Exam (elaborations)
FPC Exam Fundamental Payroll UESTIONS AND ANSWERS (2024/2025) (VERIFIED ANSWERS)
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FPC Exam Fundamental Payroll UESTIONS AND ANSWERS (2024/2025) (VERIFIED ANSWERS)
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FPC Exam Fundamental Payroll1.668-W: Notice of Levy on Wages, Salary, and Other Income
2.1096: Annual Summary and Transmittal of U.S. Information Returns
3.Under the FLSA how old must a minor be to be employed?: 14
4.What is the FUTA tax rate?: 6.0%
5.On form 941, the employer reports: Social Security Wages
6.What is the formula for calculating an employees net pay?: Gross pay-
deduc- tions for taxes- other deductions
7.Which plan discriminates in favor of highly compensated employees?:
Non- qualified deferred compensation plans
8.What is the federal minimum wage per hour on January 1, 2018?: $7.25
9.What law determines time limits with which employees must be paid
after wages are earned?: State Laws
10.Cafeteria plans are authorized by what internal revenue code section?:
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11.The direct deposit data sent to the bank after payroll processing is
an example of: Interface
12.What taxes, if any, must be withheld from payments to an
independent contractor who provided a tin?: No taxes are withheld
13.An external audit:: Allows an objective assessment of the financial
statements.
14.Employees' privacy rights are governed by all of the following except::
Lo- cal Legislation
15.Under the FLSA, what basis is used to determine whether a non-
exempt employee is to be paid overtime?: Hours worked in a work week
16.Overtime payments are included in the calculation of what tax, if any?: -
They are included in all tax calculations
17.What is the 2018 wage base for social security tax?: $128,400.00
18.If an employee does not have federal tax withheld and has not claimed
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, exempt, what must the employer do?: Provide the employee with the EITC
notice
19.A computerized payroll system can help a payroll dept. accomplish all
of the following tasks except:: Recognize changes in laws and
regulations
20.An employee's profit sharing bonus is payable in the year following his
death. How should the bonus be taxed and reported?: Withhold no taxes
and report the bonus on for 1099-misc.
21.In what ways can a computerized system increase the accuracy of
employ- ees paychecks?: By reducing human error
22. What federal taxes must an employer withhold from an employees
reported tips?: Federal income, social security and medicare tax
23.The main purpose of batch controls is to: Validate data entry accuracy
24.Which of the following types of compensation is taxable?: Backpay
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