Payroll MCQ AccountingAttempt now to check your rank among 48 students! 50 Questions 30 Mins
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.
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.