FUNDAMENTAL PAYROLL CERTIFICATION ACTUAL EXAM QUESTION
Fundamental Payroll Certification
AND ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST
Study online at https://quizlet.com/_hidczn
UPDATE 2025/2026
1. What's the with- The lesser of 15% of disposable earnings OR the amount by which weekly dis-
holding limit on posable earnings exceed 30x federal minimum wage (unless employee consents
federal agency to a higher % in writing)
garnishments?
2. When a bankrupt- All garnishments except child support orders. This is because the trustee will pay
cy is received, what out the debts
should ER stop
withholding?
3. What is the with- The lesser of 25% of disposable earnings OR the amount by which weekly dis-
holding limit for posable earnings exceed 30x federal minimum wage (unless employee consents
creditor garnish- to a higher % in writing)
ment?
4. What's the with- The lesser of 15% of disposable earnings OR the amount by which weekly dis-
holding limit for posable earnings exceed 30x federal minimum wage (unless employee consents
federal student to a higher % in writing)
loan garnish-
ments?
5. What is form 4070? Employees report of tips to employer
6. How is group term Included in box 1, 3, 5 wages, and in box 12 code C
life reported on a
W-2
7. How to determine The value of coverage, less than $50,000 excludable by law, is taxable. Use IRS
the cost of group table by uniform premiums to determine value. Remember to use their age as
term life insurance of December 31 of the year to determine age bracket. Once you find the value
that is taxable in- from the table and multiply it by the coverage, remember to deduct any after tax
come? contributions by the employee
, Fundamental Payroll Certification
Study online at https://quizlet.com/_hidczn
8. What is the vehicle Multiply the IRS mileage rate of $.56 per mile by the number of personal miles
cents per mile val- driven. If the employee buys the fuel, the mileage rate is reduced by .55 cents
uation method? per mile, so the effective rate is $.505 per mile
9. What is the fair Vehicles valued at greater than $59,999 have an annual lease value of 25% of fair
market value limi- market value, plus $500
tation on the annu-
al lease valuation
method?
10. What is the annu- Personal use is found by multiplying the annual lease value of the vehicle by the
al lease valuation percentage of total personal miles driven. The fair market value is determined
method? the first day the car is available to the employee. Then, use the fair market value
using the IRS's ALV table. Then multiply the percent of personal miles driven by
the ALV to find the fair market value of personal used to be included in income
11. What is the Fair market value minus (the amount the employee paid for the benefit after
amount that an taxes, plus any amount excludable by law)
employer must in-
clude as taxable in-
come?
12. When must em- The 10th of the next month if they receive at least $20 in tips
ployees report
their tips to the
employer by?
13. What is FSA experi- The amount of the employer contribution plus any employee salary reduction
enced gain contribution and after-tax contribution minus the FSA total claims
14. For 941 taxes, what 12 month look back period of tax liability. Determines how often you must make
is depositor classi- payments and if additional documentation is required
fication based on,
Fundamental Payroll Certification
AND ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST
Study online at https://quizlet.com/_hidczn
UPDATE 2025/2026
1. What's the with- The lesser of 15% of disposable earnings OR the amount by which weekly dis-
holding limit on posable earnings exceed 30x federal minimum wage (unless employee consents
federal agency to a higher % in writing)
garnishments?
2. When a bankrupt- All garnishments except child support orders. This is because the trustee will pay
cy is received, what out the debts
should ER stop
withholding?
3. What is the with- The lesser of 25% of disposable earnings OR the amount by which weekly dis-
holding limit for posable earnings exceed 30x federal minimum wage (unless employee consents
creditor garnish- to a higher % in writing)
ment?
4. What's the with- The lesser of 15% of disposable earnings OR the amount by which weekly dis-
holding limit for posable earnings exceed 30x federal minimum wage (unless employee consents
federal student to a higher % in writing)
loan garnish-
ments?
5. What is form 4070? Employees report of tips to employer
6. How is group term Included in box 1, 3, 5 wages, and in box 12 code C
life reported on a
W-2
7. How to determine The value of coverage, less than $50,000 excludable by law, is taxable. Use IRS
the cost of group table by uniform premiums to determine value. Remember to use their age as
term life insurance of December 31 of the year to determine age bracket. Once you find the value
that is taxable in- from the table and multiply it by the coverage, remember to deduct any after tax
come? contributions by the employee
, Fundamental Payroll Certification
Study online at https://quizlet.com/_hidczn
8. What is the vehicle Multiply the IRS mileage rate of $.56 per mile by the number of personal miles
cents per mile val- driven. If the employee buys the fuel, the mileage rate is reduced by .55 cents
uation method? per mile, so the effective rate is $.505 per mile
9. What is the fair Vehicles valued at greater than $59,999 have an annual lease value of 25% of fair
market value limi- market value, plus $500
tation on the annu-
al lease valuation
method?
10. What is the annu- Personal use is found by multiplying the annual lease value of the vehicle by the
al lease valuation percentage of total personal miles driven. The fair market value is determined
method? the first day the car is available to the employee. Then, use the fair market value
using the IRS's ALV table. Then multiply the percent of personal miles driven by
the ALV to find the fair market value of personal used to be included in income
11. What is the Fair market value minus (the amount the employee paid for the benefit after
amount that an taxes, plus any amount excludable by law)
employer must in-
clude as taxable in-
come?
12. When must em- The 10th of the next month if they receive at least $20 in tips
ployees report
their tips to the
employer by?
13. What is FSA experi- The amount of the employer contribution plus any employee salary reduction
enced gain contribution and after-tax contribution minus the FSA total claims
14. For 941 taxes, what 12 month look back period of tax liability. Determines how often you must make
is depositor classi- payments and if additional documentation is required
fication based on,
