PAYROLL FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS 100% PASS
Which of the following regulations is governed by both the state and the federal
governments?
1 Method of payment
2 Final pay to a terminated employee
3 Exempt/nonexempt status
4 Breaks - ✔✔3 (Both federal and state wage and hour laws govern minimum wage,
overtime and an employee's exempt status.)
Which of the following amounts are included in the calculation of an employee's
regular rate of pay?
1 Pay for hours not worked
2 Shift premiums
3 Employer benefit plan contributions
4 De minimis holiday gifts - ✔✔2 (The FLSA defines regular rate of pay as the total
regular pay for all hours work divided by the hours worked in the workweek. The
Katelyn Whitman, All Rights Reserved © 2025 1
,FLSA exempts the following types of pay from the regular rate of pay - gifts, paid time
off, reimbursed expenses, discretionary bonuses, benefit plan contributions, and others.)
For more information, refer to Module 1, Lesson 4
All of the following items are covered by the Fair Labor Standards Act EXCEPT:
1 defining equal pay for equal work.
2 defining when escheat laws apply.
3 setting child labor restrictions.
4 setting the minimum age for work. - ✔✔2 (The FLSA regulates overtime, minimum
wage, child labor, and equal pay.)
For more information, refer to Module 1, Lesson 4
Under the FLSA, an employee under the age of 20 can be paid the opportunity wage for
a maximum of:
1. 30 calendar days.
2. 60 calendar days.
3. 90 calendar days.
4. 120 calendar days. - ✔✔3 (Under the FLSA, an employee under the age of 20 can be
paid the opportunity wage of $4.25 per hour for a maximum of 90 calendar days.)
Katelyn Whitman, All Rights Reserved © 2025 2
,RATIONALE
For more information, refer to Module 1, Lesson 4
Under the FLSA, when a nonexempt employee receives a retroactive pay increase, over
what period of time, if any, will the new pay rate impact the employee's overtime
premium?
• The entire period of the retroactive increase
b. Only the current workweek
c. Only the current pay period
d. It does not have to be considered in the overtime premium - ✔✔1 (Under the FLSA,
when a nonexempt employee receives a retroactive pay increase, the new pay rate
impacts the employee's overtime premium for the entire period of the retroactive
increase.)
SSN stands for - ✔✔Social Security Number
What does an I-9 Form stands for? - ✔✔The Employment Eligibility Verification Form
What is the Employement Eligibility Verication Form code? - ✔✔I-9
What does the Employment Verification Form do? - ✔✔This proves that the employee
can work in the United States.
Katelyn Whitman, All Rights Reserved © 2025 3
, What does the I-9 form do? - ✔✔This proves that the employee can work in the United
States.
What does a W-4 form stands for? - ✔✔The Employee's Witholding Allowance
Certificate
What is the code form for The Employee's Witholding Allowance Certificate? - ✔✔W-4
What does the W-4 form do? - ✔✔It is used to calculate the federal income taxeach
emloyee owes each pay period. These taxes are subtracted from each paycheck
What does the Employee's Withholding Allance Certificate do? - ✔✔It is used to
calculate the federal income taxeach emloyee owes each pay period. These taxes are
subtracted from each paycheck
Do all states have State taxes? - ✔✔NO
Employees who work in a state with a State Income Tax may have to fill out another
form ? - ✔✔Yes, another W-4 but for the State Witholding Allowance Certificate.
Does depending where the employess work and live, they may be asked to fill out form
for local, county, or city income tax withholdong. - ✔✔Yes
The employee's SSN sets up an account for the employee with the ________? - ✔✔SSA
Social Security Administration
Katelyn Whitman, All Rights Reserved © 2025 4
QUESTIONS AND ANSWERS 100% PASS
Which of the following regulations is governed by both the state and the federal
governments?
1 Method of payment
2 Final pay to a terminated employee
3 Exempt/nonexempt status
4 Breaks - ✔✔3 (Both federal and state wage and hour laws govern minimum wage,
overtime and an employee's exempt status.)
Which of the following amounts are included in the calculation of an employee's
regular rate of pay?
1 Pay for hours not worked
2 Shift premiums
3 Employer benefit plan contributions
4 De minimis holiday gifts - ✔✔2 (The FLSA defines regular rate of pay as the total
regular pay for all hours work divided by the hours worked in the workweek. The
Katelyn Whitman, All Rights Reserved © 2025 1
,FLSA exempts the following types of pay from the regular rate of pay - gifts, paid time
off, reimbursed expenses, discretionary bonuses, benefit plan contributions, and others.)
For more information, refer to Module 1, Lesson 4
All of the following items are covered by the Fair Labor Standards Act EXCEPT:
1 defining equal pay for equal work.
2 defining when escheat laws apply.
3 setting child labor restrictions.
4 setting the minimum age for work. - ✔✔2 (The FLSA regulates overtime, minimum
wage, child labor, and equal pay.)
For more information, refer to Module 1, Lesson 4
Under the FLSA, an employee under the age of 20 can be paid the opportunity wage for
a maximum of:
1. 30 calendar days.
2. 60 calendar days.
3. 90 calendar days.
4. 120 calendar days. - ✔✔3 (Under the FLSA, an employee under the age of 20 can be
paid the opportunity wage of $4.25 per hour for a maximum of 90 calendar days.)
Katelyn Whitman, All Rights Reserved © 2025 2
,RATIONALE
For more information, refer to Module 1, Lesson 4
Under the FLSA, when a nonexempt employee receives a retroactive pay increase, over
what period of time, if any, will the new pay rate impact the employee's overtime
premium?
• The entire period of the retroactive increase
b. Only the current workweek
c. Only the current pay period
d. It does not have to be considered in the overtime premium - ✔✔1 (Under the FLSA,
when a nonexempt employee receives a retroactive pay increase, the new pay rate
impacts the employee's overtime premium for the entire period of the retroactive
increase.)
SSN stands for - ✔✔Social Security Number
What does an I-9 Form stands for? - ✔✔The Employment Eligibility Verification Form
What is the Employement Eligibility Verication Form code? - ✔✔I-9
What does the Employment Verification Form do? - ✔✔This proves that the employee
can work in the United States.
Katelyn Whitman, All Rights Reserved © 2025 3
, What does the I-9 form do? - ✔✔This proves that the employee can work in the United
States.
What does a W-4 form stands for? - ✔✔The Employee's Witholding Allowance
Certificate
What is the code form for The Employee's Witholding Allowance Certificate? - ✔✔W-4
What does the W-4 form do? - ✔✔It is used to calculate the federal income taxeach
emloyee owes each pay period. These taxes are subtracted from each paycheck
What does the Employee's Withholding Allance Certificate do? - ✔✔It is used to
calculate the federal income taxeach emloyee owes each pay period. These taxes are
subtracted from each paycheck
Do all states have State taxes? - ✔✔NO
Employees who work in a state with a State Income Tax may have to fill out another
form ? - ✔✔Yes, another W-4 but for the State Witholding Allowance Certificate.
Does depending where the employess work and live, they may be asked to fill out form
for local, county, or city income tax withholdong. - ✔✔Yes
The employee's SSN sets up an account for the employee with the ________? - ✔✔SSA
Social Security Administration
Katelyn Whitman, All Rights Reserved © 2025 4
