ACC150

What is the minimum penalty per employee for non-reporting of new employees?

$25

Which of the following are characteristics of leased employees

A formal agreement exists between the employer and leasing organization. Employee actions are directed by the recipient company (i.e. the lessee).

What are the three common-law tests the IRS uses to differentiate between employees and independent contractors?

Behavioral Control Relationship of the Parties Financial Control

List the purposes for new hire reporting

Communication of professional violations Immigration agency records Child support tracking Administration of COBRA benefits

The division of salaried workers as exempt or nonexempt pertains more to what?

Company policy

Which of the following items are present on the 2020 Form W-4?

Deductions for dependents Name, address, and social security number

Which of the following parties have the right to audit a company's payroll records?

Department of Homeland Security State Department of Labor Any labor unions affiliated with the company Federal Department of Labor

What is the distinction that applies to exempt employees?

Exempt employees are not subject to certain FLSA provisions.

What parties may legally set laws regarding document retention?

Federal Government State Government

Which of the following is true about payroll file security requirements?

Files must be secured by either physical or electronic safeguards.

Which of the following workers would be classified as a statutory employee?

Full-time life insurance agent Traveling salesperson who sells for a single company Beverage distribution driver for a single company

What are three important questions that an employer should ask when creating a payroll system

How does the company handle governmental compliance? How will the company handle employee terminations? How will the company handle employees who transfer between departments?

Which of the following job classifications are typically considered to be exempt, salaried employees?

Human resource managers General managers Accountants

Which of the following is a purpose of overtime review?

Improper pay can erode employee morale Prevention of payroll errors

Which of the following is true about independent contractors? (Check all that apply).

Independent contractors are not considered employees. Independent contractors control the manner in which they complete their work.

Which of the following is true about independent contractors?

Independent contractors are not subject to FLSA provisions regarding hourly wages and overtime.

Which of the following items may exist in a hiring packet?

Insurance paperwork Employee offer letter Government withholding form

Which of the following is true about electronic pay record access?

It may be done through the Internet.

What is the federal regulation for terminated employee pay?

It must be paid in accordance with state law. State guidelines for termination pay vary.

What are errors that can result if the total payroll responsibility rests with one person?

Management manipulation of employee commissions or incentives Terminated employees may continue to be paid Nonexistent or "ghost" employees could be created and paid via the payroll system.

Which of the following is false about a small company's payroll review process?

Outsourcing the payroll relieves the company of responsibility for accuracy.

Which items must be considered when issuing an employee's final paycheck?

Overtime pay Sick or vacation pay Regular pay

Which of the following is a purpose for the use of leave forms?

Paper trail to clarify discrepancies.

Why should an employer make payroll a non-solo enterprise?

Prevent diversion of funds Identification of non-existent or ghost employees

Why should payroll be a non-solo effort?

Prevention of payroll fraud by using nonexistent employees Prevention of computer system hacking

Good internal control over payroll provides which of the following for employees?

Protection and verification

What is the difference between salaried exempt and nonexempt employees?

Salaried nonexempt employees are eligible for overtime.

Which of the following is true of the payroll review process for a large company with outsourced vendors?

Several layers or verification in the payroll review process may exist. A company with multiple departments will have a more complex payroll more complex than one with fewer departments.

How may additional withholding appear on an employee's pay advice?

Specified dollar amount Percentage of gross income

What is one difference between an employee and an independent contractor?

The employer does not provide tools to independent contractors.

A temporary employee's actions are directed by:

The employment agency

Which of the following are true about internal controls in payroll accounting?

The internal controls should be reviewed periodically. Confidentiality of pay records should be maintained.

Which is the following is correct about both exempt and nonexempt workers?

They are employees of the company.

Which of the following is always true for hourly employees?

They are subject to FLSA wage and hour provisions.

Which of the following is true about nonexempt employees?

They generally do not supervise other employees.

Which of the following activities could be performed by the payroll clerk?

Timely entering of payroll data Ensure that employees receive the exact amount agreed upon

What is the function of record identifiers?

To prevent hacking by unauthorized parties To log record access time To reveal which personnel accessed records

Which of the following are examples of good internal controls over payroll?

Verification of payroll data by more than one person. Pay disbursement spread among many employees.

Which employer documents are closely linked to the employee's W-4?

W-2

Which forms are required to new hire reporting?

W-4 I-9

Which of the following are usually part of establishing a new employee's record in an automated system?

W-4 information Wage base Job classification Employee entry form

Which of the following is a question that an employer must face upon payroll system establishment?

What are the procedures for employee transfers? What are new hire policies and procedures?

What are payroll concerns when an employee is terminated or resigns?

When does the final paycheck need to be issued? What other compensation is due to the employee?

What are the criteria used in the determination of a worker as an employee? (Select all that apply)

Work direction Material contribution

Which of the following records maintenance issues was not addressed by IRS Revenue procedure 98-25, 1998-1 CB 689?

