Payroll Setup and Management Flashcards
7 cards from real QBO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Payroll Setup and Management flashcards as text
When setting up a new employee in QuickBooks Online Payroll, which section is used to enter federal and state withholding allowances?
Answer: Withholding
The Withholding section of the employee profile stores federal and state W-4 information used to calculate tax withholding.
A company wants to pay employees a non-taxable car allowance. What is the correct way to set this up in QBO Payroll?
Answer: Add a non-taxable reimbursement pay type
A non-taxable reimbursement pay type is used for expenses like car allowances that do not constitute taxable wages.
What happens to payroll taxes when a payroll run is voided in QuickBooks Online Payroll?
Answer: Tax liabilities are reversed in the system
Voiding a payroll run in QBO reverses the associated tax liabilities and wage amounts in the books.
In QuickBooks Online Payroll, which report shows the total wages, taxes, and deductions for each employee for a selected period?
Answer: Payroll Summary by Employee
The Payroll Summary by Employee report breaks down earnings, deductions, and taxes per employee for the chosen date range.
An employee claims exempt from federal income tax withholding on their W-4. How should this be recorded in QBO Payroll?
Answer: Enter 'Exempt' in the federal withholding section
Selecting 'Exempt' in the federal withholding section tells QBO not to withhold federal income tax for that employee.
Which payroll subscription tier in QuickBooks Online includes automated tax filing and payment for all 50 states?
Answer: Both Premium and Elite
Both QuickBooks Online Payroll Premium and Elite include automated multi-state tax filing and payments.
A client uses QuickBooks Online Payroll and needs to track tips received by restaurant employees. Which pay type should be used for reported tips?
Answer: Reported Tips
The 'Reported Tips' pay type in QBO Payroll properly accounts for employee-reported tips for tax withholding purposes.