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FPC Exam Questions And Accurate Answers
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FPC Exam Questions And Accurate Answers 2024-2025Social Security Limit 2024 - ANSWER 168600
Earnings over 1,000,000 are taxed at - ANSWER 37%
Parking and Transportation benefit limit for 2024 - ANSWER 315 per month per benefit
Medicare EE Contribution Rate for earnings over 200,000 - ANSWER 2.35%. (this is only
for the employee), the employer rate remains 1.45%
401(k) Contribution Limits 2024 - ANSWER 23,000 over 50 7,500 Catch-Up
(Total 30,500)
457 Limits
457 Combines multiple deferred compensation plans - ANSWER Total Contribution Limit
69,000
Wage Limit 345,000
FSA 2024 Limits - ANSWER Dependent Care 3200 (can only be reimbursed for
contributions to date)
Health Care 4150 Can be reimbursed for full election and use it or lose it. Example:
Employee elected to defer 2000 to HC FSA can request reimbursement of full 2000 at
beginning of the year. If leave no repayment of any unfunded reimbursements is
required.
Mileage rate for Personal use of Company Car - ANSWER .67 per mile as taxable wages
Car is a Luxury vehicle if it exceeds 62,000 in value, so you have to calculate taxes using
table.
,Supplemental Federal Tax Rate - ANSWER 22%
Special Valuation Carpool - ANSWER $3 per day is taxable for a company provided
carpool
1.50 each way
FUTA Limit - ANSWER 7,000
calculated at 6%
IRS Penalties (2023) - ANSWER W-2s
$60 per return between 2/1-3/2
$120 per return between 3/3-8/1
$310 per return after 8/1
Child Support Guidelines - ANS 50% of disposable income IF supporting a current
spouse/child and NOT in arrears
55% if supporting current spouse/child and IN arrears
60% when not supporting additional family and NOT in arrears
65% when not supporting additional family and IN arrears
Creditor garnishments - ANS Max of 25% Disposable income OR Disposable income-30
hours x minimum wage per week.
Student Loans - ANSWER Paused due to COVID and I believe those restrictions still
exist. If in effect: 15% of disposable income
Fed Agency - ANSWER 15%
A federal garnishment can be enacted without a court order, all others require a court
order
, Bankruptcy Orders - ANSWER Supercedes all orders EXCEPT for pre-existing
child-support
Gross Up calculation - ANSWER Desired Net/100%-% of taxes withheld
Example:
Net 500
Supplemental Rate 22%
SS/Med 7.65%
500/70.35 (100-22-7.65)
Test your outcome
Length of Service Award - ANSWER Under IRS rules, a length of service award may
exclude up to $400 for an award that is tangible personal property provided in a
nonqualified plan. If the value of the award is in excess of $400, the amount in excess of
$400 is subject to tax.
Withholding - Requirement of payer by the IRS to withhold a portion of certain payments
and remit same to the IRS
If an Independent Contractor has not provided a TIN, the rate is 24%
Backup withholding is reported on the Form 945
Form SS8 - Form SS8 is submitted to the IRS to ask for a determination if a worker is an
independent contractor or an employee
Reasonable Basis Test - ANSWER A test applied to determine if a worker is an IC or
Employee:
Court Decisions, prior IRS Rulings
Guidance from Attorney/CPA
Long-Standing practice in industry where 25% of industry is identified as IC
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