FPC Exam Fundamental Payroll Exam
Questions With Correct Answers
668-W - CORRECT ANSWER✔✔-Notice of Levy on Wages, Salary, and Other
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Income
1096 - CORRECT ANSWER✔✔-Annual Summary and Transmittal of U.S.
| | | | | | | | |
Information Returns |
Under the FLSA how old must a minor be to be employed? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-14
What is the FUTA tax rate? - CORRECT ANSWER✔✔-6.0%
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On form 941, the employer reports - CORRECT ANSWER✔✔-Social Security
| | | | | | | | | |
Wages
What is the formula for calculating an employees net pay? - CORRECT
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ANSWER✔✔-Gross pay-deductions for taxes- other deductions | | | | |
Which plan discriminates in favor of highly compensated employees? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Nonqualified deferred compensation plans | | |
,What is the federal minimum wage per hour on January 1, 2018? - CORRECT
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ANSWER✔✔-$7.25
What law determines time limits with which employees must be paid after wages
| | | | | | | | | | | |
are earned? - CORRECT ANSWER✔✔-State Laws
| | | | | |
Cafeteria plans are authorized by what internal revenue code section? - CORRECT
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ANSWER✔✔-125
The direct deposit data sent to the bank after payroll processing is an example of
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- CORRECT ANSWER✔✔-Interface
| | |
What taxes, if any, must be withheld from payments to an independent
| | | | | | | | | | | |
contractor who provided a tin? - CORRECT ANSWER✔✔-No taxes are withheld
| | | | | | | | | |
An external audit: - CORRECT ANSWER✔✔-Allows an objective assessment of the
| | | | | | | | | | |
financial statements. |
Employees' privacy rights are governed by all of the following except: - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-Local Legislation |
Under the FLSA, what basis is used to determine whether a non-exempt
| | | | | | | | | | | |
employee is to be paid overtime? - CORRECT ANSWER✔✔-Hours worked in a
| | | | | | | | | | | |
work week |
, Overtime payments are included in the calculation of what tax, if any? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-They are included in all tax calculations | | | | | |
What is the 2018 wage base for social security tax? - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt,
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what must the employer do? - CORRECT ANSWER✔✔-Provide the employee with
| | | | | | | | | |
|the EITC notice| |
A computerized payroll system can help a payroll dept. accomplish all of the
| | | | | | | | | | | | |
following tasks except: - CORRECT ANSWER✔✔-Recognize changes in laws and
| | | | | | | | | |
regulations
An employee's profit sharing bonus is payable in the year following his death.
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How should the bonus be taxed and reported? - CORRECT ANSWER✔✔-Withhold
| | | | | | | | | | |
no taxes and report the bonus on for 1099-misc.
| | | | | | | |
In what ways can a computerized system increase the accuracy of employees
| | | | | | | | | | | |
paychecks? - CORRECT ANSWER✔✔-By reducing human error
| | | | | |
What federal taxes must an employer withhold from an employees reported tips?
| | | | | | | | | | |
- CORRECT ANSWER✔✔-Federal income, social security and medicare tax
| | | | | | | | |
The main purpose of batch controls is to - CORRECT ANSWER✔✔-Validate data
| | | | | | | | | | | |
entry accuracy |
Questions With Correct Answers
668-W - CORRECT ANSWER✔✔-Notice of Levy on Wages, Salary, and Other
| | | | | | | | | | |
Income
1096 - CORRECT ANSWER✔✔-Annual Summary and Transmittal of U.S.
| | | | | | | | |
Information Returns |
Under the FLSA how old must a minor be to be employed? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-14
What is the FUTA tax rate? - CORRECT ANSWER✔✔-6.0%
| | | | | | | |
On form 941, the employer reports - CORRECT ANSWER✔✔-Social Security
| | | | | | | | | |
Wages
What is the formula for calculating an employees net pay? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Gross pay-deductions for taxes- other deductions | | | | |
Which plan discriminates in favor of highly compensated employees? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Nonqualified deferred compensation plans | | |
,What is the federal minimum wage per hour on January 1, 2018? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-$7.25
What law determines time limits with which employees must be paid after wages
| | | | | | | | | | | |
are earned? - CORRECT ANSWER✔✔-State Laws
| | | | | |
Cafeteria plans are authorized by what internal revenue code section? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-125
The direct deposit data sent to the bank after payroll processing is an example of
| | | | | | | | | | | | | |
- CORRECT ANSWER✔✔-Interface
| | |
What taxes, if any, must be withheld from payments to an independent
| | | | | | | | | | | |
contractor who provided a tin? - CORRECT ANSWER✔✔-No taxes are withheld
| | | | | | | | | |
An external audit: - CORRECT ANSWER✔✔-Allows an objective assessment of the
| | | | | | | | | | |
financial statements. |
Employees' privacy rights are governed by all of the following except: - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-Local Legislation |
Under the FLSA, what basis is used to determine whether a non-exempt
| | | | | | | | | | | |
employee is to be paid overtime? - CORRECT ANSWER✔✔-Hours worked in a
| | | | | | | | | | | |
work week |
, Overtime payments are included in the calculation of what tax, if any? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-They are included in all tax calculations | | | | | |
What is the 2018 wage base for social security tax? - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt,
| | | | | | | | | | | | | |
what must the employer do? - CORRECT ANSWER✔✔-Provide the employee with
| | | | | | | | | |
|the EITC notice| |
A computerized payroll system can help a payroll dept. accomplish all of the
| | | | | | | | | | | | |
following tasks except: - CORRECT ANSWER✔✔-Recognize changes in laws and
| | | | | | | | | |
regulations
An employee's profit sharing bonus is payable in the year following his death.
| | | | | | | | | | | | |
How should the bonus be taxed and reported? - CORRECT ANSWER✔✔-Withhold
| | | | | | | | | | |
no taxes and report the bonus on for 1099-misc.
| | | | | | | |
In what ways can a computerized system increase the accuracy of employees
| | | | | | | | | | | |
paychecks? - CORRECT ANSWER✔✔-By reducing human error
| | | | | |
What federal taxes must an employer withhold from an employees reported tips?
| | | | | | | | | | |
- CORRECT ANSWER✔✔-Federal income, social security and medicare tax
| | | | | | | | |
The main purpose of batch controls is to - CORRECT ANSWER✔✔-Validate data
| | | | | | | | | | | |
entry accuracy |
