UKG Payroll Processing and Administration 2 — Questions and Answers
Question 1: In UKG Pro, what is a 'deduction code' used for?
- Identifying an employee's pay frequency
- Representing a specific withholding or benefit deduction applied to employee pay (Correct answer)
- Defining overtime calculation rules
- Mapping an employee to a cost center
Correct answer: Representing a specific withholding or benefit deduction applied to employee pay
Deduction codes in UKG Pro identify specific withholdings (health insurance, 401k, garnishments, etc.) that are subtracted from an employee's gross pay.
Question 2: Which payroll tax is split equally between the employer and the employee under FICA?
- Federal income tax
- State unemployment insurance (SUI)
- Social Security and Medicare (FICA) (Correct answer)
- Federal unemployment tax (FUTA)
Correct answer: Social Security and Medicare (FICA)
Under FICA, both the employer and employee each pay 6.2% for Social Security and 1.45% for Medicare, making it a shared tax obligation.
Question 3: In UKG Pro, what is the purpose of the 'void and reissue' payroll process?
- To cancel a payroll run before it is committed
- To reverse and replace a previously issued payment that was incorrect or lost (Correct answer)
- To process retroactive pay adjustments for prior periods
- To transfer payroll data to the general ledger system
Correct answer: To reverse and replace a previously issued payment that was incorrect or lost
Void and reissue allows payroll administrators to cancel an erroneous or lost check/direct deposit and reissue a corrected or replacement payment.
Question 4: What is 'imputed income' in the context of UKG Pro payroll processing?
- Income earned from tips that must be reported by the employee
- The taxable value of non-cash employee benefits that must be included in gross income (Correct answer)
- Wages paid in advance before the pay period ends
- Earnings calculated for employees working across multiple states
Correct answer: The taxable value of non-cash employee benefits that must be included in gross income
Imputed income refers to the taxable value of certain employer-provided benefits (such as group-term life insurance over $50,000) that must be reported as income even though no cash is paid to the employee.
Question 5: Which UKG Pro report is typically used to verify payroll totals by department or cost center before finalizing a payroll run?
- The payroll register (Correct answer)
- The W-2 proof report
- The employee census report
- The benefit enrollment summary
Correct answer: The payroll register
The payroll register is a detailed report listing every employee's earnings, deductions, and taxes for the pay period, commonly used to audit totals by department before committing payroll.
Question 6: In UKG Pro, how does the system handle multi-state taxation for an employee who works in one state but lives in another?
- It automatically withholds taxes only for the state where the employer is headquartered
- It applies reciprocity rules and state tax configurations to withhold the appropriate state taxes based on work and residence states (Correct answer)
- It requires the employee to file manual tax adjustments at year-end
- It ignores state taxation and withholds only federal taxes for multi-state employees
Correct answer: It applies reciprocity rules and state tax configurations to withhold the appropriate state taxes based on work and residence states
UKG Pro's tax engine applies state reciprocity agreements and configured state tax rules to determine the correct withholding for employees who work and live in different states.
Question 7: What is the function of the Electronic Funds Transfer (EFT) file (ACH file) generated by UKG Pro during payroll processing?
- It transmits employee garnishment orders to courts
- It sends direct deposit payment instructions to the ACH network so employee pay is deposited to their bank accounts (Correct answer)
- It reports payroll tax deposits to the IRS electronically
- It uploads payroll totals to the organization's ERP system
Correct answer: It sends direct deposit payment instructions to the ACH network so employee pay is deposited to their bank accounts
The ACH/EFT file generated by UKG Pro contains direct deposit instructions that are sent to the banking network to credit employee bank accounts on payday.
UKG Payroll Processing and Administration 2
In UKG Pro, what is a 'deduction code' used for?