FPC Review Questions & Answers

FPC Review Questions & Answers An employee works from midnight to 8:00am on a company paid holiday but does not work more than 40 hours during the workweek. Under the FLSA, the employee must be paid... a) At least the federal minimum wage for all hours worked b) Time and one half for working the holiday c) A shift differential for working the late-night shift d) Double time for working the holiday a) At least the federal minimum wage for all hours worked Under the FLSA, a nonexempt employee's regular rate of pay calculation includes: a. Paid sick leave b. Production bonuses c. Discretionary bonus d. Paid vacation leave b. Production bonuses Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More A nonexempt employee is provided room and board. Under the FLSA, the employee's regular rate of pay calculation includes: a. 100% of the value of room and board b. 100% of the value of the room and 50% of the value of the board c. None of the value of the board and 50% value of the room d. None of the value of the room and board a. 100% of the value of room and board Determine the regular rate of pay for an employee who earns $9 an hour for 45 hours and received an anniversary gift valued at 100. a. $9.00 b. $9.33 c. $10.33 d. $10.50 a. $9.00 Under the FLSA, the calculation of a nonexempt employee's regular rate of pay should NOT include a. Noncash payments b. Shift differential c. Commission d. Discretionary Bonus d. Discretionary Bonus Under the FLSA, when an employee is paid more than one rate of pay during a workweek, what is the employee's regular rate of pay? a. The average of two, or more, pay rates b. The lowest pay rate c. The highest pay rate d. The weighted average of the rates based on the hours worked d. The weighted average of the rates based on the hours worked Nonqualified deferred compensation plans generally contain all of the following options except: a. only highly compensated employees are eligible to participate b. provisions for only key employees c. discrimination in favor of highly compensated employees d. equal benefits for all employees d. equal benefits for all employees For non-tax debts owed to the federal government, the Debt Collection Improvement Act (DCIA) authorizes federal agencies to: a. garnish an employee's wages without a court order b. restrict state regulations for creditor garnishments c. garnish no more than 10% of an employee's disposable wages d. prioritize a bankruptcy order over a tax levy that is already in place a. garnish an employee's wages without a court order What is the maximum amount an employer can withhold from an employee's disposable pay of $505.00 each week for a creditor garnishment? a. $101.00 b. $126.25 c. $176.75 d. $287.50 b. $126.25 ($7.25)(30) = $217.50 ($505)(0.25) = $126.50 The lesser of the two An employee earns $1278.74 semi-monthly and has a creditor garnishment of $30 when the federal tax levy of $1000 is received. The IRS exempts $395.83 each pay period from the levy. The employee's withholding for federal income tax, social security, and Medicare taxes are $397.92. Calculate the amount to be deducted for the federal levy each pay period. a. $394.99 b. $395.83 c. $424.99 d. $454.99 a. $394.99 $1218.74 - 397.92 - 30.00 = $790.83 $790.83 - $395.83 = $394.99 Bankruptcy court orders take priority oover all other involuntary deductions except for: a. Federal Tax Levy b. Federal Administration garnishment c. Student Loan d. Child Support d. Child Support Calculate the maximum student loan garnishment for an employee making $300 per week. The employee claims Single with zero allowances. The employer uses the Percentage Method, and the employee is not subject to state or local taxes. a. $38.26 b. $45.00 c. $37.57 d. $82.50 $37.57 2022 FIT: $300 - 0 allowances = $300 - $281 = $19 x 12% = $2.28 + $19.70 = $21.98 $300 - $18.60 (Soc Sec) - $4.35 (Medicare) - $21.98 (Federal) = $255.07 Disposable Net $255.07 X 15% = $38.26 (15% Disp Earn) $7.25 X 30 = $217.50; $255.07 - 217.50 = $37.57 (Amount above 30 times Fed Min Wage) $37.57, which is the lesser of the two calcs The maximum amount that can be contributed to a Medical Flexible Spending Arrangement for 2022 is: a. $2500 b. $2750 c. $2850 d. $5000 c. $2850 Bankruptcy court orders take priority over all other involuntary deductions except for: a. Federal Tax Levy b. Federal Administration Garnishment c. Student Loan d. Child Support d. Child Support Calculate the federal taxes due on a $500 401(k) contribution. The employee's YTD is $75,000. a. $38.25 b. $110.00 c. $148.25 d. Not enough information provided a. $38.25 No FIT due, but there is still FICA (social security and medicare) 2022 Social Security Limit: $147,000 (500)(0.062) = $31 (500)(0.0147) = $7.65 What is the maximum amount an ER can withhold from an EE's disposable pay of $505 per week for a creditor garnishment? a. $101.00 b. $126.25 c. $176.75 d. $287.50 b. $126.25 The 2022 annual contribution limit to a Health Savings Account for a 57-year-old employee with self-only coverage is: a. $4650 b. $7300 c. $3750 d. $3650 a. $4650 3650 + catch up = 4650 55 is the catch up age for HSA (50 for 401k) All of the following are covered under the Consumer Credit Protection Act (CCPA), EXCEPT: a. Protect employees from termination for having one garnishment b. Protect employees from termination for having more than one garnishment c. Limits garnishments so employees receive at least 30 times the federal min d. A percentage limit on the amount that can be garnished from an employee b. Protect employees from termination for having more than one garnishment