Payroll Accounting Jeanette Landin 5th Edition – Test Bank

Payroll Accounting Jeanette Landin 5th Edition – Test Bank

Payroll Accounting 2019, 5e (Landin)

Chapter 2   Payroll System Procedures

1) The two focuses of payroll procedures are company needs and governmental rules.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Identify Important Payroll Procedures and Pay Cycles

Learning Objective:  02-01 Identify Important Payroll Procedures and Pay Cycles

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

2) Employers may choose to omit the employees’ Social Security numbers in their employee files.

Answer:  FALSE

Explanation:  Social Security numbers must be included in all employee files.

Difficulty: 1 Easy

Topic:  Identify Important Payroll Procedures and Pay Cycles

Learning Objective:  02-01 Identify Important Payroll Procedures and Pay Cycles

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

3) Semimonthly payroll involves a pay cycle in which pay disbursements occur every two weeks.

Answer:  FALSE

Explanation:  Semimonthly payroll disbursements occur twice per month.

Difficulty: 1 Easy

Topic:  Identify Important Payroll Procedures and Pay Cycles

Learning Objective:  02-01 Identify Important Payroll Procedures and Pay Cycles

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

4) Newly hired employees must be reported to governmental officials within 20 days of starting work for an employer.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Prepare Required Employee Documentation

Learning Objective:  02-02 Prepare Required Employee Documentation

Bloom’s:  Understand

AACSB:  Communication

Accessibility:  Keyboard Navigation

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

Answer:  TRUE

Difficulty: 2 Medium

Topic:  Prepare Required Employee Documentation

Learning Objective:  02-02 Prepare Required Employee Documentation

Bloom’s:  Apply

AACSB:  Diversity

Accessibility:  Keyboard Navigation

6) A worker who sells life insurance on a full-time basis is considered a statutory employee.

Answer:  TRUE

Difficulty: 1 Easy

Topic:  Prepare Required Employee Documentation

Learning Objective:  02-02 Prepare Required Employee Documentation

Bloom’s:  Apply

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

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

Answer:  FALSE

Explanation:  Under FATCA, U.S. workers in foreign subsidiaries are only tax-exempt on the first $101,300 of annual income (2016 figure).

Difficulty: 2 Medium

Topic:  Prepare Required Employee Documentation

Learning Objective:  02-02 Prepare Required Employee Documentation

Bloom’s:  Apply

AACSB:  Diversity

Accessibility:  Keyboard Navigation

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

Answer:  FALSE

Explanation:  The first payroll system decision is the pay frequency.

Difficulty: 2 Medium

Topic:  Identify Important Payroll Procedures and Pay Cycles

Learning Objective:  02-01 Identify Important Payroll Procedures and Pay Cycles

Bloom’s:  Apply

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation