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Missed FPC Quiz Questions (1
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Missed FPC Quiz QuestionsDeferrals into deferred compensation plans are subject to social security and medicare taxes
for: - ANS-401(k), 403(b) and 457(b) plans
Which of the following statements is true regarding 401(k) plans?
A. 401k plans must allow eligible employees to defer up to 15% of their wages.
B. 401k Plans can be funded through salary deferral plans.
C. 401k plans are deferred compensation plans for employees of state and local governments
only.
D. Employers must match employee deferrals to 401K plans. - ANS-B. 401k plans can be
funded through salary deferral plans
What is the 2018 annual compensation limit for defined benefit and contribution plans? -
ANS-$275,000
Which of the following plans can discriminate in favor of highly compensated employees?
A. 401k plans.
B. 403B plans
C. 457b plans
D. Qualified defined benefit plans - ANS-457b Plans
Nonqualified deferred compensation plans generally contain all of the following options
EXCEPT:
A. They provide equal benefits for all employees
B. The deferrals are not subject to federal income tax when deferred
C. There are no limit to deferral amounts
D. They discriminate in favor of highly compensated employees - ANS-A. They provide equal
benefits for all employees.
An employee uses cafeteria plan benefits of $350.00 per month to pay for chosen benefits. The
$350.00 represents:
A. a nontaxable compensation if not chosen as a cash benefit
B. Taxable compensation for all federal taxes
C. Taxable compensation for social security and Medicare taxes only
D. Taxable compensation for federal income tax only - ANS-A. Nontaxable compensation if not
chosen as a cash benefit
A company contributes $350.00 each month to a qualified Sec 125 plan for medical insurance.
In addition, $100.00 is contributed to a dependent care flexible spending account. How are
these amounts taxed?
, A. only $100 is fully taxable
B. only $350 is fully taxable
C. $450 is subject only to social security and medicare taxation
D. $450 is not taxable income - ANS-D. $450 is not taxable income
A company is a monthly depositor. Its paydays are on Wednesdays. When is the company's
payroll tax deposit due if the liability is less than $100,000?
A. On or before the following Wednesday
B. On or before the following Friday
C. On or before the 15th day of the following month
D. By the next business day - ANS-C. On or before the 15th day of the following month
Federal unemployment taxes are used to fund:
A. general operations of the federal government
B. unemployment benefits
C. Extend unemployment benefits in periods of high unemployment
D. the administration of the unemployment insurance program. - ANS-D. The administration of
the unemployment insurance program
Employers File Form W2 with the: - ANS-SSA
To correct a direct deposit payment made in error, within five banking days the employer must
generate a:
A. credit authorization
B. Double Entry reversal
C. Single Entry Reversal
D. Debit authorization - ANS-C. Single Entry Reversal
Which of the following payroll issues are governed only by the states:
A. Unclaimed wages
B. Overtime
C. Treatment of wages after death
D. Minimum wage - ANS-A. Unclaimed wages
A company files 40 forms W2 from 2018 with SSA on July 30 2019. What is the maximum
penalty the company could be assessed? - ANS-40 x $100 = $4000
If the benefit and payroll systems are not integrated, what data must be retained in both
systems?
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