Payroll Processing

Preview · from QuickBooks Online Step-by-Step

In this chapter

• Payroll Processing Checklists
• Using the Payroll App
• Entering Time Sheets
• Paying Employees
• Correcting Errors
• Paying Taxes and Liabilities
• Running Payroll Reports
• Managing Employees
• Do It Yourself: Payroll Processing

Chapter review: Timesheets, running payroll, correcting paychecks & paying payroll taxes

14 practice questions. The answers are in the book.

1. To properly affect Payroll liabilities, which workflow should you use to pay the Payroll taxes?

   • Checks
   • Bills
   • Payroll Tax Center
   • Let QBO Workforce make the payments for you

2. Voucher style checks, when used for processing payroll, may contain:

   • Earnings and tax withholdings.
   • Company taxes.
   • Federal filing status.
   • All of the above.

3. The Payroll Tax Liability report identifies:

   • Liability payments made during the payment period.
   • Tax Liability amounts by Payroll Item.
   • Liabilities for Employee deductions only.
   • Liabilities for employer taxes only.

4. Which statement is true?

   • You can print pay stubs at any time.
   • Pay stubs can be printed using Standard 3-Up checks.
   • If you find an error in a past paycheck, you should delete and recreate the paycheck to ensure accuracy.
   • You cannot void a paycheck.

5. To begin processing your payroll:

   • Select Checks from Create button.
   • In the Payroll Taxes Center, click the Run Payroll button.
   • View an employee and then click Pay Now.
   • In the Employees list, click the Run Payroll button.

6. QuickBooks Online automatically calculates paychecks using information from the following sources except:

   • Amounts on all previous paychecks.
   • The employee's timesheet.
   • The employee's tax settings in the employee record.
   • The employee's expense report.

7. With a QuickBooks Online Payroll subscription, which forms are NOT submitted automatically?

   • State Payroll Tax forms.
   • 940.
   • W2.
   • All of the above are submitted automatically through a QuickBooks Online Payroll subscription.

8. Which of these is NOT true about Auto Payroll?

   • It's not available until after your first payroll run.
   • There is no way to edit each run.
   • It uses an employee's Default Hours as the basis.
   • You can use it for some employees but not others.

9. The Payroll Summary Report shows:

   • The detail of each employee's earnings only.
   • The YTD employee's earnings by Class.
   • The employee's personal profile information.
   • The detail of each employee's hours, earnings, taxes, and net pay.

10. If the Pay Liabilities window shows incorrect tax amounts due, the problem could be caused by:

    • Incorrect user entry of current state payroll tax rates.
    • Writing Checks to pay taxes.
    • Users overriding calculated taxes.
    • Any of the above.

11. To have data from timesheets affect an employee's paychecks:

    • Use the Weekly Timesheet.
    • Use the Single Time Activity.
    • Use QuickBooks Time.
    • Any of the above.

12. Which report breaks down all employees' pay, deductions, and taxes for a single payroll run?

    • Total Payroll Cost report.
    • Payroll Tax Liability report.
    • Payroll Details report.
    • Payroll Summary report.

13. How do you pay a salaried employee for vacation time?

    • Vacation time is not available for salaried employees.
    • Use a Vacation payroll item and enter the hours in the Vacation Pay column.
    • Enter vacation time in the employee's record.
    • Enter vacation hours on the pay stub.

14. When employees are on Direct Deposit, how can they see their paystubs?

    • They can't.
    • They can log in to Workforce.
    • You can print out their paystubs on plain paper.
    • Both b and c.