FPC Exam - CORE PAYROLL CONCEPTS
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is an Employee? - CORRECT ANSWER - Anyone who performs services for an
employer when the employer controls what work is done and how it is accomplished.
What is a Common-Law Employee? - CORRECT ANSWER - Gives employers guidelines
to determine whether an individual is an employee or independent contractor. Done by
examining the business and worker, the level of control each has in how work is done and where.
What is an Independent Contractor? - CORRECT ANSWER - An individual who has
control how the work is done. The "payer" merely assigns a task but has little control over how it
is done.
What is a Statutory Employee? - CORRECT ANSWER - Workers come under common
law rules and are independent contractors by statute for employment tax purposes if they fall
within any one of several categories: 1) Drivers delivering laundry, product, baked goods,
beverages (NOT MILK) if the driver is paid on commission. 2) life insurance sales agent who
works full time and whose main business is selling life insurance. 3) an individual who works at
home on employer supplied goods on work that must be returned to employer.
What is a Statutory Non-Employee? - CORRECT ANSWER - these employees fall under
two categories: either real estate agents and direct sellers. These are viewed as self employed if:
1) all payments for their services are directly related to sales instead of working a certain number
of hours. 2) a written contract guides what services they perform and specifies that for tax
purposes they will not be treated as employees.
What are Temporary Help Services and Personnel? - CORRECT ANSWER - Employees
hired through an agency on a temporary status.
What factors should be considered before hiring a temporary employee service? - CORRECT
ANSWER - 1) how are personnel being tested or evaluated? 2) The firm with the most
, skilled employees is likely to have an aggressive recruitment system. 3) Does the service have a
solid track record and financial stability? 4) Is the quality of work by the temporary employee
checked? 5) Are temps trained with specific skill?
In determining legal obligations with respect to workplace discrimination, an individual would
be considered an employee of both the staffing agency and the agency's client to which he's
assigned when... - CORRECT ANSWER - the staffing agency is a temporary employment
agency.
Difference between employee leasing and temporary agency - CORRECT ANSWER - If
the employees are sent back to the leasing agency for reassignment, then this is a temporary
agency. Leasing agency's are used to supply the management of certain functions. i.e. human
resources, payroll, benefit administration.
What is the 8 and 80 system? - CORRECT ANSWER - This generally applies to hospitals
and other healthcare institutions. Allows for these organizations to utilized a fixed work period of
14 days as opposed to the 40 hour work week for computing overtime. Employers will pay time
and a half for hours worked over 8 hours in a day or 80 hours in a 14 day period.
Be able to Calculate the 8 and 80 overtime system: - CORRECT ANSWER - pg 17
momentrix
Overtime Compensation for working two different jobs - CORRECT ANSWER - pg 17
momentrix
How do you calculate employee's regular rate of pay? - CORRECT ANSWER - NOT THE
TAKE HOME PAY. The formula to calculate regular rate of pay: pay amount for a
workweek/number of hours worked (not including overtime)
What is the Biweekly rate of pay? - CORRECT ANSWER - The biweekly rate of pay of
the employee is the regular rate of pay. For salaried: annual salary should be divided by the
number of weeks to be paid and multiplied by 2 for the biweekly rate of pay. Hourly is calculated
as the pay amount for the workweek/number of hours worked.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is an Employee? - CORRECT ANSWER - Anyone who performs services for an
employer when the employer controls what work is done and how it is accomplished.
What is a Common-Law Employee? - CORRECT ANSWER - Gives employers guidelines
to determine whether an individual is an employee or independent contractor. Done by
examining the business and worker, the level of control each has in how work is done and where.
What is an Independent Contractor? - CORRECT ANSWER - An individual who has
control how the work is done. The "payer" merely assigns a task but has little control over how it
is done.
What is a Statutory Employee? - CORRECT ANSWER - Workers come under common
law rules and are independent contractors by statute for employment tax purposes if they fall
within any one of several categories: 1) Drivers delivering laundry, product, baked goods,
beverages (NOT MILK) if the driver is paid on commission. 2) life insurance sales agent who
works full time and whose main business is selling life insurance. 3) an individual who works at
home on employer supplied goods on work that must be returned to employer.
What is a Statutory Non-Employee? - CORRECT ANSWER - these employees fall under
two categories: either real estate agents and direct sellers. These are viewed as self employed if:
1) all payments for their services are directly related to sales instead of working a certain number
of hours. 2) a written contract guides what services they perform and specifies that for tax
purposes they will not be treated as employees.
What are Temporary Help Services and Personnel? - CORRECT ANSWER - Employees
hired through an agency on a temporary status.
What factors should be considered before hiring a temporary employee service? - CORRECT
ANSWER - 1) how are personnel being tested or evaluated? 2) The firm with the most
, skilled employees is likely to have an aggressive recruitment system. 3) Does the service have a
solid track record and financial stability? 4) Is the quality of work by the temporary employee
checked? 5) Are temps trained with specific skill?
In determining legal obligations with respect to workplace discrimination, an individual would
be considered an employee of both the staffing agency and the agency's client to which he's
assigned when... - CORRECT ANSWER - the staffing agency is a temporary employment
agency.
Difference between employee leasing and temporary agency - CORRECT ANSWER - If
the employees are sent back to the leasing agency for reassignment, then this is a temporary
agency. Leasing agency's are used to supply the management of certain functions. i.e. human
resources, payroll, benefit administration.
What is the 8 and 80 system? - CORRECT ANSWER - This generally applies to hospitals
and other healthcare institutions. Allows for these organizations to utilized a fixed work period of
14 days as opposed to the 40 hour work week for computing overtime. Employers will pay time
and a half for hours worked over 8 hours in a day or 80 hours in a 14 day period.
Be able to Calculate the 8 and 80 overtime system: - CORRECT ANSWER - pg 17
momentrix
Overtime Compensation for working two different jobs - CORRECT ANSWER - pg 17
momentrix
How do you calculate employee's regular rate of pay? - CORRECT ANSWER - NOT THE
TAKE HOME PAY. The formula to calculate regular rate of pay: pay amount for a
workweek/number of hours worked (not including overtime)
What is the Biweekly rate of pay? - CORRECT ANSWER - The biweekly rate of pay of
the employee is the regular rate of pay. For salaried: annual salary should be divided by the
number of weeks to be paid and multiplied by 2 for the biweekly rate of pay. Hourly is calculated
as the pay amount for the workweek/number of hours worked.
