Payroll Interview Questions

Q:

What are Payroll source documents?

Answer

The Payroll source documents are the employee Time Sheets (or equivalent) that record when the employee worked and generally what they did. These records are subject to audit by the Labor Department, EEOC and probably others that I haven't encountered. These should be bound into a Payroll Source Document folder.

However, there are other employee documents that need to be retained, e.g., their original employment application, employee reviews (if you do them),that record their federal/state tax exemption choices,reporting their annual wages and withholdings, etc.

These can be filed in separate Employee files (by employee name or number) -- or simply integrated into the Payroll Source Document folders (in the week in which they occur). I very much favor the latter -- especially if you're doing computer accounting -- in keeping with my "always file chronological" bias.

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Q:

What do you understand by Variance Report in payroll?

Answer

Variance Report is to know what is the difference between last month salary and the current month salary you can also check in that report all input which you have considered its captured or not

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Q:

How Would You Handle an Employee Who Fails to Report Time Records Before the Payroll Deadline?

Answer

Employees who do not complete their required payroll forms make the payroll administrator's job more challenging. Asking this question allows the applicant to explain how she would handle this to ensure the worker still gets paid.

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Q:

How Would You Assist an Employee Whose Tax Withholdings Are Inaccurate?

Answer

This question illustrates whether the applicant has experience changing employee income tax withholding amounts. The applicant should be able to describe the necessary forms to use and the process for changing the information in the payroll system.

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Q:

What is the difference between paycheck and payslip?

Answer

Paycheck - this is the method by which the Employee is paid (A Bank Check/Cheque or Direct Deposit to Bank)


Payslip - Also called as Pay Stub is the paper which will typically detail the gross income and all taxes and any other deductions such as retirement plan contributions, insurances, garnishments, or charitable contributions taken out of the gross amount to arrive at the final net amount of the pay, also including the year to date totals in some circumstances.

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Q:

What are the activities present in payroll task?

Answer

1. Processing Payroll to generate Paycheck and Pay Stubs


2. Generating Tax reports and vouchers using which Taxes are deposited to Govt (Employee Tax).


3. Processing reports that are handed over to Accounting Dept.


4. Ensuring that the Deductions, Benefits, Acruals, Taxes and Salaries are accurate (


5. Posting the Journals to Finance


6. Processing Govt Reports and submitted to Govt


7. Entering interims (may also be done by HR in some Companies)


7. Year End Process to generate W2s

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Q:

What Payroll Forms Are You Familiar With?

Answer

Payroll administrators must understand the function and proper usage of various payroll forms. Forms related to payroll include personal data forms, overtime or absence approval forms, expense reimbursement forms and time sheets.

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Q:

Can You Describe Typical IRS Forms Such as Form W-2 and W-4?

Answer

Payroll administrators process payroll tax information. IRS forms W-2 and W-4 provide employers with the information needed to withhold income taxes from employees' wages. Familiarity with these forms ensure the candidate understands how to properly prepare these documents.

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