooks Online Payroll?

Accepted Answer

Tax liabilities are reversed in the system

Answer

Taxes are automatically refunded to the employee

Answer

Taxes remain in the liability account and must be manually adjusted

Answer

Nothing changes; voiding only affects the net pay check

Question 4

In QuickBooks Online Payroll, which report shows the total wages, taxes, and deductions for each employee for a selected period?

Accepted Answer

Payroll Summary by Employee

Answer

Employee Details Report

Answer

Tax Liability Report

Answer

Payroll Item Listing

Question 5

An employee claims exempt from federal income tax withholding on their W-4. How should this be recorded in QBO Payroll?

Accepted Answer

Enter 'Exempt' in the federal withholding section

Answer

Set federal filing status to 'Single' with 10 allowances

Answer

Leave the withholding fields blank

Answer

Set withholding amount to $0 as an additional withholding override

Question 6

Which payroll subscription tier in QuickBooks Online includes automated tax filing and payment for all 50 states?

Accepted Answer

Both Premium and Elite

Answer

Core

Answer

Premium

Answer

Elite

Question 7

A client uses QuickBooks Online Payroll and needs to track tips received by restaurant employees. Which pay type should be used for reported tips?

Accepted Answer

Reported Tips

Answer

Bonus

Answer

Commission

Answer

Cash Tips Received