Michigan Payroll Specialist Certification
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
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1. Which federal form is used by employers to report quarterly federal
tax returns?
A. Form W-2
B. Form 941
C. Form 940
D. Form 1099
The correct answer is Form 941 because it is the quarterly federal tax
return for reporting income taxes, Social Security, and Medicare
withheld from employees.
2. What is the standard deadline for filing Form W-2 with the Social
Security Administration?
A. January 15
B. January 31
C. March 15
D. February 15
January 31 is the standard deadline for filing Form W-2 with the SSA
to report wages and taxes for the previous year.
3. Federal Insurance Contributions Act (FICA) taxes include which of the
following components?
A. Unemployment tax and Medicare
B. Income tax and Social Security
C. Social Security and Medicare
, D. Income tax and FUTA
FICA taxes consist of Social Security and Medicare taxes withheld
from employees’ wages.
4. Which form must an employee complete to certify their eligibility to
work in the United States?
A. Form W-4
B. Form 1095-C
C. Form I-9
D. Form 8233
Form I-9 is used to verify the identity and employment authorization
of individuals hired for employment in the U.S.
5. What is the maximum wage base subject to Social Security tax in
2025?
A. $150,000
B. $160,200
C. $168,600
D. $182,400
The Social Security wage base is capped at a specific amount each
year; for 2025 it is $168,600.
6. An employer paying employees twice per month is on what payroll
frequency?
A. Weekly
B. Semi-monthly
C. Bi-weekly
D. Monthly
Semi-monthly means employees are paid twice per month, typically
on fixed dates like the 15th and last day.
7. Federal Unemployment Tax Act (FUTA) tax is primarily used to fund:
A. Medicare Trust Fund
B. Unemployment compensation
C. Social Security benefits
D. Disability Insurance
FUTA tax funds state workforce agencies and provides for
unemployment compensation.
, 8. A nonexempt employee must be paid overtime when working more
than how many hours in a workweek under the FLSA?
A. 8 hours
B. 40 hours
C. 45 hours
D. 50 hours
Under the Fair Labor Standards Act, overtime pay is required for
nonexempt employees who work over 40 hours in a workweek.
9. An employee’s federal income tax withholding is determined by:
A. Hours worked only
B. Filing status and withholding allowances on Form W-4
C. State minimum wage
D. Employer’s net profits
Federal income tax withholding is based on the employee’s filing
status and withholding allowances as reported on Form W-4.
10. What is the purpose of a state’s new hire reporting program?
A. Track unemployment claims
B. Assist in child support enforcement
C. Calculate FICA taxes
D. Monitor worker safety
State new hire reporting helps enforce child support orders by
identifying newly employed individuals.
11. Which of the following is exempt from Social Security tax?
A. Wages under $2,000
B. Employer health insurance contributions
C. Employer-provided group term life insurance over $50,000
D. Employee bonuses
Employer contributions for group term life insurance over $50,000
are subject to Social Security tax, but this choice describes the
exemption threshold for taxable benefits context.
12. The IRS requires backup withholding when a payee:
A. Has a W-9 on file
B. Fails to provide a correct TIN
C. Is an incorporated entity
D. Receives only wages
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. Which federal form is used by employers to report quarterly federal
tax returns?
A. Form W-2
B. Form 941
C. Form 940
D. Form 1099
The correct answer is Form 941 because it is the quarterly federal tax
return for reporting income taxes, Social Security, and Medicare
withheld from employees.
2. What is the standard deadline for filing Form W-2 with the Social
Security Administration?
A. January 15
B. January 31
C. March 15
D. February 15
January 31 is the standard deadline for filing Form W-2 with the SSA
to report wages and taxes for the previous year.
3. Federal Insurance Contributions Act (FICA) taxes include which of the
following components?
A. Unemployment tax and Medicare
B. Income tax and Social Security
C. Social Security and Medicare
, D. Income tax and FUTA
FICA taxes consist of Social Security and Medicare taxes withheld
from employees’ wages.
4. Which form must an employee complete to certify their eligibility to
work in the United States?
A. Form W-4
B. Form 1095-C
C. Form I-9
D. Form 8233
Form I-9 is used to verify the identity and employment authorization
of individuals hired for employment in the U.S.
5. What is the maximum wage base subject to Social Security tax in
2025?
A. $150,000
B. $160,200
C. $168,600
D. $182,400
The Social Security wage base is capped at a specific amount each
year; for 2025 it is $168,600.
6. An employer paying employees twice per month is on what payroll
frequency?
A. Weekly
B. Semi-monthly
C. Bi-weekly
D. Monthly
Semi-monthly means employees are paid twice per month, typically
on fixed dates like the 15th and last day.
7. Federal Unemployment Tax Act (FUTA) tax is primarily used to fund:
A. Medicare Trust Fund
B. Unemployment compensation
C. Social Security benefits
D. Disability Insurance
FUTA tax funds state workforce agencies and provides for
unemployment compensation.
, 8. A nonexempt employee must be paid overtime when working more
than how many hours in a workweek under the FLSA?
A. 8 hours
B. 40 hours
C. 45 hours
D. 50 hours
Under the Fair Labor Standards Act, overtime pay is required for
nonexempt employees who work over 40 hours in a workweek.
9. An employee’s federal income tax withholding is determined by:
A. Hours worked only
B. Filing status and withholding allowances on Form W-4
C. State minimum wage
D. Employer’s net profits
Federal income tax withholding is based on the employee’s filing
status and withholding allowances as reported on Form W-4.
10. What is the purpose of a state’s new hire reporting program?
A. Track unemployment claims
B. Assist in child support enforcement
C. Calculate FICA taxes
D. Monitor worker safety
State new hire reporting helps enforce child support orders by
identifying newly employed individuals.
11. Which of the following is exempt from Social Security tax?
A. Wages under $2,000
B. Employer health insurance contributions
C. Employer-provided group term life insurance over $50,000
D. Employee bonuses
Employer contributions for group term life insurance over $50,000
are subject to Social Security tax, but this choice describes the
exemption threshold for taxable benefits context.
12. The IRS requires backup withholding when a payee:
A. Has a W-9 on file
B. Fails to provide a correct TIN
C. Is an incorporated entity
D. Receives only wages
