FPC ACTUAL 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
✔✔a waitress is paid $2.25 per hour and she receives $225 in tips during the week. She
works 4o hours per week. Which of the following is true?
a. her employer is allowed to reduce her cash wage to no less than $2.13 per hour
b. her base pay must be increase to $4.5 per hour after a 90 day training period.
c. she must be paid $5.12 per hour by her employer
d. her base salary must be raised to $3 per hour to comply with fed min wage
requirements. - ✔✔A. her employer is allowed to reduce her cash wage to no less than
$2.13 per hour
her employer can claim the full federal tip credit because she receives tips and with her
tips, is paid more than the current federal minimum wage purposes, her employer must
pay her at least $2.13 per hour and her hourly rate plus tips must equal at least the
current federal min wage
✔✔if a state sets the minimum wage at a rate greater than the federal minimum wage,
the state minimum wage must be paid to workers in that state
- true
-false - ✔✔TRUE
✔✔tips can be counted toward the employees minimum wage - ✔✔TRUE
✔✔an employee works 40 hours per week as a fry cook. during the week, she
substitutes for one of the waitresses and reports $5 per week in tips. can her employer
pay her $2.13 per hour?
- yes
- no - ✔✔no
because she isnt making $30 a month. the tip credit can be used to reduce the
minimum wage only if the employee regularly receives tips and documents receiving
more than $30/month
✔✔employers who provide paid vacation leave must count the hours of paid time off
when determining if the employee must receive an overtime premium when the total
hours worked in a week exceed 40.
true
false - ✔✔false
only hours worked count toward determining whether overtime premiums must be paid
under the FLSA
✔✔the FLSA requires immediate payment of an employees final paycheck upon
termination
,true
false - ✔✔FALSE
however, most states impose time limits governing when an employees final paycheck
must be paid to the employee
✔✔an employee's parking garage is 2 blocks away from his downtown office. it costs
$275/month to rent a stall there, but the employee doesn't mind because its convenient
and his employer reimburses him 100% of the cost. How much of his monthly parking is
taxable? - ✔✔$15.
remember: employer-provided parking is nontaxable up to $260/month
✔✔a retail sales clerk took advantage of the company's employee discount program to
purchase clothes at 10% off the normal retail price. this service represents:
a. taxable compensation
b. a qualified employee discount
c. a working condition fringe
d. a no-additional cost service - ✔✔b. a qualified employee discount
✔✔Last month, an employee emailed her mother on the company's email, photocopied
fliers for her church picnic at work and used her work computer to update her resume.
These services represent:
a. taxable compensation
b. de minimis fringes
c. working condition fringes
d. no-additional cost services - ✔✔b. de minimis fringes
✔✔True of false: if an employee dies and a final payment is made, the employer
continues to withhold taxes as if the employee is still alive. - ✔✔FALSE- no federal
taxes are withheld
✔✔if the amounts are paid after the year of death, no SS and medicare are withheld
and no reporting is done on the W2. Instead it is reported on _______ misc. - ✔✔1099-
misc
✔✔if the amounts are paid during the same year the employee dies, _______ and
______ must be withheld and reported on the W2. FIT is not reported on W2. -
✔✔Social security and medicare must be withheld
✔✔Percentage method practice: an employee who is married with 4 allowances earns a
biweekly salary of $1500. Calculate his federal income tax using the percentage
method. - ✔✔Find Net/Adjusted Wages (after deduction for withholding allowances)
§$161.50 x 4 = $646.00
,Gross wages - Allowances = Adjusted Wages (Net Wages)
§$1500.00 - $646.00 = $854.00
Apply Percentage Table (Appendix)
§Net Wages over $454.00 but not over $1,200.00
Adjusted Wages - Threshold Amount = Excess Amount
§$854.00 - $454.00 = $400.00
Amount of Tax + (Excess Amount x Percentage) = Total Withholding
§0.00 + ($400.00 x 10%) = $40.00
✔✔Calculate the total compensation for an electrician who worked 44 hours last week.
