Questions and Answers of Payroll Accounting

Krystal Valdez, a nonexempt employee at Misor Investments, works a standard 8:00–5:00 schedule with an hour for lunch. Krystal received overtime pay for hours in excess of 40 per week. During
What categories exist for the purposes of document retention?
What differentiates exempt and nonexempt employees?
What is the difference between termination and resignation?
How long should employee records be retained?
What documents should be included in all new hire packets?
Liliya Milic is the accountant for Syiva, a local nonprofit organization. She has been tasked with managing the costs of the payroll so that staffing levels may remain the same even if funding levels
You have been hired as a consultant for Dynozz Medical Software, which is facing an IRS audit of their accounting records. During your review, you notice anomalies in the payroll system involving
Alfredo Bellini is the payroll accountant for Pyrodono Fireworks and he has been asked for information about employees and independent contractors. What are three key differences between employees
Larissa Abiodun is a senior payroll administrator for Falcive Landscape Design. The company has 15 employees and annual revenues of $10 million. She has been using and maintaining manual payroll
Eugene Roberson works as a payroll clerk at Hyperend Inc. He shares an office with three other co-workers and must examine documents containing personal information as a regular part of his duties.
Nitza Croce is an employee of Autonder, a contractor that provides governmental construction services in Washington, D.C. The current contract is for $250,000. Nitza is 22 and is paid $9.50 per hour.
Samuel Alescio is an accountant for Diado, a large, multinational firm. During payroll processing, he notices that the new state payroll tax updates have not been installed in the firm’s software.
During a review of payroll records, Osvaldo Morena notices that a female employee in Department A is receiving a significantly lower salary than similarly skilled male employees in the same
Perpetua Holguin is a payroll accountant for Marore Industries. She is asked to explain the differences between exempt and nonexempt employees. What job elements should she highlight as the
Clara Hudnall is Conosis Incorporated's payroll accountant. During a casual conversation with coworkers, she learns that Thorben Vinkovic, a coworker, is deliberately overstating the number of hours
Jolana Thomas is the payroll clerk for Telemba Communications. One of the company employees, Darijo Boon, informs Jolana that he feels he was the victim of unequal pay three years prior. What law(s)
Albina Kravitz is the payroll administrator for Exity Enterprises. Because of economic conditions, her boss has assigned her the additional duties of office management, and Albina is considering
Khaled Watson is the payroll accountant for Antizio Electronic, a company that engages in work on federal contracts. He wants to ensure that the company is compliant with the provisions of the
Erkan Dioli is the payroll accountant for Prosario Imports. His most recent experience with accounting was when he was in college, which was eight years ago. What body recommends the ethical
Paula Aggio is the accounting manager for Sugent Communications. The company has a staff that includes five full-time employees and eight on-call workers who independently determine the number of
Mathias Acker is the new bookkeeper for Meganyx Enterprises, a small business consulting firm, and was hired to replace a long-time employee who retired. Upon starting the position, Mathias notices
Gale Rana is a production worker at Gexo Manufacturing, which produces air conditioning systems. After working there for 10 years, she discovers through conversations with a colleague with the same
Emmett Colquhoun is a military veteran who requires many absences for medical reasons. His boss at Betri Farms has demanded that he reduce the number of sick days unless he provides his medical
Cahya Russell is a new employee in the payroll department for Winhook Industries. She has had several employees approach her with questions, but is unsure how privacy regulations could affect her
Katelijn Preston is a new manager at Resterra Inc. She is looking at using the E-Verify process for new hires. What recommendations can you give her about the differences between having an employee
Libbi Alberighi and Flavia van Peij are friends who work for the same company. Libbi manages a manufacturing department and Flavia supervises the payroll clerks. Which ethical guidelines or rules
Kalea Germain is a warehouse worker for a small grocery market. As she was moving some merchandise, the loading dock door unexpectedly fell and injured her. How does OSHA apply to Kalea for this type
Kalea Germain is a warehouse worker for a small grocery market. As she was moving some merchandise, the loading dock door unexpectedly fell and injured her. How does OSHA apply to Kalea for this type
A group of employees, who read on a website that income tax collection is illegal, approach Hawa Furst, the controller for a large company. They request that he stop withholding income taxes from
Elias Motta is the office manager and payroll clerk for his company, which is composed of 12 employees. An employee, Sylvia Gladwin, stops by Elias's office and wants to view her payroll record. What
Jessalyn Poulsen is an accountant for his firm, a medium-sized company with 125 employees. The firm has traditionally maintained the administration of its payroll. His co-worker, the only other
Merlin Anson owns Uninix Computers, a company with five employees. A small business owner, he has several options for payroll processing. What factors should he consider when deciding on which
Julia Chaudhari is the new payroll accountant for Insulose Chemicals. She is a member of a local young professional networking organization. At a social gathering of the organization, her
Overnet Inc. is a company that provides health insurance to its employees. The company is self-insured. Which of the following forms should the company provide its employees to comply with the
Benson Rake is a member of the hiring board for Quambo Dynamics, a software firm. As the board reviews candidates for a position, one of the other board members wants to exclude Nicholas Mathers, a
Martine Piccirillo works as the payroll clerk for Centinix, a security company that hires many part-time and temporary workers who are paid on an hourly basis. What law governs the hiring or
Lupore Fabrics obtained a contract in Watts Mills, South Carolina, which involves the production of materials for military uniforms, a project contracted with the federal government for $2,800,000.
