An easy and convenient way to process payroll in QuickBooks Online for employees on different payroll schedules would be to:

Move all employees onto a single schedule.

Use the Payroll Schedule function.

Convert some employees to independent contractors.

Which Payroll Item cannot be created during setup?

You can create all these options.

QuickBooks Payroll will NOT allow you to:

Create multiple wages for the same employee.

Set up deduction and withholding items.

Set the pay rate for an employee.

Add two employees with exactly the same name.

You enter the Federal ID for your company:

In the Payroll Settings under the Settings gear.

In QBO’s Account and Settings.

Use a Payroll Deduction item to track medical insurance costs when:

The employees pay part (or all) of the cost.

Costs exceed $100 per month for the employee.

The employer pays the total cost.

You do not track medical insurance costs as a Payroll Deduction item.

Which of the following does QuickBooks Online exclude from taxable earnings when calculating federal withholding?

Employee contributions to a 401(k).

Why are there two Health Insurance and two Retirement categories in the Accounting Preferences?

Different tax rates apply to employee and employer portions.

You use separate accounts because you must write separate checks for employee and employer portions.

QuickBooks Online manages the employee and employer portions separately.

You maintain separate ledger accounts for the two portions of each tax.

Which of the following is not a feature of QuickBooks Online Core Payroll?

Calculates gross pay by hours worked or salaries.

Prints paychecks on standard checks or pays by Direct Deposit.

Support agents set up payroll for you and guarantee accuracy.

Calculates and electronically remits federal payroll tax liabilities.

QuickBooks Online uses Payroll Items to:

Accumulate payroll liabilities.

Track each different kind of compensation.

Define the relationship between items you put on paychecks and the Chart of Accounts.

If you no longer want an employee to show in the Employees list:

Deselect the employee for payments.

Change their employment Status.

Remove all wage items from the employee’s record.

Which is not true about Auto Payroll?

It takes payroll out of your control.

It repeats the previous payroll on a set schedule.

You can set default hours for each employee.

It notifies you a few days before so that you can confirm.

Sick leave, vacation leave, and PTO are:

Standardized for all businesses in the US.

Optional for all businesses in the US.

Only accrued by the number of hours worked.

Completely flexible according to your company’s policies.

Payroll Setup

Preview · from QuickBooks Online Step-by-Step

In this chapter

Intuit’s Workforce Subscriptions
Security Settings
Getting Help With Payroll
Checklist for Setting Up Payroll
The Accounting Behind the Scenes
Payroll Accounts
Payroll Items
Setting Up Payroll In Your Student File
Setting up Payroll
Adding Employees
Creating Pay Schedules
Creating Pay Types
Setting Up Direct Deposit
Entering Tax Withholding Information
Medical Insurance
Retirement Plans
Garnishments
Assigning Time Off Policies
Employee Documents
Customizing the Payroll Settings
Specify the Payroll Accounting Mapping
The Payroll Overview
Do It Yourself: Payroll Setup

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Chapter review: Payroll subscriptions, Payroll Items, employee setup & Auto Payroll

14 practice questions. The answers are in the book.

An easy and convenient way to process payroll in QuickBooks Online for employees on different payroll schedules would be to:
- Move all employees onto a single schedule.
- Use the Payroll Schedule function.
- Outsource payroll.
- Convert some employees to independent contractors.
Which of the following payroll periods is not an option in QuickBooks Online?
- Every week.
- Every other week.
- Twice a month.
- Quarterly.
Which Payroll Item cannot be created during setup?
- Commissions.
- Bonuses.
- Medical Insurance Deductions.
- You can create all these options.
Which is not an option when setting the accrual period for sick and vacation time?
- At Beginning of Year.
- Every Month.
- Each Pay Period.
- Per Hour Worked.
QuickBooks Payroll will NOT allow you to:
- Create multiple wages for the same employee.
- Set up deduction and withholding items.
- Set the pay rate for an employee.
- Add two employees with exactly the same name.
You enter the Federal ID for your company:
- In the Payroll Settings under the Settings gear.
- In the Payroll Overview.
- In QBO’s Account and Settings.
- A and C above.
Use a Payroll Deduction item to track medical insurance costs when:
- The employees pay part (or all) of the cost.
- Costs exceed $100 per month for the employee.
- The employer pays the total cost.
- You do not track medical insurance costs as a Payroll Deduction item.
Which of the following does QuickBooks Online exclude from taxable earnings when calculating federal withholding?
- Vacation salary.
- Sick leave salary.
- Overtime earnings.
- Employee contributions to a 401(k).
Why are there two Health Insurance and two Retirement categories in the Accounting Preferences?
- Different tax rates apply to employee and employer portions.
- You use separate accounts because you must write separate checks for employee and employer portions.
- QuickBooks Online manages the employee and employer portions separately.
- You maintain separate ledger accounts for the two portions of each tax.
Which of the following is not a feature of QuickBooks Online Core Payroll?
- Calculates gross pay by hours worked or salaries.
- Prints paychecks on standard checks or pays by Direct Deposit.
- Support agents set up payroll for you and guarantee accuracy.
- Calculates and electronically remits federal payroll tax liabilities.
QuickBooks Online uses Payroll Items to:
- Accumulate payroll liabilities.
- Track each different kind of compensation.
- Define the relationship between items you put on paychecks and the Chart of Accounts.
- All of the above.
If you no longer want an employee to show in the Employees list:
- Stop paying the employee.
- Deselect the employee for payments.
- Change their employment Status.
- Remove all wage items from the employee’s record.
Which is not true about Auto Payroll?
- It takes payroll out of your control.
- It repeats the previous payroll on a set schedule.
- You can set default hours for each employee.
- It notifies you a few days before so that you can confirm.
Sick leave, vacation leave, and PTO are:
- Standardized for all businesses in the US.
- Optional for all businesses in the US.
- Only accrued by the number of hours worked.
- Completely flexible according to your company’s policies.