Payroll 101: Best Practices And Compliance
This test will demonstrate your knowledge of the Payroll 101 training session. You must pass with a score of 80% or better to pass and complete the course.
- 1.
The Common Law Test should be used to determine how to classify an employee.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The Common Law Test should be used to determine how to classify employees. The employer’s determination affects the entire relationship between the employer and the worker.Rate this question:
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- 2.
Supplemental wages must be taxed at a higher federal income tax rate of 25%.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Supplemental wages must be taxed at a higher federal income tax rate (flat 25%) than regular wages. Some states have a higher rate as well.Rate this question:
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- 3.
Which one is NOT a type of supplemental wages?
- A.
Bonus
- B.
Commissions
- C.
Holiday pay
- D.
Severance pay
Correct Answer
C. Holiday payExplanation
Holiday pay is not a type of supplemental wages.Rate this question:
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- 4.
____ # of states do not withhold income taxes from wages earned.
Correct Answer
Nine
nine
9Explanation
All but nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) require employers to withhold income tax from employee’s wages.Rate this question:
- 5.
Each state does not have a mandated pay frequency that is the minimum frequency by which employers must pay its employees.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Each state does have a mandated pay frequency that is the minimum frequency by which employers must pay its employeesRate this question:
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- 6.
Which one of these is a step to provide excellent customer service?
- A.
Tell the person when they are wrong.
- B.
Do not offer timing for a resolution.
- C.
Put obnoxious people on hold until they give up and hang up.
- D.
Put yourself in the person's shoes.
Correct Answer
D. Put yourself in the person's shoes.Explanation
Putting yourself in the person's shoes is a step to provide excellent customer service because it allows you to empathize with the customer and understand their perspective. By doing so, you can better address their concerns, provide appropriate solutions, and ensure their satisfaction. This step helps in building a positive relationship with the customer and enhancing their overall experience.Rate this question:
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- 7.
Types of garnishments are creditor garnishments, student loans, and mortgage deductions.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Mortgage deductions are not a type of garnishment.Rate this question:
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- 8.
Which one is not a year-end activity?
- A.
Print W2's.
- B.
Clean-up data in the payroll system.
- C.
Check employee bank accounts.
- D.
Review audit reports.
Correct Answer
C. Check employee bank accounts.Explanation
The correct answer is "Check employee bank accounts." This is not a year-end activity because it is a regular task that should be done throughout the year to ensure accurate and timely payment to employees. Year-end activities typically involve tasks such as printing W2's, cleaning up data in the payroll system, and reviewing audit reports to ensure compliance and accuracy in financial records.Rate this question:
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- 9.
Each employee must complete a W4.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Each employee must complete a W4 form that identifies their withholding status and number of exemptions.Rate this question:
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- 10.
Supplemental wages paid in excess of $1 Mil must be taxed at ___%?
Correct Answer
35
35%
Thirty five
thirty five
Thirty-five
thirty-five
Thirty-FiveExplanation
Supplemental wages paid in excess of $1 million must be taxed at a rate of 35%.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Oct 23, 2011Quiz Created by
Tprice7296
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