Which of the following accounts appear on the Balance Sheet?
How do the payroll register and employee earning record help employers meet their responsibilities to different groups, such as the employees and governmental agencies?
How can a company’s payroll information contained in financial reports assist in corporate planning?
How can companies use payroll information that is reported in the financial statements to determine labor distribution?
How do payroll expenses affect the income statement and balance sheet?
Sheronda Rowe is the payroll accountant for Great Lake Lamps. The company's management has requested an analysis of the payroll effects on the expenses of the company. Explain which accounting
What accounts are debited and credited for the employer share of the payroll expenses?
Managers use labor reports to do which of the following?A. Analyze Labor trends.B. Determine staffing needs.C. Ensure FLSA wage and hour compiLance.D. Formulate strategic plans for the company.
Sophie Sue Breeders has the following voluntary withholdings to remit:AFLAC payable: $560.00401(k) payable: $1,280.00 Garnishments payable: $375.00United Way contributions payable:
What two accounts are affected upon issuance of paychecks?
What is the purpose of payroll-related accrual and reversal entries on financial statements?A. Reversing entries represent disbursement of accrured payroll prior to the end of the pyroll period.B.
What is always true about trial balance reports?A. All accounts with balances are included in the report.B. Only accounts with activity during the period are included on me report.C. The report is
What are three of the accounts that may be credited for the employee payroll?
Using the employer payroll entry from P6-5A, post the employer’s share of payroll taxes for the July 15 pay at Charles’ Cleaners to the appropriate General Ledger accounts. Assume that $1,352.40
For the employee share of the payroll, what type of account is debited for the gross pay?
How do payroll-related expenses affect financial statements?A. Payroll expenses reduce th net income of a company.B. The perlod’s gross earnings are reported on the income StatementC. Payroll
Using the employee pay journal entry for P6-4A, complete the General Journal entry for the issuance of the pay for the July 15 pay date. The date of the checks is July 18.Data from P6-4A Post Ref.
How does a payroll accountant use the information in the General Ledger?A. The account balances form the basis for accounting reports.B. The payroll accountant uses General Ledger balances to
How are the payroll register and the employee earning records related?
Using the employee payroll entry for 6-4A, post the July 15 employee pay for Charles€™ Cleaners to the selected General Ledger accounts below:Accounts: salaries and wages payableAccounts:
What is always true about the General Ledger?A. The process of transferring amounts from the General Journal to the General Ledger is called posting.B. The General Ledger is a way to represent
Which of the following principles is always true about financial accounting?A. Assets = Owners’ Equity.B. Debits = Credits.C. Assets = LiabiLities + Owners’ EquityD. Debits + Credits = Owners’
The total of the Gross Earnings column of the payroll register for a given pay period will appear in which account for the payroll-related general journal entry?A. Salaries and Wages Payable.B.
