FPC - Chapter 8
When a payroll department does not respond promptly to a penalty notice from a government
agency against an employee, this is an example of: - ANS-Lack of compliance
What is the formula for calculating an employee's net pay? - ANS-Gross pay-Taxes-Other
deductions
Under FLSA how old must a minor a minor be to be employed? - ANS-14 yrs old
What is the FUTA tax rate? - ANS-0.6%
On Form 941, the employer reports: - ANS-Social security wages
What are the payroll control procedures? - ANS-External audits, edits and security
If HR and payroll systems are not integrated, what individual employee data should be retained
in both systems? - ANS-Pay rate
If an employee is insufficient to pay all his deductions, what deduction has second priority?
Creditor garnishments, mortgage payment, child support, federal tax levy - ANS-Federal tax levy
Which plan can discriminate in favor of highly compensated employees? - ANS-Nonqualified
deferred compensation plans
What is the federal minimum wage per hour as of January 1, 2020? - ANS-$7.25
A company is located in a state with no state or local income taxes. When grossing up holiday
bonuses for employees who have already earned more than $137,700 but less than $175,000,
the payroll department should divide the amount of the bonus by what percentage? -
ANS-76.55%
An employee died on Saturday. His payday was the previous Friday, and he had not yet cashed
his check. What, if anything, should the payroll department do? - ANS-Reissue the check to the
employee's estate/beneficiary
What law determines the time limits with which employees must be paid after wages are
earned? - ANS-State laws
To convey assurance to a customer, a payroll practitioner should: - ANS-Display confidence and
competence
When a payroll department does not respond promptly to a penalty notice from a government
agency against an employee, this is an example of: - ANS-Lack of compliance
What is the formula for calculating an employee's net pay? - ANS-Gross pay-Taxes-Other
deductions
Under FLSA how old must a minor a minor be to be employed? - ANS-14 yrs old
What is the FUTA tax rate? - ANS-0.6%
On Form 941, the employer reports: - ANS-Social security wages
What are the payroll control procedures? - ANS-External audits, edits and security
If HR and payroll systems are not integrated, what individual employee data should be retained
in both systems? - ANS-Pay rate
If an employee is insufficient to pay all his deductions, what deduction has second priority?
Creditor garnishments, mortgage payment, child support, federal tax levy - ANS-Federal tax levy
Which plan can discriminate in favor of highly compensated employees? - ANS-Nonqualified
deferred compensation plans
What is the federal minimum wage per hour as of January 1, 2020? - ANS-$7.25
A company is located in a state with no state or local income taxes. When grossing up holiday
bonuses for employees who have already earned more than $137,700 but less than $175,000,
the payroll department should divide the amount of the bonus by what percentage? -
ANS-76.55%
An employee died on Saturday. His payday was the previous Friday, and he had not yet cashed
his check. What, if anything, should the payroll department do? - ANS-Reissue the check to the
employee's estate/beneficiary
What law determines the time limits with which employees must be paid after wages are
earned? - ANS-State laws
To convey assurance to a customer, a payroll practitioner should: - ANS-Display confidence and
competence
