Chapter 12 - Payroll System And Technology

Front 1

Name 4 other systems that often interface with payroll within a company

Back 1

hr
benefits
accounting
bank recon
direct deposit
time and attendance
gl

Front 2

Name 3 commonly used system edits in payroll systems.

Back 2

warning that a ck is being generated for a term'd ee
error message when no ck is generated for an active ee
error message for negative pay
error message for negative deductions
report when comp exceeds certain amts
report for excessive ot
report when rate of pay changes

Front 3

Who are the payroll department's customers?

Back 3

ee's
other depts
upper management
federal/state/local gov't agencies

Front 4

List 3 major reasons why payroll, hr, and benefits would benefit form an integrated system.

Back 4

streamlining
storing complete data in a single seperate database
easy access to info
up to date system

Front 5

When selecting a new system, who should be included on the project team?

Back 5

payroll
hr
benefits
accounting
tax
budget/finance
data processing
facilities

Front 6

What are the objectives of an automated payroll system?

Back 6

compliance with govt agencies
timely/accurate cks
good records of all transactions
prepare internal reports
security

Front 7

What is the disadvantage of using a service provider?

Back 7

slow response time to needed changes and emergency situations

Front 8

List the advantages of using an in-house payroll system.

Back 8

control of the system
convenient access
downtime can be reduced
system security
scheduling flexibility
interactive apps

Front 9

As part of the "needs and wants analysis" in choosing a new payroll system, a current situation analysis is essential? what does this entail?

Back 9

documentation of all work flow in/out of the system
documentation procedures of maintenance, who called, response time, avg downtime
identify who receives info from the payroll system, how often, whether they are using it
identify/prioritize complaints, problems, and restrictions
document manual processes that could be automated
id all cost of the current system

Front 10

what should be included in a request for proposal (rtp)?

Back 10

er's purpose in issuing the request
specific payroll info
functional requirements of system now and in the future
number of fields required for earnings and deductions
will benefits and hr be integrated/what interfaces necessary
training needs/does need included in the bid
level of support expected
contract terms/conditions
instructions to vendor on how to submit proposal

Front 11

What are 3 common mistakes made during system selection which could seriously damage the project at a later phase?

Back 11

not including all necessary depts
not providing enought time for the project
not prioritizing needs/desires
making decisions without sufficient input
failing to consider all costs
making on site visits only to customers referred by the vendor
failing to negotiate performance guarantees
not considering future company needs

Front 12

What are 4 environmental concerns (ie physical plant issues) commonly addressed in protecting system hardware?

Back 12

need for climate controlled rooms
power surges/spikes
dirt
humidity

Front 13

TF1
A service provider is an independent company that processes its clients payrolls for a fee.

Back 13

true

Front 14

TF2
Before you can select a new system, you must document in detail what your current system can and cannot due.

Back 14

true

Front 15

TF3
A program that allows two systems to share data is called an interface.

Back 15

true

Front 16

TF4
Business Process Outsourcing is the outsourcing of end-to-end business processes and functions.

Back 16

true

Front 17

TF5
Documentation of the payroll system and its procedures is not a very important part of a company's overall control mechanisms.

Back 17

false

Front 18

TF6
A disadvantage of using a service provider is that it may not have the programming personnel needed to timely meet a user's changing individual needs.

Back 18

true

Front 19

TF7
An automated time and attendance system can remind managers to review and submit time sheets for their ee's.

Back 19

true

Front 20

TF8
An automated time and attendance system cannot reduce the errors inherent in a manual timekeeping system.

Back 20

false

Front 21

TF9
An in house computer system is only as good as the software that is run on it.

Back 21

true

Front 22

TF10
An automated time and attendance system should not integrate with an er's hr, payroll, and cost accounting system.

Back 22

false

Front 23

TF11
The initial step in selecting a new payroll system is to prepare a request for proposal.

Back 23

false
put together a project team

Front 24

TF12
If a vendor balks at answering some of the questions about a proposal, that may be a good indication that its products are not right for the job.

Back 24

true

Front 25

TF13
The final test before going live with a new system is called project testing.

Back 25

false
parallel testing

Front 26

TF14
An RFP can be used to design an in house payroll system.

Back 26

true

Front 27

TF15
A system edit is a warning or alert built into the system that checks for errors.

Back 27

true

Front 28

MC1
What is the main objective of any payroll system?
a. prepare internal reports
b. provide compliance with federal/state/ local withholding/depositing/reporting requirments
c. accurately payring ee's in a restricted time frame on payday
d. maintain adequate records of all data and transactions

Back 28

b

Front 29

MC2
All of the following features are disadvantages of using a service provider for processing your payroll except:
a. lack of control over security
b. low fixed cost
c. no control over breakdowns
d. responsibility for filing errors

Back 29

b

Front 30

MC3
What is the final test before going live with a new system?
a. parallel test
b. spot test
c stress test
d. conversion test

Back 30

a

Front 31

MC4
What is a warning or alert called that is built into the system that checks for errors and either corrects the error or notifies the operator that something may be wrong?
a. monitor edit
b. system edit
c control edit
d. procedure edit

Back 31

b

Front 32

MC5
What system is designed to eliminate the time taken to punch in and out and to write and sign information on time cards, as well as teh errors that such procedures can cause?
a. software system
b. automated time and attendance system
c. in house system
d. time sharing system

Back 32

b

Front 33

MC6
Which of the following systems is least likely to interface with payroll?
a. hr
b. marketing
c. benefits
d. accounting

Back 33

b

Front 34

MC7
All of the following features are advantages of an in house payroll system except:
a. convenient access
b. low fixed costs
c. scheduing flexibility
d. system security

Back 34

b

Front 35

MC8
All of the following features are disadvantages of an in house computer system except:
a. high fixed costs
b. additional staffing
c. sufficient secure space needed
d. scheduling flexibility

Back 35

d

Front 36

MC9
All of the following items are needed for web enablements except:
a. pcs with extensive memory
b. sufficient internet infrastructure
c. web enabling tools
d. hrms application expertise

Back 36

a

Front 37

MC10
All of the following features are advantages of an automated time and attendance system except:
a. less time spent on processing
b. fewer errors introduced during processing
d. more time spent on admin tasks
d. decreased costs

Back 37

c

Front 38

MC11
All of the following behaviors are common mistakes to avoid when selecting a new system except:
a. making decisions without sufficien input
b. failing to consider all the costs associated
c. not considering future co needs regarding expansion and downsizing
d. including personnel from all related depts on the project team

Back 38

d

Front 39

MC12
After the new system has been selected and approved, what is the next step in the selction process?
a. specify scope
b. implementation
c. review
d. define requirements

Back 39

b

Front 40

MC13
Auditors are often concerned with whether rfps for new computer systems are well formulated. which of the following items should typically be included in a request for proposal?
a. the hardware config
b. emphasis on software rather than hardware
c. detailed specs of the current workload
d. emphasis on tasks to be performed rather than specific hardware capabilities

Back 40

d

Front 41

MC14
An er has decided to change from an old to a new automated payroll system. In implementing the new system, both the old and the new system are maintained during the testing period. What is this changeover technique called?
a. debugging
b. pilot testing
c. parallel testing
d. back up system conversion

Back 41

c

Front 42

MC15
What method of internal control requires ee's to show id to get paid, thus discouraging the creation of phantom ee?
a. physical payouts
b. segregation of duties
c. job rotation
d. system edits

Back 42

a