Payroll Knowledge Check
Nine questions covering earnings, garnishment fees, quarterly filings, and accrual entries — with answers and links back to the source material.
| Field | Value |
|---|---|
| Owner | Unassigned — needs an owner |
| Department | General Accounting |
| Effective date | Not set in source |
| Scope | A self-check on the material in Payroll concepts, for accounting staff. Not an assessment of record — there is no pass mark or reporting requirement in the source. |
| Source | General Accounting/11 - Accrued Payroll/Payroll Quiz.docx |
Work through each question, then expand the answer. Every answer links back to the section of Payroll concepts it comes from.
The source document is a question list with no answer key. Answers below are derived from Payroll concepts. Have the section owner confirm them before this is used for formal training.
Questions
Options: FICA, FIT, SIT · Regular, OT, Bonus · Health, 401K, Roth · All of the above
Answer: Regular, OT, Bonus.
FICA, FIT, and SIT are taxes. Health, 401(k), and Roth are deductions. Only regular pay, overtime, and bonuses are earnings.
Options: $1–$3 per order, depending on state limits · $4 for each paycheck that has a garnishment/child support deduction · There is no fee · $5 per order
Answer: $1–$3 per order, depending on state limits.
The fee is charged per order, not per paycheck, and is subject to state limits.
Options: W2/W3 · 940/941 · W4 · SUTA reclamation form
Answer: 940/941.
W-2 and W-3 are filed at year end. The W-4 is an employee-completed withholding form, not a filing. Remember that quarterly reports cover check dates, not pay period end dates.
Answer: False.
Some states require employees to accrue and be paid sick time, but not all. See the DOL's state paid sick leave laws.
Options: Federal income tax (FIT) · Federal unemployment tax (FUTA) · Social Security · Medicare
Answer: Federal income tax (FIT).
FIT is withheld from the employee only — the employer pays no matching portion. FUTA is employer-only. Social Security and Medicare are shared: both employee and employer pay a portion.
Options: Accurate Financial Reporting · Matching Principle · Compliance with Accounting Standards · Tax Evasion
Answer: Tax Evasion.
The other three are the stated reasons for accruing payroll expense, along with better decision making.
Options: Credit wage expense $5,750 · Debit payroll tax $1,250 · Credit cash $7,000 · Debit accrued payroll $7,000
Answer: Debit payroll tax $1,250.
On the pay period end date, employer payroll taxes are debited to payroll tax expense and credited to accrued payroll. Wage expense is debited, not credited. Cash is not touched until the pay date, and accrued payroll is credited on the period end date, not debited.
Options: Debit health insurance expense $1,200 · Credit health insurance expense $1,200 · Debit wage expense $1,200 · Credit employee payroll tax expense $1,200
Answer: Credit health insurance expense $1,200.
Employee insurance premiums are credited to health insurance expense on the pay period end date — the employee's share reduces the employer's insurance expense.
Options: The department of labor website · Your supervisor · The customer success manager for your client · All of the above
Answer: All of the above.
Related documents
- Payroll concepts — the source material for every question above