FUNDAMENTAL PAYROLL
CERTIFICATION EXAM (QUESTIONS
AND ANSWERS COMPLETEREVISION)
Benefits paid through social security - ANS -retirement, disability, & survivors
Common law test - ANS -a worker is a common law employee if the employer has the right to
control what work will be done & how it will be done
Behavioral control - ANS -the right to direct or control the means by which the worker performs
the work to be done (including instructions & training)
Financial control - ANS -whether a worker has the opportunity to make a profit or suffer a loss
Relationship of the parties - ANS -the examination of how the worker & employer perceive their
relationship
Reasonable bias test - ANS -allows employers to treat workers who would be considered
employees under the common law test as individual contractors
W-9 Form - ANS -Request for Taxpayer Identification Number & Certification; used by
nonemployees/payees to provide a taxpayer ID # (TIN) (SSN or EIN) to the company for which
the nonemployee/payee has received a reportable payment
Minimum weekly salary 2022 - ANS -$684.00
,Federal minimum wage 2022 - ANS -$7.25/hours
Opportunity wage - ANS -a lower minimum wage for teenage employees under 20 of $4.25
(only for their first 90 days of employment)
Tip pay requirements - ANS -$2.13 in minimum wage as long as their tips amount is high enough
to raise their pay to minimum wage
Nondiscretionary bonus - ANS -contractual bonuses related to the employee's production,
efficiency, or some measure of performance (commissions, quality bonus, production bonus)
Engaged to be waiting - ANS -compensable worktime because the employer requires the
employee to wait to begin work
Waiting to be engaged - ANS -not work time; employee is freed from duties for a period of time
Types of compensation that the FLSA excludes from regular rate of pay - ANS -pay for time not
worked (holiday pay), contributions to benefits plans (401K), or reimbursement of business
expenses
Does FLSA require payments for working holidays, evenings, or night shifts? - ANS -No
When can an employee file an exempt W-4? - ANS -when they had no tax liability last year &
expect to have none for this year
When should employers remind employees to submit new W-4s by if their anticipated filing
status or federal income tax liability has changed? - ANS -By December 1st
,Does regular rate of pay include shift premiums? - ANS -Yes
Form SS-5 - ANS -application for a social security card
Allowable tip credit - ANS -no more than $5.12 per hour
Child labor under the age of 18 - ANS -Department of Labor restricts working in a job declared
hazardous
Backup withholding - ANS -24% FIT withholding on reportable non-payroll payments when a TIN
is not provided or the organization is notified by the IRS; reported annually on Form 945
Form W-4P - ANS -Withholding Certificate for Pension or Annuity Payments; allows pension of
annuity payment payees the ability to claim marital statues and allowances for federal income
tax withholding
When must an amended W-4 be implemented? - ANS -within the first payroll no later than 30
days after the form is submitted
Administrative employee duties - ANS -performing nonmanual or office work directly related to
the management of business operations of the employer or customers (exempt)
4 types of white collar exempt employees - ANS -administrative, executive, professional, &
outside sales
Federal wage and hour law - ANS -Fair Labor Standards Act (FLSA); covers minimum wage,
overtime requirements, child labor rules, & equal pay rules
, E-Verify - ANS -an online tool that allows the verification of a new hire's identity & eligibility to
work in the U.S.; government contractors & employers in some states are required to use this
Meal periods time worked - ANS -a meal period that is not at least 30 minutes of uninterrupted
time
Workweek - ANS -7 consecutive 24-hours periods
Form W-4 - ANS -Employee's Withholding Certificate; used by employees to provide their
employer with their name, address, social security number, martial status, adjustments, and
may indicate exempt status
Child labor for age 14 & 15 years old - ANS -allowed to work 3 hours a day, 18 hours a week
while school is in session and 8 hours a day, 40 hours a week when school is not in session;
under 14 is generally prohibited unless employees by a parent or in special situations (actors,
ballboys, batboys)
When must a Form W-4 be completed by? - ANS -before a new hire's first payroll is calculated
Professional employee duties - ANS -either learned (advanced knowledge) or creative (invention
or talent); exempt
What varies in a fluctuating workweek? - ANS -a nonexempt employee's hours (salary remains
consistent)
Independent contractor traits - ANS -sets own hours, determines own sequence of work, works
for multiple organizations, self-employed, works by the job, & employs assistants
