M1-What is Payroll

Question 1

Challenges for the Payroll Professional

Answer 1

Complexity
Communication
Technology
Accuracy

Question 2

Complexity of Payroll

Answer 2

▪️ federal, state, and local laws

▪️ affect way companies can pay workers. ▪️change frequently.

Question 3

Communication in Payroll

Answer 3

▪️ Paychecks are most scrutinized products of co.

▪️ Clear, concise explanations of p/r info help ees + those who work in payroll.

Question 4

Technology in Payroll

Answer 4

▪️ New software, equipt, web-based apps
▪️ can enhance p/r process + HR functions.
▪️ can automate time keeping, record storage + record retrieval.

Question 5

Accuracy in Payroll

Answer 5

Ensuring accuracy of 
▪️ employees’  pay  
▪️ tax  filing, 
▪️ management  reports,  and  
▪️ other  processes

Question 6

Payroll Process

Flow Chart

Answer 6

✔️Determine the Worker Type
✔️ Calculate Employee’s Gross Pay
✔️ Determine Tax Treatment of ER -Paid Benefits
✔️ Withhold Taxes
✔️ Apply Voluntary & Involuntary Deductions
✔️ Pay Employees
✔️ Report Taxes & Wages

Question 7

Plan for Success

by defining

Answer 7

its values, vision, and mission.

Question 8

A Mission Statement should

Answer 8

✔️Define dept’s activities
(e.g., ensure p/r payments made to ees, file p/r tax returns, and remit p/r tax payments to govt ).
✔️ Define those for whom it performs
(e.g., all employees, fed/state agencies, govt taxing authorities, other ER departments).
✔️ State results of dept performing well
(e.g., timely/accurate pmt of p/r, p/r taxes & deductions; ee satisfaction; min tax penalties).

Question 9

Components of Performance Objectives

Answer 9

1. Key result area
2. Objectives
3. Action steps
4. Evaluation

Question 10

Mission Stmt vs Performances Objectives

Answer 10

A mission  statement 
is  supported  by  
performance  objectives  
that  tie  into 
established values.

Question 11

Key Results

in Performance Objectives

Answer 11

critical few areas
where priority effort
should be directed

(does not define entire job responsibility)

Question 12

Objectives stmts

in Performance Objectives

Answer 12

long-term and short-term goals

not specific tasks

Question 13

Action steps

in Performance Objectives

Answer 13

concrete + measurable
tasks
undertaken to achieve
the performance objective.

Question 14

Evaluation stmts

In Performance Objectives

Answer 14

Measures by which
success of PO
can be determined