Payroll MCQ Questions Answers

What is payroll?

Payroll is the process of recording and tracking employee hours and compensation. It can include anything from hourly wages to bonuses and commissions. Payroll also includes deductions for things like insurance, retirement savings, and taxes.

Employers use Payroll to ensure that employees are paid accurately and on time. 

What is Payroll and personnel cycle?

The Payroll is a record of the payments made to employees for the work they have done. The personnel cycle is the sequence of steps that an organization goes through in order to hire, pay, and manage employees.

What is a Payroll tax form?

It is a document used to report wages paid and taxes withheld during a pay period. The form is filed with the government to ensure that employees are paying the correct amount of taxes on their income. There are many different types of Payroll tax forms, depending on the country and state in which you reside.

What do you know about income tax deductions?

An income tax deduction is a way of reducing your taxable income (or in some cases increasing it).

It's called a deduction because it reduces the amount of taxes you owe by showing how much money you have leftover after subtracting out all the things that reduce your taxable income, like business expense deductions, mortgage interest, charitable donations, etc.

You can deduct most kinds of expenses from your taxable income if they are ordinary and necessary. Some examples of deductible expenses are:

• Business expenses - including rent, utilities, insurance, advertising, etc.
• Mortgage interest
• Charitable contributions
• Medical expenses
• Taxes withheld from paychecks

To what are balance sheet accounts related? 

Balance sheet accounts are related to the accounting equation, which is Assets = Liabilities + Equity. The balance sheet equation is used to ensure that the total of an organization's assets equals its liabilities plus equity. This equation is used to ensure that an organization's net worth remains unchanged from one period to the next.

What is examining Payroll transactions? 

The Payroll module allows you to examine the transaction records of a single employee or multiple employees and generate reports on them. The following are some of the most common types of reports that can be generated from the Payroll module:

Employee Summary Report – This report provides information about an individual’s employment history, including their pay rate, hours worked, overtime hours, deductions, and other relevant data. It also includes the total amount paid to each employee for the year as well as the total number of payments made during the year.

Pay Period Summary Report – This report lists all the pay periods in which an employee was employed by your company. It shows the dates when they were hired, when they left your organization, and how much they earned during each period.

Hourly Rate Report – This report calculates the hourly rate of an individual based on their regular salary plus any bonuses and commissions received. It also displays the total hours worked per week and the total number of weeks worked during the year.

Deductions Report – This report lists the deductions taken against an employee’s paycheck. It shows the type of deduction (e.g., vacation, sick leave, etc.) and the amount deducted.

Hours Worked Report – This report lists every hour worked by an employee over a specified time period. It shows the date and time of each workday, the number of hours worked, the number of overtime hours, and the total number of hours worked for the entire year.

Payment History Report – This report lists each payment made to an employee during the course of the year. It shows the date of the payment, the amount of money paid, and the reason for the payment.

Paycheck Detail Report – This report lists detailed information about each paycheck issued to an employee. It includes the name of the employee, the amount of the check, the date it was issued, the pay period it covers, the gross wages earned, the net wages earned, the number of hours actually worked, the number of hours reported, the number of overtime earnings, the number of deductions, the number of deductions applied, and the number of deductions remaining.

Payroll Transaction List Report – This report lists a list of all Payroll transactions performed by your organization. It shows the name of the employee who performed the transaction, the date of the transaction, the amount of the transaction, the reason for the transaction, the location where the transaction took place, and the department where the transaction occurred.

Payroll Master File equals:

The Payroll Master File (PMF) is a database table that stores information about the employees in your company, including their name, address and contact details. It also holds information on which pay periods they are employed for and what their gross wages were during these periods. The PMF can be accessed by all users of the system.

What are Payroll transactions processed?

This is the money that is paid to the employees of a company. This includes the wages, salaries, and bonuses that are paid to employees. It also includes any taxes or other deductions that are taken out of an employee's paycheck.

What do mean by the term Payroll Bank Statement?