Work quality

The most important part of payroll is

accuracy

The maintenance of ___________ and ____________ employee records are a legal requirement.

accurate, detailed

At the minimum, how often should an employer verify the information on each employee's Form W-4?

annualy

An important element of a payroll review process is the determination of __________ ___________

authorized signers

Leased employees are _______ _______ employees and are eligible for the same benefits as other full-time employees.

common law

When outsourcing payroll activities, who is responsible for tax remittance?

company

Errors and potential corruption in the payroll process may be minimized by _____________ ___________ and _____________ duties.

cross traning, alternating

Details of the website's ____________and ______ ________documentation must be maintained to facilitated record disposal

design and system change

Which are examples of payroll apps?

eFileCabinet Square Payroll

The _______________ ____________ ____________ ___________was originally intended to protect ATM transaction but has been expanded to address paycard fraud. Listen to the complete question

electronic fund transfer act

Which of the following has the authority to review and approve payroll data from time cards or other time collection devices?

employee supervisor

According to IRS Regulation 26 CFR 1.6001, who is responsible for file maintenance?

employer

Which elements must be present to safeguard payroll information once it becomes accessible over the Internet?

encryption programs secure web locations passwords

According to IRS Revenue Procedure 98-25, 1998-1 CB 689, a company must maintain records about how __________ ______ was derived, including _________ from similar companies.

executive's pay, benchmarks

Under FLSA, the two classes of employees are __________ and __________

exempt and nonexempt

salaried workers may be classified as either ____________or __________

exempt or nonexempt

Under the ___________ ____________ ___________ ___________ , certain items are required in every employee's file.

fair labor standards act

Employees hired prior to January 1, 2020, need to file a new Form W-4.

false

Job titles are used as indicators of exempt status.

false

According to the FLSA, overtime is calculated as one-and-a-half times the employee's _________ rate.

hourly

Upon resignation or termination, an employee's ______________ worked will always be included in the final paycheck.

hours

With which agency may an employer file a petition to gain permission for a foreign employee to work in the U.S.?

immigration serices

Preferred methods of document destruction include ______ ,________ , and __________.

incineration shredding or pulping

An _____________ _________________ is not considered an employee and is not subject to payroll legislation. Listen to the complete question

independent contractor

All aspects of ________________ ________________ are the employer's responsibility, including the maintenance of electronic payroll files.

information security

In complex organizations, the classification of ______ ______may be required.

job location

Auditors seek well-defined internal controls within an organization to ensure_____________ ___________ and file integrity.

legal compliance

To promote file security, access to payroll files is

limited to authorized personnel

Additional withholdings _______ the employee's tax liability.

lower

The availability of digital copies facilitates, _____________ ,_______________ or authorized executives' review.

managerial, auditor

Standards used to differentiate employees and independent contractors include

material contribution work direction

________________ ______________ rates vary per state.

minimum wage

Salaried exempt employees are not subject to __________ and fulfill the FLSA requirement of ________.

overtime, selfdirection

The determination of __________ _______ is the first payroll item that must be established.

pay cycle

What is the first decision that a firm must make regarding payroll?

pay period

The separation of duties may help to prevent ____________ ______________

payroll fraud

FATCA requires employers to report the wages of employees who are ____________- U.S. citizens working in foreign locations to help keep track of expatriate wages.

permanent

A type of incentive pay includes _______ rate and ________ may be used as employee incentives for specific jobs.

piece, commissions

What do hourly employees receive per hour of work performed?

predetermined amount

Cross-training and alternation of duties serves what purpose(s)?

professional development avoid or minimize errors

Why is document destruction a serious concern for payroll records?

protection and confidential data

The Internal Revenue Regulation recommends which of the following activities related to file maintenance?

record labeling secure record storage backup copy creation

A best practice for document destruction is to create a_______ policy and _________ schedule.

retention, destruction

An important element of a payroll _________ process is the determination of authorized signers

review

Once the pay frequency is determined, the payroll accountant may establish the pay disbursement __________ for government liabilities.

schedule

Cases involving payroll diversion have resulted in _____________ _______________ and _____________ for companies.

sizeable fines, sanction

What information about an employee would be supplied by the payroll accountant?

state of employment worker's compensation classification local jurisdiction

The IRS classifies certain workers as ___________employees because they are a hybrid of employee and independent contractor.

statutory

A good practice is to obtain ________ _______ on all employee overtime.

supervisor approval

Pay record documentation may include reports of _________ or ________ .

tardiness or absenteeism

Which entity decides the contents of the hiring packet?

the company

The I-9 was updated in 2020 to include a new citizenship/immigration section.

true

True or false: A multi-state employer may designate one state as the primary place to which they report new hires.

true

What form does an employee use to request additional withholding of federal tax amounts?

w-4

The governmental forms required of all new hires are the ____________and _____________

w4 i9