FPC Review Exam Questions and Correct Answers
What information is required to set up direct deposit? - Answer-Type of account, account and bank routing numbers
What are the two most common methods to calculate withholding on regular wages? - Answer-Percentage and wage bracket methods
D...
What information is required to set up direct deposit? - Answer-Type of account,
account and bank routing numbers
What are the two most common methods to calculate withholding on regular wages? -
Answer-Percentage and wage bracket methods
Do wage attachments take precedence over voluntary deductions? - Answer-Yes
What publication that gives exempt amounts is provided with form 668-W? - Answer-
1494
Are wages paid after death subject to federal withholding? - Answer-No
Wages in excess of $200,000 are subject to what Medicare rate? - Answer-2.35% (1.45
plus add'l .9)
The maximum amount of an employee's compensation subject to child support is
governed by what? - Answer-CCPA
What are disposable earnings? - Answer-Gross earnings (including bonuses and lump
sum payments, but not tips) less required deductions
When grossing up, are the taxes paid by the employer included in the employee's
taxable income? - Answer-Yes
What are the federal limits for withholding garnishments? - Answer-Cannot exceed the
lesser of 15% of the debtor's disposable pay or the amount by which the employee's
disposable pay for the week exceeds 30 times the federal minimum wage
401(k) income is subject to which taxes? - Answer-SS and Medicare
What is the retirement savings program for employees of tax exempt organizations
known as? - Answer-403(b)
Cafeteria plan contributions are subject to which taxes? - Answer-Cafeteria plan
contributions are not subject to any taxes.
, A contractual agreement between an organization and an employee whereas the
organization makes a promise to defer up to $18,000 of compensation in the current
year to the participant to a future date for services currently rendered is what type of
deferred compensation? - Answer-457(b)
What is the business standard mileage rate for 2015? - Answer-.575 per mile
When calculating the employee's age for group term life, what date is used for the year
in which the benefit is taxable? - Answer-December 31st
Are benefits under IRC Section 132 (qualified transportation fringe benefits) excluded
from taxable earnings? - Answer-Yes
What are the due dates for depositing FUTA tax? - Answer-April 30, July 31, October
31, January 31
What form is used to report nonpayroll items and income tax withholding on pensions,
annuities, IRAs, gambling winnings and back-up withholding shown on Forms 1099 and
W-2G? - Answer-945
Employers with a history of an annual tax liability less than $1,000 are designated by
the IRS to file which form? - Answer-944
FUTA tax is calculated based on the first $7,000 of each workers annual wage. What it
the FUTA tax rate? - Answer-6.0%
Is Box 11 on Form W-2 used by the SSA to determine if any amounts reported in Box 1
or Box 3 and/or Box 5 were earned in a prior year? - Answer-Yes
What is the backup withholding rate? - Answer-28%
The failure to withhold income tax, SS, Medicare and not pay withholdings to IRS
causes what type of penalty? - Answer-100% of the withholding, plus officers or
employees could be personally liable for an equal amount.
What is reported in W-2 Box 11? - Answer-Nonqualified deferred compensation and
457(b)
Journal - Answer-Chronological record of a businesses daily transactions.
General Ledger - Answer-Record of business transactions by account.
Who set the standards for recording financial transactions? - Answer-FASB
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