SIMULATION - (Topic 1)
Which of the following simulations would NOT be performed when testing a disaster recovery plan?
MISSING
Solution:
MISSING

Does this meet the goal?

1. A. Yes
2. B. No

Correct Answer: A

- (Topic 2)
The FINAL phase of the accounting process involves the:

1. A. Transactions
2. B. Journal entries
3. C. General ledger
4. D. Financial statements

Correct Answer: D
✑ Thefinal phase of the accounting process is generating financial statements (D), which summarize all accounting activities.
✑ Transactions (A), journal entries (B), and general ledger (C) occur earlier in the process.
References:
✑ Payroll Accounting Standards (Payroll.org)

- (Topic 2)
Workers?? compensation payments are excluded from gross income and employment taxes EXCEPT when the amounts received:

1. A. Are related to injuries suffered on the job.
2. B. Are not related to illnesses suffered on the job.
3. C. Do not exceed the benefits provided under the state workers' compensation law.
4. D. Do not exceed the benefits provided under the federal workers' compensation law.

Correct Answer: B
✑ Workers?? compensation benefits are tax-exempt if they are paid for work-related injuries or illnesses.
✑ If payments are received for non-work-related illnesses (B), they become taxable.
✑ Amounts that do not exceed federal or state limits (C & D) remain tax-exempt. References:
✑ IRS Publication 525 (Taxable and Nontaxable Income)

- (Topic 1)
Using the following information from a payroll register, calculate the tax deposit liability for the payroll.

1. A. $7,975.00
2. B. $4,987.50
3. C. $4,480.00
4. D. $2,507.50

Correct Answer: A
Comprehensive and Detailed Explanation:Thetax deposit liabilityincludesfederal income tax withholding (FITW), Social Security tax, and Medicare tax.
✑ Social Security Tax:
✑ Medicare Tax:
✑ Total Tax Deposit Liability: Thus, the correct answer isA. $7,975.00. Reference:
IRS Publication 15 – Employer's Tax Guide Payroll.org – Payroll Tax Calculation Best Practices

- (Topic 1)
Payroll staff should be aware of all of the following potential warning signs of a data breach EXCEPT:

1. A. Excessive system security reset requests
2. B. Requests for large amounts of payroll data
3. C. An employee email request for a reprinted W-2 form
4. D. Payroll system activity occurring outside normal work hours

Correct Answer: C
Comprehensive and Detailed Explanation:Payroll security professionals must monitor forpotential payroll fraud or data breaches.
✑ A (Excessive security reset requests) Could indicate ahacker attempting
unauthorized access.
✑ B (Large payroll data requests) Could signalattempted data theft.
✑ D (Activity outside normal hours) Could be anexternal breach or insider threat.
✑ Option C (Reprinting a W-2) is NOT necessarily suspicious, as employees frequently request reprints during tax season.
Reference:
Payroll.org – Payroll Data Security Best Practices
IRS – Data Breach Prevention in Payroll