"Chapter 7 Employee & Payroll"

1. In the EMPLOYEE & PAYROLL module, the term retain vacation refers to: a) An option to release vacation pay accumulated from prior periods. b) An option to release vacation pay with each paycheque. c) An option to keep vacation pay until the employee makes a written request to receive the vacation pay. d) Accrued pay paid between payroll dates to terminated employees.

2. In the EMPLOYEES & PAYROLL module, payroll entries recorded with errors: a) Can be corrected using the Calculate Taxes Automatically" icon. b) Are reversed using a negative amount in the "Payroll Cheque Run." c) Are reversed using the Adjust Payroll icon, selecting the cheque in error and reversing the cheque. d) Are corrected using positive amounts in the "Payroll Cheque Run."

3. Every time payroll rates are changed by government legislation (e.g., EI, CPP or Income Tax rates), the Sage 50 Accounting user: a) Must purchase a complete new version of the software. b) Must update the EMPLOYEES & PAYROLL module of their existing release/version. c) Must resort to manual payroll preparation until they are ready to buy a new version of the software. d) Can no longer use the software for any modules until the EMPLOYEES & PAYROLL module has been update.

4. Regarding payroll, which of the following statements is false? a) A T4 slip is prepared by the employer detailing employee's earnings and government deductions. b) A TD1 form is prepared by employees to calculate their basic income exemption. c) Sage 50 Accounting uses the call letters WCB to refer to the Workers Safety Insurance Board (WSIB). d) Gross Pay is the amount of pay the employee takes home (amount of the cheque given to the employee).

5. Which of the following is true? An advance of salary/wages is: a) The opposite of a release of pay. b) Offered at the discretion of the employer to employees who meet management guidelines. c) A government legislated requirement for businesses to provide to employees. d) Is subject to payroll taxes (CPP, E.I., and not Income Taxes).

6. In the Employee Payroll Ledger, if the Retain Vacation field is checked, then: a) Vacation pay is accumulated until the employee takes a vacation. b) Vacation pay is paid at the rate of 4% on each paycheque. c) Accumulated vacation time owing to the employee is held over until the next fiscal year. d) The employee is opting to earn vacation time off instead of vacation pay.

7. Which of the following statements is true? a) When an employee who is paid on a weekly basis takes two weeks vacation, the payroll frequency should be changed to 26. b) If the session date has been advanced in error to the last day of the month this will stop the first three weeks of the month payroll transactions from being recorded. c) Both the Payroll Journal and the Payroll Cheque Run will permit negative cheques (necessary for corrections). d) The term Net pay refers to the amount of the total pay the employee earned during the period (week, bi-weekly, month).

8. In the EMPLOYEES & PAYROLL Module, the term Benefit refers to: a) Amounts paid by the employee for dental or medical plans. b) Amounts paid by the employer for dental or medical plans. c) The commission paid to employees for working overtime. d) The reimbursement paid to employees for buying goods for the business.

9. In the EMPLOYEES & PAYROLL Module, which of the following is true regarding the term Wages/Salary Expense: a) Amount paid to employee for work done for the business. b) Amount owed to employee for work to be done after the current pay period. c) Amount that the employee earned for the current pay period. d) The term "Releve 1" refers to the form given to employees when they leave the company (laid off, etc.). e) Both a) and c) are correct.

10. In the EMPLOYEES & PAYROLL Module, the term "Garnishee" refers to which of the following: a) A deduction made to an employee's pay based on a legal court order. b) The Province of Quebec form which is given to employees detailing earning for the year. c) The vacation pay owing which is accumulating in a Vacation Pay Payable account. d) Amount paid to employee for work done for the business.

11. In the EMPLOYEES & PAYROLL Module, when posting a paycheque to the Employee Ledger and General Ledger, assuming the date information shown in parts a, b and c, what date will be used for the posting date: a) The Session date: Jan 04 b) The Cheque date: Jan 03 c) The Payroll Ending date: Jan 02

12. Making payments to the Receiver General for payroll amounts can be speeded up by using: a) Payments using the Pay Purchase Invoice selection. b) Make Other Payment selection. c) Payments Cheque selection. d) Pay Remittance selection.

13. Which of the following is true? a) The income reimbursement field is used to record reimbursement of borrowed funds by the employee to the company. b) The income reimbursement field is used to reimburse employees for monies they have spent on behalf of the company c) The income reimbursement field is used to remit monies owing to the government for payroll taxes. d) The income reimbursement field is used to correct prior payroll cheques issued to employees.