Question 1

What forms are required when an employee is hired? (Select all that apply.)
A) W-4
B) I-9
C) SS-4
D) W-2

Accepted Answer

A W-4 form is required by the employer for the employee to declare their federal income tax withholding status.

An I-9 form is required by the employer to verify the employee's eligibility to work in the United States.

SS-4 form is used to apply for an Employer Identification Number (EIN), which is used by the employer for tax purposes. It is not required at the time of hiring.

A W-2 form is issued by the employer to report an employee's annual wages and taxes withheld for the year. It is not required at the time of hiring.

Question 2

Ibrahim is the payroll accountant for a firm. He notes that the firm has hired a new employee. What forms must he collect from the new employee?
A) W-2 and I-9
B) W-4 and I-9
C) W-4 and I-8
D) W-3 and I-9

Accepted Answer

As a payroll accountant, Ibrahim must collect a W-4 form from the new employee for tax withholding purposes and an I-9 form to verify the employee's eligibility to work in the United States. Therefore, the correct choice is B. The other options are incorrect because the W-2 form is issued by the employer to the employee at the end of the year to report their wages and taxes withheld, the I-8 form is not a standard employment form, and the W-3 form is used by employers to report their employees' annual wages and taxes.

Question 3

The two focuses of payroll procedures are company needs and governmental rules.

Accepted Answer

Payroll procedures need to be in compliance with company policies and procedures as well as federal, state, and local laws and regulations. Therefore, the two focuses of payroll procedures are company needs and governmental rules.

Question 4

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Accepted Answer

This is required under the Immigration and Nationality Act, specifically Form I-9 verification requirements. The employer must complete and retain Form I-9 for each employee within three days of the employee's start date, and the employer must also report new hires to the state's designated agency within 20 days of their start date.

Question 5

Foreign workers in the United States are subject to new hire reporting regulations.

Accepted Answer

All new hires in the United States, including foreign workers, are subject to new hire reporting regulations under federal law. This requirement helps to track and enforce child support orders, identify unemployment insurance fraud, and prevent other forms of illegal activity. Failure to comply with new hire reporting requirements can result in penalties and fines for employers.

Question 6

U.S. workers in foreign subsidiaries are exempt from all income taxes.

Accepted Answer

U.S. workers in foreign subsidiaries may still be subject to taxes in the country where they are working, as well as potentially owing taxes to the U.S. government on their foreign income. However, there are some tax benefits and exclusions available for U.S. citizens working abroad.

Question 7

Employers may choose to omit the employees' Social Security numbers in their employee files.

Accepted Answer

The answer of Employers may choose to omit the employees'...

Question 8

Pay rate is the first payroll system decision a company must make.

Accepted Answer

The answer of Pay rate is the first payroll system...

Question 9

Which of the following is/are purpose(s) of new hire reporting laws? (Select all that apply.)
A) To ensure payment of court-ordered obligations like garnishments and child support.
B) To keep track of workers throughout their careers.
C) To ensure that the employee may legally work in the United States.
D) To keep track of workers and professionals who are subject to licensing regulations.

Accepted Answer

New hire reporting laws serve the purpose of ensuring payment of court-ordered obligations like garnishments and child support (A), verifying that the employee may legally work in the United States (C), and keeping track of workers and professionals who are subject to licensing regulations (D). However, the purpose of new hire reporting laws is not to keep track of workers throughout their careers (B).

Question 10

Which pay frequency has 24 pay periods annually?
A) Weekly
B) Biweekly
C) Semimonthly
D) Semi-weekly

Accepted Answer

Semimonthly pay frequency has 24 pay periods annually (twice a month). Weekly pay frequency has 52 pay periods annually, biweekly pay frequency has 26 pay periods annually, and semi-weekly pay frequency has 104 pay periods annually.

Question 11

If a firm pays its employees biweekly, how often does it disburse employee compensation?
A) Twice per week
B) Every week
C) Every two weeks
D) Every three weeks

Accepted Answer

Biweekly means every two weeks. Therefore, the firm disburses employee compensation every two weeks.

Question 12

Which pay frequency has 12 pay periods?
A) Daily
B) Weekly
C) Monthly
D) Semimonthly

Accepted Answer

The answer of Which pay frequency has 12 pay periods?
A)...

Question 13

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Accepted Answer

Semimonthly payroll involves a pay cycle in which pay disbursements occur twice a month, typically on the 15th and last day of the month.

Question 14

It is considered a best practice to assign one employee all payroll duties.

Accepted Answer

The answer of It is considered a best practice to...

Question 15

Which of the following are important decisions that an employer must make regarding its payroll procedures? (Select all that apply.)
A) How often to pay employees
B) How to handle pay advances
C) How many employees to hire
D) Which employee benefits to offer

Accepted Answer

Employers must decide on the frequency of payroll (A), how to manage pay advances (B), and which benefits to offer as part of compensation (D). The number of employees to hire (C) is more related to staffing decisions than payroll procedures.

Question 16

Which pay frequency has 26 pay periods per year?
A) Bimonthly
B) Biweekly
C) Semimonthly
D) Semi-weekly

Accepted Answer

Biweekly pay frequency has 26 pay periods per year as it pays employees every two weeks.

Question 17

Only regular working hours are considered as the worked hours for overtime computation.

Accepted Answer

Only regular working hours (i.e., not including breaks, lunchtime, or overtime hours) are considered for the purpose of calculating overtime pay. Overtime pay is typically calculated by multiplying the number of overtime hours worked by a predetermined rate, which is typically 1.5 times the regular hourly rate.

Question 18

Which of the following items must exist in every employee's payroll file?
A) Spouse's social security number
B) Employment history
C) Spouse's birth date
D) Occupation

Accepted Answer

The answer of Which of the following items must exist...

Question 19

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Accepted Answer

According to the IRS, a worker who sells life insurance on a full-time basis and is paid primarily by commissions is considered a statutory employee.

Question 20

Why must pay period information be a part of an employee's payroll file?
A) As a means of tracking time worked for overtime compensation purposes.
B) To ensure that the employee receives all compensation earned.
C) As a means of ensuring pay equality among employees.
D) To document satisfaction of court-ordered obligations.

Accepted Answer

Pay period information is necessary for tracking the time worked by employees and calculating overtime compensation accurately. It helps ensure that employees are paid for all the hours they worked, including any overtime hours they may have put in.

Quiz 2: Payroll System Procedures

What forms are required when an employee is hired? (Select all that apply.)

Ibrahim is the payroll accountant for a firm. He notes that the firm has hired a new employee. What forms must he collect from the new employee?

The two focuses of payroll procedures are company needs and governmental rules.

Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Foreign workers in the United States are subject to new hire reporting regulations.

U.S. workers in foreign subsidiaries are exempt from all income taxes.

Employers may choose to omit the employees' Social Security numbers in their employee files.

Pay rate is the first payroll system decision a company must make.

Which of the following is/are purpose(s) of new hire reporting laws? (Select all that apply.)

Which pay frequency has 24 pay periods annually?

If a firm pays its employees biweekly, how often does it disburse employee compensation?

Which pay frequency has 12 pay periods?

Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

It is considered a best practice to assign one employee all payroll duties.

Which of the following are important decisions that an employer must make regarding its payroll procedures? (Select all that apply.)

Which pay frequency has 26 pay periods per year?

Only regular working hours are considered as the worked hours for overtime computation.

Which of the following items must exist in every employee's payroll file?

A worker who sells life insurance on a full-time basis is considered a statutory employee.

Why must pay period information be a part of an employee's payroll file?