Each month ABC Company records the amount of after-tax long-term disability (LTD) insurance purchased by its employees who elected to purchase this insurance. The deduction is equal to the cost of the insurance. In the month following the deduction, the insurance company invoices ABC Company. ABC then pays the invoice. At the end of April, the balance in the LTD general ledger liability account is $438.40. What does this balance represent?

• A.Amounts deducted from employees who have terminated employment
• B.Amounts paid to the insurance company
• C.Over-payments to the insurance company
• D.Amounts that have been deducted but not paid to the insurance company

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Which of the following is usually considered an advantage for outsourcing payroll?

• A.Tax withholding updates in the system are the responsibility of the service provider
• B.The employer is relieved of all compliance responsibility
• C.Business decisions transfer to the outsource provider
• D.All of the business needs can be met with no customizations

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Which of the following employees is most likely to be an exempt professional under FLSA?

• A.Accounts payable clerk
• B.Human resources receptionist
• C.Payroll specialist
• D.Labor Relations Director

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Which of the following supports payroll system security?

• A.Audit trails
• B.Constructive receipt
• C.Labor law compliance
• D.New hire reporting

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At the time that wages are paid, an advance payment of EIC would be recorded as:

• A.Debit FIT payable, credit cash
• B.Debit EIC payable, credit cash
• C.Debit EIC payable, credit FICA payable
• D.Debit cash, credit EIC payable

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