Which if the following are categories contained in the fundamental accounting equation?A. AssetsB. LiabilitiesC. ExpensesD. Owners’ Equity
A debit increases which of the following types of accounts?A. LiabilitiesB. ExpensesC. RevenueD. Assets
How do the payroll register and employees' earnings records connect with payroll tax determination and remittance?A. Payroll register column totals contain information about pay period tax
What is the connection between the employees' earnings records and payroll tax reporting?A. Employees’ earnings records do not connect with payroll tax reporting.B. Employees’ earnings records
Where are daily accounting entries recorded?
Which column exists in the employees' earnings records but not in the payroll register?A. Gross payB. Net payC. YTD payD. 401(k) contributions
What types of accounts does a credit increase?
What is/are the difference(s) between the rows and columns in the payroll register?A. Each row pertains to an individual employeeB. Each column represents an element in net pay computation.C. Column
How does payroll relate to a company’s costs of doing business?
Which of the following represents the difference between benefit analysis report and the annual total compensation report?
Which of the following represent the purpose(s) of the benefit analysis report?A. Benchmarking with other companies.B- Understanding of employer and empLoyee benefits costs.C. Billing employees for
John Johnson is the accounting supervisor for Block Furnishings, which has chosen to maintain their payroll on an in-house basis for this purpose and has hired new accounting clerks. Which of the
Which of the following is true about the cost of employees within a business context? A. Employees comprise a significant cost of conducting business.B. Hiring employees involves a significant
Fideaux is a new business owned by Lewis Brooks. His first year of operation commenced on June 1, 2016. What schedule depositor would his company be for the first year of operations?
How often must a company report 940 earnings/withholdings?
Veryclear Glassware is a new business owned by Samantha Peoples. Her first year of operation commenced on April 1, 2016. What schedule depositor would she be for the first year of operations?
What determines the deposit requirements for employer taxes?
What taxes are the shared responsibility of the employer and employee?
Which of the following is true about FUTA obligations? A. FUTA is an employer-only taxB. FUTA is subject to a 5.4% reduction based on employer and state factors.C. FUTA is subject to a $7,000
Eyeseeyou Cameras has the following employees:Employee nameAnnual salaryMia Haskell$26,000Viktor Papadopoulos$35,000Puja Anderson$32,000Cady Billingmeier$29,000Carl Johnson$46,000Eyeseeyou Cameras’
Maggie’s Memories is a semiweekly depositor. Following the success of a special project, Maggie, the owner, pays each of the 250 employees a $20,000 bonus on August 17, 2016. Assuming a 25% income
What are advantages and disadvantages of direct deposit?
Which of the following are always post-tax deductions?
What are advantages and disadvantages of paycards?
Which of the following is true about state and local income tax?A. Pre-tax deduction rutes for federal income tax are generally the same for state and local income taxes.B. Nine states do not have a
Which of the following statements are true about state and local income taxes? (Select all that apply) A. All states tax employee earnings.B. State tax rates on employee earnings vary among
What are the four different pay methods?
Scout is the vice present for marketing at Sun Field Industries. She earns $140,000 annually and is paid on a semimonthly basis. As of October 31, Scout has year-to-date earnings of $116,666.67. The
Which of the following are true about Social Security and Medicare tax deductions? A. They are applied to the gross pay.B. Contributions to a 401(k) plan are exempt from these taxes.C. Medicare
The employees of Black Cat Designs are paid on a semimonthly basis. Compute the FICA taxes for the employees for the November 30, 2016, payroll. All employees have been employed for the entire
Which of the following is true about Social Security and Medicare taxes, as they pertain to earnings limits? (Select all that apply)A. Social Security tax applies to all earnings, regardless of
Why is the difference between gross pay and taxable income important?
Which of the following are steps in computing federal income tax withholding using the percentage method?A. Compute and deduct withholding allowance.B. Apply the tax rate to the taxable portion of
Under which circumstances could the percentage method be used to determine federal income tax withholding amounts?
How is an employee’s net income computed?
Liam is the payroll accountant for Chop Brothers Coffee. As he prepares to use to wage bracket tables to determine federal income tax withholdings for each employee, which information should he have
Teddy is a new payroll clerk with B&H Farms. As he prepares to use the wage bracket tables to determine federal income tax withholdings, what information does he need for each employee?
What are two examples of pre-tax deductions?
Which of the following is/are examples of fringe benefits?A. Education assistanceB. Shopping club membershipC. Vacation discountsD. Retirement planning services

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