Preview Questions Payroll Administrator | Role Specific Skill

Question 1: What is the purpose of direct deposit in payroll processing, and how does it affect payroll reporting?

Which action should you take?

Choose only one option

It reduces payroll taxes for employers by eliminating physical checks.

It automates payments, ensuring employees are paid timely while reducing administrative tasks.

It increases the complexity of tracking employee payments for reporting purposes.

It allows employees to withdraw funds from payroll without involving a financial institution.

Question 2: How do you ensure that payroll records are consistent with other employee records, such as time and attendance logs and performance evaluations?

Which action should you take?

Choose only one option

By reviewing payroll records without considering time and attendance data

By integrating the payroll system with time and attendance software and ensuring regular reconciliation between systems

By assuming performance evaluations don't need to be linked to payroll records

By manually cross-referencing records without system integration

Question 3: Which of the following deductions must be included when calculating the salary of an employee at a university who is subject to garnishment?

Which action should you take?

Choose only one option

Only the employee's personal loan deductions.

Only state taxes need to be deducted in this case.

The garnishment amount, which is calculated based on a court order.

None, as garnishment is not a valid salary deduction.

Question 4: If an employee in a university setting has a salary of $45,000 and an annual bonus of $5,000, what will be their total taxable income for the year?

Which action should you take?

Choose only one option

$55,000

$45,000

$50,000

$40,000

Question 5: How should voluntary employee deductions, such as for health savings accounts (HSAs), be handled for tax compliance?

Which action should you take?

Choose only one option

HSA contributions are after-tax deductions, reducing future tax obligations when withdrawn.

HSA contributions are pre-tax deductions that reduce taxable income for both employees and employers.

HSA contributions should be reported as post-tax income for proper payroll processing.

Employee deductions for health savings accounts are not reported to the IRS for tax compliance.

Question 6: How would you calculate the salary for an employee who is on a contractual arrangement for 6 months with a fixed amount of $30,000?

Which action should you take?

Choose only one option

The salary will be evenly split across the 6-month period.

The salary will be adjusted based on monthly performance evaluations.

The employee's total salary is paid in a lump sum at the end of the contract.

The salary will be calculated based on the hours worked, not the contract amount.