ADP PAYROLL SPECIALIST EXAMINATIONS
ANSWERS AND QUESTIONS SET A+
✔✔What is a traditional 401(k)? - ✔✔A retirement contribution generally made before
federal income taxes are applied, with taxes generally paid when money is withdrawn.
✔✔What is a Roth 401(k)? - ✔✔A retirement contribution made with after-tax dollars,
with qualified withdrawals generally being tax-free.
✔✔Why might a small business offer a 401(k)? - ✔✔To attract and retain employees,
provide a valuable benefit and help employees save for retirement.
✔✔What is a SIMPLE IRA? - ✔✔A retirement plan designed for certain small employers
that is generally simpler to administer than a traditional 401(k).
✔✔What is a SEP IRA? - ✔✔A retirement plan that allows employers, including certain
self-employed individuals, to make contributions for eligible employees.
✔✔What is workers' compensation? - ✔✔Insurance that generally provides benefits for
employees who suffer work-related injuries or illnesses and helps protect employers
from certain related liabilities.
✔✔Why would a business care about workers' compensation? - ✔✔It helps protect
employees and businesses while helping the employer meet applicable state
requirements.
✔✔What are employee benefits? - ✔✔Non-wage compensation provided to employees,
such as health insurance, retirement plans, paid time off and other benefits.
✔✔What is HR? - ✔✔Human Resources. The function responsible for managing
people-related processes such as hiring, onboarding, employee policies, benefits,
performance and compliance.
, ✔✔What is HR compliance? - ✔✔Following federal, state and local employment laws
and regulations.
✔✔Why is HR compliance important to a small business? - ✔✔Mistakes can create
financial, legal and operational risk.
✔✔What is time and attendance? - ✔✔Technology and processes used to track
employee hours, schedules, time off and attendance.
✔✔What is talent management? - ✔✔Processes and technology used to recruit, hire,
develop, retain and manage employees.
✔✔What is benefits administration? - ✔✔The process of managing employee benefits,
enrollment, eligibility and related administration.
✔✔What is payroll integration? - ✔✔Connecting payroll with other business systems so
employee and payroll information can flow between systems more efficiently.
✔✔What is a payroll provider? - ✔✔A company that helps businesses calculate payroll,
process employee payments and manage payroll tax responsibilities.
✔✔What makes ADP different from competitors? - ✔✔ADP combines scale, workforce
expertise, technology, data, compliance infrastructure, broad product capabilities and
service.
✔✔What is one of ADP's biggest competitive advantages? - ✔✔Its scale and depth of
workforce expertise.
✔✔What does ADP mean when it talks about workforce data? - ✔✔ADP has a very
large amount of aggregated workforce and payroll-related data that can help inform
products, services and insights.
✔✔What should you say if asked whether ADP is the cheapest option? - ✔✔ADP's
strength is the combination of technology, expertise, scale, compliance capabilities and
breadth of solutions rather than simply competing on price.
✔✔Who is ADP's most direct large competitor? - ✔✔Paychex.
✔✔What is Paychex? - ✔✔A major payroll, HR, benefits, time, insurance and workforce
management provider with a strong small-business presence.
✔✔How does ADP differentiate itself from Paychex? - ✔✔ADP can emphasize its scale,
workforce data, broad ecosystem, global capabilities, experience and ability to support
businesses as they grow.
ANSWERS AND QUESTIONS SET A+
✔✔What is a traditional 401(k)? - ✔✔A retirement contribution generally made before
federal income taxes are applied, with taxes generally paid when money is withdrawn.
✔✔What is a Roth 401(k)? - ✔✔A retirement contribution made with after-tax dollars,
with qualified withdrawals generally being tax-free.
✔✔Why might a small business offer a 401(k)? - ✔✔To attract and retain employees,
provide a valuable benefit and help employees save for retirement.
✔✔What is a SIMPLE IRA? - ✔✔A retirement plan designed for certain small employers
that is generally simpler to administer than a traditional 401(k).
✔✔What is a SEP IRA? - ✔✔A retirement plan that allows employers, including certain
self-employed individuals, to make contributions for eligible employees.
✔✔What is workers' compensation? - ✔✔Insurance that generally provides benefits for
employees who suffer work-related injuries or illnesses and helps protect employers
from certain related liabilities.
✔✔Why would a business care about workers' compensation? - ✔✔It helps protect
employees and businesses while helping the employer meet applicable state
requirements.
✔✔What are employee benefits? - ✔✔Non-wage compensation provided to employees,
such as health insurance, retirement plans, paid time off and other benefits.
✔✔What is HR? - ✔✔Human Resources. The function responsible for managing
people-related processes such as hiring, onboarding, employee policies, benefits,
performance and compliance.
, ✔✔What is HR compliance? - ✔✔Following federal, state and local employment laws
and regulations.
✔✔Why is HR compliance important to a small business? - ✔✔Mistakes can create
financial, legal and operational risk.
✔✔What is time and attendance? - ✔✔Technology and processes used to track
employee hours, schedules, time off and attendance.
✔✔What is talent management? - ✔✔Processes and technology used to recruit, hire,
develop, retain and manage employees.
✔✔What is benefits administration? - ✔✔The process of managing employee benefits,
enrollment, eligibility and related administration.
✔✔What is payroll integration? - ✔✔Connecting payroll with other business systems so
employee and payroll information can flow between systems more efficiently.
✔✔What is a payroll provider? - ✔✔A company that helps businesses calculate payroll,
process employee payments and manage payroll tax responsibilities.
✔✔What makes ADP different from competitors? - ✔✔ADP combines scale, workforce
expertise, technology, data, compliance infrastructure, broad product capabilities and
service.
✔✔What is one of ADP's biggest competitive advantages? - ✔✔Its scale and depth of
workforce expertise.
✔✔What does ADP mean when it talks about workforce data? - ✔✔ADP has a very
large amount of aggregated workforce and payroll-related data that can help inform
products, services and insights.
✔✔What should you say if asked whether ADP is the cheapest option? - ✔✔ADP's
strength is the combination of technology, expertise, scale, compliance capabilities and
breadth of solutions rather than simply competing on price.
✔✔Who is ADP's most direct large competitor? - ✔✔Paychex.
✔✔What is Paychex? - ✔✔A major payroll, HR, benefits, time, insurance and workforce
management provider with a strong small-business presence.
✔✔How does ADP differentiate itself from Paychex? - ✔✔ADP can emphasize its scale,
workforce data, broad ecosystem, global capabilities, experience and ability to support
businesses as they grow.
