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
What is the purpose of the 'Workers' Compensation' feature in QuickBooks Online Payroll Elite?
Answer: It calculates and pays workers' compensation premiums based on actual payroll data
The workers' compensation feature in Elite calculates premiums based on real payroll runs and can integrate with pay-as-you-go policies.
In QBO Payroll, what does 'Same-Day Direct Deposit' require compared to standard direct deposit?
Answer: An additional per-transaction fee and a Premium or Elite subscription
Same-Day Direct Deposit requires a Premium or Elite plan and incurs an extra fee, with submissions due by a same-day cutoff.
A business has employees working in two different states. How does QBO Payroll handle multi-state payroll taxation?
Answer: It calculates taxes for each state based on the employee's work location entered in their profile
QBO Payroll supports multi-state taxation by using the work and home state information in each employee's profile to apply correct tax rates.
When is a Form 944 used instead of Form 941 for payroll tax reporting?
Answer: When the IRS notifies a small employer that their annual tax liability is $1,000 or less
The IRS designates employers who owe $1,000 or less in annual employment taxes to file Form 944 annually instead of Form 941 quarterly.
In QuickBooks Online Payroll, where do you set up a garnishment deduction for an employee's child support order?
Answer: Employee profile > Deductions & Contributions tab
Garnishments are configured as deduction items in the employee's Deductions & Contributions tab within their profile.
Which federal deposit schedule requires payroll taxes to be deposited the next business day after payroll?
Answer: Next-day deposit rule
The next-day deposit rule applies when a single payroll accumulates $100,000 or more in tax liability on any day.
What is the effect of adding a 401(k) employee contribution in QBO Payroll on the employee's taxable wages?
Answer: It reduces federal and state taxable wages but not Social Security and Medicare wages
Traditional 401(k) contributions are pre-tax for federal and state income tax purposes but are still subject to FICA (Social Security and Medicare) taxes.