- (Topic 2)
The journal is commonly referred to as the record of:
Correct Answer:C
✑ A journal is known as the "original entry" because transactions are first recorded here before posting to the ledger.
✑ The general ledger is the final entry (B), not the journal.
References:
✑ Payroll Accounting Standards (Payroll.org)
- (Topic 1)
An employee hired on July 1, 2021, terminates employment on September 30, 2022. What is the earliest date the employer may dispose of the Form I-9?
Correct Answer:D
Comprehensive and Detailed Explanation:UnderForm I-9 retention rules, an employermust retain the form for the later of:
✑ Three years from the date of hire, or
✑ One year from the termination date.
✑ Employee hired on July 1, 2021Three years from hire date= July 1, 2024
✑ Employee terminated on September 30, 2022One year from termination= September 30, 2023
Since thelatest date is September 30, 2024, that is theearliest date the employer may dispose of the Form I-9.
Reference:
U.S. Citizenship and Immigration Services (USCIS) – Form I-9 Retention and Storage Guidelines
Payroll.org – Employer Compliance for I-9 Forms
- (Topic 1)
An employee has received $169,000.00 in YTD earnings. The employee receives a payment of $16,600.00. The employer Medicare tax, if any, is:
Correct Answer:C
Comprehensive and Detailed Explanation:Medicare tax is1.45%onwages up to $200,000, and2.35%(including the Additional Medicare Tax) on wagesabove$200,000.
✑ YTD Wages before payment:$169,000.00
✑ New total earnings after bonus:$169,000 + $16,600 = $185,600.00
✑ Since total wages are still under $200,000, only the standard Medicare rate applies:
Thus, the correct answer isC. $240.70. Reference:
IRS – Medicare Tax Guide
Payroll.org – Payroll Tax Calculation Rules
- (Topic 1)
All of the following activities are examples of an internal control EXCEPT:
Correct Answer:A
Comprehensive and Detailed Explanation:Internal controlsare processes used to ensureaccuracy, security, and compliancein payroll operations. Effective internal controls include:
✑ Option B (Segregating job duties) Prevents fraud by ensuring no one person has
full control over payroll.
✑ Option C (Rotating job duties) Reduces fraud risk and enhances cross-training.
✑ Option D (Restricting system access) Protects sensitive payroll data.
✑ Option A (Storing backup files on-site) is incorrectbecause internal control best practices recommendoff-site or cloud backupsto protect againstdata loss from disasters.
Reference:
Payroll.org – Payroll Internal Control Procedures IRS – Best Practices for Payroll Security
- (Topic 1)
Failure to create a payroll ACH file is a violation of which customer service principle?
Correct Answer:B
Comprehensive and Detailed Explanation:Reliabilityrefers to a company??sability to provide accurate and timely service. In payroll,failing to create an ACH file results in missed payments, affecting employees andviolating reliability standards.
✑ Option A (Empathy)is incorrect because it relates tounderstanding and addressing
employee concerns, not payroll processing.
✑ Option C (Responsiveness)is incorrect because itdeals with reaction speedrather than payroll execution.
✑ Option D (Tangibles)is incorrect because it refers tophysical aspects of service
(documents, appearance, etc.). Reference:
Payroll.org – Payroll Service Principles NACHA – ACH Payroll Processing Standards