FPC ACTUAL 2026 STUDY GUIDE QUESTIONS AND
ANSWERS GRADED A+
✔✔all of the following types of payments are included in the regular rate of pay
calculation except:
a. a production bonus to be paid in June which the employer announced in jan
b. an agreement with the union to pay one half of one weeks salary to workers with over
5 years of services
c. a traditional $50 gift certificate which the firm has paid for the past 5 years during
holiday season
d. shift differential for working the 4pm to midnight shift - ✔✔c. a traditional $50 gift
certification during holiday season
if a bonus paid during the holiday season or on other occasions is a gift, it may be
excluded from regular rate of pay even if it is paid with regularity and employees come
to expect it. to be excluded, the employer must retain discretion over whether the bonus
is paid and amount. preannouncements of union agreements make the bonus
nondiscretionary.
✔✔An employee worked for 30 hours on his regular shift at $10 per hour and 16 hours
on the late night shift at $12 per hour. in addition, he earned a production bonus of $50.
what is his total weekly compensation? - ✔✔$577.34
step 1: 30x$10=$300
16x$12= $192
$300+$192+$50=$542 regular pay
Step 2: $542/ 46 hours = $11.78 per hour regular rate of pay
step 3: $11.78 x 0.5 = overtime premium rate $5.89
step 4: $5.89 x 6 OT hours = $35.34 premium pay for overtime
step 5: $542 + $35.34 = $577.34 total weekly compensation
✔✔All of the following are reasons payroll keeps records except:
a. compliance with laws
b. demonstrate accuracy of paychecks
c. demonstrate security of payroll
d. periodic reporting - ✔✔C. security of payroll
records are used to determine compliance, calculate pay, and produce reports
✔✔An employer maintains the following information in its employee master file:
,hire date, termination date, payment date, regular rate of pay, additions/deductions from
pay, frequency of payments.
name 2 other records that must be kept in order to calculate overtime pay. - ✔✔To
comply with FLSA requirements for wage and hour repoting, you must also keep data
on the following:
- hours worked/day
-hours worked/week
-workweek
-overtime hours/pay
-shift bonys
✔✔An employer maintains its employee master file in computer files. which of the
following statements is true?
a. under federal law, the employer is required to keep a backup of these records
b. employment records must be kept for 7 years
c. there is no federal requirement to update the data monthly - ✔✔c. there is no federal
requirement to update the data monthly
while records should be current, no federal regulations mandate update monthly
updating however it is in the companys best interest.
most employment data must be kept for only 3 years.
✔✔all of the following types of records can be combined with payroll data in an
integrated system except:
a. personnel
b. benefits
c. purchasing
d. human resources - ✔✔c. purchasing
integrated databases include payroll, benefits, and other human resources data
✔✔how long must you retain each of the following records in your files?
- proof of tax deposits
- form I9
- copies of your quarterly tax returns
- wage and hour records
- employee time cards
- canceled checks
-name/address occupation for each ee
-work time schedule
-form w4
-total wages and tips
-overtime info
, -log of injuries on the job - ✔✔-proof of tax deposits: 4 years
-form 19: 3 years after date of hire of 1 year after date of termination, whichever is later
-copies of quarterly tax returns: 4 years
-wage and hour recors: 3 years
- employee time cards: 2 years
- canceled checks: 4 years
- name/address/occ: 3 years
-work time schedule: 2 years
-form W4: at least 4 years after the date the last return was filed using the info on the
w4
-total wages and tips: 4 years
-overtime info: 3 years
-log of injuries on the job (OSHA): 5 year
✔✔How long should employers keep payroll records beyond legal requirements
a. 2 years
b. 3 years
c. 4 years
d. as long as the company needs the records - ✔✔d. as long as the company needs the
records
✔✔the amount of federal income tax that is withheld from an employees regular wages
is determined by a formula that uses all of the following items except:
a. employees taxable wages
b. pay period
c. a flat rate
d. filing status - ✔✔c. a flat rate
only when paying a supplemental wage can an employer use the optional flat rate
method to calculate federal income tax
✔✔Which of the following events would require an employee to fill out an amended form
w4 within 10 days of its occurrence?
a. employee becomes legally separated from his or her spouse who was claimed as a
dependent
b. employees spouse quits job to stay home with a new baby
c. death of a spouse
d. adoption of a kid - ✔✔a. employee becomes legally separated from his or her spouse
who was claimed as a dependent
when an employees circumstances result in reduced income tax liability (such as when
a child is adopted or a spouse stops working) less tax is withheld; an employee can fill
out a new w4 at any time. however, when circumstances create an increased income
tax liability, the employee must fill out a new w4 within 10 days.
