Gusto Payroll Certification Practice Quiz: 25 Realistic Questions + Explanations

This practice quiz is designed to help you prepare for the Gusto Payroll Certification by testing the skill that matters most: process logic (what to check, in what order, and why). These questions are original and created for learning.

How to use this quiz

• Answer without guessing based on “longest option.” In payroll, the best answer is usually the one that reduces risk.
• After each answer, read the explanation and note which checkpoint you missed.
• If you score under 18/25, review the workflow checklist in the study guide.

Practice questions

Question 1

You’re running payroll tomorrow. What should you verify first to prevent failed payments?

• A) That the company handbook is updated
• B) That employee pay details and schedule deadlines are correct
• C) That the org chart is complete
• D) That performance reviews are scheduled

Correct answer: B
Explanation: Failed payments usually come from missing bank details, schedule/cutoff issues, or setup errors — not policy documents.

Question 2

A new hire starts mid-pay period. What’s the best approach?

• A) Pay them next month to avoid complexity
• B) Complete onboarding setup and confirm prorated earnings align with the pay schedule rules
• C) Add them but skip tax setup until later
• D) Mark them as contractor to simplify payroll

Correct answer: B
Explanation: The key is correct setup + correct schedule application (proration, start date, and withholding).

Question 3

What is the main purpose of the payroll preview/review step?

• A) To reduce taxes automatically
• B) To catch anomalies and missing inputs before confirmation
• C) To remove the need for pay stubs
• D) To replace approvals

Correct answer: B
Explanation: Preview is your risk gate. It’s where you spot missing hours, unusual net pay, and exceptions.

Question 4

An employee’s net pay looks unusually low. What should you check first?

• A) Their job title
• B) Deductions/withholding changes and any one-time items
• C) The marketing budget
• D) The company logo settings

Correct answer: B
Explanation: Low net pay is most commonly linked to withholding, deductions, benefit changes, or one-time adjustments.

Question 5

Which event most often requires an extra payroll check?

• A) A stable salaried employee with no changes
• B) A new hire with incomplete onboarding documents
• C) A month with no PTO
• D) A week with no meetings

Correct answer: B
Explanation: Incomplete onboarding creates compliance risk and payment setup failures.

Question 6

Why do payroll tax forms matter operationally?

• A) They don’t, they’re just paperwork
• B) They document withholdings/filings; errors can create compliance risk
• C) They replace pay stubs
• D) They are only used for marketing

Correct answer: B
Explanation: Payroll becomes high-stakes when filings are wrong. Accuracy protects the business.

Question 7

An employee switches from hourly to salaried. What’s the best next action?

• A) Ignore it until next quarter
• B) Update pay type and confirm how it impacts the current pay period
• C) Delete and recreate the employee profile
• D) Pay a flat amount without documenting the change

Correct answer: B
Explanation: Pay-type changes impact calculations, withholding, and reporting — validate it within the schedule rules.

Question 8

Which sequence is the safest payroll flow?

• A) Confirm payroll → review → fix exceptions
• B) Collect inputs → review → confirm → audit
• C) Audit → confirm → collect inputs
• D) Confirm → collect inputs → review

Correct answer: B
Explanation: Inputs first, review before confirmation, then audit.

Question 9

What’s the most common reason payroll gets delayed?

• A) Too many pay stubs
• B) Missed cutoffs, missing approvals, or late time submissions
• C) Too many training sessions
• D) The company mission statement

Correct answer: B
Explanation: Payroll is deadline-driven. Most delays come from operational cutoffs and approvals.

Question 10

An employee requests a reimbursement. What’s the best practice?

• A) Add it without documentation
• B) Record it clearly as a separate item and verify how it impacts the pay run
• C) Convert it into a raise
• D) Skip it to avoid complexity

Correct answer: B
Explanation: Keep reimbursements distinct and review them as part of payroll inputs.

Question 11

You notice duplicate hours for an hourly employee. What should you do?

• A) Confirm payroll and correct next time
• B) Fix the time input before confirmation and re-check totals
• C) Ignore it if the employee is liked
• D) Delete all time entries

Correct answer: B
Explanation: Corrections must be made before confirmation, followed by a re-check.

Question 12

Which of the following is a “high-risk” payroll change?

