True False Questions

2-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 02 Payroll System Procedures True / False Questions 1.The two focuses of payroll procedures are company needs and governmental rules.True False 2.Employers may choose to omit the employees’ Social Security numbers in their employee files.True False 3.Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.True False 4.Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.True False 5.Foreign workers in the United States are subject to new hire reporting regulations.True False 6.A worker who sells life insurance on a full-time basis is considered a statutory employee.True False Payroll Accounting 2017 3rd Edition Landin Test Bank Visit TestBankDeal.com to get complete for all chapters

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7.U.S. workers in foreign subsidiaries are exempt from all income taxes.True False 8.Pay rate is the first payroll system decision a company must make.True False 9.Only regular working hours are considered as the worked hours for overtime computation.True False 10.It is considered a best practice to assign one employee all payroll duties.True False Multiple Choice Questions 11.Which of the following are important decisions that an employer must make regarding its payroll procedures (Select all that apply)?

• How often to pay employees
• How to handle pay advances
• How many employees to hire
• Which employee benefits to offer

12.Which of the following items must exist in every employee's payroll file?

• Spouse's social security number
• Employment history
• Spouse's birth date
• Occupation

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13.Why must pay period information be a part of an employee’s payroll file?

• As a means of tracking time worked for overtime compensation purposes.
• To ensure that the employee receives all compensation earned.
• As a means of ensuring pay equality among employees.
• To document satisfaction of court-ordered

obligations.

14.Which of the following is/are purpose(s) of new hire reporting laws (Select all that apply)?

• To ensure payment of court-ordered obligations like garnishments and child support.
• To keep track of workers throughout their careers.
• To ensure that the employee may legally work in the United States.
• To keep track of workers and professionals who are subject to licensing regulations.

15.Which pay frequency has 24 pay periods annually?

• Weekly
• Biweekly
• Semimonthly
• Semiweekly

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16.Which pay frequency has 26 pay periods per year?

• Bimonthly
• Biweekly
• Semimonthly
• Semiweekly

17.Which pay frequency has 12 pay periods?

• Daily
• Weekly
• Monthl

y

• Semimonthly

18.What forms are required when an employee is hired (Select all that apply)?

• W-

4

• I-

9

C. SS-4

• W-

2