The Payroll Source CPP Practice Exam with Complete Solutions

Which of the following features is LEAST likely to be considered when looking at the security of a new payroll system? a. regular data back-up and storage b. protection against computer viruses c. limited system access d. system edits - ANSWER-d. system edits Company deadlines for payroll data input documents are essential for: a. timely processing of the payroll b. accurate entry of data c. guaranteeing that all information is processed d. adequate auditing purposes - ANSWER-a. timely processing of the payroll The BEST reason for tracking pay-related problem statistics is to enable Payroll to: a. identify root causes and take actions to prevent similar recurrences b. apologize to clients in a more professional manner c. direct problems to those who caused the problem d. justify more resources to handle more problems - ANSWER-a. identify root causes and take actions to prevent similar recurrences With regard to EEs' reported tips, the ER must: a. withhold and pay only the EEs' portion of FICA taxes on tips b. report tax on tips separately when making an employment tax deposit c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes d. report and pay the ER portion of FICA taxes on the portion of cash tips above the federal minimum wage - ANSWER-c. report tips as wages on Form W-2 and pay the ER portion of FICA taxes Transactions are recorded in chronological order into books of original entry called: a. registers b. vouchers c. invoices d. journals - ANSWER-d. journals The KEY advantage of using an automated time and attendance system is that it: a. identifies phantom EEs b. reduces errors c. interfaces with the payroll system d. frees supervisors from having to review hours - ANSWER-b. reduces errors As part of the implementation of a new payroll system, all transactions from the most recent actual payroll are processed in the new system prior to using the system to run payrolls. This is an example of what type of testing? a. compliance b. back-up c. ongoing d. parallel - ANSWER-d. parallel To exhibit good customer service skills, payroll staff must understand and be able to explain: a. payroll forms b. benefits enrollment techniques c. systems design decisions d. strategic departmental direction - ANSWER-a. payroll forms All of the following data elements are required to be maintained in the EE masterfile EXCEPT: a. SSN b. DOB c. marital status d. hourly rate of pay - ANSWER-c. marital status Upward communication involves: a. dissemination of management decisions to the staff b. interactions between you and your manager c. passing information to management d. conducting quality circle meetings - ANSWER-c. passing information to management The fact that transactions affect two separate accounts of a business is called: a. compound-entry accounting b. double-entry accounting c. accrual accounting d. T-accounting - ANSWER-b. double-entry accounting A company pays all executives semimonthly. The FLSA requires all other EEs to be paid on: a. a weekly cycle b. a biweekly cycle c. a semimonthly cycle d. any established cycle - ANSWER-d. any established cycle Which of the following answers BEST defines the term nonexempt under the FLSA? a. a lower-paid class of EEs b. hourly-paid workers only c. EEs who must be paid OT