ANSWERS GRADED A+
✔✔all of the following types of payments are included in the regular rate of pay
calculation except:
a. a production bonus to be paid in June which the employer announced in jan
b. an agreement with the union to pay one half of one weeks salary to workers with over
5 years of services
c. a traditional $50 gift certificate which the firm has paid for the past 5 years during
holiday season
d. shift differential for working the 4pm to midnight shift - ✔✔c. a traditional $50 gift
certification during holiday season
if a bonus paid during the holiday season or on other occasions is a gift, it may be
excluded from regular rate of pay even if it is paid with regularity and employees come
to expect it. to be excluded, the employer must retain discretion over whether the bonus
is paid and amount. preannouncements of union agreements make the bonus
nondiscretionary.
✔✔An employee worked for 30 hours on his regular shift at $10 per hour and 16 hours
on the late night shift at $12 per hour. in addition, he earned a production bonus of $50.
what is his total weekly compensation? - ✔✔$577.34
step 1: 30x$10=$300
16x$12= $192
$300+$192+$50=$542 regular pay
Step 2: $542/ 46 hours = $11.78 per hour regular rate of pay
step 3: $11.78 x 0.5 = overtime premium rate $5.89
step 4: $5.89 x 6 OT hours = $35.34 premium pay for overtime
step 5: $542 + $35.34 = $577.34 total weekly compensation
✔✔All of the following are reasons payroll keeps records except:
a. compliance with laws
b. demonstrate accuracy of paychecks
c. demonstrate security of payroll
d. periodic reporting - ✔✔C. security of payroll
records are used to determine compliance, calculate pay, and produce reports
✔✔An employer maintains the following information in its employee master file:
,hire date, termination date, payment date, regular rate of pay, additions/deductions from
pay, frequency of payments.
name 2 other records that must be kept in order to calculate overtime pay. - ✔✔To
comply with FLSA requirements for wage and hour repoting, you must also keep data
on the following:
- hours worked/day
-hours worked/week
-workweek
-overtime hours/pay
-shift bonys
✔✔An employer maintains its employee master file in computer files. which of the
following statements is true?
a. under federal law, the employer is required to keep a backup of these records
b. employment records must be kept for 7 years
c. there is no federal requirement to update the data monthly - ✔✔c. there is no federal
requirement to update the data monthly
while records should be current, no federal regulations mandate update monthly
updating however it is in the companys best interest.
most employment data must be kept for only 3 years.
✔✔all of the following types of records can be combined with payroll data in an
integrated system except:
a. personnel
b. benefits
c. purchasing
d. human resources - ✔✔c. purchasing
integrated databases include payroll, benefits, and other human resources data
✔✔how long must you retain each of the following records in your files?
- proof of tax deposits
- form I9
- copies of your quarterly tax returns
- wage and hour records
- employee time cards
- canceled checks
-name/address occupation for each ee
-work time schedule
-form w4
-total wages and tips
-overtime info
, -log of injuries on the job - ✔✔-proof of tax deposits: 4 years
-form 19: 3 years after date of hire of 1 year after date of termination, whichever is later
-copies of quarterly tax returns: 4 years
-wage and hour recors: 3 years
- employee time cards: 2 years
- canceled checks: 4 years
- name/address/occ: 3 years
-work time schedule: 2 years
-form W4: at least 4 years after the date the last return was filed using the info on the
w4
-total wages and tips: 4 years
-overtime info: 3 years
-log of injuries on the job (OSHA): 5 year
✔✔How long should employers keep payroll records beyond legal requirements
a. 2 years
b. 3 years
c. 4 years
d. as long as the company needs the records - ✔✔d. as long as the company needs the
records
✔✔the amount of federal income tax that is withheld from an employees regular wages
is determined by a formula that uses all of the following items except:
a. employees taxable wages
b. pay period
c. a flat rate
d. filing status - ✔✔c. a flat rate
only when paying a supplemental wage can an employer use the optional flat rate
method to calculate federal income tax
✔✔Which of the following events would require an employee to fill out an amended form
w4 within 10 days of its occurrence?
a. employee becomes legally separated from his or her spouse who was claimed as a
dependent
b. employees spouse quits job to stay home with a new baby
c. death of a spouse
d. adoption of a kid - ✔✔a. employee becomes legally separated from his or her spouse
who was claimed as a dependent
when an employees circumstances result in reduced income tax liability (such as when
a child is adopted or a spouse stops working) less tax is withheld; an employee can fill
out a new w4 at any time. however, when circumstances create an increased income
tax liability, the employee must fill out a new w4 within 10 days.
