QBO Payroll Setup and Management 3

Question 1

What is the purpose of the 'Workers' Compensation' feature in QuickBooks Online Payroll Elite?

Accepted Answer

It calculates and pays workers' compensation premiums based on actual payroll data

Answer

The workers' compensation feature in Elite calculates premiums based on real payroll runs and can integrate with pay-as-you-go policies.

Question 2

In QBO Payroll, what does 'Same-Day Direct Deposit' require compared to standard direct deposit?

Accepted Answer

An additional per-transaction fee and a Premium or Elite subscription

Answer

Same-Day Direct Deposit requires a Premium or Elite plan and incurs an extra fee, with submissions due by a same-day cutoff.

Question 3

A business has employees working in two different states. How does QBO Payroll handle multi-state payroll taxation?

Accepted Answer

It calculates taxes for each state based on the employee's work location entered in their profile

Answer

QBO Payroll supports multi-state taxation by using the work and home state information in each employee's profile to apply correct tax rates.

Question 4

When is a Form 944 used instead of Form 941 for payroll tax reporting?

Accepted Answer

When the IRS notifies a small employer that their annual tax liability is $1,000 or less

Answer

The IRS designates employers who owe $1,000 or less in annual employment taxes to file Form 944 annually instead of Form 941 quarterly.

Question 5

In QuickBooks Online Payroll, where do you set up a garnishment deduction for an employee's child support order?

Accepted Answer

Employee profile > Deductions & Contributions tab

Answer

Garnishments are configured as deduction items in the employee's Deductions & Contributions tab within their profile.

(QBO) Certified QuickBooks ProAdvisor Practice Test