CERTIFICATION EXAM (QUESTIONS
AND ANSWERS COMPLETEREVISION)
Benefits paid through social security - ANS -retirement, disability, & survivors
Common law test - ANS -a worker is a common law employee if the employer has the right to
control what work will be done & how it will be done
Behavioral control - ANS -the right to direct or control the means by which the worker performs
the work to be done (including instructions & training)
Financial control - ANS -whether a worker has the opportunity to make a profit or suffer a loss
Relationship of the parties - ANS -the examination of how the worker & employer perceive their
relationship
Reasonable bias test - ANS -allows employers to treat workers who would be considered
employees under the common law test as individual contractors
W-9 Form - ANS -Request for Taxpayer Identification Number & Certification; used by
nonemployees/payees to provide a taxpayer ID # (TIN) (SSN or EIN) to the company for which
the nonemployee/payee has received a reportable payment
Minimum weekly salary 2022 - ANS -$684.00
,Federal minimum wage 2022 - ANS -$7.25/hours
Opportunity wage - ANS -a lower minimum wage for teenage employees under 20 of $4.25
(only for their first 90 days of employment)
Tip pay requirements - ANS -$2.13 in minimum wage as long as their tips amount is high enough
to raise their pay to minimum wage
Nondiscretionary bonus - ANS -contractual bonuses related to the employee's production,
efficiency, or some measure of performance (commissions, quality bonus, production bonus)
Engaged to be waiting - ANS -compensable worktime because the employer requires the
employee to wait to begin work
Waiting to be engaged - ANS -not work time; employee is freed from duties for a period of time
Types of compensation that the FLSA excludes from regular rate of pay - ANS -pay for time not
worked (holiday pay), contributions to benefits plans (401K), or reimbursement of business
expenses
Does FLSA require payments for working holidays, evenings, or night shifts? - ANS -No
When can an employee file an exempt W-4? - ANS -when they had no tax liability last year &
expect to have none for this year
When should employers remind employees to submit new W-4s by if their anticipated filing
status or federal income tax liability has changed? - ANS -By December 1st
,Does regular rate of pay include shift premiums? - ANS -Yes
Form SS-5 - ANS -application for a social security card
Allowable tip credit - ANS -no more than $5.12 per hour
Child labor under the age of 18 - ANS -Department of Labor restricts working in a job declared
hazardous
Backup withholding - ANS -24% FIT withholding on reportable non-payroll payments when a TIN
is not provided or the organization is notified by the IRS; reported annually on Form 945
Form W-4P - ANS -Withholding Certificate for Pension or Annuity Payments; allows pension of
annuity payment payees the ability to claim marital statues and allowances for federal income
tax withholding
When must an amended W-4 be implemented? - ANS -within the first payroll no later than 30
days after the form is submitted
Administrative employee duties - ANS -performing nonmanual or office work directly related to
the management of business operations of the employer or customers (exempt)
4 types of white collar exempt employees - ANS -administrative, executive, professional, &
outside sales
Federal wage and hour law - ANS -Fair Labor Standards Act (FLSA); covers minimum wage,
overtime requirements, child labor rules, & equal pay rules
, E-Verify - ANS -an online tool that allows the verification of a new hire's identity & eligibility to
work in the U.S.; government contractors & employers in some states are required to use this
Meal periods time worked - ANS -a meal period that is not at least 30 minutes of uninterrupted
time
Workweek - ANS -7 consecutive 24-hours periods
Form W-4 - ANS -Employee's Withholding Certificate; used by employees to provide their
employer with their name, address, social security number, martial status, adjustments, and
may indicate exempt status
Child labor for age 14 & 15 years old - ANS -allowed to work 3 hours a day, 18 hours a week
while school is in session and 8 hours a day, 40 hours a week when school is not in session;
under 14 is generally prohibited unless employees by a parent or in special situations (actors,
ballboys, batboys)
When must a Form W-4 be completed by? - ANS -before a new hire's first payroll is calculated
Professional employee duties - ANS -either learned (advanced knowledge) or creative (invention
or talent); exempt
What varies in a fluctuating workweek? - ANS -a nonexempt employee's hours (salary remains
consistent)
Independent contractor traits - ANS -sets own hours, determines own sequence of work, works
for multiple organizations, self-employed, works by the job, & employs assistants
