Handling employee benefits and taxes MCQs on Peach Tree

By: Prof. Dr. Fazal Rehman Shamil | Last updated: August 1, 2024

  1. Which Peachtree feature allows you to set up employee benefits?
    a) Payroll
    b) Accounts Payable
    c) General Ledger
    d) Accounts Receivable
    Answer: a) Payroll
  2. How do you add employee benefits to an employee’s record in Peachtree?
    a) Enter the benefits information under the Benefits and Deductions section of the employee’s record
    b) Create a new invoice for each benefit
    c) Record benefits in the General Ledger
    d) Adjust the Accounts Receivable module for benefits
    Answer: a) Enter the benefits information under the Benefits and Deductions section of the employee’s record
  3. Which report provides a summary of employee benefits and their impact on payroll?
    a) Payroll Summary Report
    b) Benefits Report
    c) General Ledger Report
    d) Accounts Payable Report
    Answer: b) Benefits Report
  4. What information is typically required to set up payroll taxes for an employee in Peachtree?
    a) Tax codes, withholding amounts, and employee tax filing status
    b) Vendor payment terms and amounts
    c) Customer billing addresses and payment details
    d) Sales order numbers and product prices
    Answer: a) Tax codes, withholding amounts, and employee tax filing status
  5. How are payroll taxes calculated in Peachtree?
    a) Based on the employee’s tax setup, including tax codes and withholding amounts, applied during payroll processing
    b) Manually entered into the General Ledger
    c) Recorded as separate transactions in Accounts Payable
    d) Calculated from customer invoices and payments
    Answer: a) Based on the employee’s tax setup, including tax codes and withholding amounts, applied during payroll processing
  6. Which Peachtree feature is used to manage and track employee tax deductions?
    a) Payroll Tax Setup
    b) Accounts Receivable
    c) Inventory Management
    d) General Ledger
    Answer: a) Payroll Tax Setup
  7. What should you do if you need to adjust employee benefits or tax deductions?
    a) Update the employee’s record in the Payroll module with the new benefits or tax settings
    b) Create a manual adjustment entry in the General Ledger
    c) Record changes as separate invoices
    d) Adjust the Accounts Payable module directly
    Answer: a) Update the employee’s record in the Payroll module with the new benefits or tax settings
  8. Which report helps review the total payroll taxes deducted for employees during a specific period?
    a) Payroll Tax Report
    b) Benefits Report
    c) Accounts Receivable Report
    d) General Ledger Report
    Answer: a) Payroll Tax Report
  9. What action should be taken if there is a discrepancy in the recorded benefits or taxes for an employee?
    a) Investigate and correct the discrepancies by updating the employee’s record or creating adjustment entries
    b) Ignore the discrepancy and proceed with the payroll processing
    c) Manually adjust the General Ledger accounts
    d) Create a new set of benefits and tax records
    Answer: a) Investigate and correct the discrepancies by updating the employee’s record or creating adjustment entries
  10. How do you ensure compliance with tax regulations when managing employee taxes in Peachtree?
    a) Regularly review and update employee tax settings according to current regulations
    b) Manually adjust tax entries in the General Ledger
    c) Use external software to manage tax compliance
    d) Create new transactions to reflect tax changes
    Answer: a) Regularly review and update employee tax settings according to current regulations

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