Multiple Choice
How does payroll withholding benefit a company's employees?
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9. Current Liabilities
Payroll and Payroll Taxes
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
How does a payroll accountant typically keep track of employee pay disbursals?
A
By only reviewing the company's bank statements at the end of the year
B
By recording only the total payroll expense without tracking individual employee payments
C
By maintaining a payroll register that records gross pay, deductions, and net pay for each employee
D
By relying solely on verbal confirmation from employees
Verified step by step guidance1
Understand the role of a payroll accountant: A payroll accountant is responsible for accurately tracking and managing employee compensation, including gross pay, deductions, and net pay.
Learn about the payroll register: A payroll register is a detailed record that includes information for each employee, such as gross pay (total earnings before deductions), deductions (e.g., taxes, benefits), and net pay (final amount after deductions).
Recognize the importance of detailed tracking: Maintaining a payroll register ensures compliance with legal requirements, provides transparency, and helps in reconciling payroll expenses with financial statements.
Compare the options provided: Evaluate why the other methods (e.g., reviewing bank statements, recording only total payroll expense, or relying on verbal confirmation) are insufficient for accurate payroll tracking and compliance.
Conclude that the correct approach is maintaining a payroll register, as it provides a comprehensive and systematic way to track employee pay disbursals and ensures accuracy in financial reporting.
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