Mastering TOEIC Reading: Expert Guide for Setting Up Payroll Systems

TOEIC Reading Practice Test: Payroll Systems

Part 1: Incomplete Sentences

1. The company’s new payroll system will be __ next month to streamline the payment process.
   A. implemented
   B. implanted
   C. imparted
   D. impacted

2. Employees must submit their timesheets by Friday to ensure __ processing of their wages.
   A. timely
   B. timeless
   C. timed
   D. timing

3. The HR department is responsible for __ all payroll-related inquiries from staff members.
   A. handling
   B. handing
   C. hanging
   D. hindering

4. Direct deposit is the preferred method of payment as it is more __ than issuing paper checks.
   A. efficient
   B. effusive
   C. effective
   D. affective

5. The new payroll software can __ calculate taxes, deductions, and net pay for each employee.
   A. automatically
   B. autonomously
   B. authentically
   D. authoritatively

6. It is crucial to maintain accurate payroll records to __ with labor laws and tax regulations.
   A. comply
   B. complete
   C. compile
   D. compel

7. The finance team must __ the payroll data before processing the final payments.
   A. verify
   B. verify
   C. vilify
   D. vivify

8. Employees can access their pay stubs and W-2 forms through the company’s secure __ portal.
   A. online
   B. offline
   C. outline
   D. ongoing

9. The payroll manager is __ for ensuring that all employees are paid accurately and on time.
   A. responsible
   B. responsive
   C. respectable
   D. respective

10. Any __ in salary or benefits must be approved by the HR director before implementation.
    A. changes
    B. charges
    C. chains
    D. chances

11. The company offers __ payroll services to small businesses as part of its consulting package.
    A. outsourced
    B. outspoken
    C. outbound
    D. outlandish

12. Employees should report any __ in their paychecks to the payroll department immediately.
    A. discrepancies
    B. discretions
    C. discriminations
    D. distortions

13. The new time tracking system will __ the need for manual entry of work hours.
    A. eliminate
    B. elevate
    C. elaborate
    D. elucidate

14. Payroll taxes must be __ to the appropriate government agencies on a regular basis.
    A. remitted
    B. removed
    C. reminded
    D. remained

15. The company’s payroll budget has increased due to recent __ in minimum wage laws.
    A. changes
    B. charges
    C. choices
    D. chances

16. All overtime hours must be __ by a supervisor before they can be included in the payroll.
    A. approved
    B. appraised
    C. appeased
    D. appeared

17. The payroll system automatically __ vacation and sick leave accruals for each employee.
    A. tracks
    B. trails
    C. traces
    D. trades

18. Employee __ such as health insurance premiums are deducted from gross pay before taxes.
    A. benefits
    B. bonuses
    C. balances
    D. behaviors

19. The company’s payroll policies are __ in the employee handbook for easy reference.
    A. outlined
    B. outweighed
    C. outreached
    D. outplaced

20. Payroll processing must be completed by Wednesday to ensure funds are __ by Friday.
    A. disbursed
    B. dispersed
    C. disposed
    D. displayed

21. The new payroll system offers greater __ in generating custom reports for management.
    A. flexibility
    B. fluidity
    C. flammability
    D. flippancy

22. All employees are required to __ direct deposit forms to receive their wages electronically.
    A. complete
    B. compliment
    C. complement
    D. compile

23. The payroll department conducts regular __ to ensure compliance with tax regulations.
    A. audits
    B. audiences
    C. augments
    D. auspices

24. Employees can __ their personal information and tax withholding status through the portal.
    A. update
    B. uptake
    C. upstage
    D. uprate

25. The company’s payroll system is __ with various time tracking and accounting software.
    A. integrated
    B. interrogated
    C. interpolated
    D. intervened

26. Payroll data is __ encrypted to protect sensitive employee information from unauthorized access.
    A. securely
    B. secretly
    C. severely
    D. serenely

27. The HR team provides __ training sessions on the new payroll system for all employees.
    A. comprehensive
    B. compressive
    C. comprehensible
    D. compromising

28. Year-end payroll processing includes generating W-2 forms and __ tax documents for employees.
    A. related
    B. relayed
    C. relaxed
    D. released

