Deck 9: Computer Processing Choices, Non-Recurring Payments, Integrated Systems, and Software Considerations in Payroll Processing

Question 1

If you do not purchase a payroll processing system, you will not be able to calculate employee pay properly.

Answer 1

False

Question 2

Purchasing a payroll processing system is a great way to reduce the burden on the payroll administrator as the software provider will assume the responsibility for meeting contractual obligations and legislative compliance.

Answer 2

False

Question 3

Once you have a computerized payroll system in place, manual processing methods may still need to be used to test the system and to deal with any unusual payments the system is unable to handle.

Answer 3

True

Question 4

Manual processing can be enhanced by using electronic spreadsheets that automate the calculation of Federal and Provincial tax deductions.

Question 5

Companies using manual payroll processing are unable to meet the regulatory reporting requirements as outlined by the Canada Revenue Agency.

Question 6

Employers will often need to change their business processes based on the integrated computer system they have installed.

Question 7

Out-sources payroll systems are normally available free of charge and require no input from payroll administrators.

Question 8

When a new computerized payroll system is purchased, it will come pre-loaded with all of the information you need to start processing pay.

Question 9

Any replacement or additional payments processed through manual cheque preparation will be automatically recorded by the payroll processing software.

Question 10

Computerized payroll systems have a variety of programs specifically designed for the year-end.

Question 11

When setting up a new payroll system defaults can be used for many of the common settings to help save time.

Question 12

A company with 5 employees and an expert payroll professional must work quickly to create a system needs list and review options for computerized payroll or they will face fines and fees from the Canada Revenue Agency.

Question 13

All suppliers must comply with the basics of Canadian Payroll Administration to ensure the employers meet minimum legislative compliance.

Question 14

Company specific information required for payroll processing in a computerized system includes all but the following:

A) Company address
B) Revenue Quebec account number
C) Annual revenue
D) Legal name
E) CRA registration number

Question 15

The advantages of computerized payroll systems do not include:

A) Minimizing management responsibility
B) Output files can be created for other uses
C) The ability to process large amounts of data accurately
D) Tables for calculation of with-holdings can be included with the software
E) Input of information can be automated from other systems

Question 16

Computer processing choices do not include:

A) Hybrid integrated systems
B) Hyperactive integrity systems
C) Integrated management systems
D) Out-sourced payroll systems
E) Stand-alone computer systems

Question 17

An example of a non-recurring payment to employees that would need to be prepared and approved before processing payroll is:

A) Retroactive wage adjustments
B) Shift premiums
C) Weekly sales commissions
D) Salary
E) Parking allowance

Question 18

This is not an advantage of using an integrated computer system.

A) Required reports are automatically produced after each pay cycle
B) Data is usually only entered once and processed as needed
C) Usually include a Canadian payroll module
D) The software is normally tested and updates are provided from the supplier
E) The software is normally provided free of charge and no training is required

Question 19

Stand-alone systems are generally a good choice when:

A) There is a need to access the system through the intranet or internet
B) There is a need to share payroll information between many employees at remote locations
C) There is an need to share information from the payroll records with other systems operated by the employer
D) The company is very large and owner wants the records to be viewable at the workplace
E) The payroll administrator is an expert in the system and integration is not important to the employer

Question 20

Explain some of the drawbacks associated with using computerized payroll processing.

Question 21

Explain the value an out-sourced payroll service provider can offer to an employer.

Question 22

What factors should an employer consider when determining their needs for a new computerized payroll system?

Question 23

List 7 important questions that should be addressed when reviewing software options for payroll.