All of the following issues are concerns of external auditors except:

A. safeguarding of the firms financial assets

B. risks to the companys financial well being

C. efficiency of payroll procedures

D. material misstatements of financial statements

All of the following features are present in a qualified plan except:

A. discriminator in favor of highly compensated employees

B. written documentation

C. benefits for employees

D. the right to benefits is nontrasferrable

Which of the following is the best method of guarding against phantom employees?

A. monthly bank reconciliation

B. validity edits

C. physical payout

D. audit trails

The federal minimum wage is used when figuring the amount to withhold for a creditor garnishment

A. TRUE

B. False

All of the following types of records can be combined with payroll data in an integrated system except:

A. personnel

B. benefits

C. purchasing

D. human resources

An employee claims exempt from withholding on his form W4. to continue the exempt status for the next year, a new form W4:

A. must be filed by dec 31

B. must be filed by feb 15 of the following year

C. is not necessary

D. is invalid if the employee claims more than 10 dependents

Which of the following employee benefits is taxable compensation?

A. workers compensation benefits

B. health savings account

C. sick pay

D. qualified transportation fringes

All of the following deductions are involuntary deductions EXCEPT:

A. wage assignment

B. tax levy

C. child support

D. creditor garnishment

One of the options in an employee's cafeteria benefit plan is a dependent care flexible spending account. He earnmarked $100 per month to the account to pay for child care but spent only $1000 by the end of the plans grace period. At the end of the grace period, what happens to the $200 left in the account?

A. the amount is forfeited

B. it will be added to his taxable income

C. he can use it to buy an additional benefits

D. it will carry over to the next year

An employer provides an employee $300 each month in bus tokens so she can commute to work. How much of this expense is taxable?

A. $135

B. $270

C. $280

D. $300