FPC COMPREHENSIVE EXAM UPDATED QUESTIONS
AND ANSWERS GRADED A+
✔✔457B plans - ✔✔Public sector employers (State and local governments.)
✔✔qualified retirement plans must - ✔✔Must be in writing, must benefit the employees
and not discriminate in favor of highly compensated employees.
✔✔401K catch-up - ✔✔Employees 50 age or older (the year they turn 50),
to defer up to $6,000 of additional funds beyond the $18,500 deferred compensation
limit.
✔✔401K contributions are reported - ✔✔On form W-2 in box 12 with code D.
✔✔401K Deferral Limit - ✔✔$18,500
✔✔2 types of qualified retirement plans - ✔✔Defined benefit plans (based on a formula)
or defined contribution plans (based on ER or EE contributions)
✔✔401K Compensations limit - ✔✔$275,000
✔✔Use- it - or - lose - it - ✔✔contributions that are not substantiated are lost
✔✔FSA's uniform coverage - ✔✔ER must reimburse EE for eligible expenses up to the
EE's election even though the EE's contributions have yet to be made.
✔✔Section 125 plan - ✔✔Flexible benefit plan.
Does not allow the deferral of compensation from one plan year to another plan year,
unless a 401K plan is part of the S125 plan.
Can only be changed by EE's before the beginning of the plan year, when there is an
IRS approved status change or a cost or coverage change.
✔✔cafeteria plan - ✔✔Allows Employers to select a menu of generally nontaxable
benefits offered to employees.
✔✔How are S125 benefits taxed - ✔✔Not taxable unless taken in cash.
✔✔How are S125 benefit plans reported - ✔✔Not reported on Form W-2 or Form 941
✔✔Dependent care FSA special rules - ✔✔Is not subject to uniform coverage rule.
ER will only reimburse expenses up to the amount of the EE's contribution to date.
, ✔✔Medical FSA contribution limits - ✔✔Cannot exceed $2,650 in a plan year.
✔✔From W-2 Box 1: - ✔✔Wages, tips, other compensation used to report all taxes.
✔✔FIRE system - ✔✔IRS filing information returns electronically system used to file
forms 1099.
✔✔FUTA tax credit - ✔✔ERs paying state unemployment taxes timely can get a FUTA
tax credit maximum of 5.4%,
✔✔Form W-2C: - ✔✔Corrected wage and tax statement.
Filed with SSA.
✔✔Form 1099 - MISC - ✔✔Miscellaneous Income.
Reports various types of payment to payees.
IRS must receive copies by 1/31 with amounts in box 7.
✔✔Form W-2 Box 3: - ✔✔Social security wages.
Max amount reported in box 3 is $128,400.
Does not include tips.
✔✔Depositor Status - ✔✔ER is a monthly or semiweekly depositor of employment
taxes.
✔✔Monthly depositor liability - ✔✔$50,000 or less
✔✔Semiweekly depositor liability - ✔✔More than $50,000
Pays on: Sat, Sun, Mon, Tues; Due next Friday
otherwise next Wednesday.
If tax liability reaches $1000,000, taxes must be deposited next business day.
✔✔FUTA (Federal Unemployment Tax Act) - ✔✔ERs pay FUTA tax on the first $7,000
of an EE's wages.
•Due the last day of the first month following the end of the quarter.
Paid to the IRS via EFTPS using the EIN
AND ANSWERS GRADED A+
✔✔457B plans - ✔✔Public sector employers (State and local governments.)
✔✔qualified retirement plans must - ✔✔Must be in writing, must benefit the employees
and not discriminate in favor of highly compensated employees.
✔✔401K catch-up - ✔✔Employees 50 age or older (the year they turn 50),
to defer up to $6,000 of additional funds beyond the $18,500 deferred compensation
limit.
✔✔401K contributions are reported - ✔✔On form W-2 in box 12 with code D.
✔✔401K Deferral Limit - ✔✔$18,500
✔✔2 types of qualified retirement plans - ✔✔Defined benefit plans (based on a formula)
or defined contribution plans (based on ER or EE contributions)
✔✔401K Compensations limit - ✔✔$275,000
✔✔Use- it - or - lose - it - ✔✔contributions that are not substantiated are lost
✔✔FSA's uniform coverage - ✔✔ER must reimburse EE for eligible expenses up to the
EE's election even though the EE's contributions have yet to be made.
✔✔Section 125 plan - ✔✔Flexible benefit plan.
Does not allow the deferral of compensation from one plan year to another plan year,
unless a 401K plan is part of the S125 plan.
Can only be changed by EE's before the beginning of the plan year, when there is an
IRS approved status change or a cost or coverage change.
✔✔cafeteria plan - ✔✔Allows Employers to select a menu of generally nontaxable
benefits offered to employees.
✔✔How are S125 benefits taxed - ✔✔Not taxable unless taken in cash.
✔✔How are S125 benefit plans reported - ✔✔Not reported on Form W-2 or Form 941
✔✔Dependent care FSA special rules - ✔✔Is not subject to uniform coverage rule.
ER will only reimburse expenses up to the amount of the EE's contribution to date.
, ✔✔Medical FSA contribution limits - ✔✔Cannot exceed $2,650 in a plan year.
✔✔From W-2 Box 1: - ✔✔Wages, tips, other compensation used to report all taxes.
✔✔FIRE system - ✔✔IRS filing information returns electronically system used to file
forms 1099.
✔✔FUTA tax credit - ✔✔ERs paying state unemployment taxes timely can get a FUTA
tax credit maximum of 5.4%,
✔✔Form W-2C: - ✔✔Corrected wage and tax statement.
Filed with SSA.
✔✔Form 1099 - MISC - ✔✔Miscellaneous Income.
Reports various types of payment to payees.
IRS must receive copies by 1/31 with amounts in box 7.
✔✔Form W-2 Box 3: - ✔✔Social security wages.
Max amount reported in box 3 is $128,400.
Does not include tips.
✔✔Depositor Status - ✔✔ER is a monthly or semiweekly depositor of employment
taxes.
✔✔Monthly depositor liability - ✔✔$50,000 or less
✔✔Semiweekly depositor liability - ✔✔More than $50,000
Pays on: Sat, Sun, Mon, Tues; Due next Friday
otherwise next Wednesday.
If tax liability reaches $1000,000, taxes must be deposited next business day.
✔✔FUTA (Federal Unemployment Tax Act) - ✔✔ERs pay FUTA tax on the first $7,000
of an EE's wages.
•Due the last day of the first month following the end of the quarter.
Paid to the IRS via EFTPS using the EIN