• A) Updating an employee’s profile photo
• B) Changing bank details close to payroll cutoff
• C) Adding a new Slack channel
• D) Updating meeting notes

Correct answer: B
Explanation: Bank changes near cutoff can cause failed payments — they require extra verification.

Question 13

What’s the best way to reduce repeated payroll errors over time?

• A) Run payroll faster
• B) Keep a simple change log and use a repeatable checklist
• C) Avoid documenting changes
• D) Only do payroll quarterly

Correct answer: B
Explanation: A checklist + change log prevents recurring issues and makes audits easier.

Question 14

An employee terminates employment. What’s the key payroll focus?

• A) Updating the website footer
• B) Final pay accuracy, timing, and documentation
• C) Adding them to a new pay schedule
• D) Removing all payroll records

Correct answer: B
Explanation: Offboarding is compliance-heavy. Final pay should be handled carefully with clean documentation.

Question 15

You see an unusually high gross pay for one employee. First check should be:

• A) Their LinkedIn profile
• B) One-time items (bonus/commission), overtime, or duplicated inputs
• C) Their team name
• D) Their desk location

Correct answer: B
Explanation: Large gross discrepancies usually come from one-time items or duplicated hours.

Question 16

What’s a smart way to handle payroll when policies change mid-period?

• A) Apply changes immediately without telling anyone
• B) Document the effective date and verify how the change applies within the pay schedule
• C) Ignore the change until next year
• D) Apply changes retroactively without review

Correct answer: B
Explanation: Effective dates matter. Document and validate how a change flows into the current run.

Question 17

Which combination is most important to verify before confirming payroll?

• A) Brand colors and fonts
• B) Inputs + employee setup + anomaly scan
• C) Office snacks
• D) Holiday calendar only

Correct answer: B
Explanation: Those three areas catch most real payroll failures.

Question 18

A payroll run includes a bonus. What’s the safest approach?

• A) Add it and skip preview to save time
• B) Add it as a distinct item, then review totals and net pay impact in preview
• C) Convert it into hourly pay
• D) Delay it indefinitely

Correct answer: B
Explanation: Separate item + preview review reduces surprises and errors.

Question 19

What is the best “first response” when something looks wrong in preview?

• A) Confirm payroll anyway
• B) Identify the source input, correct it, then re-review the preview
• C) Delete all employees
• D) Ignore it if it’s small

Correct answer: B
Explanation: Fix root cause → re-check. That’s the safe pattern.

Question 20

Which is the best reason to keep payroll records organized?

• A) It looks nicer
• B) It supports audits, employee questions, and compliance checks
• C) It reduces the number of pay stubs
• D) It replaces taxes

Correct answer: B
Explanation: Organized records protect the business and make payroll support easier.

Question 21

What’s the biggest risk of “last-minute” changes right before payroll cutoff?

• A) It improves payroll accuracy
• B) It increases the chance of missed approvals, incorrect inputs, and failed payments
• C) It reduces reporting
• D) It makes onboarding faster

Correct answer: B
Explanation: Cutoff pressure is where mistakes happen. Last-minute changes require extra checks.

Question 22

A new deduction is added. What should you validate?

• A) That it’s listed in the company’s marketing doc
• B) That it applies to the right employees and behaves correctly in calculations
• C) That it removes the need for taxes
• D) That it reduces the number of payroll runs

Correct answer: B
Explanation: Deductions must be applied correctly, consistently, and reviewed for net pay impact.

Question 23

Which statement best describes a “clean payroll run”?

• A) It finishes quickly
• B) Inputs are complete, preview looks normal, confirmation happens after checks
• C) It has no pay stubs
• D) It avoids documentation

Correct answer: B
Explanation: Speed is not the goal; reliability is.

Question 24

When should you treat confirmation as “do not proceed”?

• A) When you’re bored
• B) When preview shows anomalies you cannot explain
• C) When the meeting calendar is full
• D) When an employee is remote

Correct answer: B
Explanation: Unexplained anomalies are a stop signal. Find the root cause before confirming.

Question 25

What’s the best way to get from “pass the quiz” to “run payroll well”?

• A) Memorize random facts
• B) Turn the workflow into a checklist and use it every payroll cycle
• C) Avoid preview screens
• D) Only run payroll once a year

Correct answer: B
Explanation: Payroll excellence is repeatability: checklist + review + discipline.