FPC PRACTICE TIPS UPDATED QUESTIONS AND
ANSWERS GRADED A+
✔✔If an employee provides an invalid W-4, the employer must: - ✔✔Refuse to accept
the form
✔✔Under the FLSA, an employees workday is defined as the: - ✔✔time the employee
is performing principle activities
✔✔Under the FLSA, rounding must - ✔✔be consistent
✔✔An exempt employee under the FLSA is exempt from - ✔✔both minimum wage and
overtime
✔✔Who verifies eligibility to work in the US? - ✔✔Employer
✔✔Under the FLSA, what type of pay is included in a non-exempt employee's regular
rate of pay calculation? - ✔✔Production Bonuses
✔✔When does an exempt for W-4 expire? - ✔✔February 15 of the next year
✔✔A commission is included in the tax calculation of which tax, if any? - ✔✔All Federal
Taxes
✔✔For a tipped employee to be paid $2.13 per hour, what is the minimum amount of
tips the employee must receive each month? - ✔✔$30.00
✔✔The definition of disposable earnings for a creditor garnishment is - ✔✔Gross wages
less all deductions required by law
✔✔What is the minimum amount of tips an employee reports each month to requires an
employer to withhold federal taxes from employees tips - ✔✔$20.00
✔✔Qualified transportation fringe benefits are subject to what taxes, if any? - ✔✔No
federal taxes
✔✔How frequently must an employer include noncash fringe benefits in an employees
income? - ✔✔Annually
✔✔SS-5 - ✔✔Application for a Social Security Card
✔✔W-4 - ✔✔Employee's Withholding Allowance Certificate
, ✔✔940 - ✔✔Employer's Annual Federal Unemployment (FUTA) Tax Return
✔✔941 - ✔✔Employer's Quarterly Federal Tax Return
✔✔944 - ✔✔Employer's Annual Federal Tax Return
✔✔4419 - ✔✔Application for Filing Information Returns Electronically (FIRE)
✔✔Deferred compensation plans can be classified into two key groups - ✔✔Qualified
and Non Qualified Plans
✔✔Qualified Plans - ✔✔401(k) and 403 (b)
✔✔Nonqualified Plans - ✔✔457 (b)
✔✔A voluntary deduction must be - ✔✔Authorized by the employee
✔✔Required deductions must take precedence over voluntary deductions - ✔✔True
✔✔What does an employer use to calculate the amount to withhold for an irs tax levy? -
✔✔Take-home pay
✔✔When does the IRS stop deducting a federal tax levy from an employees wages? -
✔✔The IRS issues a Form 668-D
✔✔What does an employer use to calculate the amount to withhold for a creditor
garnishment? - ✔✔Disposable pay
✔✔The value of one withholding allowance for a weekly pay period is? - ✔✔$79.80
✔✔What is the easiest method to calculate federal income tax withholding on regular
wages - ✔✔Wage-bracket
✔✔Which is most common to calculate federal income tax for a computerized payroll
system - ✔✔Percentage Method
✔✔When using the optional flat rate method, which item is considered when making the
calculation? - ✔✔Taxable wages
✔✔When an employee is overpaid and the repayment occurs in the same year, the
repayment requested is the employees - ✔✔Net overpayment.
ANSWERS GRADED A+
✔✔If an employee provides an invalid W-4, the employer must: - ✔✔Refuse to accept
the form
✔✔Under the FLSA, an employees workday is defined as the: - ✔✔time the employee
is performing principle activities
✔✔Under the FLSA, rounding must - ✔✔be consistent
✔✔An exempt employee under the FLSA is exempt from - ✔✔both minimum wage and
overtime
✔✔Who verifies eligibility to work in the US? - ✔✔Employer
✔✔Under the FLSA, what type of pay is included in a non-exempt employee's regular
rate of pay calculation? - ✔✔Production Bonuses
✔✔When does an exempt for W-4 expire? - ✔✔February 15 of the next year
✔✔A commission is included in the tax calculation of which tax, if any? - ✔✔All Federal
Taxes
✔✔For a tipped employee to be paid $2.13 per hour, what is the minimum amount of
tips the employee must receive each month? - ✔✔$30.00
✔✔The definition of disposable earnings for a creditor garnishment is - ✔✔Gross wages
less all deductions required by law
✔✔What is the minimum amount of tips an employee reports each month to requires an
employer to withhold federal taxes from employees tips - ✔✔$20.00
✔✔Qualified transportation fringe benefits are subject to what taxes, if any? - ✔✔No
federal taxes
✔✔How frequently must an employer include noncash fringe benefits in an employees
income? - ✔✔Annually
✔✔SS-5 - ✔✔Application for a Social Security Card
✔✔W-4 - ✔✔Employee's Withholding Allowance Certificate
, ✔✔940 - ✔✔Employer's Annual Federal Unemployment (FUTA) Tax Return
✔✔941 - ✔✔Employer's Quarterly Federal Tax Return
✔✔944 - ✔✔Employer's Annual Federal Tax Return
✔✔4419 - ✔✔Application for Filing Information Returns Electronically (FIRE)
✔✔Deferred compensation plans can be classified into two key groups - ✔✔Qualified
and Non Qualified Plans
✔✔Qualified Plans - ✔✔401(k) and 403 (b)
✔✔Nonqualified Plans - ✔✔457 (b)
✔✔A voluntary deduction must be - ✔✔Authorized by the employee
✔✔Required deductions must take precedence over voluntary deductions - ✔✔True
✔✔What does an employer use to calculate the amount to withhold for an irs tax levy? -
✔✔Take-home pay
✔✔When does the IRS stop deducting a federal tax levy from an employees wages? -
✔✔The IRS issues a Form 668-D
✔✔What does an employer use to calculate the amount to withhold for a creditor
garnishment? - ✔✔Disposable pay
✔✔The value of one withholding allowance for a weekly pay period is? - ✔✔$79.80
✔✔What is the easiest method to calculate federal income tax withholding on regular
wages - ✔✔Wage-bracket
✔✔Which is most common to calculate federal income tax for a computerized payroll
system - ✔✔Percentage Method
✔✔When using the optional flat rate method, which item is considered when making the
calculation? - ✔✔Taxable wages
✔✔When an employee is overpaid and the repayment occurs in the same year, the
repayment requested is the employees - ✔✔Net overpayment.
