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Oracle Fusion HCM Payroll Interview Questions and Answers

Tech Leads IT

Sat, 18 Mar 2023

Oracle Fusion HCM Payroll Interview Questions and Answers


1. 
What is Oracle Payroll Cloud?
A: Oracle Payroll Cloud is a cloud-based payroll solution that automates and streamlines payroll processes for organizations

2. What are some of the key features of Oracle Payroll Cloud?
A: Some key features of Oracle Payroll Cloud include payroll processing, tax compliance, time and labor management, and reporting and analytics.

3. What is the US Legislation module in Oracle Payroll Cloud? 
A: The US Legislation module in Oracle Payroll Cloud is designed to help organizations comply with US payroll regulations, including federal, state, and local tax laws.

4. What types of taxes does Oracle Payroll Cloud handle for US legislation?
A: Oracle Payroll Cloud handles federal income tax, Social Security tax, Medicare tax, state income tax, and local taxes.

5. What is the difference between exempt and non-exempt employees in Oracle Payroll Cloud?
A: Exempt employees are not entitled to overtime pay, while non-exempt employees are entitled to overtime pay.

6. How does Oracle Payroll Cloud calculate overtime pay?
A: Oracle Payroll Cloud calculates overtime pay based on the number of hours worked over 40 hours in a workweek.

7. What is the minimum wage in the United States?
A: The federal minimum wage is $7.25 per hour. Does Oracle Payroll Cloud automatically adjust the minimum wage rate? Answer: Yes, Oracle Payroll Cloud automatically adjusts the minimum wage rate based on federal and state regulations.

8. What is the difference between a W-2 and a W-4 form?
A: A W-2 form is used to report an employee's wages and taxes paid during the year, while a W-4 form is used to determine how much federal income tax should be withheld from an employee's paycheck.

9. How does Oracle Payroll Cloud handle garnishments?
A: Oracle Payroll Cloud automatically calculates and deducts garnishments from an employee's paycheck based on court orders.

10. What is a pay cycle in Oracle Payroll Cloud?
A: A pay cycle is the frequency with which an organization pays its employees, such as weekly, biweekly, or monthly.

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11. How does Oracle Payroll Cloud handle paid time off (PTO)?
A: Oracle Payroll Cloud allows organizations to create PTO policies and track employee accruals and usage.

12. What is the difference between a deduction and an earning in Oracle Payroll Cloud?
A: A deduction is a reduction in an employee's paycheck, such as for taxes or benefits, while an earning is an addition to an employee's paycheck, such as for overtime or bonuses.

13. How does Oracle Payroll Cloud handle state-specific payroll taxes?
A: Oracle Payroll Cloud automatically calculates and withholds state-specific payroll taxes based on each state's regulations.

14. What is a payroll register in Oracle Payroll Cloud?
A: A payroll register is a report that summarizes payroll information for a specific pay period, including earnings, deductions, and taxes.

15. How does Oracle Payroll Cloud handle year-end payroll processing?
A: Oracle Payroll Cloud generates W-2 forms for employees and handles the year-end tax reporting process.

16. What is the difference between a salary and an hourly employee in Oracle Payroll Cloud?
A: A salary employee is paid a fixed amount per pay period, while an hourly employee is paid based on the number of hours worked.

17. How does Oracle Payroll Cloud handle employee benefits?
A: Oracle Payroll Cloud allows organizations to create benefit plans and track employee enrollment and usage.

18. What are the different types of payroll taxes that Oracle Payroll Cloud handles for US legislation, and how does it handle them?
A: Oracle Payroll Cloud handles federal income tax, Social Security tax, Medicare tax, state income tax, and local taxes. It automatically calculates and withholds these taxes based on each employee's tax status and location.

19. How does Oracle Payroll Cloud handle multi-state payroll processing?
A: Oracle Payroll Cloud handles multi-state payroll processing by automatically calculating and withholding payroll taxes based on each state's regulations.

20. How does Oracle Payroll Cloud handle payroll for employees working in multiple jurisdictions?
A: Oracle Payroll Cloud handles payroll for employees working in multiple jurisdictions by automatically calculating and withholding payroll taxes based on each employee's work location.

21. What is the difference between a pre-tax deduction and a post-tax deduction, and how does Oracle Payroll Cloud handle them?
A: A pre-tax deduction is deducted from an employee's paycheck before taxes are calculated, while a post-tax deduction is deducted after taxes are calculated. Oracle Payroll Cloud allows organizations to create both types of deductions and automatically calculates and withholds them based on each employee's election.

