Betty's CPP Section 5 and 10 Quiz Paying the EE and Record Keeping Retention

Question 1

Paychecks sent through the mail are constructively paid:

Answer 1

when delivered

Question 2

Which of the following is NOT required when initiating direct deposit for an EE?

Answer 2

Prenotification

Question 3

What authority dictates the content of a payroll check stub?

Answer 3

individual states

Question 4

Wages paid after an EE’s death in the same calendar year that the death occurred:

Answer 4

are not subject to SS/MED withholding or FIT withholding; ER reports income in box 3 of the 1099 MISC

Question 5

8. The ACH (Automate Clearing House):

Answer 5

distributes entries to receiving depository financial institutions

Question 6

In order to set up direct deposit, you need which three pieces of information?

Answer 6

routing number
type of account
account number

Question 7

All of the following may be adversely affected by direct deposit except?

Answer 7

C. Employee productivity

Question 8

What is typically viewed as the most significant cost of a direct deposit program?

Answer 8

Float, money is available on payday, no waiting for checks to clear

Question 9

Federal Regulation E:

Answer 9

A. Defines the rights of EFT users

Question 10

New Prenotifications are not suggested under which of the following circumstances?

Answer 10

D. Change of job responsibility

Question 11

1. Data in the payroll master file must be maintained:

Answer 11

In any legible form.

Question 12

If records required by the FLSA are maintained at a central location, how soon after the DOL request must the employer make them available?

Answer 12

C. 72 hours

Question 13

2. True or false: The Department of Labor requires that all employment data be updated at least annually.

Answer 13

B False

Question 14

3. What documents must be retained for at least four years?
   A Record of amounts earned for straight time and overtime
   B Collective bargaining agreements
   C Duplicate copies of tax returns
   D Wage rate tables

Answer 14

Duplicate copies of tax returns

Question 15

All of the following must be kept for a minimum of FOUR years except?

Answer 15

Form I-9

Question 16

4. What documents must be retained for at least three years?
   A Copies of Form W-3
   B Canceled checks
   C Copies of Form 941
   D Hospital workers’ agreements to 8/80 plan

Answer 16

Hospital workers’ agreements to 8/80 plan

Question 17

6. What is NOT a method of internal control?
   A System interfacing
   B Rotation of personnel
   C Account reconciliation
   D Segregation of duties

Answer 17

A System interfacing

Question 17

5. What documents must be maintained for at least two years?
   A Wage rate tables
   B Record of amount and date of payments for wages
   C Copies of Form 941
   D Form I-9

Answer 17

Wage rate tables