True False Questions

2-1 Copyright © 2015 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 main 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 working with an employer.

True False

5 .Foreign workers in the United States are subject to new hire reporting regulations.

True False

Payroll Accounting 2015 1st Edition Landin Test Bank Visit TestBankDeal.com to get complete for all chapters

2-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.6 .A worker who sells life insurance on a full-time basis is considered a statutory employee.

True False

7 .U.S. workers in foreign subsidiaries are exempt from income taxes.

True False

8 .Pay rate is the first payroll system decision a company must make.

True False

9 .Holiday hours, sick time taken, and vacation days are not considered in the worked hours for overtime computation.

True False

1 0.Separation of duties is not considered a payroll best practice.

True False

Multiple Choice Questions

2-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.1 1.Which of the following is not an important decision that an employer must make regarding its payroll procedures?

A.How often to pay employees?

B.How to handle pay advances?

C.How many employees to hire?

D.Which employee benefits to offer?

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

A.Spouse's social security number

• Employment history

C.Spouse's birth date

• Occupation

2-4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.1 3.According to the Fair Labor Standards Act, why must pay period information be a part of an employee’s payroll file?

A.As a means of tracking time worked for overtime compensation purposes.

B.To ensure that the employee receives all compensation earned.

C.As a means of ensuring pay equality among employees.

D.To document satisfaction of court-ordered obligations.

1 4.Which of the following is not a purpose of new hire reporting laws?

A.To ensure payment of court-ordered obligations like garnishments and child support.

B.To keep track of workers throughout their careers.

C.To ensure that the employee may legally work in the United States.

D.To keep track of workers and professionals who are subject to licensing regulations.