FPC ACTUAL EXAM QUESTIONS WITH ALL CORRECT ANSWERS 2025 LATEST UPDATE
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Course
FPC
Institution
FPC
FPC ACTUAL EXAM QUESTIONS WITH ALL CORRECT ANSWERS 2025 LATEST UPDATE
Which box on the 2021 Form W-2 is correctly matched with its use?
a. Box 3--Social security tax withheld
b. Box 8--FIT withheld
c. Box 10--Nonqualified plans
d. Box 12 (Code J)--Nontaxable sick pay - Answer-d. Box 12 (C...
FPC ACTUAL EXAM QUESTIONS
WITH ALL CORRECT ANSWERS
2025 LATEST UPDATE
Which box on the 2021 Form W-2 is correctly matched with its use?
a. Box 3--Social security tax withheld
b. Box 8--FIT withheld
c. Box 10--Nonqualified plans
d. Box 12 (Code J)--Nontaxable sick pay - Answer-d. Box 12 (Code J)--Nontaxable sick
pay
Which of the following methods are acceptable methods for paying employees?
a. Only cash
b. Only check
c. Only EFT
d. Cash, check, or EFT - Answer-d. Cash, check, or EFT
Which of the following payroll issues is governed only by state agencies?
-Child labor
-Final pay to a terminated employee
-Exempt/nonexempt status
-Overtime - Answer-Final pay to a terminated employee
Which of the following payroll issues is governed only by state agencies?
-Exempt/nonexempt status
-Frequency of pay
-Minimum wage
-Child labor - Answer-Frequency of pay
A company has 2,000 employees receiving Forms W-2 and filed its 2020 Forms W-2
electronically with the SSA on April 15, 2021. The maximum penalty the company could
receive is: - Answer-$220,000.00
,Organizations failing to file information returns timely, with correct information, or in the
correct format are subject to the three-tier penalty structure in effect: $50.00/return if
corrected by March 2; $110.00/return if corrected March 3 to August 1; and,
$280.00/return if corrected after August 1.
Which of the following documents must be retained for at least four years?
-Wage rate tables
-The amount and date of an employee's wage payments
-Work time schedules
-Billing records - Answer-The amount and date of an employee's wage payments
Under IRS regulations, how many years must Forms W-2 be retained? - Answer-4
The IRS requires Forms W-2 and most other records required for tax administration be
retained for at least four years under IRS regulations.
According to the IRS, which of the following employee records must be retained?
-Date employment application submitted
-Anticipated date of next pay increase
-Form W-4
-Date filing status changed - Answer-Form W-4
Data in the payroll master file must be retained in:
-the original paper copy and microfilm.
-any legible form.
-computer records.
-the original paper or electronic copy. - Answer-any legible form.
In what form must an employee master file be retained?
-The employee master file does not need to be retained
-In accessible computer records
-In paper documents
-Any legible form - Answer-Any legible form
, Under IRS regulations, how many years must a returned Form W-2 be retained? -
Answer-4
Under IRS regulations, a returned Form W-2 must be retained for at least four years
after the due date of the tax return (or the date the tax is actually paid, if later) for the
return period to which the records relate.
All of the following characteristics are objectives of the payroll department EXCEPT:
-nothing short of perfect is acceptable.
-the manager sets the tone for the success of the group.
-employees should only be concerned about themselves.
-quality work is a state of mind. - Answer-employees should only be concerned about
themselves.
Which of the following payroll issues are governed only by the states?
-Treatment of wages after death
-Unclaimed wages
-Overtime
-Minimum wage - Answer-Unclaimed wages
Which of the following payroll issues is governed only by state agencies?
-Minimum wage
-Exempt/nonexempt status
-Method of payment
-Overtime - Answer-Method of payment
If an employer requires a reversal of an individual's direct deposit without the
employee's authorization, it must be completed:
-within 24 hours from the date of discovery.
-within 14 days of the settlement date.
-prior to the next payroll.
-within five banking days of the settlement date. - Answer-within five banking days of the
settlement date.
Liabilities are defined as:
-a claim against the company assets.
-income received.
-the lost value of an item.
-anything of value to the company. - Answer-a claim against the company assets.
Which of the following journal entries is posted as a credit?
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