FPC Exam Fundamental Payroll
Questions and Answers Updated
2026
668-WM-MAnswerMNoticeMofMLevyMonMWages,MSalary,MandMOtherMIncome
1096M-MAnswerMAnnualMSummaryMandMTransmittalMofMU.S.MInformationMReturns
UnderMtheMFLSAMhowMoldMmustMaMminorMbeMtoMbeMemployed?M-MAnswerM14
WhatMisMtheMFUTAMtaxMrate?M-MAnswerM6.0%
OnMformM941,MtheMemployerMreportsM-MAnswerMSocialMSecurityMWages
WhatMisMtheMformulaMforMcalculatingManMemployeesMnetMpay?M-MAnswerMGrossMpay-
deductionsMforMtaxes-MotherMdeductions
WhichMplanMdiscriminatesMinMfavorMofMhighlyMcompensatedMemployees?M-
MAnswerMNonqualifiedMdeferredMcompensationMplans
WhatMisMtheMfederalMminimumMwageMperMhourMonMJanuaryM1,M2018?M-
MAnswerM$7.25
WhatMlawMdeterminesMtimeMlimitsMwithMwhichMemployeesMmustMbeMpaidMafterMwages
MareMearned?M-MAnswerMStateMLaws
CafeteriaMplansMareMauthorizedMbyMwhatMinternalMrevenueMcodeMsection?M-
MAnswerM125
TheMdirectMdepositMdataMsentMtoMtheMbankMafterMpayrollMprocessingMisManMexampleM
ofM-MAnswerMInterface
WhatMtaxes,MifMany,MmustMbeMwithheldMfromMpaymentsMtoManMindependentMcontracto
rMwhoMprovidedMaMtin?M-MAnswerMNoMtaxesMareMwithheld
, AnMexternalMaudit:M-
MAnswerMAllowsManMobjectiveMassessmentMofMtheMfinancialMstatements.
Employees'MprivacyMrightsMareMgovernedMbyMallMofMtheMfollowingMexcept:M-
MAnswerMLocalMLegislation
UnderMtheMFLSA,MwhatMbasisMisMusedMtoMdetermineMwhetherMaMnon-
exemptMemployeeMisMtoMbeMpaidMovertime?M-
MAnswerMHoursMworkedMinMaMworkMweek
OvertimeMpaymentsMareMincludedMinMtheMcalculationMofMwhatMtax,MifMany?M-
MAnswerMTheyMareMincludedMinMallMtaxMcalculations
WhatMisMtheM2018MwageMbaseMforMsocialMsecurityMtax?M-MAnswerM$128,400.00
IfManMemployeeMdoesMnotMhaveMfederalMtaxMwithheldMandMhasMnotMclaimedMexempt,
MwhatMmustMtheMemployerMdo?M-
MAnswerMProvideMtheMemployeeMwithMtheMEITCMnotice
AMcomputerizedMpayrollMsystemMcanMhelpMaMpayrollMdept.MaccomplishMallMofMtheMfoll
owingMtasksMexcept:M-MAnswerMRecognizeMchangesMinMlawsMandMregulations
AnMemployee'sMprofitMsharingMbonusMisMpayableMinMtheMyearMfollowingMhisMdeath.MHo
wMshouldMtheMbonusMbeMtaxedMandMreported?M-
MAnswerMWithholdMnoMtaxesMandMreportMtheMbonusMonMforM1099-misc.
