- (Topic 1)
What is the purpose of Form I-9?
Correct Answer:D
Comprehensive and Detailed Explanation:FormI-9, Employment Eligibility Verification, is used by employers to:
✑ Verify the identity of newly hired employees
✑ Ensure employees are legally authorized to work in the U.S.
✑ Prevent illegal employment practices
✑ Option A (Request an ITIN)is incorrect because anITIN (Individual Taxpayer Identification Number)is requested usingForm W-7, not I-9.
✑ Option B (Determine FIT withholding)is incorrect becauseForm W-4is used for federal income tax withholding, not Form I-9.
✑ Option C (Summarize taxable wages)is incorrect becauseForm W-2summarizes
taxable wages. Reference:
U.S. Citizenship and Immigration Services (USCIS) – Form I-9 Instructions Payroll.org – Employment Eligibility Verification Guide
- (Topic 1)
Which of the following documents listed on Form I-9 can be used to establish both an employee's identity and employment eligibility?
Correct Answer:B
Comprehensive and Detailed Explanation:According toForm I-9, Employment Eligibility
Verification, anunexpired U.S. passportis aList A documentthat establishesbothan employee??sidentity and work authorization.
✑ ASocial Security card(Option A) is aList C document, which only
provesemployment authorizationbut not identity.
✑ AVoter??s Registration Card(Option C) isnot an acceptable I-9 documentfor identity or work authorization.
✑ ADriver??s License(Option D) is aList B document, which only provesidentitybut not employment eligibility.
Reference:
U.S. Citizenship and Immigration Services (USCIS) – Form I-9 Instructions Payroll.org – Employment Eligibility Verification Guidelines
- (Topic 2)
A terminated employee submits a written request on August 1 for the current year Form W-2. By what date MUST the employer furnish the Form W-2?
Correct Answer:A
✑ If a terminated employee requests a Form W-2 in writing, the employer must provide it within 30 daysor by January 31, whichever comes first.
✑ Since the request was made on August 1, the deadline is August 31.
References:
✑ IRS Form W-2 Guidelines
- (Topic 2)
An out-of-balance condition in the general ledger could be caused by:
Correct Answer:A
✑ Direct deposit errors (A) may result in payroll mismatches and unrecorded transactions, causing the general ledger to be out of balance.
✑ Other options (B, C, D) impact payroll costs but do not directly affect ledger
balancing. References:
✑ Payroll Accounting Reconciliation Standards
- (Topic 1)
As of December 31, 2024, what is the MAXIMUM amount, if any, a 49-year-old employee can contribute to a 401(k) plan?
Correct Answer:B
Comprehensive and Detailed Explanation:For2024, the401(k) contribution limitis:
✑ $23,000.00 for employees under 50 years old.
✑ $30,500.00 for employees 50 and older(includes$7,500 catch-up contribution).
Since the employee is49 years old, theydo not qualify for the catch-up contribution, so the maximum contribution is$23,000.00.
Reference:
IRS – 401(k) Contribution Limits for 2024 Payroll.org – Retirement Plan Payroll Compliance