FPC EXAM FUNDAMENTAL PAYROLL QUESTIONS AND CORRECT ANSWERS

FPC EXAM FUNDAMENTAL PAYROLL
QUESTIONS AND CORRECT ANSWERS

668-WA2-A2Ans--NoticeA2ofA2LevyA2onA2Wages,A2Salary,A2andA2OtherA2Income

1096A2-A2Ans--AnnualA2SummaryA2andA2TransmittalA2ofA2U.S.A2InformationA2Returns

UnderA2theA2FLSAA2howA2oldA2mustA2aA2minorA2beA2toA2beA2employed?A2-A2Ans--14

WhatA2isA2theA2FUTAA2taxA2rate?A2-A2Ans--6.0%

OnA2formA2941,A2theA2employerA2reportsA2-A2Ans--SocialA2SecurityA2Wages

WhatA2isA2theA2formulaA2forA2calculatingA2anA2employeesA2netA2pay?A2-A2Ans--
GrossA2pay-deductionsA2forA2taxes-A2otherA2deductions

WhichA2planA2discriminatesA2inA2favorA2ofA2highlyA2compensatedA2employees?A2-A2Ans--
NonqualifiedA2deferredA2compensationA2plans

WhatA2isA2theA2federalA2minimumA2wageA2perA2hourA2onA2JanuaryA21,A22018?A2-A2Ans--
$7.25

WhatA2lawA2determinesA2timeA2limitsA2withA2whichA2employeesA2mustA2beA2paidA2afterA2w
agesA2areA2earned?A2-A2Ans--StateA2Laws

CafeteriaA2plansA2areA2authorizedA2byA2whatA2internalA2revenueA2codeA2section?A2-
A2Ans--125


TheA2directA2depositA2dataA2sentA2toA2theA2bankA2afterA2payrollA2processingA2isA2anA2exam
pleA2ofA2-A2Ans--Interface

WhatA2taxes,A2ifA2any,A2mustA2beA2withheldA2fromA2paymentsA2toA2anA2independentA2contr
actorA2whoA2providedA2aA2tin?A2-A2Ans--NoA2taxesA2areA2withheld

AnA2externalA2audit:A2-A2Ans--
AllowsA2anA2objectiveA2assessmentA2ofA2theA2financialA2statements.

Employees'A2privacyA2rightsA2areA2governedA2byA2allA2ofA2theA2followingA2except:A2-
A2Ans--LocalA2Legislation


UnderA2theA2FLSA,A2whatA2basisA2isA2usedA2toA2determineA2whetherA2aA2non-
exemptA2employeeA2isA2toA2beA2paidA2overtime?A2-A2Ans--
HoursA2workedA2inA2aA2workA2week

, OvertimeA2paymentsA2areA2includedA2inA2theA2calculationA2ofA2whatA2tax,A2ifA2any?A2-
A2Ans--TheyA2areA2includedA2inA2allA2taxA2calculations


WhatA2isA2theA22018A2wageA2baseA2forA2socialA2securityA2tax?A2-A2Ans--$128,400.00

IfA2anA2employeeA2doesA2notA2haveA2federalA2taxA2withheldA2andA2hasA2notA2claimedA2exe
mpt,A2whatA2mustA2theA2employerA2do?A2-A2Ans--
ProvideA2theA2employeeA2withA2theA2EITCA2notice

AA2computerizedA2payrollA2systemA2canA2helpA2aA2payrollA2dept.A2accomplishA2allA2ofA2the
A2followingA2tasksA2except:A2-A2Ans--RecognizeA2changesA2inA2lawsA2andA2regulations


AnA2employee'sA2profitA2sharingA2bonusA2isA2payableA2inA2theA2yearA2followingA2hisA2deat
h.A2HowA2shouldA2theA2bonusA2beA2taxedA2andA2reported?A2-A2Ans--
WithholdA2noA2taxesA2andA2reportA2theA2bonusA2onA2forA21099-misc.

InA2whatA2waysA2canA2aA2computerizedA2systemA2increaseA2theA2accuracyA2ofA2employee
sA2paychecks?A2-A2Ans--ByA2reducingA2humanA2error

WhatA2federalA2taxesA2mustA2anA2employerA2withholdA2fromA2anA2employeesA2reportedA2ti
ps?A2-A2Ans--FederalA2income,A2socialA2securityA2andA2medicareA2tax

TheA2mainA2purposeA2ofA2batchA2controlsA2isA2toA2-A2Ans--ValidateA2dataA2entryA2accuracy

WhichA2ofA2theA2followingA2typesA2ofA2compensationA2isA2taxable?A2-A2Ans--
BackpayA2awards

WhatA2isA2usedA2whenA2calculatingA2anA2employee'sA2grossA2up?A2-A2Ans--NetA2set

EmployeesA2canA2provideA2theirA2employerA2withA2theirA2maritalA2statusA2andA2allowance
sA2forA2incomeA2taxA2withholdingA2purposesA2by:A2-A2Ans--CompletingA2formA2W-4

Generally,A2whatA2isA2theA2largestA2expenseA2forA2mostA2companies?A2-A2Ans--
SalariesA2andA2benefits

WhatA2authorityA2controlsA2theA2frequencyA2withA2whichA2employeesA2mustA2beA2paid?A2-
A2Ans--StateA2Laws


WhatA2isA2theA2generalA2ledger?A2-A2Ans--AA2recordA2ofA2transactionsA2byA2account

What,A2ifA2any,A2isA2theA22018A2wageA2baseA2forA2MedicareA2tax?A2-A2Ans--
ThereA2isA2noA2limit

AnA2employerA2shouldA2remindA2employeesA2toA2completeA2anA2amendedA2W-
4A2ifA2theyA2haveA2anyA2changesA2inA2statusA2byA2-A2Ans--DecemberA21A2ofA2eachA2year