- (Topic 2)
All of the following preventative measures would help protect personally identifiable information EXCEPT:

1. A. Locking files containing employee information.
2. B. Signed confidentiality agreements for staff.
3. C. Reviewing system security periodically.
4. D. Limiting communications to e-mail.

Correct Answer: D
✑ E-mail is NOT a secure methodfor protecting sensitive payroll and HR data.
✑ Best practices includedata encryption, access control, and employee training. References:
✑ Data Security Standards (Payroll.org)
✑ IRS Data Protection Guidelines

- (Topic 2)
Depositors that fail to deposit the entire amount of tax required by the due date, without reasonable cause for the failure, are subject to a failure-to-deposit penalty of 5% of the undeposited amount if it is:

1. A. Deposited within 5 days of the due date.
2. B. Deposited within 6-15 days of the due date.
3. C. Deposited more than 15 days after the due date.
4. D. Not paid within 10 days after the employer receives its first IRS delinquency notice.

Correct Answer: B
✑ The IRS assesses failure-to-deposit penalties based on the length of the delay:
References:
✑ IRS Deposit Penalty Guidelines (Publication 15)

- (Topic 1)
All of the following resources are available to help a Payroll Professional stay abreast of regulatory changes EXCEPT the:

1. A. PAYO
2. B. DOL
3. C. FTC
4. D. IRS

Correct Answer: C
Comprehensive and Detailed Explanation:Payroll professionals must stay updated ontax laws, wage regulations, and compliance requirements. Key resources include:
✑ A (PAYO – Payroll.org) Provides training, updates, and compliance resources.
✑ B (DOL – Department of Labor) Overseeswage & hour laws (FLSA).
✑ D (IRS – Internal Revenue Service) Issues payroll tax regulations.
✑ Option C (FTC – Federal Trade Commission) is incorrectbecause theFTC does not regulate payroll laws. The FTC primarilymonitors consumer protection laws.
Reference:
Payroll.org – Payroll Compliance Updates
IRS & DOL – Payroll Tax and Wage Regulations

- (Topic 2)
When providing wage data for a workers?? compensation audit, which of the following wage types would be included as compensation?

1. A. Gratuities
2. B. Commissions
3. C. Third-party sick pay
4. D. Work uniform stipend

Correct Answer: B
✑ Workers?? compensation includes commissions (B) as part of employee earnings.
✑ Gratuities (A) and uniform stipends (D) are usually excluded. References:
✑ State Workers' Compensation Audit Guidelines

- (Topic 2)
Employee privacy rights are NOT governed by:

1. A. Company policy
2. B. Federal law
3. C. FLSA
4. D. State regulations

Correct Answer: C
✑ FLSA governs wages and hours, not privacy rights.
✑ Privacy laws are governed by federal/state regulations and company policies. References:
✑ Employee Privacy Rights (DOL)