FPC EXAM QUESTIONS AND CORRECT ANSWERS ALREADY PASSED
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FPC
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FPC
FPC EXAM QUESTIONS AND CORRECT ANSWERS ALREADY PASSED
A company's cafeteria plan provides each employee with $200.00 per month to pay for chosen benefits. After selecting benefits, one employee has $50.00 per month left and requests payment of $50.00 per month. This $50.00 is: - Answer-taxable ...
FPC EXAM QUESTIONS AND
CORRECT ANSWERS ALREADY
PASSED
A company's cafeteria plan provides each employee with $200.00 per month to pay for
chosen benefits. After selecting benefits, one employee has $50.00 per month left and
requests payment of $50.00 per month. This $50.00 is: - Answer-taxable compensation
for all federal taxes.
The employee uses all of the cafeteria benefits of $350.00 per month to pay for chosen
benefits. The $350.00 represents: - Answer-nontaxable compensation if not chosen as
a cash benefit.
An employee had $300.00 deducted for a medical flexible spending account during the
plan year. In November, the employee was terminated and $100.00 remained in the
account. When must the employer reimburse the $100.00 to the employee? - Answer-
When $100.00 of qualified expenses are substantiated
All of the following qualified benefits can be offered under a Sec. 125 plan EXCEPT: -
Answer-deferred compensation to a 403(b) plan and/or 457(b) plan
Salaries earned but not yet paid in the current month must be recorded as a: - Answer-
debit to salary expense.
An employer contributes $350.00 per month to each employee's Sec. 125 plan. An
employee elects to receive the $350.00 per month in cash, since the spouse's employer
offers an excellent medical plan. What are the implications of taking the $350.00 in
cash? - Answer-The $350.00 is taxable income when received.
A company is located in a state with no state or local income taxes and uses the
Optional Flat Rate Method for gross-ups. When grossing-up bonuses for employees
who have already earned more than $118,500.00 but less than $200,000.00 in wages in
the year, payroll should divide the amount of the bonus by what percentage - Answer-
The correct answer is 73.55%.
When a company has always made timely tax deposits, its first quarter Form 941 is due
on or before: - Answer-May 10.
,FUTA taxes of more than $500.00 on wages paid in the first quarter must be deposited
no later than: - Answer-April 30.
An employee was hired in April 2015 and filed an exempt Form W-4. The employee's
Form W-4 expires on: - Answer-February 15, 2016.
In April, an employee with total YTD wages of $54,000.00 received a net bonus in the
amount of $650.00. The employee works in a state with no state or local income tax
withholding. Using the Optional Flat Rate Method, calculate the gross amount of the
employee's bonus. - Answer-The answer is 935.11
25% (federal)+1.45% (MED)+6.2%(SS) =32.65%
100% - 32.65% = 67.35%
net pay * 67.35% = answer
All of the following federal taxes are reported on Form 945 EXCEPT: - Answer-
withholding from wages.
What transaction is posted as a debit? - Answer-$250,000.00 deposit, posted to the
payroll checking account
An employee has a federal tax levy, a state tax levy, and a creditor garnishment in
effect when a bankruptcy order is received. Which wage attachment takes precedence?
- Answer-Bankruptcy order
What is the minimum amount of declared tips an employee reports each month that
requires an employer to withhold federal taxes from the employee's tips? - Answer-
$20.00
If an employee receives and reports $20.00 or more in tips in a calendar month,
employers must withhold federal income, social security, and Medicare taxes on the
tips
An employer paid the following wages during the first quarter of 2015:
• Employee 1 - $5,200
• Employee 2 - $7,800
• Employee 3 - $2,600
• Employee 4 - $20,800
• Employee 5 -$15,600
• Employee 6 -$4,420.
Calculate the employer's first quarter FUTA tax liability assuming the company receives
all possible FUTA tax credits - Answer-The correct answer is $199.32.
, A monthly depositor's shortfall make-up deposit must be made no later than: - Answer-
December 31 of the year the shortfall was made.
Based on the following YTD information for an employee, calculate the amount to report
on Form W-2 in Box 1.
• Gross Earnings: $48,500.00
• 401(k) employee ROTH contributions: $5,000.00
• Company 401(k) match: $2,500.00
• Section 129 dependent care: $4,500.00
• Credit union deductions: $4,000.00
• Section 125 medical: $370.00
• United Way Charitable Contributions $350.00. - Answer-The correct answer is
$43,630.00.
Gross Earnings- Section 129 -Section 125 = answer
A company makes all tax deposits timely. The fourth quarter employment tax return is
due no later than: - Answer-February 10.
An employee earns $11,472.73 per month and is paid semimonthly. The employee has
received no income other than regular wages during the year. Calculate the social
security and Medicare taxes to be withheld from the employee's first pay in December. -
Answer-The correct answer is $83.18
Just calculate Social Security because after 100K Medicare doesn get deducted.
Monthly/2 *.0145 = answer
An employee is paid semimonthly and claims married, 2 allowance(s). Using the
Percentage Method, calculate the value of the employee's withholding allowances each
pay period. - Answer-The correct answer is $333.40.
Use Table 5. Percentage Method table. Find the allowance that corresponds with the
pay frequency (semimonthly) then multiply that by number of allowances.
Semimonthly =166.70 x 2 allowances = 333.40
All of the following items are control procedures under the responsibility of the payroll
department EXCEPT:
A. job rotation.
B. system selection.
C. system edits.
D. reconciliation - Answer-The answer is B
An employee earns $1,000.00 semimonthly and defers 7% to a 401(k) plan. The
employee claims single with three allowances. Using the Wage-Bracket Method,
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