InMwhatMwaysMcanMaMcomputerizedMsystemMincreaseMtheMaccuracyMofMemployeesMpayc
hecks?M-MAnswerMByMreducingMhumanMerror
WhatMfederalMtaxesMmustManMemployerMwithholdMfromManMemployeesMreportedMtips?M
-MAnswerMFederalMincome,MsocialMsecurityMandMmedicareMtax
TheMmainMpurposeMofMbatchMcontrolsMisMtoM-MAnswerMValidateMdataMentryMaccuracy
Questions and Answers Updated
2026
668-WM-MAnswerMNoticeMofMLevyMonMWages,MSalary,MandMOtherMIncome
1096M-MAnswerMAnnualMSummaryMandMTransmittalMofMU.S.MInformationMReturns
UnderMtheMFLSAMhowMoldMmustMaMminorMbeMtoMbeMemployed?M-MAnswerM14
WhatMisMtheMFUTAMtaxMrate?M-MAnswerM6.0%
OnMformM941,MtheMemployerMreportsM-MAnswerMSocialMSecurityMWages
WhatMisMtheMformulaMforMcalculatingManMemployeesMnetMpay?M-MAnswerMGrossMpay-
deductionsMforMtaxes-MotherMdeductions
WhichMplanMdiscriminatesMinMfavorMofMhighlyMcompensatedMemployees?M-
MAnswerMNonqualifiedMdeferredMcompensationMplans
WhatMisMtheMfederalMminimumMwageMperMhourMonMJanuaryM1,M2018?M-
MAnswerM$7.25
WhatMlawMdeterminesMtimeMlimitsMwithMwhichMemployeesMmustMbeMpaidMafterMwages
MareMearned?M-MAnswerMStateMLaws
CafeteriaMplansMareMauthorizedMbyMwhatMinternalMrevenueMcodeMsection?M-
MAnswerM125
TheMdirectMdepositMdataMsentMtoMtheMbankMafterMpayrollMprocessingMisManMexampleM
ofM-MAnswerMInterface
WhatMtaxes,MifMany,MmustMbeMwithheldMfromMpaymentsMtoManMindependentMcontracto
rMwhoMprovidedMaMtin?M-MAnswerMNoMtaxesMareMwithheld
, AnMexternalMaudit:M-
MAnswerMAllowsManMobjectiveMassessmentMofMtheMfinancialMstatements.
Employees'MprivacyMrightsMareMgovernedMbyMallMofMtheMfollowingMexcept:M-
MAnswerMLocalMLegislation
UnderMtheMFLSA,MwhatMbasisMisMusedMtoMdetermineMwhetherMaMnon-
exemptMemployeeMisMtoMbeMpaidMovertime?M-
MAnswerMHoursMworkedMinMaMworkMweek
OvertimeMpaymentsMareMincludedMinMtheMcalculationMofMwhatMtax,MifMany?M-
MAnswerMTheyMareMincludedMinMallMtaxMcalculations
WhatMisMtheM2018MwageMbaseMforMsocialMsecurityMtax?M-MAnswerM$128,400.00
IfManMemployeeMdoesMnotMhaveMfederalMtaxMwithheldMandMhasMnotMclaimedMexempt,
MwhatMmustMtheMemployerMdo?M-
MAnswerMProvideMtheMemployeeMwithMtheMEITCMnotice
AMcomputerizedMpayrollMsystemMcanMhelpMaMpayrollMdept.MaccomplishMallMofMtheMfoll
owingMtasksMexcept:M-MAnswerMRecognizeMchangesMinMlawsMandMregulations
AnMemployee'sMprofitMsharingMbonusMisMpayableMinMtheMyearMfollowingMhisMdeath.MHo
wMshouldMtheMbonusMbeMtaxedMandMreported?M-
MAnswerMWithholdMnoMtaxesMandMreportMtheMbonusMonMforM1099-misc.
InMwhatMwaysMcanMaMcomputerizedMsystemMincreaseMtheMaccuracyMofMemployeesMpayc
hecks?M-MAnswerMByMreducingMhumanMerror
WhatMfederalMtaxesMmustManMemployerMwithholdMfromManMemployeesMreportedMtips?M
-MAnswerMFederalMincome,MsocialMsecurityMandMmedicareMtax
TheMmainMpurposeMofMbatchMcontrolsMisMtoM-MAnswerMValidateMdataMentryMaccuracy
