About Payroll

Compensation for employees that must be paid at some point in the future is known as payroll. A company's accounting or human resources department is often responsible for handling this type of issue. Payrolls for small businesses can be handled by the owner or an employee.

Employees are paid through payroll, which includes recording hours worked, computing their salary, and disbursing payments either by direct deposit or cheque to their bank accounts.

Another meaning of the term "payroll" is "the list of employees and the amount of money owed to each individual employee." As a general rule, payroll is a significant expenditure for most organizations, and it is nearly always deductible, which lowers taxable revenue. Overtime, sick pay, and other factors might cause payroll to fluctuate from one pay period to the next.

Managing Payroll

Payroll services are frequently outsourced by large and medium-sized businesses alike in an effort to save costs. Work hours are tracked by employers, who then provide this data to the payroll provider. Using the number of hours or weeks worked and the hourly rate throughout the pay period, the payroll service determines the gross amount due to the employee on payday. Taxes and other withholdings are deducted from employee salaries before the money is disbursed.

Pros of Professional Payroll Services

  • Access to a wide range of documents
  • Simplified tax and accounting reporting
  • Professional Payroll Services drawbacks include a record of vacation time and personal time used by workers
  • Financial and tax information is available to anyone outside the company.
  • Payroll issues must still be addressed by internal workers.
  • Payroll service faults may result in tax fines for the firm.
  • Payroll services may be costly for small firms, which is a problem.

Following are some of the multiple choice questions on the Payroll with answers that will help the students in developing their knowledge.

Payroll MCQ

1. What is Medicare tax for?

  • It funds health insurance for retired Americans
  • It funds Medicaid
  • It funds health insurance for all Americans
  • It funds health insurance for those who can't afford it under the Affordable Healthcare Act

2. What is another name for social security tax?

  • Income tax
  • FICA
  • Medicare tax
  • State tax

3. How long should an MEDIUM-TERM financial goal take to achieve?

  • 1 day - 3 months
  • 3 - 6 months
  • 6 - 18 months
  • 3 - 12 months

4. The complete record of your borrowing and past payment performance.

  • Credit Bureau
  • Credit History
  • Credit Report
  • Credit Freeze

5. What is the name of our Timekeeping system?

  • Phonos
  • Thanos
  • Bebemos
  • Kronos

6. What is the difference between exempt and non-exempt employees?

  • Exempt employees are not eligible for overtime pay
  • Non-exempt employees are not eligible for overtime pay
  • I don't know, I always get the two terms confused.
  • none of the above

7. What is the most commonly asked payroll question/request that we receive?

  • When is the union retro pay check coming?
  • Can you print out my W-2 / paystub / vacation balance?
  • Please reset my Kronos password.
  • All of the above

8. What is a PET?

  • Bugsy
  • Proposed Expense Transfer
  • Payroll Expense Transfer
  • Proper Etiquette Techniques

9. What is the penalty for paying someone after their date of termination?

  • One day of pay per day late
  • $200
  • Half of their annual salary
  • There is no penalty

10. How much income tax do employers withhold from employee pay?

  • Employers use the information on Form W-4 to compute income tax withholding.
  • 1.45% of gross pay
  • 6.2% of gross pay
  • 7.65% of gross pay

11. The Payroll Protection Program has enough money to last for a year.

  • True
  • False

12. The Payroll Protection Program is the only portion of the CARES Act that provides assistance to businesses.

  • True
  • False

13. Because of the Payroll Protection Program, very few people in the United States have had to file for unemployment because of the coronavirus pandemic.

  • True
  • False

14. Businesses may not use the money they receive for any purpose other than payroll.

  • True
  • False

15. Under the Payroll Protection Program, the government will directly pay the salary of all employees for all small businesses.

  • True
  • False

16. What is Gross pay minus deductions?

  • Salary Expense
  • Net Pay
  • Unemployment Taxes
  • Earned Revenue

17. What does FICA stands for?

  • For Insurance Contributing Animals
  • Formal Initiative Costing Association
  • Federal Insurance Contributions Act
  • None of the above

18. What is the purpose of the W-4 form?

  • Let your employer know how much taxes to take out of your pay.
  • Tells you how much taxes you paid last year.
  • Tells your employer your banking information so you can get direct deposit.
  • none of the above

19. What is the total deduction for Social Security and Medicare tax combined for someone who made $675?

  • $41.85
  • $9.7875
  • $51.64
  • $51.6375

20. How much is withheld for Social Security if someone makes $525?

  • $32.6
  • $32.55
  • $65.10
  • $16.275

21. How does the employee have to be listed in order for the employer not to withhold their taxes from each paycheck?

  • Secretary
  • Independent Contractor
  • Normal Employee
  • Maintenance Person

22. What are two types of income sources?

  • Taxes and Gambling Dues
  • Earned and Unearned Income
  • Wages and Food
  • Investments and Unearned Income

23. What is the maximum amount of allowances that you are allowed to have?

  • 4
  • 10
  • 15
  • 1

24. What is net pay?

  • The total earnings on your paycheck
  • Three taxes that everyone must pay
  • How much a person is worth in total
  • The amount of your paycheck after taxes are taken out

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