In addition to his regular wage of $10/hour, the electrician was paid $50 for supervising
a trainee. What is the electricians total weekly compensation? - ✔✔Step 1: 44 hours x
$10/ hour = $440 + $50= $490 regular pay
Step 2: $490/44 hours = $11.14 regular rate of pay
Step 3: $11.14 x 5 = $5.57 overtime premium rate
Step 4: $5.57 x 4 hours = $22.28 premium pay for overtime
Step 5: $490 + $22.28 = $512.28 total compensation
✔✔An employee works 38 hours in a workweek, takes 8 hours sick time, and receives
bonus check for productivity. How many overtime hours should he be paid? - ✔✔NONE
doesn't include sick pay, holiday pay, vacation pay, jury duty pay, or similar pay for
unworked hours
✔✔A server is paid $2.25/ hour and receives tips which average $150/week. She works
40 hours per week. Which of the following is true? - ✔✔$2.25 x 40 hrs = $90
$90 + $150 = $240
now the minimum wage is $7.25 so $7.25 x 40= $290
ee must receive at least $290, so $290 - $240 = $50
so the employer owes an extra $50
Therefore, the employer must raise the ee's salary to $3.50/ hour for this pay period
✔✔the FLSA requires that time worked on saturday be paid at overtime rates and time
worked on sunday be paid at double time rates - ✔✔FALSE
under the FLSA, overtime premiums must be paid only when the employee works more
than 40 hours in a workweek.
, ✔✔If a state wage and hour law requires that a nonexempt employee be paid an
overtime premium when the employee works more than 8 hours in a day and the
employee works the following schedule, how many overtime hours must the employee
be paid?
sun-5
mon-7
tues-6
weds-8
thurs-10
fri-8
sat-6
a.0
b.2
c.10
d.14 - ✔✔c. 10 the employee has worked 50 hours in the week and must be paid the
overtime premium on the greater of the hours over 40 or more than 8 hours per day. in
this case, it would be 10 overtime hours
✔✔Last week, a high school teacher spent 40 hours in the classroom, worked 10 hours
grading papers and was required to put in another 8 hours on saturday at the school
sponsored science fair. under the FLSA, what overtime hours, if any, must the teacher
be paid?
a. time and a one half for 0 hours
b. time and a one half for 8 hours
c. time and a one half for 10 hours
d. time and a one half for 18 hours - ✔✔A. teachers are exempt under the professional
exemption
only nonexempt ees must be paid overtime
✔✔during thanksgiving week, a nonexempt employee was paid for the following hours:
sun- none
mon- 10 hours worked
tues- 10 hrs work
weds- 8 hr sicks day
thurs- 8 hr holiday
fri-8 hr vacation
sat- 8 hr work
How many overtime hours, if any, did the ee work?
a. 0 hours
b. 4 hours
c. 12 hours - ✔✔a. 0 hours
ANSWERS GRADED A+
✔✔a waitress is paid $2.25 per hour and she receives $225 in tips during the week. She
works 4o hours per week. Which of the following is true?
a. her employer is allowed to reduce her cash wage to no less than $2.13 per hour
b. her base pay must be increase to $4.5 per hour after a 90 day training period.
c. she must be paid $5.12 per hour by her employer
d. her base salary must be raised to $3 per hour to comply with fed min wage
requirements. - ✔✔A. her employer is allowed to reduce her cash wage to no less than
$2.13 per hour
her employer can claim the full federal tip credit because she receives tips and with her
tips, is paid more than the current federal minimum wage purposes, her employer must
pay her at least $2.13 per hour and her hourly rate plus tips must equal at least the
current federal min wage
✔✔if a state sets the minimum wage at a rate greater than the federal minimum wage,
the state minimum wage must be paid to workers in that state
- true
-false - ✔✔TRUE
✔✔tips can be counted toward the employees minimum wage - ✔✔TRUE
✔✔an employee works 40 hours per week as a fry cook. during the week, she
substitutes for one of the waitresses and reports $5 per week in tips. can her employer
pay her $2.13 per hour?
- yes
- no - ✔✔no
because she isnt making $30 a month. the tip credit can be used to reduce the
minimum wage only if the employee regularly receives tips and documents receiving
more than $30/month
✔✔employers who provide paid vacation leave must count the hours of paid time off
when determining if the employee must receive an overtime premium when the total
hours worked in a week exceed 40.
true
false - ✔✔false
only hours worked count toward determining whether overtime premiums must be paid
under the FLSA
✔✔the FLSA requires immediate payment of an employees final paycheck upon
termination
,true
false - ✔✔FALSE
however, most states impose time limits governing when an employees final paycheck
must be paid to the employee
✔✔an employee's parking garage is 2 blocks away from his downtown office. it costs
$275/month to rent a stall there, but the employee doesn't mind because its convenient
and his employer reimburses him 100% of the cost. How much of his monthly parking is
taxable? - ✔✔$15.
remember: employer-provided parking is nontaxable up to $260/month
✔✔a retail sales clerk took advantage of the company's employee discount program to
purchase clothes at 10% off the normal retail price. this service represents:
a. taxable compensation
b. a qualified employee discount
c. a working condition fringe
d. a no-additional cost service - ✔✔b. a qualified employee discount
✔✔Last month, an employee emailed her mother on the company's email, photocopied
fliers for her church picnic at work and used her work computer to update her resume.
