PAYROLL FUNDAMENTALS FINAL REVIEW
SCRIPT 2026 TESTED QUESTIONS CORRECT
RESPONSES
● What are federal payroll taxes? Answer: Taxes imposed by the federal
government on employee earnings, including Social Security and
Medicare taxes, which fund social insurance programs.
● What are state payroll taxes? Answer: Taxes levied by individual states
on employee earnings, which may include income tax, unemployment
insurance, and other state-specific taxes.
● What are local payroll taxes? Answer: Taxes imposed by local
governments on employee earnings, which can vary by city or
municipality and may include local income taxes or occupational taxes.
● What is the Fair Labor Standards Act (FLSA)? Answer: A federal law
that establishes minimum wage, overtime pay eligibility, recordkeeping,
and youth employment standards for workers in the U.S.
● What are payroll deductions? Answer: Amounts withheld from an
employee's gross pay for taxes, benefits, retirement contributions, and
other purposes, reducing their take-home pay.
, ● What are employee benefits? Answer: Non-wage compensations
provided to employees, such as health insurance, retirement plans, paid
time off, and other perks.
● What are payroll reporting requirements? Answer: Legal obligations
for employers to report payroll information to government agencies,
including tax withholdings, employee earnings, and benefits provided.
● What is gross pay? Answer: The total amount of money earned by an
employee before any deductions are made, including wages, bonuses,
and overtime pay.
● What is net pay? Answer: The amount of money an employee takes
home after all deductions, including taxes and benefits, have been
subtracted from gross pay.
● What is overtime pay? Answer: Compensation paid to employees for
hours worked beyond the standard 40-hour workweek, typically
calculated at a rate of 1.5 times the regular hourly wage.
● What is a pay period? Answer: The recurring schedule by which
employees are paid, such as weekly, biweekly, semimonthly, or monthly.
SCRIPT 2026 TESTED QUESTIONS CORRECT
RESPONSES
● What are federal payroll taxes? Answer: Taxes imposed by the federal
government on employee earnings, including Social Security and
Medicare taxes, which fund social insurance programs.
● What are state payroll taxes? Answer: Taxes levied by individual states
on employee earnings, which may include income tax, unemployment
insurance, and other state-specific taxes.
● What are local payroll taxes? Answer: Taxes imposed by local
governments on employee earnings, which can vary by city or
municipality and may include local income taxes or occupational taxes.
● What is the Fair Labor Standards Act (FLSA)? Answer: A federal law
that establishes minimum wage, overtime pay eligibility, recordkeeping,
and youth employment standards for workers in the U.S.
● What are payroll deductions? Answer: Amounts withheld from an
employee's gross pay for taxes, benefits, retirement contributions, and
other purposes, reducing their take-home pay.
, ● What are employee benefits? Answer: Non-wage compensations
provided to employees, such as health insurance, retirement plans, paid
time off, and other perks.
● What are payroll reporting requirements? Answer: Legal obligations
for employers to report payroll information to government agencies,
including tax withholdings, employee earnings, and benefits provided.
● What is gross pay? Answer: The total amount of money earned by an
employee before any deductions are made, including wages, bonuses,
and overtime pay.
● What is net pay? Answer: The amount of money an employee takes
home after all deductions, including taxes and benefits, have been
subtracted from gross pay.
● What is overtime pay? Answer: Compensation paid to employees for
hours worked beyond the standard 40-hour workweek, typically
calculated at a rate of 1.5 times the regular hourly wage.
● What is a pay period? Answer: The recurring schedule by which
employees are paid, such as weekly, biweekly, semimonthly, or monthly.
