FPC Exam Fundamental Payroll
1. 668-W: Notice of Levy on Wages, Salary, and Other Income
2. 1096: Annual Summary and Transmittal of U.S. Information Returns
3. Under the FLSA how old must a minor be to be employed?: 14
4. What is the FUTA tax rate?: 6.0%
5. On form 941, the employer reports: Social Security Wages
6. What is the formula for calculating an employees net pay?: Gross pay-
deductions for taxes- other deductions
7. Which plan discriminates in favor of highly compensated employees?:
Nonqualified deferred compensation plans
8. What is the federal minimum wage per hour on January 1, 2018?: $7.25 9.
What law determines time limits with which employees must be paid after
wages are earned?: State Laws
10. Cafeteria plans are authorized by what internal revenue code section?:
125 11. The direct deposit data sent to the bank after payroll processing is an
example of: Interface
12. What taxes, if any, must be withheld from payments to an independent
contractor who provided a tin?: No taxes are withheld
13. An external audit:: Allows an objective assessment of the financial
statements.
14. Employees' privacy rights are governed by all of the following except::
Local Legislation
15. Under the FLSA, what basis is used to determine whether a non-exempt
employee is to be paid overtime?: Hours worked in a work week
, 16. Overtime payments are included in the calculation of what tax, if any?:
They are included in all tax calculations
17. What is the 2018 wage base for social security tax?: $128,400.00
18. If an employee does not have federal tax withheld and has not claimed
exempt, what must the employer do?: Provide the employee with the EITC
notice
19. A computerized payroll system can help a payroll dept. accomplish all of
the following tasks except:: Recognize changes in laws and regulations
20. An employee's profit sharing bonus is payable in the year following his
death. How should the bonus be taxed and reported?: Withhold no taxes
and report the bonus on for 1099-misc.
21. In what ways can a computerized system increase the accuracy of
employees paychecks?: By reducing human error
22. What federal taxes must an employer withhold from an employees
reported tips?: Federal income, social security and medicare tax
23. The main purpose of batch controls is to: Validate data entry accuracy
24. Which of the following types of compensation is taxable?: Backpay awards
25. What is used when calculating an employee's gross up?: Net set
26 Employees can provide their employer with their marital status and
allowances for income tax withholding purposes by:: Completing form W-4
27. Generally, what is the largest expense for most companies?: Salaries and
benefits
28. What authority controls the frequency with which employees must be
paid?: State Laws
29. What is the general ledger?: A record of transactions by account
1. 668-W: Notice of Levy on Wages, Salary, and Other Income
2. 1096: Annual Summary and Transmittal of U.S. Information Returns
3. Under the FLSA how old must a minor be to be employed?: 14
4. What is the FUTA tax rate?: 6.0%
5. On form 941, the employer reports: Social Security Wages
6. What is the formula for calculating an employees net pay?: Gross pay-
deductions for taxes- other deductions
7. Which plan discriminates in favor of highly compensated employees?:
Nonqualified deferred compensation plans
8. What is the federal minimum wage per hour on January 1, 2018?: $7.25 9.
What law determines time limits with which employees must be paid after
wages are earned?: State Laws
10. Cafeteria plans are authorized by what internal revenue code section?:
125 11. The direct deposit data sent to the bank after payroll processing is an
example of: Interface
12. What taxes, if any, must be withheld from payments to an independent
contractor who provided a tin?: No taxes are withheld
13. An external audit:: Allows an objective assessment of the financial
statements.
14. Employees' privacy rights are governed by all of the following except::
Local Legislation
15. Under the FLSA, what basis is used to determine whether a non-exempt
employee is to be paid overtime?: Hours worked in a work week
, 16. Overtime payments are included in the calculation of what tax, if any?:
They are included in all tax calculations
17. What is the 2018 wage base for social security tax?: $128,400.00
18. If an employee does not have federal tax withheld and has not claimed
exempt, what must the employer do?: Provide the employee with the EITC
notice
19. A computerized payroll system can help a payroll dept. accomplish all of
the following tasks except:: Recognize changes in laws and regulations
20. An employee's profit sharing bonus is payable in the year following his
death. How should the bonus be taxed and reported?: Withhold no taxes
and report the bonus on for 1099-misc.
21. In what ways can a computerized system increase the accuracy of
employees paychecks?: By reducing human error
22. What federal taxes must an employer withhold from an employees
reported tips?: Federal income, social security and medicare tax
23. The main purpose of batch controls is to: Validate data entry accuracy
24. Which of the following types of compensation is taxable?: Backpay awards
25. What is used when calculating an employee's gross up?: Net set
26 Employees can provide their employer with their marital status and
allowances for income tax withholding purposes by:: Completing form W-4
27. Generally, what is the largest expense for most companies?: Salaries and
benefits
28. What authority controls the frequency with which employees must be
paid?: State Laws
29. What is the general ledger?: A record of transactions by account
