---
title: "Payroll Knowledge Check"
sidebarTitle: "Payroll knowledge check"
description: "Nine questions covering earnings, garnishment fees, quarterly filings, and accrual entries — with answers and links back to the source material."
icon: "circle-question"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

| 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](/internal/sops/accounting/payroll/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](/internal/sops/accounting/payroll/payroll-concepts) it comes from.

<Note>
  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.
</Note>

## Questions

<AccordionGroup>
  <Accordion title="1. Which items below are considered earnings?">
    **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.
  </Accordion>

  <Accordion title="2. How much is the PBI admin fee for processing child support and garnishments?">
    **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.
  </Accordion>

  <Accordion title="3. Which form(s) must be filed quarterly to report federal payroll taxes?">
    **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.
  </Accordion>

  <Accordion title="4. True or False — All states require employers to pay employees for sick time.">
    **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](https://www.dol.gov/sites/dolgov/files/WB/StatePaidSickLeaveLaws.pdf).
  </Accordion>

  <Accordion title="5. Which type of tax is NOT paid only by the employer?">
    **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.
  </Accordion>

  <Accordion title="6. Which is not a reason to accrue payroll expense at the end of an accounting period?">
    **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.
  </Accordion>

  <Accordion title="7. Martha is accruing payroll wages at the end of January for 5 days. Total earnings are $5,750 and total payroll taxes are $1,250. Which item would be part of the entry made on Jan 31st?">
    **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.
  </Accordion>

  <Accordion title="8. Martha is recording a payroll entry with a pay period end date of 1/20/2024 for a check date of 1/28/2024. The total employee health insurance deduction is $1,200. How should the health deduction be recorded on 1/20/2024?">
    **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.
  </Accordion>

  <Accordion title="9. Which are resources available if you want to learn more about payroll?">
    **Options:** The department of labor website · Your supervisor · The customer success manager for your client · All of the above

    **Answer: All of the above.**
  </Accordion>
</AccordionGroup>

## Related documents

- [Payroll concepts](/internal/sops/accounting/payroll/payroll-concepts) — the source material for every question above