Computer Accounting with Quickbooks 2011

Chapter 06 - Employees and Payroll

Name______

Computer Accounting with QuickBooks 2013 Donna Kay

Chapter 6 Test Multiple Choice Questions

1. A company is required to withhold payroll taxes for: A. Employees B. Vendors C. Subcontractors D. All of the above

2. All of the following automatically calculate payroll tax withholdings in QuickBooks except: A. Basic Payroll B. Assisted Payroll C. Enhanced Payroll D. All of the above automatically calculate payroll tax withholdings

3. To turn on QuickBooks time tracking feature, the following steps must be completed: A. Click QuickBooks Menu > Time Tracking B. Click Edit > Preferences > Time and Expenses > Time Tracking C. Click Employees > Payroll > Time Tracking D. Click Employees > Payroll and Employees > Time Tracking

4. Each year employees are sent Form ______to summarize tax withholdings for the year. A. 1099 B. W-2 C. W-3 D. W-4

5. The order of steps to process payroll is: A. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms B. Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report C. Pay Employees > Process Payroll Forms > Pay Payroll Liabilities D. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report

6. In QuickBooks, time data is listed on customer invoices using the: A. Timesheet icon B. Pay Sales Taxes icon C. Pay Employees button D. Time/Costs button

6-1 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Chapter 06 - Employees and Payroll

7. Which one of the following is paid by both the employee and company? A. Federal income taxes B. State income taxes C. FICA D. All of the above

8. Which of the following is not a payroll report: A. Form W-2 B. Form 1065 C. Form 940 D. Form 941

9. The following are payroll liabilities except A. Federal income taxes B. Unemployment taxes C. Sales taxes D. FICA

10. Which of the following is typically used to track time for a single activity? A. Employee Tracker B. Stopwatch C. Timesheet D. QuickTime

11. What QuickBooks activity comes next in this string of payroll activities: Enter Time > Pay Employees > ______> Process Payroll Forms A. Reconcile Payroll B. Print Payroll Report C. Pay Payroll Liabilities D. None of the above

12. When setting up a new employee where do you get their filing status and allowances information? A. Form W-5 B. Form W-4 C. Form W-3 D. Form W-2

13. All of the following are QuickBooks Payroll Services, except: A. Basic B. Assisted C. Advanced D. Enhanced

14. When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information? A. Vendor List B. Item List C. Payroll Setup D. Employee List

15. Which form summarizes payments made to subcontractors? A. Form 940 B. Form 1065 C. Form 1099 D. W-4

16. In Chapter 6, paychecks were printed using: A. Voucher checks B. Standard checks only C. Register checks D. None of the above

17. Which of the following activities and QuickBooks window used to record it is incorrect? A. Enter time worked; Weekly Timesheet B. Pay payroll liabilities; Write Check C. Enter employee information; Employee List D. Pay payroll taxes; Pay Liabilities

18. An individual’s status determines how to record payment to that individual. Which of the following status and payment method is incorrect? A. Vendor; Bill B. Employee; Payroll C. Stockholder; Dividend D. None of the above

19. To include a charge for labor on an invoice, labor as a service item must be recorded in the: A. Item List B. Vendor List C. Inventory List D. Employee List

20. The Payroll Center: A. Contains the employee list B. Manages payroll and tax information C. Is where employees enter time worked D. Is located in the Banking Center

21. Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier? A. Time Single Activity B. Weekly Timesheet C. Time clock D. Online Timesheets

22. Which of the following may be billed to a specific customer job? A. Mileage B. Hours C. Expenses D. All the above

23. The Payroll Center has the following sections except: A. Pay Employees B. Write Checks C. Pay Scheduled Liabilities D. File Tax Forms

24. What is purpose of Federal Form 490? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms

25. What is the purpose of Federal Form 491? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms

Short Answer

26. Name 3 (three) types of payroll liabilities and indicate who funds each one.

27. Briefly describe what the “Time by Job” project reports tell management.

Chapter 6 Test

26. Federal Income Tax – funded by the employee, State Income Tax – funded by employee, FICA – funded by both the employee and employer, and Unemployment Taxes – funded by the employer.

27. These reports can help management by telling them how much time was worked on each job. Detail can also be given by category, by employee, or by service offered.

6-7 © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.