Payroll Accounting Practice Exam
Actual Questions and Answers 2026
What law establishes minimum wage, overtime pay, recordkeeping
and youth employment standards affecting employees across
federal, state and local governments? -
correct answer ✅Fair Labor Standards Act
Which of the following states has no personal income tax?
· Texas
· Oklahoma
· Indiana
· Georgia -
correct answer ✅Texas
Select all that apply: Which of the following are the main types of
state income tax returns, statements or reports?
· Annual statements
· Periodic withholding returns
· Reconciliation returns
· Income statements -
correct answer ✅· Annual statements
,Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· Periodic withholding returns
· Reconciliation returns
Select all that apply: What needs to be determined in order to be
covered by FICA?
· If the compensation received is taxable wages, as defined by FICA
tax law
· If the tax returns exceed the salary wage of the employee
· If an individual is an employee, as defined by the common-law
relationship of employer and employee
· If the service rendered is employment, as defined by FICA tax law -
correct answer ✅· If the compensation received is taxable wages,
as defined by FICA tax law
· If an individual is an employee, as defined by the common-law
relationship of employer and employee
,Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· If the service rendered is employment, as defined by FICA tax law
What law funds the Social Security and Medicare programs?
· Fair Labor Standards Act (FLSA)
· Federal Unemployment Tax Act (FUTA)
· Federal Insurance Contributions Act (FICA)
· Federal Income Tax Act (FIT) -
correct answer ✅Federal Insurance Contributions Act
(FICA)
What is the current federal minimum wage?
· $6.55
· $7.50
· $7.25
· $6.50 -
correct answer ✅$7.25 an hour
What is a stated percentage of revenue paid to an employee who
transacts a piece of business that forms a service?
, Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· Commission
· Tip
· Profit-Sharing Plan
· Piece Rate -
correct answer ✅Commission
Before any federal income taxes may be withheld, there must be, or
must have been, an employer-employee relationship. True or False -
correct answer ✅True
When making FUTA payment, the employer must make the deposit
by what time?
· End of the month after the quarter
· 15th of every month
· 10th of the month after the quarter
· End of the following quarter -
correct answer ✅End of the month after the quarter
Actual Questions and Answers 2026
What law establishes minimum wage, overtime pay, recordkeeping
and youth employment standards affecting employees across
federal, state and local governments? -
correct answer ✅Fair Labor Standards Act
Which of the following states has no personal income tax?
· Texas
· Oklahoma
· Indiana
· Georgia -
correct answer ✅Texas
Select all that apply: Which of the following are the main types of
state income tax returns, statements or reports?
· Annual statements
· Periodic withholding returns
· Reconciliation returns
· Income statements -
correct answer ✅· Annual statements
,Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· Periodic withholding returns
· Reconciliation returns
Select all that apply: What needs to be determined in order to be
covered by FICA?
· If the compensation received is taxable wages, as defined by FICA
tax law
· If the tax returns exceed the salary wage of the employee
· If an individual is an employee, as defined by the common-law
relationship of employer and employee
· If the service rendered is employment, as defined by FICA tax law -
correct answer ✅· If the compensation received is taxable wages,
as defined by FICA tax law
· If an individual is an employee, as defined by the common-law
relationship of employer and employee
,Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· If the service rendered is employment, as defined by FICA tax law
What law funds the Social Security and Medicare programs?
· Fair Labor Standards Act (FLSA)
· Federal Unemployment Tax Act (FUTA)
· Federal Insurance Contributions Act (FICA)
· Federal Income Tax Act (FIT) -
correct answer ✅Federal Insurance Contributions Act
(FICA)
What is the current federal minimum wage?
· $6.55
· $7.50
· $7.25
· $6.50 -
correct answer ✅$7.25 an hour
What is a stated percentage of revenue paid to an employee who
transacts a piece of business that forms a service?
, Payroll Accounting Practice Exam
Actual Questions and Answers 2026
· Commission
· Tip
· Profit-Sharing Plan
· Piece Rate -
correct answer ✅Commission
Before any federal income taxes may be withheld, there must be, or
must have been, an employer-employee relationship. True or False -
correct answer ✅True
When making FUTA payment, the employer must make the deposit
by what time?
· End of the month after the quarter
· 15th of every month
· 10th of the month after the quarter
· End of the following quarter -
correct answer ✅End of the month after the quarter