22. How does Oracle Payroll Cloud handle overtime pay for employees who work in multiple states with different overtime laws?
A: Oracle Payroll Cloud handles overtime pay for employees who work in multiple states with different overtime laws by automatically calculating overtime pay based on the state-specific regulations.

23. How does Oracle Payroll Cloud handle payroll for employees who work abroad?
A: Oracle Payroll Cloud handles payroll for employees who work abroad by automatically calculating and withholding payroll taxes based on each country's regulations.

24. What is a retroactive payroll adjustment, and how does Oracle Payroll Cloud handle it?
A: A retroactive payroll adjustment is a change to an employee's payroll information that affects a previous pay period. Oracle Payroll Cloud allows organizations to make retroactive payroll adjustments and automatically recalculates and adjusts the affected paychecks.

25. What is a payroll relationship in Oracle Payroll Cloud, and how is it used?
A: A payroll relationship in Oracle Payroll Cloud is a relationship between an employee and the organization that defines the employee's pay and benefits. It is used to determine payroll calculations and withholdings.

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26.
How does Oracle Payroll Cloud handle payroll for temporary or seasonal employees?
A: Oracle Payroll Cloud handles payroll for temporary or seasonal employees by automatically calculating and withholding payroll taxes based on the employee's status and work location.

27. What is the difference between a tax form and a tax filing, and how does Oracle Payroll Cloud handle them?
A: A tax form is a document that reports an employee's wages and taxes paid during the year, while a tax filing is the process of submitting tax forms to the appropriate tax agencies. Oracle Payroll Cloud generates tax forms for employees and handles the tax filing process.

28. How does Oracle Payroll Cloud handle payroll for employees who work remotely?
A: Oracle Payroll Cloud handles payroll for employees who work remotely by automatically calculating and withholding payroll taxes based on the employee's work location.

29. What is a taxable benefit, and how does Oracle Payroll Cloud handle it?
A: A taxable benefit is a benefit provided by an employer that is subject to payroll taxes. Oracle Payroll Cloud automatically calculates and withholds payroll taxes on taxable benefits.

30. How does Oracle Payroll Cloud handle payroll for employees who work part-time or have a variable schedule?
A: Oracle Payroll Cloud handles payroll for employees who work part-time or have a variable schedule by automatically calculating payroll based on the employee's hours worked.

31. How does Oracle Payroll Cloud handle payroll for employees who receive tips or commissions?
A: Oracle Payroll Cloud handles payroll for employees who receive tips or commissions by automatically calculating and withholding payroll taxes on those earnings.

32. What is a gross-to-net calculation, and how does Oracle Payroll Cloud perform it?
A: A gross-to-net calculation is the process of converting an employee's gross pay to their net pay by subtracting all applicable deductions and taxes. Oracle Payroll Cloud performs this calculation automatically for each pay period.

33. How does Oracle Payroll Cloud handle garnishments, such as child support or wage garnishments?
A: Oracle Payroll Cloud handles garnishments by automatically calculating and withholding the appropriate amount from an employee's paycheck and sending it to the appropriate agency or creditor.

34. What is a payroll run, and how does Oracle Payroll Cloud perform it?
A: A payroll run is the process of running payroll for a specific pay period. Oracle Payroll Cloud performs this process by calculating and generating paychecks, depositing funds into employee accounts, and generating tax forms and filings.

35. How does Oracle Payroll Cloud handle pay increases or promotions mid-pay period?
A: Oracle Payroll Cloud handles pay increases or promotions mid-pay period by automatically calculating and adjusting the affected paychecks to reflect the new pay rate.

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36. How does Oracle Payroll Cloud handle payroll for employees who have multiple jobs or sources of income?
A: Oracle Payroll Cloud handles payroll for employees who have multiple jobs or sources of income by automatically calculating and withholding payroll taxes based on the total earnings from all sources.

37. What is the difference between a deduction and a contribution, and how does Oracle Payroll Cloud handle them?
A: A deduction is an amount subtracted from an employee's gross pay, while a contribution is an amount added to an employee's gross pay, such as a 401(k) contribution. Oracle Payroll Cloud allows organizations to create both types of deductions and contributions and automatically calculates and withholds them based on each employee's election.

38. How does Oracle Payroll Cloud handle payroll for employees who are paid on a commission-only basis?
A: Oracle Payroll Cloud handles payroll for employees who are paid on a commission-only basis by automatically calculating and withholding payroll taxes on the commission earnings.

39. What is a payroll element, and how is it used in Oracle Payroll Cloud?
A: A payroll element in Oracle Payroll Cloud is a building block used to define a specific aspect of payroll calculation or withholding, such as a tax rate or deduction. Payroll elements are used in payroll relationships to determine payroll calculations and withholdings.

