FPC FUNDAMENTAL PAYROLL CERTIFICATION
EXAM AND PRACTICE EXAM NEWEST 2026 TEST
BANK| COMPLETE 850 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+| FUNDAMENTAL PAYROLL CERTIFICATION
EXAM PREP (MOST RECENT!!)
➢ The FPC Exam assesses foundational knowledge and skills in payroll
administration and compliance. Key topics include payroll processing,
federal and state tax regulations, wage and hour laws, and employee
recordkeeping. Candidates are tested on calculating gross-to-net pay,
payroll deductions, tax filings, and reporting requirements. Additional
areas include benefits administration, payroll systems and software,
compliance with IRS and state agencies, and payroll best practices. The
exam emphasizes accuracy, regulatory compliance, ethical practices, and
practical application of payroll concepts to ensure proper employee
compensation and organizational adherence to payroll laws.
Which form must be filed by employers who have an employment tax
liability of $1,000 or less for the year?
A. Form 940
B. Form 941
C. Form 943
D. Form 944 -Correct Answer- D. Form 944
Which type of employee is exempt from coverage under the Federal
Unemployment Tax Act (FUTA)?
A. A driver who delivers laundry for an employer
pg. 1
,B. A full-time traveling salesperson
C. A part-time student
D. An international government agency worker -Correct Answer- D. An
international government agency worker
When entering a journal entry for a payment made to a vendor, how
should this be recorded in the GL?
A. As a debit to the cash account
B. As a credit to the cash account
C. As a credit to the accounts payable account
D. As a credit to the accounts receivable account -Correct Answer- B. As
a credit to the cash account
Calculate the net biweekly pay amount for an employee who earns
$88,000 per year and is paid biweekly with the following deductions:
$150 in 401(K) contributions
$110 in medical premiums
$350 in taxes
A. $3,566.66
B. $2,774.62
C. $6,723.33
D. $3,056.66 -Correct Answer- B. $2,774.62
$88, Weeks = $3,384.62 - $150 - $110 - $350 = $2,774.62
pg. 2
,Under Social Security regulations, how long must an employer retain
payroll documents?
A. Four calendar years
B. Five calendar years
C. Five years after income tax filing
D. Three years after income tax filing -Correct Answer- B. Five calendar
years
Which type of third-party arrangement for payroll processing has an
employment tax liability?
A. Form 8655 reporting agent
B. Payroll service provider
C. Form 2786 custodial agent
D. Form 2678 agent -Correct Answer- D. Form 2678 agent
What is the net pay of a person who grossed $2,300 and has the
following deductions:
$100 in 401(K) Contributions
$250 in taxes withheld
$100 for child support payment
A. $1,590
B. $2,627
C. $1,950
D. $1,850 -Correct Answer- D. $1,850
$2,300 - $100 - $250 - $100 = $1,850
pg. 3
, An employer who processes payroll but makes payment at a later date
would record the distribution of those payroll checks as a debit to the
_______ account and a credit to the ________ account.
A. Net payroll payable; Cash
B. Cash; Net payroll payable
C. Payroll expenses; Net payroll payable
D. Payroll expenses; Cash -Correct Answer- A. Net payroll payable;
Cash
Which principle of customer service describes telling a customer that
someone will research the answer to their question and contact them
with the correct answer?
A. Tangibles
B. Empathy
C. Assurance
D. Reliability -Correct Answer- C. Assurance
What is the primary focus of an external audit?
A. To evaluate process efficiency
B. To identify the internal control process
C. To detect fraud or other illegal activities
D. To ensure financial statements do not have omissions or material
misstatements -Correct Answer- To ensure financial statements do not
have omissions or material misstatements
If the due date for Form 940 falls on a Sunday, when is Form 940 due?
pg. 4
EXAM AND PRACTICE EXAM NEWEST 2026 TEST
BANK| COMPLETE 850 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+| FUNDAMENTAL PAYROLL CERTIFICATION
EXAM PREP (MOST RECENT!!)
➢ The FPC Exam assesses foundational knowledge and skills in payroll
administration and compliance. Key topics include payroll processing,
federal and state tax regulations, wage and hour laws, and employee
recordkeeping. Candidates are tested on calculating gross-to-net pay,
payroll deductions, tax filings, and reporting requirements. Additional
areas include benefits administration, payroll systems and software,
compliance with IRS and state agencies, and payroll best practices. The
exam emphasizes accuracy, regulatory compliance, ethical practices, and
practical application of payroll concepts to ensure proper employee
compensation and organizational adherence to payroll laws.
Which form must be filed by employers who have an employment tax
liability of $1,000 or less for the year?
A. Form 940
B. Form 941
C. Form 943
D. Form 944 -Correct Answer- D. Form 944
Which type of employee is exempt from coverage under the Federal
Unemployment Tax Act (FUTA)?
A. A driver who delivers laundry for an employer
pg. 1
,B. A full-time traveling salesperson
C. A part-time student
D. An international government agency worker -Correct Answer- D. An
international government agency worker
When entering a journal entry for a payment made to a vendor, how
should this be recorded in the GL?
A. As a debit to the cash account
B. As a credit to the cash account
C. As a credit to the accounts payable account
D. As a credit to the accounts receivable account -Correct Answer- B. As
a credit to the cash account
Calculate the net biweekly pay amount for an employee who earns
$88,000 per year and is paid biweekly with the following deductions:
$150 in 401(K) contributions
$110 in medical premiums
$350 in taxes
A. $3,566.66
B. $2,774.62
C. $6,723.33
D. $3,056.66 -Correct Answer- B. $2,774.62
$88, Weeks = $3,384.62 - $150 - $110 - $350 = $2,774.62
pg. 2
,Under Social Security regulations, how long must an employer retain
payroll documents?
A. Four calendar years
B. Five calendar years
C. Five years after income tax filing
D. Three years after income tax filing -Correct Answer- B. Five calendar
years
Which type of third-party arrangement for payroll processing has an
employment tax liability?
A. Form 8655 reporting agent
B. Payroll service provider
C. Form 2786 custodial agent
D. Form 2678 agent -Correct Answer- D. Form 2678 agent
What is the net pay of a person who grossed $2,300 and has the
following deductions:
$100 in 401(K) Contributions
$250 in taxes withheld
$100 for child support payment
A. $1,590
B. $2,627
C. $1,950
D. $1,850 -Correct Answer- D. $1,850
$2,300 - $100 - $250 - $100 = $1,850
pg. 3
, An employer who processes payroll but makes payment at a later date
would record the distribution of those payroll checks as a debit to the
_______ account and a credit to the ________ account.
A. Net payroll payable; Cash
B. Cash; Net payroll payable
C. Payroll expenses; Net payroll payable
D. Payroll expenses; Cash -Correct Answer- A. Net payroll payable;
Cash
Which principle of customer service describes telling a customer that
someone will research the answer to their question and contact them
with the correct answer?
A. Tangibles
B. Empathy
C. Assurance
D. Reliability -Correct Answer- C. Assurance
What is the primary focus of an external audit?
A. To evaluate process efficiency
B. To identify the internal control process
C. To detect fraud or other illegal activities
D. To ensure financial statements do not have omissions or material
misstatements -Correct Answer- To ensure financial statements do not
have omissions or material misstatements
If the due date for Form 940 falls on a Sunday, when is Form 940 due?
pg. 4
