QBO Payroll Setup and Management 4

Question 1

A client needs to record a payroll run that was processed outside of QBO (e.g., with a third-party provider). Which feature should be used?

Accepted Answer

Manual Paycheck under Payroll

Answer

The Manual Paycheck (or 'Record as paid outside QBO') option lets you enter payroll data for tax tracking without cutting a new check.

Question 2

What is the Social Security wage base limit relevant for when processing payroll in QBO?

Accepted Answer

It sets the maximum annual wages subject to the 6.2% Social Security tax

Answer

Social Security tax (6.2% employee + 6.2% employer) only applies to wages up to the annual wage base limit, which QBO tracks automatically.

Question 3

In QBO Payroll, which action correctly handles a returned direct deposit due to an incorrect bank account number?

Accepted Answer

Reverse the direct deposit and reprocess with the correct account

Answer

The reverse direct deposit workflow in QBO pulls back the failed transaction so you can reprocess payroll with the corrected bank details.

Question 4

A salaried exempt employee worked only half a month due to starting mid-period. How should their first paycheck be calculated in QBO Payroll?

Accepted Answer

Use the prorated salary option or manually enter the correct partial-period amount

Answer

QBO Payroll allows editing the salary amount on the paycheck to reflect a prorated amount for a partial first period.

Question 5

Which QBO Payroll report is most useful for verifying that payroll tax deposits match the amounts reported on Form 941?

Accepted Answer

Tax Liability Report

Answer

The Tax Liability Report shows employer and employee tax amounts by type and period, making it ideal for reconciling with Form 941.

(QBO) Certified QuickBooks ProAdvisor Practice Test