Payroll Accounting Exam Solutions
Course Introduction
Payroll Accounting focuses on the principles and procedures involved in processing employee compensation, including calculating wages and salaries, deducting taxes and other withholdings, and preparing payroll records and reports. The course covers relevant federal and state payroll laws, employer responsibilities, and reporting requirements, as well as the use of computerized payroll systems. Students will gain practical experience in completing payroll registers, preparing payroll tax returns, and ensuring compliance with government regulations, equipping them with essential skills for managing payroll functions in a business environment.
Recommended Textbook
Payroll Accounting 2019 5th Edition by Jeanette Landin
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7 Chapters
526 Verified Questions
526 Flashcards
Source URL: https://quizplus.com/study-set/3734
Page 2
Chapter 1: Payroll Practices and System Fundamentals
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/74470
Sample Questions
Q1) Why is outsourced payroll popular among accounting professionals?
A)Payroll processing is always simpler and quicker.
B)Data generated by the outsource company is completely accurate.
C)Time required for payroll processing is reduced.
D)Records generated by outsourced vendors are not subject to retention rules.
Answer: C
Q2) Employers must request a(n)________ for the Internal Revenue Service to track a firm's payroll tax obligations.
A)Social Security Number
B)Employer Registration Number
C)Tax Identification Number
D)Employer Identification Number
Answer: D
Q3) Which Act governs the minimum wage that must be paid to nonexempt workers?
A)FICA
B)FLSA
C)FUTA
D)SSA
Answer: B
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Page 3
Chapter 2: Payroll System Procedures
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/74469
Sample Questions
Q1) Which of the following items must exist in every employee's payroll file?
A)Spouse's social security number
B)Employment history
C)Spouse's birth date
D)Occupation
Answer: D
Q2) Which of the following are important decisions that an employer must make regarding its payroll procedures? (You may select more than one answer. )
A)How often to pay employees
B)How to handle pay advances
C)How many employees to hire
D)Which employee benefits to offer
Answer: A,B
Q3) Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.
A)True
B)False
Answer: True
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4
Chapter 3: Gross Pay Computation
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) The payroll register should be retained indefinitely,unlike most other payroll documentation.
A)True
B)False
Answer: False
Q2) To compute the hourly rate for an employee with a 40-hour standard workweek,you would divide the annual salary by 2,080.
A)True
B)False
Answer: True
Q3) Which of the following best describes the purpose of the payroll register?
A)It is a list of all persons and companies that the company pays money during a period.
B)It is a report that becomes published with other financial reports.
C)It is a worksheet that accountants use to ensure payroll accuracy.
D)It is an individual register maintained for each employee,listing of all the payroll information.
Answer: C
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Page 5
Chapter 4: Fringe Benefits and Voluntary Deductions
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/74467
Sample Questions
Q1) Employer contributions to employee health insurance must be:
A)Added to Federal taxable wages.
B)Reported in Social Security wages.
C)Reported in State taxable wages.
D)Reported in Box 12,Code DD.
Q2) Post-Tax Deductions are amounts ________.
A)that are voluntarily chosen by the employee
B)that the employer chooses to withhold after assessing the employee's tax liability
C)includes both mandatory and voluntary deductions
D)are only mandatory deductions like garnishments and union dues
Q3) In which type of retirement plan does the company offer employees the ability to earn company stock for the duration of their employment?
A)SEP
B)SIMPLE
C)ESOP
D)401(k)
Q4) Fringe benefits are part of an employee's cash compensation package.
A)True
B)False
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Chapter 5: Employee Net Pay and Pay Methods
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70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/74466
Sample Questions
Q1) Garnishments are court-ordered amounts that an employer must withhold from an employee's pre-tax pay and remit to the appropriate authority.
A)True
B)False
Q2) Amity is an employee with a period gross pay of $2,000.She elects to have 3% of her gross pay withheld for her 401(k)contribution.What will be her taxable income be for federal income taxes?
A)$2,000
B)$1,970
C)$1,940
D)$1,910
Q3) What payroll-specific tool is used to facilitate computation of net pay?
A)Employee Information Form
B)Payroll Register
C)Form I-9
D)Supervisor Payroll Report
Q4) Charitable contributions are an example of post-tax voluntary deductions.
A)True
B)False
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Chapter 6: Employer Payroll Taxes and Labor Planning
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73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/74465
Sample Questions
Q1) Which of the following items is always the employer's sole responsibility?
A)SUTA taxes
B)FUTA taxes
C)Federal income tax
D)FICA taxes
Q2) Dena's Decorations is a South Carolina business that has a SUTA rate of 3.6% and an annual SUTA wage base of $14,000.The employee earnings for the past calendar year are: B.Gilfilan $22,180,P.Laubach $37,690,S.Loftin $15,320,M.Moravec $9,840. What are the FUTA and SUTA tax liabilities for Dena's Decorations?
A)FUTA $1,686.20;SUTA $168
B)FUTA $168;SUTA $1,866.24
C)FUTA $1,686.20;SUTA $531.36
D)FUTA $531.36;SUTA $2,102.58
Q3) Which of the following is not an example of an employer's payroll-related business expense?
A)Tax deposits and filings
B)Voluntary deduction receipt
C)Tax withholding and matching
D)Employee compensation and accountability
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Page 8
Chapter 7: The Payroll Register, employees Earnings
Records, and Accounting System Entries
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72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/74464
Sample Questions
Q1) What effect do payroll entries have on a firm's accounting system?
A)They increase the firm's assets.
B)They reduce the firm's liabilities.
C)They increase the owners' equity.
D)They increase the firm's expenses.
Q2) A(n)________ is a collection of cash and other items that are used in the operation of the business.
A)Liability
B)Asset
C)Revenue
D)Equity
Q3) What is the term for transferring data from the General Journal to the General Ledger?
A)Cross-referencing
B)Ledgering
C)Posting
D)Transcribing
Q4) The payroll register is identical for each company.
A)True
B)False
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