PAYROLL FUNDAMENTALS LATEST 2026 EXAM STUDY
GUIDE QUESTIONS AND SOLUTIONS RATED A+
✔✔Asset - ✔✔resource acquired by a business that is consumed by the business
✔✔Employee identification number (EIN) - ✔✔the employer's account number with the
Internal Revenue
✔✔Disposable Earnings - ✔✔the part of the employee's earnings remaining after
deductions required by law
✔✔Customer Service - ✔✔in a payroll environment, customer service consists of
reliability, responsiveness, assurance, empathy and tangibles
✔✔EFTPS - ✔✔Electronic Federal Tax Payment System
✔✔Expense Account - ✔✔shows cost for goods and services consumed by the
company during an accounting period
✔✔FUTA - ✔✔Federal Unemployment Tax Act
✔✔Garnishment - ✔✔a legal proceeding authorizing an involuntary transfer of an
employee's wages to a creditor or to satisfy a debt
✔✔Net Pay - ✔✔the part of the employee's wages that remains after all deductions are
subtracted
✔✔OFDI - ✔✔Originating Depository Financial Institution
✔✔$7.25 - ✔✔Federal Minimum wage
✔✔6.2% - ✔✔2016 Social Security tax rate
✔✔2.35% - ✔✔Medicare for wages over $200K paid by EE only - ER continues to pay
1.45%
✔✔Federal Rounding rule - ✔✔less than $.50 round down; round up for $.50 or more
✔✔Direct Deposit - ✔✔the electronic transfer of an employees net pay to a financial
institution of their choice
✔✔CHROME - ✔✔Child Labor
Hours Worked
Retention
, Overtime Pay
Minimum Wage
Exempt from
✔✔OAR - ✔✔ODFI- Original financial institution
ACH-
RDFI- Receiving financial institution
✔✔CLEAR - ✔✔Capital Credit
Liability Credit
Expense Debit
Assets Debit
Revenue Credit
✔✔Interface - ✔✔the point where two distinct data-processing elements meet
✔✔Real Time Processing - ✔✔data entered in the system updates records and
immediately returns the results
✔✔Simple Simon Marries Tooth Fairy - ✔✔Saturday, Sunday Monday or Tuesday >
deposit Friday
✔✔Weird Thomas Freezes Worms - ✔✔Wed, Thurs or Fri > deposit Wednesday
✔✔ADA - ✔✔Americans with Disabilities Act
✔✔ADEA - ✔✔Age Discrimination in Employment Act
✔✔After-tax deduction - ✔✔A deduction from an employee's pay that does not reduce
the employee's taxable wages. It is taken out only after all applicable taxes and other
deductions have been withheld (e.g., union dues, garnishments, charitable
contributions).
✔✔Escheat - ✔✔In the context of payroll, the turning over of unclaimed wages to the
state after a period of time determined by state law.
✔✔Fluctuating workweek - ✔✔An arrangement between an employer and a nonexempt
employee to pay the employee a fixed weekly salary even though the employee's hours
may vary from week to week.
✔✔FPC - ✔✔Fundamentals of Payroll Certification
✔✔Validity Checks - ✔✔Shows whether or not data entered meets the requirements set
forth by a company
GUIDE QUESTIONS AND SOLUTIONS RATED A+
✔✔Asset - ✔✔resource acquired by a business that is consumed by the business
✔✔Employee identification number (EIN) - ✔✔the employer's account number with the
Internal Revenue
✔✔Disposable Earnings - ✔✔the part of the employee's earnings remaining after
deductions required by law
✔✔Customer Service - ✔✔in a payroll environment, customer service consists of
reliability, responsiveness, assurance, empathy and tangibles
✔✔EFTPS - ✔✔Electronic Federal Tax Payment System
✔✔Expense Account - ✔✔shows cost for goods and services consumed by the
company during an accounting period
✔✔FUTA - ✔✔Federal Unemployment Tax Act
✔✔Garnishment - ✔✔a legal proceeding authorizing an involuntary transfer of an
employee's wages to a creditor or to satisfy a debt
✔✔Net Pay - ✔✔the part of the employee's wages that remains after all deductions are
subtracted
✔✔OFDI - ✔✔Originating Depository Financial Institution
✔✔$7.25 - ✔✔Federal Minimum wage
✔✔6.2% - ✔✔2016 Social Security tax rate
✔✔2.35% - ✔✔Medicare for wages over $200K paid by EE only - ER continues to pay
1.45%
✔✔Federal Rounding rule - ✔✔less than $.50 round down; round up for $.50 or more
✔✔Direct Deposit - ✔✔the electronic transfer of an employees net pay to a financial
institution of their choice
✔✔CHROME - ✔✔Child Labor
Hours Worked
Retention
, Overtime Pay
Minimum Wage
Exempt from
✔✔OAR - ✔✔ODFI- Original financial institution
ACH-
RDFI- Receiving financial institution
✔✔CLEAR - ✔✔Capital Credit
Liability Credit
Expense Debit
Assets Debit
Revenue Credit
✔✔Interface - ✔✔the point where two distinct data-processing elements meet
✔✔Real Time Processing - ✔✔data entered in the system updates records and
immediately returns the results
✔✔Simple Simon Marries Tooth Fairy - ✔✔Saturday, Sunday Monday or Tuesday >
deposit Friday
✔✔Weird Thomas Freezes Worms - ✔✔Wed, Thurs or Fri > deposit Wednesday
✔✔ADA - ✔✔Americans with Disabilities Act
✔✔ADEA - ✔✔Age Discrimination in Employment Act
✔✔After-tax deduction - ✔✔A deduction from an employee's pay that does not reduce
the employee's taxable wages. It is taken out only after all applicable taxes and other
deductions have been withheld (e.g., union dues, garnishments, charitable
contributions).
✔✔Escheat - ✔✔In the context of payroll, the turning over of unclaimed wages to the
state after a period of time determined by state law.
✔✔Fluctuating workweek - ✔✔An arrangement between an employer and a nonexempt
employee to pay the employee a fixed weekly salary even though the employee's hours
may vary from week to week.
✔✔FPC - ✔✔Fundamentals of Payroll Certification
✔✔Validity Checks - ✔✔Shows whether or not data entered meets the requirements set
forth by a company
