If you work in Human Resources department and need to deal with Payroll within international environment, you have to be familiar with a lot of terms relating to legal terms such as wages, taxes, benefits, holiday entitlement, reconcilliations, filings, etc.

Do the test below, check the answers and read the GLOSSARY of terms to find out more about some most popular phrases you may encounter in your workplace.

Multiple Choice Exercise – Payroll – functions and responsibilities

1. Which action involves determining the amount of money an employee earns?
   • a) Issue paychecks
   • b) Calculate wages
   • c) Handle inquiries
   • d) Track hours
2. What does „deduct taxes” mean?
   • a) To distribute additional compensation to employees
   • b) To subtract required government taxes from employee earnings
   • c) To allocate money to employees as part of their salary
   • d) To revise and maintain accurate payroll information
3. Which task involves providing employees with their wages in the form of checks?
   • a) Process payroll
   • b) Issue paychecks
   • c) Manage benefits
   • d) Verify timesheets
4. What does „update records” involve?
   • a) To monitor and record the number of hours employees work
   • b) To revise and maintain accurate payroll information
   • c) To produce detailed statements on payroll activities
   • d) To allocate additional compensation to employees
5. Which action refers to managing wage deductions required by law?
   • a) Administer garnishments
   • b) Calculate overtime
   • c) Submit filings
   • d) Track leave
6. What does „reconcile accounts” mean?
   • a) To oversee and administer employee benefits programs
   • b) To create documents summarizing payroll information
   • c) To ensure payroll records match financial statements
   • d) To educate staff on payroll processes and systems
7. Which action involves sending required payroll documents to government agencies?
   • a) Prepare statements
   • b) Ensure compliance
   • c) Submit filings
   • d) Address discrepancies
8. What does „generate reports” mean?
   • a) To distribute additional compensation to employees
   • b) To manage questions and issues related to payroll
   • c) To produce detailed statements on payroll activities
   • d) To correct or modify payroll records
9. Which task involves ensuring the privacy of payroll information?
   • a) Implement policies
   • b) Maintain confidentiality
   • c) Provide training
   • d) File taxes
10. What does „adjust entries” mean?
    • a) To allocate bonuses to employees
    • b) To ensure the accuracy of recorded work hours
    • c) To correct or modify payroll records
    • d) To monitor and record employee absences and vacation days
11. Which action refers to calculating extra pay for hours worked beyond regular schedules?
    • a) Compute overtime
    • b) Update software
    • c) Issue refunds
    • d) Manage payroll
12. What does „track hours” mean?
    • a) To manage questions and issues related to payroll
    • b) To monitor and record the number of hours employees work
    • c) To ensure the privacy of payroll information
    • d) To produce detailed statements on payroll activities
13. Which task involves allocating money to employees as part of their salary?
    • a) Distribute funds
    • b) Review audits
    • c) Handle inquiries
    • d) Compute overtime
14. What does „provide training” involve?
    • a) To educate staff on payroll processes and systems
    • b) To create documents summarizing payroll information
    • c) To revise and maintain accurate payroll information
    • d) To ensure payroll records match financial statements
15. Which action refers to examining payroll records for accuracy and compliance?
    • a) Track hours
    • b) Review audits
    • c) Maintain confidentiality
    • d) Calculate deductions
16. What does „address discrepancies” mean?
    • a) To create documents summarizing payroll information
    • b) To revise and maintain accurate payroll information
    • c) To resolve differences or errors in payroll data
    • d) To allocate additional compensation to employees
17. Which task involves creating documents summarizing payroll information?
    • a) Prepare statements
    • b) Verify timesheets
    • c) Implement policies
    • d) Reconcile accounts
18. What does „calculate deductions” mean?
    • a) To subtract required government taxes from employee earnings
    • b) To determine various withholdings from employee pay
    • c) To distribute additional compensation to employees
    • d) To allocate money to employees as part of their salary
19. Which action involves monitoring and recording employee absences and vacation days?
    • a) Track leave
    • b) Manage benefits
    • c) Verify timesheets
    • d) Update records
20. What does „issue refunds” mean?
    • a) To ensure payroll records match financial statements
    • b) To return overpaid amounts to employees
    • c) To produce detailed statements on payroll activities
    • d) To administer wage deductions required by law

Here are the answers to the multiple-choice exercise:

1. b) Calculate wages
2. b) Deduct taxes
3. b) Issue paychecks
4. b) Update records
5. a) Administer garnishments
6. c) Reconcile accounts
7. c) Submit filings
8. c) Generate reports
9. b) Maintain confidentiality
10. c) Adjust entries
11. a) Compute overtime
12. b) Track hours
13. a) Distribute funds
14. a) Provide training
15. b) Review audits
16. c) Address discrepancies
17. a) Prepare statements
18. b) Calculate deductions
19. a) Track leave
20. b) Issue refunds

GLOSSARY OF TERMS:

1. Process payroll: To calculate and distribute employee wages and salaries.
2. Issue paychecks: To provide employees with their wages in the form of checks.
3. Calculate wages: To determine the amount of money an employee earns.
4. Deduct taxes: To subtract required government taxes from employee earnings.
5. Update records: To revise and maintain accurate payroll information.
6. Manage benefits: To oversee and administer employee benefits programs.
7. Distribute funds: To allocate money to employees as part of their salary.
8. Generate reports: To produce detailed statements on payroll activities.
9. Track hours: To monitor and record the number of hours employees work.
10. Verify timesheets: To confirm the accuracy of recorded work hours.
11. Prepare statements: To create documents summarizing payroll information.
12. Adjust entries: To correct or modify payroll records.
13. Handle inquiries: To manage questions and issues related to payroll.
14. Maintain confidentiality: To ensure the privacy of payroll information.
15. Submit filings: To send required payroll documents to government agencies.
16. Allocate bonuses: To distribute additional compensation to employees.
17. Reconcile accounts: To ensure payroll records match financial statements.
18. Administer garnishments: To manage wage deductions required by law.
19. Compute overtime: To calculate extra pay for hours worked beyond regular schedules.
20. Implement policies: To put payroll procedures and rules into action.
21. Ensure compliance: To adhere to legal and regulatory payroll requirements.
22. Review audits: To examine payroll records for accuracy and compliance.
23. Address discrepancies: To resolve differences or errors in payroll data.
24. Update software: To keep payroll systems current with new versions.
25. Provide training: To educate staff on payroll processes and systems.
26. Calculate deductions: To determine various withholdings from employee pay.
27. Manage payroll: To oversee the entire payroll process for an organization.
28. File taxes: To submit payroll-related tax documents to authorities.
29. Track leave: To monitor employee absences and vacation days.
30. Issue refunds: To return overpaid amounts to employees.

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