It is also known as an electronic paycheck. It is a paperless way to receive your paychecks electronically. It’s a convenient and secure method of receiving your paychecks, so you can spend less time waiting for them in the mail and more time doing what you love!

Testing Payroll related liabilities:

It is the process of verifying that an organization's Payroll system properly records and calculates the payments made to employees and other individuals who provide services to the organization. This includes verifying that the system accurately calculates the amounts due to employees for their work, as well as any taxes or other deductions that are required by law.

What is a Payroll service provider?

A (PSP) is an organization that provides Payroll services to small businesses, including direct deposit of employee paychecks and processing of W-2 forms. The term "payroll" refers to the process of paying employees for their work. A PSP can provide this service directly or through a third party vendor.

What is an outside Payroll service provider?

An (OSP) is a company that provides Payroll services to your business, such as calculating your employees' pay and paying them their wages. An OSP can also help you with other aspects of running your business, such as managing employee benefits. You may be able to use the same OSP for all or some of these functions. However, it's important to understand what each function entails before choosing which one(s) to use.

What do you know about retirement savings deductions?

These are the amount of money you can deduct from your taxable income to reduce your tax liability. These deductions are usually taken in the form of a tax credit or refundable tax credit, but they may also be applied as an offset against other taxes such as Payroll taxes and self-employment taxes.

What is an accounting department?

The Accounting Department of a company does not only consist of the Accountants, but also includes other employees like bookkeepers and clerks who are involved in the day-to-day activities of the company. The main responsibility of this group is to maintain the books of accounts for the company and prepare financial reports and statements. This group of people is responsible for keeping track of all the transactions that take place within the organization. They ensure that all the transactions recorded on the books are correct by comparing them with those entered into the system.

Accounting departments are usually located in the headquarters or regional offices of companies. These departments are headed by the Chief Financial Officer (CFO) who is responsible for managing the finances of the company.

Payroll cycle consists:

The term "Payroll cycle" refers to the time period between when a company's employees are paid and when they receive their next paycheck. It can be as short as one day or as long as several months, depending on how many days there are in each month of the year.

In general, Payroll cycles fall into two categories: monthly and semimonthly. Monthly payrolls occur once per month, while semimonthly payrolls occur twice per month. 

What is an imprest Payroll account?

An imprest account is a special type of bank account that allows you to deposit your Payroll taxes and receive interest on those deposits. This can be done for both federal and state taxes, including Social Security (FICA) and Medicare (Medicare tax). The IRS also has its own imprest accounts.

What do you mean by Payroll tax returns?

A Payroll tax return is a document that employers must file with the IRS to report wages paid and taxes withheld from their employees during a specific period of time. This document includes detailed information about each employee, such as their name, social security number, and wages earned.

Define auditing payroll?

Auditing Payroll is the process of verifying the accuracy of employee paychecks. This includes reviewing hours worked, wages paid, and deductions taken out. The goal of Payroll auditing is to ensure that employees are being paid accurately and in compliance with applicable laws.

What is verifying account balances?

To ensure that an organization's accounts are accurate, some type of verification process is often used. This might include reviewing bank statements and other financial documents, or reconciling account balances with those reported by the organization's external auditor.

What do mean by the term process payroll?

Process Payroll is a term used to describe the way that an organization processes its payroll. It’s also known as “Payroll processing,” and it refers to the entire series of steps necessary for employees to be paid by their employer. This includes:

• Recording employee hours worked
• Calculating pay rates
• Computing deductions from paychecks
• Printing checks
• Storing records

Payroll records:

Payroll records are a document that lists all the employees of a company and their corresponding salaries. This document is used by employers to ensure that they are paying their employees the correct amount of money, as well as tracking any changes in an employee's salary over time.

Payroll procedures:

The Payroll procedure is the process of calculating, paying, and distributing an employee’s wages to them in accordance with their pay rates and entitlements. It also includes any deductions for superannuation, tax, insurance, or other obligations that may be required by law. Payroll procedures can vary depending on whether you operate as a sole trader, partnership, or company.

Quizack and Payroll MCQs:

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