FPC - Fundamental Payroll Certification
1. Form 1096 is:
A) Application for Filing Information Returns Electronically
B) Annual Summary and Transmittal of U.S. Information Returns
C) Notice of Levy on Wages, Salary, and Other Income
D) Employer's Quarterly Federal Tax Return
Answer: B
2. Form 4419 is:
A) Annual Summary and Transmittal of U.S. Information Returns
B) Application for Filing Information Returns Electronically (FIRE)
C) Notice of Levy on Wages, Salary, and Other Income
D) Employer's Annual Federal Tax Return
Answer: B
3. Form 668-W is:
A) Notice of Levy on Wages, Salary, and Other Income
B) Application for Filing Information Returns Electronically
C) Employer's Quarterly Federal Tax Return
D) Annual Summary and Transmittal of U.S. Information Returns
Answer: A
4. Form 940 is:
A) Employer's Quarterly Federal Tax Return
,B) Employer's Annual Federal Tax Return
C) Employer's Annual Federal Unemployment (FUTA) Tax Return
D) Annual Summary and Transmittal of U.S. Information Returns
Answer: C
5. Form 941 is:
A) Employer's Annual Federal Tax Return
B) Employer's Quarterly Federal Tax Return
C) Employer's Annual Federal Unemployment (FUTA) Tax Return
D) Application for Filing Information Returns Electronically
Answer: B
6. Form 944 is:
A) Employer's Quarterly Federal Tax Return
B) Employer's Annual Federal Unemployment (FUTA) Tax Return
C) Employer's Annual Federal Tax Return
D) Notice of Levy on Wages, Salary, and Other Income
Answer: C
7. A commission is included in the tax calculation of which tax, if any?
A) Federal income tax only
B) Social Security and Medicare only
C) All Federal Taxes
D) No federal taxes
Answer: C
,8. A computerized payroll system can help a payroll department accomplish all the
following tasks EXCEPT:
A) Calculate employee paychecks
B) Recognize the changes in laws and regulations
C) Generate payroll reports
D) Track employee hours
Answer: B
9. A financial transaction is first posted in your organization's:
A) General ledger
B) The journal
C) Balance sheet
D) Income statement
Answer: B
10. A record of daily transactions of a business is:
A) Ledger
B) Balance sheet
C) Journal
D) Income statement
Answer: C
11. 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 wages
, B) A qualified employee discount
C) A de minimis fringe benefit
D) A working condition fringe
Answer: B
12. A voluntary deduction must be:
A) Approved by management
B) Authorized by the employee
C) Required by law
D) Approved by the IRS
Answer: B
13. All of the following issues are concerns of external auditors EXCEPT:
A) Accuracy of financial statements
B) Compliance with regulations
C) Efficiency of payroll procedures
D) Internal controls
Answer: C
14. An employee belongs to a professional organization. When his company pays
his dues, the payment is:
A) Taxable wages
B) A working condition fringe
C) A de minimis fringe benefit
D) A qualified employee discount
1. Form 1096 is:
A) Application for Filing Information Returns Electronically
B) Annual Summary and Transmittal of U.S. Information Returns
C) Notice of Levy on Wages, Salary, and Other Income
D) Employer's Quarterly Federal Tax Return
Answer: B
2. Form 4419 is:
A) Annual Summary and Transmittal of U.S. Information Returns
B) Application for Filing Information Returns Electronically (FIRE)
C) Notice of Levy on Wages, Salary, and Other Income
D) Employer's Annual Federal Tax Return
Answer: B
3. Form 668-W is:
A) Notice of Levy on Wages, Salary, and Other Income
B) Application for Filing Information Returns Electronically
C) Employer's Quarterly Federal Tax Return
D) Annual Summary and Transmittal of U.S. Information Returns
Answer: A
4. Form 940 is:
A) Employer's Quarterly Federal Tax Return
,B) Employer's Annual Federal Tax Return
C) Employer's Annual Federal Unemployment (FUTA) Tax Return
D) Annual Summary and Transmittal of U.S. Information Returns
Answer: C
5. Form 941 is:
A) Employer's Annual Federal Tax Return
B) Employer's Quarterly Federal Tax Return
C) Employer's Annual Federal Unemployment (FUTA) Tax Return
D) Application for Filing Information Returns Electronically
Answer: B
6. Form 944 is:
A) Employer's Quarterly Federal Tax Return
B) Employer's Annual Federal Unemployment (FUTA) Tax Return
C) Employer's Annual Federal Tax Return
D) Notice of Levy on Wages, Salary, and Other Income
Answer: C
7. A commission is included in the tax calculation of which tax, if any?
A) Federal income tax only
B) Social Security and Medicare only
C) All Federal Taxes
D) No federal taxes
Answer: C
,8. A computerized payroll system can help a payroll department accomplish all the
following tasks EXCEPT:
A) Calculate employee paychecks
B) Recognize the changes in laws and regulations
C) Generate payroll reports
D) Track employee hours
Answer: B
9. A financial transaction is first posted in your organization's:
A) General ledger
B) The journal
C) Balance sheet
D) Income statement
Answer: B
10. A record of daily transactions of a business is:
A) Ledger
B) Balance sheet
C) Journal
D) Income statement
Answer: C
11. 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 wages
, B) A qualified employee discount
C) A de minimis fringe benefit
D) A working condition fringe
Answer: B
12. A voluntary deduction must be:
A) Approved by management
B) Authorized by the employee
C) Required by law
D) Approved by the IRS
Answer: B
13. All of the following issues are concerns of external auditors EXCEPT:
A) Accuracy of financial statements
B) Compliance with regulations
C) Efficiency of payroll procedures
D) Internal controls
Answer: C
14. An employee belongs to a professional organization. When his company pays
his dues, the payment is:
A) Taxable wages
B) A working condition fringe
C) A de minimis fringe benefit
D) A qualified employee discount
