Verified Test Bank 19th Edition Ch.8 Employees and Payroll

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 8 Employees and Payroll

1) Each year employees are sent Form ________ to summarize gross wages and tax withholdings for the year.

A) 1099

B) W-2

C) W-3

D) W-4

Difficulty: 2 Medium

Learning Objective: 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) A company is required to withhold payroll taxes for:

A) Employees

B) Vendors

C) Subcontractors

D) All the choices are correct

Difficulty: 1 Easy

Learning Objective: 08-14 Accounting Essentials: Payroll Liabilities and Payroll Taxes

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) All of the following automatically calculate payroll tax withholdings in QuickBooks except:

A) Basic Payroll

B) Assisted Payroll

C) Enhanced Payroll

D) All of the choices automatically calculate payroll tax withholdings

Difficulty: 2 Medium

Learning Objective: 08-08 Pay Employees

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) To turn on QuickBooks time tracking feature, the following steps must be completed:

A) Select QuickBooks Menu > Time Tracking

B) Select Edit > Preferences > Time and Expenses > Time Tracking

C) Select Employees > Payroll > Time Tracking

D) Select Employees > Payroll and Employees > Time Tracking

Difficulty: 3 Hard

Learning Objective: 08-04 Payroll Setup

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) The order of steps to process payroll is:

A) Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms

B) Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report

C) Pay Employees > Process Payroll Forms > Pay Payroll Liabilities

D) Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report

Difficulty: 2 Medium

Learning Objective: 08-06 Employee Navigation and Payroll Processing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) In QuickBooks, time data is listed on customer invoices using the:

A) Timesheet icon

B) Pay Sales Taxes icon

C) Pay Employees button

D) Time/Costs button

Difficulty: 1 Easy

Learning Objective: 08-11 Transfer Time to Sales Invoices

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) Which one of the following is paid by both the employee and company?

A) Federal income taxes

B) State income taxes

C) FICA

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 08-08 Pay Employees; 08-09 Pay Payroll Liabilities; 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) Which of the following is not a payroll report:

A) Form W-2

B) Form 1065

C) Form 944

D) Form 941

Difficulty: 2 Medium

Learning Objective: 08-10 File Payroll Tax Forms; 08-12 Payroll Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) The following are payroll liabilities except:

A) Federal income taxes

B) Unemployment taxes

C) Sales taxes

D) FICA

Difficulty: 2 Medium

Learning Objective: 08-09 Pay Payroll Liabilities

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) Which of the following is typically used to track time for a single activity?

A) Employee Tracker

B) Stopwatch

C) Timesheet

D) QuickTime

Difficulty: 1 Easy

Learning Objective: 08-07 Enter Time

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) What QuickBooks activity comes next in this series of payroll activities:

Enter Time > Pay Employees > ________ > Process Payroll Forms

A) Reconcile Payroll

B) Print Payroll Report

C) Pay Payroll Liabilities

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 08-06 Employee Navigation and Payroll Processing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) When setting up a new employee, where do you get their filing status and allowances information?

A) Form W-9

B) Form W-4

C) Form W-3

D) Form W-2

Difficulty: 1 Easy

Learning Objective: 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) The Payroll Center has the following sections except:

A) Pay Employees

B) Write Checks

C) Pay Scheduled Liabilities

D) File Tax Forms

Difficulty: 2 Medium

Learning Objective: 08-08 Pay Employees

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A) Vendors List

B) Item List

C) Payroll Setup

D) Employee List

Difficulty: 2 Medium

Learning Objective: 08-04 Payroll Setup; 08-05 Employee List

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) Which tax form summarizes payments made to subcontractors?

A) Form 940

B) Form 1022

C) Form 1099

D) W-2

Difficulty: 2 Medium

Learning Objective: 08-04 Payroll Setup; 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) Which of the following ways to track time is not supported by QuickBooks?

A) Time Single Activity

B) Weekly Timesheet

C) Time clock

D) Online Timesheets

Difficulty: 1 Easy

Learning Objective: 08-07 Enter Time

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) Which of the following may be billed to a specific customer job?

A) Mileage

B) Hours

C) Expenses

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 08-11 Transfer Time to Sales Invoices

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) An individual's status determines how to record payment to that individual. Which of the following status and payment methods is incorrect?

A) Vendor; Bill

B) Employee; Payroll

C) Stockholder; Dividend

D) None of the choices are correct

Difficulty: 2 Medium

Learning Objective: 08-04 Payroll Setup

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) What is the purpose of Federal Form 940?

A) Summarize the amount of unemployment tax paid and due by the company

B) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D) Summarize all your W-2 forms

Difficulty: 3 Hard

Learning Objective: 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) What is the purpose of Federal Form 941?

A) Summarize the amount of unemployment tax paid and due by the company

B) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter

C) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year

D) Summarize all your W-2 forms

Difficulty: 3 Hard

Learning Objective: 08-10 File Payroll Tax Forms

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) Name 3 (three) types of payroll liabilities and indicate who funds each one.

• Federal Income Tax – funded by the employee
• State Income Tax – funded by employee
• FICA – funded by both the employee and employer 
• Unemployment Taxes – funded by the employer

Difficulty: 3 Hard

Learning Objective: 08-09 Pay Payroll Liabilities

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

22) Briefly describe what the Time by Job report tells management.

Difficulty: 3 Hard

Learning Objective: 08-12 Payroll Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

23) List two payroll tax forms and briefly explain their function.

• Federal Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return. This form summarizes the amount of unemployment tax paid and due by the employer.
• Federal Form 941: Employer's Quarterly Federal Tax Return. Filed with the IRS, this form summarizes the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter.
• Federal Form 944: Employer's Annual Federal Tax Return. Filed with the IRS, this form summarizes the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year. Form 944 is used by very small employers instead of filing Form 941 each quarter.
• Form W-2: Wage and Tax Statement. Before the end of January, an employer must provide W-2s to employees that summarize amounts paid for salaries, wages, and withholdings for the year.
• Form W-3: Transmittal of Wage and Tax Statements. Filed with the Social Security Administration, this form is a summary of all an employer's W-2 forms.

Difficulty: 3 Hard

Learning Objective: 08-14 Accounting Essentials: Payroll Liabilities and Payroll Taxes

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual