Payroll 101: Best Practices And Compliance

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Quizzes Created: 1 | Total Attempts: 886
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  • 1/10 Questions

    Which one of these is a step to provide excellent customer service?

    • Tell the person when they are wrong.
    • Do not offer timing for a resolution.
    • Put obnoxious people on hold until they give up and hang up.
    • Put yourself in the person's shoes.
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About This Quiz

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.

Payroll Quizzes & Trivia

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  • 2. 

    Each employee must complete a W4.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Each employee must complete a W4 form that identifies their withholding status and number of exemptions.

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  • 3. 

    Which one is not a year-end activity?

    • Print W2's.

    • Clean-up data in the payroll system.

    • Check employee bank accounts.

    • Review audit reports.

    Correct Answer
    A. 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.

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  • 4. 

    The Common Law Test should be used to determine how to classify an employee.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    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.

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  • 5. 

    Which one is NOT a type of supplemental wages?

    • Bonus

    • Commissions

    • Holiday pay

    • Severance pay

    Correct Answer
    A. Holiday pay
    Explanation
    Holiday pay is not a type of supplemental wages.

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  • 6. 

    Supplemental wages must be taxed at a higher federal income tax rate of 25%.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    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.

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  • 7. 

    ____ # of states do not withhold income taxes from wages earned.

    Correct Answer
    Nine
    nine
    9
    Explanation
    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.

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  • 8. 

    Types of garnishments are creditor garnishments, student loans, and mortgage deductions.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Mortgage deductions are not a type of garnishment.

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  • 9. 

    Each state does not have a mandated pay frequency that is the minimum frequency by which employers must pay its employees.  

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Each state does have a mandated pay frequency that is the minimum frequency by which employers must pay its employees

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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-Five
    Explanation
    Supplemental wages paid in excess of $1 million must be taxed at a rate of 35%.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 23, 2011
    Quiz Created by
    Tprice7296
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