29. The payroll manager must __ any unusual patterns or discrepancies in the payroll data.
    A. investigate
    B. invigorate
    C. invigilate
    D. invalidate

30. Employees are encouraged to __ paperless payroll options to reduce administrative costs.
    A. opt for
    B. opt out
    C. operate
    D. opine

Illustration of payroll system setup process

Part 2: Text Completion

Questions 31-34 refer to the following text:

Setting up an efficient payroll system is crucial for any business. The first step is to (31) __ all necessary employee information, including personal details and tax withholding status. Next, businesses must (32) __ a reliable payroll software that can handle tax calculations and deductions automatically. It’s important to establish a consistent pay schedule and (33) __ employees of payment dates. Finally, companies should implement a secure method for (34) __ wages, such as direct deposit, to ensure timely and accurate payments.

31. A. collect
    B. correct
    C. connect
    D. conduct

32. A. choose
    B. change
    C. charge
    D. chase

33. A. inform
    B. infirm
    C. infer
    D. infringe

34. A. disbursing
    B. discussing
    C. disguising
    D. disgorging

Questions 35-38 refer to the following text:

Compliance with payroll regulations is essential to avoid legal issues. Employers must (35) __ accurate records of all wages paid, taxes withheld, and hours worked. It’s crucial to stay (36) __ of changes in labor laws and tax regulations that may affect payroll processing. Companies should conduct regular (37) __ to ensure their payroll practices meet all legal requirements. Additionally, providing clear and detailed pay stubs to employees helps (38) __ transparency and reduces the likelihood of disputes.

35. A. maintain
    B. maintain
    C. maneuver
    D. manipulate

36. A. informed
    B. informal
    C. informative
    D. informant

37. A. audits
    B. audiences
    C. augments
    D. auspices

38. A. promote
    B. provoke
    C. provide
    D. produce

Questions 39-42 refer to the following text:

Outsourcing payroll services can be beneficial for many businesses. By (39) __ payroll tasks to specialized providers, companies can focus on their core operations. Outsourcing often results in (40) __ accuracy and compliance with tax laws. However, it’s important to (41) __ a reputable service provider with experience in your industry. Before making a decision, businesses should (42) __ the costs and benefits of in-house versus outsourced payroll processing.

39. A. delegating
    B. deliberating
    C. delighting
    D. delivering

40. A. increased
    B. inclined
    C. incurred
    D. inducted

41. A. choose
    B. chase
    C. change
    D. charge

42. A. evaluate
    B. evacuate
    C. evaporate
    D. elevate

Questions 43-46 refer to the following text:

Implementing a new payroll system requires careful planning and execution. It’s essential to (43) __ all stakeholders, including HR, finance, and IT departments, in the decision-making process. Before launch, conduct thorough (44) __ to ensure the system functions correctly and integrates with existing software. Provide (45) __ training to all users, including payroll staff and employees who will access the system. After implementation, continuously (46) __ the system’s performance and gather feedback for potential improvements.

43. A. involve
    B. invoke
    C. invade
    D. invent

44. A. testing
    B. tasting
    C. toasting
    D. twisting

45. A. comprehensive
    B. compressive
    C. comprehensible
    D. compromising

46. A. monitor
    B. monetize
    C. minimize
    D. memorize

Answer Key

Part 1: Incomplete Sentences

1. A
2. A
3. A
4. A
5. A
6. A
7. A
8. A
9. A
10. A
11. A
12. A
13. A
14. A
15. A
16. A
17. A
18. A
19. A
20. A
21. A
22. A
23. A
24. A
25. A
26. A
27. A
28. A
29. A
30. A

Part 2: Text Completion

31. A
32. A
33. A
34. A
35. A
36. A
37. A
38. A
39. A
40. A
41. A
42. A
43. A
44. A
45. A
46. A

This TOEIC Reading practice test focuses on vocabulary and concepts related to setting up payroll systems. It covers various aspects such as employee information management, software selection, compliance, outsourcing, and system implementation. The test is designed to assess your understanding of payroll-related terminology and processes, which are crucial for professionals working in HR, finance, or business management roles.

Remember to review the bold words and phrases in the questions, as they often represent key vocabulary or complex grammatical structures that are frequently tested in TOEIC exams. Good luck with your TOEIC preparation!