FPC Exam Prep 2026-2027 Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
Define payroll. Process of calculating and distributing
wages to
employees.
What document is used to report Form W-2.
annual wages to employees?
Main federal law establishing Fair Labor Standards Act (FLSA).
minimum wage?
Purpose of Form W-4 Employee's federal income tax withholding
authorization.
Who issues Circular E (Publication Internal Revenue Service (IRS).
15)?
Define taxable wages. All compensation subject to federal
employment
taxes.
What is gross pay? Total earnings before deductions.
, Effect of pre-tax deductions on Reduce taxable income before taxes are
taxable income applied.
What is net pay? Amount remaining after all deductions.
Define exempt employee Worker not entitled to overtime under
FLSA.
Primary law governing child labor Fair Labor Standards Act (FLSA).
Purpose of the Federal Insurance Fund Social Security and Medicare.
Contributions Act
How often must FICA taxes be Semiweekly or monthly based on deposit
remitted? schedule.
Who pays FUTA tax? Employer only.
What is the FUTA wage base? $7000 per employee per year.
Define "constructive receipt" of When funds are made available to the
wages employee.
Purpose of the Federal Provide unemployment compensation
Unemployment Tax Act funding.
The FLSA sets federal ___ and minimum wage
overtime pay.
and Answers with Verified Solutions | Latest
Updated 2026
Define payroll. Process of calculating and distributing
wages to
employees.
What document is used to report Form W-2.
annual wages to employees?
Main federal law establishing Fair Labor Standards Act (FLSA).
minimum wage?
Purpose of Form W-4 Employee's federal income tax withholding
authorization.
Who issues Circular E (Publication Internal Revenue Service (IRS).
15)?
Define taxable wages. All compensation subject to federal
employment
taxes.
What is gross pay? Total earnings before deductions.
, Effect of pre-tax deductions on Reduce taxable income before taxes are
taxable income applied.
What is net pay? Amount remaining after all deductions.
Define exempt employee Worker not entitled to overtime under
FLSA.
Primary law governing child labor Fair Labor Standards Act (FLSA).
Purpose of the Federal Insurance Fund Social Security and Medicare.
Contributions Act
How often must FICA taxes be Semiweekly or monthly based on deposit
remitted? schedule.
Who pays FUTA tax? Employer only.
What is the FUTA wage base? $7000 per employee per year.
Define "constructive receipt" of When funds are made available to the
wages employee.
Purpose of the Federal Provide unemployment compensation
Unemployment Tax Act funding.
The FLSA sets federal ___ and minimum wage
overtime pay.
