APA Payroll Technology & Systems Flashcards

What is the purpose of a payroll reconciliation report generated by payroll software?

Answer: To verify that payroll totals match general ledger entries

A payroll reconciliation report confirms that payroll amounts posted to the general ledger match actual payroll disbursements and tax liabilities.

In payroll systems, what does a 'positive pay' file submitted to a bank help prevent?

Answer: Check fraud by verifying check details before payment

A positive pay file sends issued check details to the bank, which then matches presented checks against the file to detect unauthorized or altered checks.

Which data element is essential in a payroll master record to ensure correct federal tax withholding?

Answer: Employee's W-4 filing status and allowances

The W-4 filing status and withholding information directly determines the federal income tax withheld from each paycheck.

What is the recommended approach when a payroll software vendor issues a critical tax table update mid-year?

Answer: Apply the update immediately before the next payroll run

Critical tax table updates should be applied before the next payroll run to ensure withholding calculations comply with current IRS rates and brackets.

Which reporting feature in payroll software helps identify employees who have not yet submitted a new W-4 after a life event?

Answer: Stale W-4 or missing W-4 exception report

A stale or missing W-4 exception report flags employees whose withholding information may be outdated or incomplete.

When moving payroll data from a legacy system to a new platform, which step is most important to perform before go-live?

Answer: Validate migrated employee and earnings data for accuracy and completeness

Data validation ensures that all employee records, earnings history, and tax data transferred correctly, preventing payroll errors after go-live.