FPC EXAM FUNDAMENTAL PAYROLL
QUESTIONS & ANSWERS (RATED A+)
668-W - ANSWERNotice of Levy on Wages, Salary, and Other Income
1096 - ANSWERAnnual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANSWER14
What taxes, if any, must be withheld from payments to an independent contractor
who provided a tin? - ANSWERNo taxes are withheld
What is the easiest method to calculate federal income tax withholding on regular
wages - ANSWERWage-bracket
Which is most common to calculate federal income tax for a computerized payroll
system - ANSWERPercentage Method
When using the optional flat rate method, which item is considered when making the
calculation? - ANSWERTaxable wages
When an employee is overpaid and the repayment occurs in the same year, the
repayment requested is the employees - ANSWERNet overpayment.
What form must a pensioner file to have input into the amount of federal income tax
withheld? - ANSWERW-4P
An external audit: - ANSWERAllows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following except: -
ANSWERLocal Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is
to be paid overtime? - ANSWERHours worked in a work week
Overtime payments are included in the calculation of what tax, if any? -
ANSWERThey are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt, what
must the employer do? - ANSWERProvide the employee with the EITC notice
, A computerized payroll system can help a payroll dept. accomplish all of the
following tasks except: - ANSWERRecognize changes in laws and regulations
An employee's profit sharing bonus is payable in the year following his death. How
should the bonus be taxed and reported? - ANSWERWithhold no taxes and report
the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees
paychecks? - ANSWERBy reducing human error
What federal taxes must an employer withhold from an employees reported tips? -
ANSWERFederal income, social security and medicare tax
The main purpose of batch controls is to - ANSWERValidate data entry accuracy
Which of the following types of compensation is taxable? - ANSWERBackpay
awards
What is used when calculating an employee's gross up? - ANSWERNet set
Employees can provide their employer with their marital status and allowances for
income tax withholding purposes by: - ANSWERCompleting form W-4
Generally, what is the largest expense for most companies? - ANSWERSalaries and
benefits
What authority controls the frequency with which employees must be paid? -
ANSWERState Laws
What is the general ledger? - ANSWERA record of transactions by account
What, if any, is the 2018 wage base for Medicare tax? - ANSWERThere is no limit
An employer should remind employees to complete an amended W-4 if they have
any changes in status by - ANSWERDecember 1 of each year
If an employee provides an invalid W-4, the employer must: - ANSWERRefuse to
accept the form
Under the FLSA, an employees workday is defined as the: - ANSWERtime the
employee is performing principle activities
Under the FLSA, rounding must - ANSWERbe consistent
An exempt employee under the FLSA is exempt from - ANSWERboth minimum
wage and overtime
Who verifies eligibility to work in the US? - ANSWEREmployer
QUESTIONS & ANSWERS (RATED A+)
668-W - ANSWERNotice of Levy on Wages, Salary, and Other Income
1096 - ANSWERAnnual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANSWER14
What taxes, if any, must be withheld from payments to an independent contractor
who provided a tin? - ANSWERNo taxes are withheld
What is the easiest method to calculate federal income tax withholding on regular
wages - ANSWERWage-bracket
Which is most common to calculate federal income tax for a computerized payroll
system - ANSWERPercentage Method
When using the optional flat rate method, which item is considered when making the
calculation? - ANSWERTaxable wages
When an employee is overpaid and the repayment occurs in the same year, the
repayment requested is the employees - ANSWERNet overpayment.
What form must a pensioner file to have input into the amount of federal income tax
withheld? - ANSWERW-4P
An external audit: - ANSWERAllows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following except: -
ANSWERLocal Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is
to be paid overtime? - ANSWERHours worked in a work week
Overtime payments are included in the calculation of what tax, if any? -
ANSWERThey are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt, what
must the employer do? - ANSWERProvide the employee with the EITC notice
, A computerized payroll system can help a payroll dept. accomplish all of the
following tasks except: - ANSWERRecognize changes in laws and regulations
An employee's profit sharing bonus is payable in the year following his death. How
should the bonus be taxed and reported? - ANSWERWithhold no taxes and report
the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees
paychecks? - ANSWERBy reducing human error
What federal taxes must an employer withhold from an employees reported tips? -
ANSWERFederal income, social security and medicare tax
The main purpose of batch controls is to - ANSWERValidate data entry accuracy
Which of the following types of compensation is taxable? - ANSWERBackpay
awards
What is used when calculating an employee's gross up? - ANSWERNet set
Employees can provide their employer with their marital status and allowances for
income tax withholding purposes by: - ANSWERCompleting form W-4
Generally, what is the largest expense for most companies? - ANSWERSalaries and
benefits
What authority controls the frequency with which employees must be paid? -
ANSWERState Laws
What is the general ledger? - ANSWERA record of transactions by account
What, if any, is the 2018 wage base for Medicare tax? - ANSWERThere is no limit
An employer should remind employees to complete an amended W-4 if they have
any changes in status by - ANSWERDecember 1 of each year
If an employee provides an invalid W-4, the employer must: - ANSWERRefuse to
accept the form
Under the FLSA, an employees workday is defined as the: - ANSWERtime the
employee is performing principle activities
Under the FLSA, rounding must - ANSWERbe consistent
An exempt employee under the FLSA is exempt from - ANSWERboth minimum
wage and overtime
Who verifies eligibility to work in the US? - ANSWEREmployer
