Payroll Accounting CH 1 Exam Actual
Questions and Answers 2026
What is the purpose of a payroll system? -
correct answer ✅Job planning; strategic HRM; cost mgmt; benefit
analysis
What are some differences between Large and Small company
payroll practices? -
correct answer ✅- Large) many departments; portals, websites;
rely on payroll service vendors.
- Small) fewer payroll transactions; may lack training.
**Volume; handling of payroll records.
What is Certified Payroll? Which companies must use it? -
correct answer ✅Way that the federal government keeps track of
the money spent as part of government contracts over $2000.
- Companies who do business with the federal government.
Why might it be a good idea to let ee's manage their payroll
records? What could be some pitfalls? -
correct answer ✅Can see PTO time; track benefits.
Could be unethical and they would be able to clock in with their
phone
, Payroll Accounting CH 1 Exam Actual
Questions and Answers 2026
What are some ways that a payroll system may protect a company
in the event of a visit from a gov auditor? -
correct answer ✅Computer based systems to help limit human
error and expedite processing.
What is Payroll Outsourcing? When might a company consider
outsourcing its payroll? -
correct answer ✅When a company chooses an outside provider to
handle all payroll needs.
Larger) are able to manage complexity
Smaller) not cost efficient; can use different analytics.
Give 3 examples of federal laws that are essential to ensure legal,
fair hiring practices? -
correct answer ✅- Equal Pay Act
- Civil Rights Act
- ADEA
- ADA
Questions and Answers 2026
What is the purpose of a payroll system? -
correct answer ✅Job planning; strategic HRM; cost mgmt; benefit
analysis
What are some differences between Large and Small company
payroll practices? -
correct answer ✅- Large) many departments; portals, websites;
rely on payroll service vendors.
- Small) fewer payroll transactions; may lack training.
**Volume; handling of payroll records.
What is Certified Payroll? Which companies must use it? -
correct answer ✅Way that the federal government keeps track of
the money spent as part of government contracts over $2000.
- Companies who do business with the federal government.
Why might it be a good idea to let ee's manage their payroll
records? What could be some pitfalls? -
correct answer ✅Can see PTO time; track benefits.
Could be unethical and they would be able to clock in with their
phone
, Payroll Accounting CH 1 Exam Actual
Questions and Answers 2026
What are some ways that a payroll system may protect a company
in the event of a visit from a gov auditor? -
correct answer ✅Computer based systems to help limit human
error and expedite processing.
What is Payroll Outsourcing? When might a company consider
outsourcing its payroll? -
correct answer ✅When a company chooses an outside provider to
handle all payroll needs.
Larger) are able to manage complexity
Smaller) not cost efficient; can use different analytics.
Give 3 examples of federal laws that are essential to ensure legal,
fair hiring practices? -
correct answer ✅- Equal Pay Act
- Civil Rights Act
- ADEA
- ADA