40. How does Oracle Payroll Cloud handle payroll for employees who work overtime, but have a salary rather than an hourly wage?
A: Oracle Payroll Cloud handles payroll for employees who work overtime on a salary basis by automatically calculating overtime pay based on the employee's salary and the applicable overtime regulations.

41. How does Oracle Payroll Cloud handle payroll for employees who have both exempt and non-exempt earnings?
A: Oracle Payroll Cloud handles payroll for employees who have both exempt and non-exempt earnings by automatically calculating and withholding payroll taxes based on the earnings type and applicable regulations.

42. What is a payroll balance, and how is it used in Oracle Payroll Cloud?
A: A payroll balance in Oracle Payroll Cloud is a record of an employee's earnings, deductions, and taxes for a specific pay period. Payroll balances are used to generate paychecks and tax forms.

43. How does Oracle Payroll Cloud handle payroll for employees who receive bonuses or other forms of supplemental pay?
A: Oracle Payroll Cloud handles payroll for employees who receive bonuses or other forms of supplemental pay by automatically calculating and withholding payroll taxes based on the earnings type

44. How does Oracle Payroll Cloud handle payroll for employees who work in multiple states or jurisdictions?
A: Oracle Payroll Cloud handles payroll for employees who work in multiple states or jurisdictions by automatically calculating and withholding payroll taxes based on the employee's work location and applicable regulations for each jurisdiction.

45. How does Oracle Payroll Cloud handle retroactive pay adjustments, such as back pay or salary increases that apply to a previous pay period?
A: Oracle Payroll Cloud handles retroactive pay adjustments by automatically recalculating affected paychecks and generating any necessary tax forms or filings for the previous pay period.

46. What is a payroll relationship, and how is it used in Oracle Payroll Cloud?
A: A payroll relationship in Oracle Payroll Cloud is a record of an employee's employment terms and payroll details, such as their pay rate, deductions, and taxes. Payroll relationships are used to calculate and generate paychecks and tax forms.

47. How does Oracle Payroll Cloud handle payroll for employees who have multiple pay rates or pay structures, such as hourly and salary-based pay?
A: Oracle Payroll Cloud handles payroll for employees with multiple pay rates or structures by automatically calculating pay based on the applicable pay rate or structure for each earnings type.

48. How does Oracle Payroll Cloud handle payroll for employees who have multiple payroll deductions, such as health insurance and retirement contributions?
A: Oracle Payroll Cloud handles payroll for employees with multiple deductions by automatically calculating and withholding each applicable deduction based on the employee's election and applicable regulations.

49. How does Oracle Payroll Cloud handle payroll for employees who have a flexible work schedule, such as those who work part-time or variable hours?
A: Oracle Payroll Cloud handles payroll for employees with a flexible work schedule by automatically calculating pay based on the employee's hours worked and applicable regulations.

50. How does Oracle Payroll Cloud handle payroll for employees who have a negative pay balance, such as those with unpaid wage advances or negative vacation balances?
A: Oracle Payroll Cloud handles negative pay balances by automatically adjusting affected paychecks and generating any necessary tax forms or filings.

51. How does Oracle Payroll Cloud handle payroll for employees who have special tax considerations, such as those who are non-resident aliens or have dual-status citizenship?
A: Oracle Payroll Cloud handles payroll for employees with special tax considerations by automatically calculating and withholding applicable taxes based on the employee's status and applicable regulations.

52. What is a payroll flow, and how is it used in Oracle Payroll Cloud?
A: A payroll flow in Oracle Payroll Cloud is a sequence of steps used to process payroll, from entering and verifying data to generating paychecks and tax forms. Payroll flows can be customized to fit an organization's specific needs.

53. How does Oracle Payroll Cloud handle payroll for employees who have a wage garnishment that exceeds their earnings for a pay period?
A: Oracle Payroll Cloud handles wage garnishments that exceed an employee's earnings by prioritizing the garnishment over other payroll deductions and withholding the maximum allowed amount from each paycheck until the garnishment is satisfied.

54. How does Oracle Payroll Cloud handle payroll for employees who receive tips or other forms of gratuity?
A: Oracle Payroll Cloud handles payroll for employees who receive tips by automatically calculating and withholding payroll taxes based on the employee's total earnings, including tips and other gratuity.

55. How does Oracle Payroll Cloud handle payroll for employees who have a court-ordered wage assignment or income withholding order?
A: Oracle Payroll Cloud handles court-ordered wage assignments by automatically calculating and withholding the appropriate amount from an employee's paycheck and sending it to the appropriate agency or creditor.

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