General Payroll MCQs

1. Of the following, which is considered an employer-paid benefit?

2. What type of form is used to pay funds directly to employees bank account?

3. Which of the following is considered a withholding tax?

4. Which is not entitled to company benefits?

5. The pay earned by hourly-paid employees is usually referred to as?

6. The amount of pay that an employee "takes home" or can deposit into the bank is called?

7. A bonus is listed under what category?

8. What is gross pay?

9. What is the primary objective of payroll?

10. What is the function of payroll?

11. Who is responsible for paying taxes deducted from employee's check?

12. What is an employee?

13. True or false? A new employee must fill out a W-4.

14. What is a contractor?

15. When can voluntary deductions be made?

16. Why is payroll important from an accounting standpoint?

17. An employee damages equipment and a court orders their wages are withheld as repayment. This is known as:

18. An employee has a HR status of 2080 annual hours, what is their employment status?

19. Which is an example of a required deduction?

20. What is a pay period?

21. What is an Employer Identification Number for?

22. What is the employers responsibility with regard to Medicare taxes?

23. Which tax form does a contractor use?

24. Which tax form does an employee use?

25. If you were to purchase stock, how is it referred to in terms of payroll deductions?

26. What is the typical pay period?

27. Which of the following is a payroll-related tax that is imposed on employers?

28. What is an example of a voluntary deduction?

29. An employee works 40 hours at $15 per hour. How much would their weekly pre-tax pay be?

30. What must all EIN applications disclose?

31. Which tax is unique to the states, California, Hawaii, New Jersey, New York, and Rhode Island?

32. What does the initials EIC stands for?

33. What does IRA stand for?

34. What is a reason an employee might see a garnishment on their paycheck?

35. True or false? A fiscal year must start on January 1st.

36. Which of the following do employees use to report annual income tax returns?

37. 401K deductions are calculated from an employee's ...

38. The combination of the Social Security tax and the Medicare tax is referred to by what acronym?

39. What specific criteria must be used when making a voluntary deduction for meals?

40. Which is listed under payroll taxes and costs?

41. How many yearly paychecks should a bi-weekly pay period yield to an employee?

42. In the General Journal, which side would your payroll tax expense be located?

43. What forms are filed at the end of the year to report employee wages to IRS?

44. What tax document is provided at the end of the year to independent contractors and includes all payments paid?

45. Which employee tax elected filing status will deduct the highest withholding amount?

46. What requirements does the FLSA have for records keeping?

47. What is the current medicare taxable rate for 2012?

48. What is an ACH payment related to?

49. Which form do you use to declare exemptions and allowances?

50. What is the standard rate for Medicare taxes?

51. What type of form is used to determine the amount of withholding taxes deducted from an employees check?

52. Are you obligated to set up a method of taxation for independent contractors?

53. What three payroll taxes are employers responsible for?

54. Which form is filled out by the employee and includes an employees withholding for federal tax purposes?

55. What is the maximum taxable earnings allowed for medicare?

56. Who is a “nominee”?

57. What form is required to verify employment eligibility for a new or potential employee?

58. What is a tax outside the scope of Federal taxes that an employer and employee are legally obligated to?

59. If exempt employee Dr. Banks worked 48 hours in one week and 46 hours in a second week, how much overtime should he be paid?

60. If you were recording journal entries for wage expenses, where would they be listed?

61. An exempt employee is exempt from...?

62. When accounting for taxes payable, how are they listed?

63. What type of tax return is used to file employee deducted and employer matched payroll taxes at the end of a quarter?

64. What two accounting records are payroll typically recorded to?

65. A employee garnishment is usually taken out of an employee's check when?

66. Which tax can you elect to be paid for in advance in your check if you qualify?

67. What form must a contractor include to not be considered an employee?

68. Which tax return is used to file federal annual employer paid taxes?

69. Which form is used to correct an employees reported wages to IRS after W-2's have been issued?

70. Which form is needed for independent contractors or vendors who are seeking payment for their products/services?

71. What is the current employer tax rate for FICA social security and medicare?

72. How long should an employer retain payroll information?

73. How long should a W-4 be kept on file?

74. A non-exempt employee worked 48 hours one week which included a holiday and 46 hours the next week. How much OT pay is due to this employee?

75. A non-exempt employee works 38 hours one week and 46 hours the next week. How many hours should this employee be paid for two weeks if guaranteed 40 hours?

76. If an employee's gross wages are $10,000, federal withholding is $1,000 and the employee wages YTD is $112,000, how much more tax money should be taken from employee's check?

