Preview Questions Payroll Administrator | Role Specific Skill

Question 1: Which of the following best describes how state income tax withholding should be handled in university payroll processing for employees working across multiple states?

Which action should you take?

Choose only one option

Employees should have state tax withheld based on their state of residence and work location.

Only the home state of the employee should withhold state income tax, regardless of the work location.

Each state the employee works in must calculate and withhold their respective income taxes, separate from each other.

State tax withholding is not required for employees who work remotely for a university.

Question 2: How do you calculate salary for employees working in multiple departments or locations, ensuring accurate pay rates and tax calculations?

Which action should you take?

Choose only one option

By configuring the payroll system to track each employee's department and location, applying appropriate pay rates

By applying a single pay rate to all employees, regardless of department or location

By focusing only on the primary department and ignoring multiple assignments

By manually adjusting pay based on employee reports of their working location

Question 3: How do you manage flexible benefits programs, ensuring that employees can choose from a variety of options while adhering to plan limits and compliance standards?

Which action should you take?

Choose only one option

By ensuring that employees are informed about their options and that their choices are tracked accurately to stay within plan limits

By ignoring regulatory limits in favor of offering more benefit options

By only offering a fixed set of benefits, neglecting flexibility

By offering a generic benefits package to all employees without flexibility

Question 4: What is the correct method to calculate overtime pay for an employee who is salaried in an academic institution?

Which action should you take?

Choose only one option

Overtime is calculated as 1.5 times the hourly equivalent of the salary rate, for hours worked beyond 40 hours per week.

Overtime should be calculated only for faculty and staff working during non-peak times in the semester.

Overtime is based on the annual salary divided by 52 weeks, and then multiplied by 1.25 times the hourly rate.

Salaried employees are not entitled to overtime pay under any circumstances.

Question 5: Which of the following records must be maintained for a university employee for at least 4 years after their termination as per IRS guidelines?

Which action should you take?

Choose only one option

All employee payroll records including wage statements and tax withholding records.

Employee personnel records, including background checks and academic qualifications.

W-2 forms, timecards, and records of hours worked.

Taxable wages and benefits, vacation/sick leave balances, and payroll taxes.

Question 6: What is the key function of gross-to-net payroll calculation in payroll processing?

Which action should you take?

Choose only one option

To manage employee bonuses and ensure they are calculated separately.

To ensure tax withholdings are applied to the gross salary.

To adjust overtime pay based on the employee's classification.

To calculate the total earnings and subtract any deductions to determine the net pay.