Test Your Payroll Knowledge

Published September 2010
Please choose the best answer.  The correct answers are listed at the bottom of this quiz. 

Quiz Questions:

1 ) What form is used to obtain a Social Security number?

A) Form SS-1
B) Form SS-5C) Form SS-8

D) Form W-4

E) Form W-11

2 ) Employers must report new hires within ____ days from the date of hire.

A) 10 business days

B) 15 business days

C) 20 business days

D) 25 calendar days

E) 30 calendar days

3 ) True or False: Paychecks that can’t be delivered should be returned to the payroll department.

A) False - they should be returned to a department other than payroll until the employee returns and can receive the check.

B) True – they should be returned to any employee in the payroll department.

C) True – they should be returned to the payroll manager.

4 ) How many banking days from the date of the original entry does an employer have to reverse a direct deposit?

A) 2 banking days

B) 3 banking days

C) 5 banking days

D) 7 calendar days

E) 10 banking days

5 ) If the number of withholding allowances decreases for an employee, how long does the employee have to submit a new Form W-4?

A) 7 days

B) 10 days

C) 14 days

D) 20 days

E) 21 days

6 ) What is Form W-11 used for?

A) The HIRE Act Employee Affidavit

B) Obtaining a Social Security Number

C) Reporting Employee Wages and Taxes

D) Reporting COBRA Subsidy Payments

E) Reporting the Total Cost of Employer-Provided Health Insurance

7 ) What payroll tax(es) are workers’ compensation payments subject to?

A) Social Security and Medicare

B) State Income Taxes

C) Federal Income Taxes

D) All of the Above

E) None of the Above

8 ) What is the 2010 maximum Social Security tax wage limit?

A) $82,400

B) $106,800

C) $171,850

D) $373,650

9 ) True or False: The 940 tax and form are paid and filed on a quarterly basis.

A) False - The taxes are due quarterly and the report is due annually.

B) False – Both the taxes and the form are due annually.

C) True – Both the taxes and form are due quarterly.

10 ) True or False: In Tax Year 2011, the total cost of employer-provided health insurance must be reported on W-2′s.

A) True - The employer has to report total cost of employer-provided health insurance.

B) False – The employer does not report the total cost of employer-provided health insurance.

C) False – It is optional for the employer to report the total cost of employer-provided health insurance.

Correct Answers:
1) B;  2) D;  3) A;  4) C;  5) B;  6) A;  7) E;  8) B;  9) A;  10) A
If you got any of these questions wrong, you may have payroll issues that need to be addressed.  One way to avoid spending more time on payroll is to outsource to BASIC.

Click here to learn more about BASIC Payroll Plus.

Click here to request a proposal for BASIC Payroll Plus.