77. What is the current maximum SS taxable wage amount for 2012?

78. Where is a student's EIN generally registered?

79. Where do you look to find payroll withholding deductions based on employee elected filing status?

80. What is the current 2012 FICA SS rate for employees?

81. If an employer

82. A company must send W2 forms every year to its employees by _____________.

83. The term "guaranteed wage" refers to ______________.

84. The term "escheat law" refers to ____________.

85. Which of the following journal entries would be made to void a payroll check printed in error?

86. What is Form W3?

87. The Fair Labor Standards Act of 1938 __________________.

88. Which of the following is a major payroll processor?

89. The term "incentive payment plan" refers to _______________.

90. The term "cumulative method of withholding" refers to ______________.

91. A company must file Form W3 every year by _____________.

92. The term "statutory employee" refers to ______________.

93. The term "payroll period" refers to ____________.

94. On which of the following financial statements is Payroll Expense reported?

95. What is an EIN?

96. What is the purpose of a time card?

97. What is the purpose of Form 940?

98. The term "withholding allowance" refers to ______________.

99. For an employee, which of the following is a benefit of using direct deposit?

100. For an employer, which of the following is a disadvantage of using direct deposit?

101. The term "wage bracket method for withholding taxes" refers to ______________.

102. Payroll system software can be hosted _____________.

103. What is the purpose of auditing payroll ?

104. The term "direct deposit" refers to ______________.

105.

At ABC School, the current salary schedule for custodians is as follows:

Step 1:   $12.47

Step 2:    $13.09

Step 3:    $13.75

Step 4:    $14.44

Step 5:    $15.16

Employees are moved to the next step on the salary schedule annually. Wages for the year have increased 2.25% from the previous school year. Employee C was paid on Step 2 for the previous school year.

Given the above schedule, what is Employee C's pay rate for the current school year?

106. Which of the following age groups is covered by the Age Discrimination in Employment Act of 1967?

107. Which of the following accounts is debited when FUTA taxes are paid to the government?

108. The term "overtime" refers to ______________.

109. Which of the following factors might prompt a company to switch to an automated payroll system?

110. The term "taxable wages" refers to ______________.

111. The Circular E: Employer's Tax Guide is ______________.

112. The term "payroll register" refers to ______________.

113. The term "bonus" refers to ______________.

114. The term "unemployment compensation benefits" refers to ______________.

115. The term "self-employment income" refers to ______________.

116. What is the purpose of Form W2?

117. Which of the following is a benefit of an automated payroll system?

118. According to the Self-Employment Contributions Act, any enterprise ___________________ is considered a business.

119. What is the purpose of an EIN?

120. How often should payroll be reconciled?

121. Who decides if a person is an employee or an independent contractor?

122. Which of the following payroll items is worth auditing?

123. The term "piece rate plan" refers to ______________.

124. What does the acronym SUTA stand for?

125. The term "percentage method of withholding" refers to ______________.

126. The term "contribution report" refers to ______________.

127. The term "bona fide occupational qualification" refers to _______________.

128. Who issues an EIN to a company?

129. Who controls the regulations for the timing of payment of wages?

130. Are meals provided on the company's premises subject to employment taxes as a benefit?

131. The Equal Pay Act ____________________.

132. How are FUTA taxes recorded at the time of payroll?

133. Which of the following is a disadvantage of an automated payroll system?

134. Which of the following illustrates the basic Balance Sheet formula?

135. The term "employee earnings record" refers to ______________.

136. The term "commission plan" refers to ______________.

137. Which of the following is an example of an internal control for payroll?

138. The term "disability insurance" refers to ______________.

139. The term "oppressive child labor" refers to ____________.

140. A W4 is ____________.

141. The term "profit sharing" refers to ______________.

142. The term "audit trail" refers to ______________.

143. Of the following, which is the best safeguard against employees accessing the payroll system?

144. The term "workers compensation insurance" refers to ______________.

145. "Regular earnings" are considered earnings for how many hours of work?

146. On which of the following financial statements is Revenue reported?

147. The term "the accounting process" refers to ______________.

148. What is the purpose of accruing vacation expense?

149.

Employee B has an annual salary of $50,000 that is paid to him over 26 pay periods. He works 260 days per year. He retires after working 65 days, during which time he received 6 paychecks.

Given this information, Employee B's gross wages for his final paycheck will be _____________.

150. What is the purpose of Form 941?

151. The term "internal control" refers to ______________.

152. Which of the following should happen in the payroll system after an employee is terminated?

153. Why has the IRS allowed employers to combine federal taxes when computing withholding amounts?

154. A company that employs ______________ is subject to the Civil Rights Act of 1964.

155. For an employer, which of the following is a benefit of using direct deposit?

156. The term "earned income credit" refers to ______________.

157. Employee C wants to contribute $8,000 a year to his tax shelter annuity. The district allows payroll deductions for tax shelter annuities to be spread over 18 pay periods. How much will have to be deducted each pay period so that Employee C contributes the $8,000?

158. Which of the following statements about independent contractors is true?

159. What is an NSF check?

160. Why would a company require a supervisor to approve an employee's hours?

161. Who typically maintains employee wage rates in the payroll system?