These services represent:
a. taxable compensation
b. de minimis fringes
c. working condition fringes
d. no-additional cost services - ✔✔b. de minimis fringes
✔✔True of false: if an employee dies and a final payment is made, the employer
continues to withhold taxes as if the employee is still alive. - ✔✔FALSE- no federal
taxes are withheld
✔✔if the amounts are paid after the year of death, no SS and medicare are withheld
and no reporting is done on the W2. Instead it is reported on _______ misc. - ✔✔1099-
misc
✔✔if the amounts are paid during the same year the employee dies, _______ and
______ must be withheld and reported on the W2. FIT is not reported on W2. -
✔✔Social security and medicare must be withheld
✔✔Percentage method practice: an employee who is married with 4 allowances earns a
biweekly salary of $1500. Calculate his federal income tax using the percentage
method. - ✔✔Find Net/Adjusted Wages (after deduction for withholding allowances)
§$161.50 x 4 = $646.00
,Gross wages - Allowances = Adjusted Wages (Net Wages)
§$1500.00 - $646.00 = $854.00
Apply Percentage Table (Appendix)
§Net Wages over $454.00 but not over $1,200.00
Adjusted Wages - Threshold Amount = Excess Amount
§$854.00 - $454.00 = $400.00
Amount of Tax + (Excess Amount x Percentage) = Total Withholding
§0.00 + ($400.00 x 10%) = $40.00
✔✔Calculate the total compensation for an electrician who worked 44 hours last week.
In addition to his regular wage of $10/hour, the electrician was paid $50 for supervising
a trainee. What is the electricians total weekly compensation? - ✔✔Step 1: 44 hours x
$10/ hour = $440 + $50= $490 regular pay
Step 2: $490/44 hours = $11.14 regular rate of pay
Step 3: $11.14 x 5 = $5.57 overtime premium rate
Step 4: $5.57 x 4 hours = $22.28 premium pay for overtime
Step 5: $490 + $22.28 = $512.28 total compensation
✔✔An employee works 38 hours in a workweek, takes 8 hours sick time, and receives
bonus check for productivity. How many overtime hours should he be paid? - ✔✔NONE
doesn't include sick pay, holiday pay, vacation pay, jury duty pay, or similar pay for
unworked hours
✔✔A server is paid $2.25/ hour and receives tips which average $150/week. She works
40 hours per week. Which of the following is true? - ✔✔$2.25 x 40 hrs = $90
$90 + $150 = $240
now the minimum wage is $7.25 so $7.25 x 40= $290
ee must receive at least $290, so $290 - $240 = $50
so the employer owes an extra $50
Therefore, the employer must raise the ee's salary to $3.50/ hour for this pay period
✔✔the FLSA requires that time worked on saturday be paid at overtime rates and time
worked on sunday be paid at double time rates - ✔✔FALSE
under the FLSA, overtime premiums must be paid only when the employee works more
than 40 hours in a workweek.
, ✔✔If a state wage and hour law requires that a nonexempt employee be paid an
overtime premium when the employee works more than 8 hours in a day and the
employee works the following schedule, how many overtime hours must the employee
be paid?
sun-5
mon-7
tues-6
weds-8
thurs-10
fri-8
sat-6
a.0
b.2
c.10
d.14 - ✔✔c. 10 the employee has worked 50 hours in the week and must be paid the
overtime premium on the greater of the hours over 40 or more than 8 hours per day. in
this case, it would be 10 overtime hours
✔✔Last week, a high school teacher spent 40 hours in the classroom, worked 10 hours
grading papers and was required to put in another 8 hours on saturday at the school
sponsored science fair. under the FLSA, what overtime hours, if any, must the teacher
be paid?
a. time and a one half for 0 hours
b. time and a one half for 8 hours
c. time and a one half for 10 hours
d. time and a one half for 18 hours - ✔✔A. teachers are exempt under the professional
exemption
only nonexempt ees must be paid overtime
✔✔during thanksgiving week, a nonexempt employee was paid for the following hours:
sun- none
mon- 10 hours worked
tues- 10 hrs work
weds- 8 hr sicks day
thurs- 8 hr holiday
fri-8 hr vacation
sat- 8 hr work
How many overtime hours, if any, did the ee work?
a. 0 hours
b. 4 hours
c. 12 hours - ✔✔a. 0 hours
