QBO Payroll Setup and Management 5

Question 1

A payroll check was issued with the wrong pay rate. The error is discovered after the check was cashed. What is the recommended QBO Payroll correction approach?

Accepted Answer

Void the check, issue a corrected check, and file a W-2c if the year has closed

Answer

For a cashed check with a pay rate error, you void the original, issue a corrected check, and if the error affects year-end W-2 data, file a W-2c.

Question 2

What is the purpose of the 'Payroll Preferences' section under Account and Settings in QBO?

Accepted Answer

To set defaults like pay schedule, pay stub delivery method, and accounting preferences for payroll

Answer

Payroll Preferences lets you configure company-wide defaults such as pay stub delivery, default pay schedule, and payroll accounting mapping.

Question 3

Under the FUTA tax rules, employers receive a credit of up to 5.4% for timely state unemployment tax payments, reducing the effective FUTA rate to what percentage?

Accepted Answer

0.6%

Answer

The gross FUTA rate is 6.0%, and with the full 5.4% state credit, the net federal FUTA rate is 0.6% on the first $7,000 of wages.

Question 4

In QBO Payroll, what triggers the Additional Medicare Tax (0.9%) withholding for an employee?

Accepted Answer

Medicare wages exceed $200,000 for the calendar year from that employer

Answer

Employers must withhold an additional 0.9% Medicare tax once an individual employee's wages from that employer exceed $200,000 in a calendar year.

Question 5

Which QBO Payroll feature allows a ProAdvisor to set up and send W-2 forms electronically to employees at year-end?

Accepted Answer

Employee Self-Service portal via Workforce

Answer

QuickBooks Workforce (the employee self-service portal) allows employees to view and download their W-2 forms electronically when enabled.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO Payroll Setup and Management 5