FPC Certification QUESTIONS WITH ANSWERS
100% CORRECT
FLSA Correct Answer: Fair Labor Standards Act
Journal Correct Answer: Debits and credits to a specific ledger accout
Is batch processing interactive? Correct Answer: No
By when must employers inform employees to submit a new W-4 if marital status or # of
allowances have changed? Correct Answer: December 1st
Are non qualified deferred compensations plans subject to contribution limits? Correct Answer:
No
What plans are subject to contribution limits? Correct Answer: 401K, 457b, 403b
What form is used to correct mistakes done on form 941? Correct Answer: Form 941-X
How many billing cycles does an employer have to update their payroll for changes to
employee's W-4? Correct Answer: Two billing cycles (?)
The ability of a payroll department to provide accurate paychecks on a timely basis is an
example of the customer service principle of ___________. Correct Answer: Reliability
FUTA Correct Answer: Federal Unemployment Tax Act
Common Law Test is made up of what three things? Correct Answer: behavioral control,
relationship of the parties, financial control
What are criteria used in calculating an employees federal income tax? Correct Answer: # of
allowances, pay frequency, marital status
Tangibles that a payroll department displays are: Correct Answer: Physical facilities,
organization, appearance of the payroll staff
If an employee's spouse passes away, when must the employee submit an amended W-4? Correct
Answer: January 1st of the following year
What pay is considered discretionary? Correct Answer: Holiday pay
The payment of a creditor's wage garnishment withheld from the employee's wage will decrease
both the _________ and _____________. Correct Answer: assets, liabilities
, How frequently does federal law require master files to be updated? Correct Answer: There are
no federal requirements for frequency of updates
FUTA taxes of more than $500.00 on wages paid in the first quarter must be deposited by when?
Correct Answer: April 30th
Under FLSA, a record of employees must be retained for how long? Correct Answer: Two years
TRUE or FALSE: Under deposited payroll tax liability is subject to penalties for late deposit
even if corrected within five days. Correct Answer: TRUE
Under FLSA white collar exemption rules, an exempt executive employee must meet the
following criteria: Correct Answer: Managing a recognized department, Directing the work of
two or more full time employees, Being paid a weekly salary of at least $455.00.
In what order does an employee need to withhold deductions for health insurance and union
dues? Correct Answer: Any order the employee chooses
Form W-9 Correct Answer: Request for Taxpayer Identification Number and Certification
What must an employer do if an independent contractor fails to provide a TIN? Correct Answer:
A 28% backup withholding tax on nonwage payments is withheld if the payee has failed to
provide a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is
incorrect.
What is form 945? Correct Answer: Backup withholding is treated separately from payroll
withholding. It is deposited separately and reported separately on Form 945.
The initial determination of whether a worker is an employee or an independent contractor is
made by the: Correct Answer: employer
Correct Answer: The employer's only obligation is to give the contractor a completed Form
1099-MISC when paying the contractor $600 or more during the calendar year (see Tax Tables
and Forms in the Online Resource Center) at the end of the year.
What is included on form 1099-MISC? Correct Answer: Form 1099-MISC states how much the
contractor was paid for services rendered during the past calendar year. A copy of this form must
also be sent to the Internal Revenue Service (IRS).
When must an employer provide a contractor with a 1099-MISC? Correct Answer: when paying
the contractor $600 or more during the calendar year and at the end of the year.
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company
can rely on all of the following methods EXCEPT:
100% CORRECT
FLSA Correct Answer: Fair Labor Standards Act
Journal Correct Answer: Debits and credits to a specific ledger accout
Is batch processing interactive? Correct Answer: No
By when must employers inform employees to submit a new W-4 if marital status or # of
allowances have changed? Correct Answer: December 1st
Are non qualified deferred compensations plans subject to contribution limits? Correct Answer:
No
What plans are subject to contribution limits? Correct Answer: 401K, 457b, 403b
What form is used to correct mistakes done on form 941? Correct Answer: Form 941-X
How many billing cycles does an employer have to update their payroll for changes to
employee's W-4? Correct Answer: Two billing cycles (?)
The ability of a payroll department to provide accurate paychecks on a timely basis is an
example of the customer service principle of ___________. Correct Answer: Reliability
FUTA Correct Answer: Federal Unemployment Tax Act
Common Law Test is made up of what three things? Correct Answer: behavioral control,
relationship of the parties, financial control
What are criteria used in calculating an employees federal income tax? Correct Answer: # of
allowances, pay frequency, marital status
Tangibles that a payroll department displays are: Correct Answer: Physical facilities,
organization, appearance of the payroll staff
If an employee's spouse passes away, when must the employee submit an amended W-4? Correct
Answer: January 1st of the following year
What pay is considered discretionary? Correct Answer: Holiday pay
The payment of a creditor's wage garnishment withheld from the employee's wage will decrease
both the _________ and _____________. Correct Answer: assets, liabilities
, How frequently does federal law require master files to be updated? Correct Answer: There are
no federal requirements for frequency of updates
FUTA taxes of more than $500.00 on wages paid in the first quarter must be deposited by when?
Correct Answer: April 30th
Under FLSA, a record of employees must be retained for how long? Correct Answer: Two years
TRUE or FALSE: Under deposited payroll tax liability is subject to penalties for late deposit
even if corrected within five days. Correct Answer: TRUE
Under FLSA white collar exemption rules, an exempt executive employee must meet the
following criteria: Correct Answer: Managing a recognized department, Directing the work of
two or more full time employees, Being paid a weekly salary of at least $455.00.
In what order does an employee need to withhold deductions for health insurance and union
dues? Correct Answer: Any order the employee chooses
Form W-9 Correct Answer: Request for Taxpayer Identification Number and Certification
What must an employer do if an independent contractor fails to provide a TIN? Correct Answer:
A 28% backup withholding tax on nonwage payments is withheld if the payee has failed to
provide a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is
incorrect.
What is form 945? Correct Answer: Backup withholding is treated separately from payroll
withholding. It is deposited separately and reported separately on Form 945.
The initial determination of whether a worker is an employee or an independent contractor is
made by the: Correct Answer: employer
Correct Answer: The employer's only obligation is to give the contractor a completed Form
1099-MISC when paying the contractor $600 or more during the calendar year (see Tax Tables
and Forms in the Online Resource Center) at the end of the year.
What is included on form 1099-MISC? Correct Answer: Form 1099-MISC states how much the
contractor was paid for services rendered during the past calendar year. A copy of this form must
also be sent to the Internal Revenue Service (IRS).
When must an employer provide a contractor with a 1099-MISC? Correct Answer: when paying
the contractor $600 or more during the calendar year and at the end of the year.
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company
can rely on all of the following methods EXCEPT:
