FPC PRACTICE QUESTIONS AND
CORRECT ANSWERS
cafeteriaA2planA2areA2authorizedA2byA2whatA2InternalA2RevenueA2CodeA2Section?
A.A2125
B.A2401k
C.A2403b
D.A2457bA2-A2Ans--a.A2125
allA2ofA2theA2followingA2areA2taxA2implicationsA2ofA2aA2cafeteriaA2planA2except:
a.A2noA2incomeA2taxA2withholding
b.A2noA2socialA2securityA2andA2medicareA2taxA2withholding
c.A2mustA2withholdA2income,A2socialA2security,A2andA2medicareA2taxes
d.A2noA2formA2W2A2reportingA2-A2Ans--
C.A2mustA2withholdA2income,A2socialA2security,A2andA2medicareA2taxes
OneA2ofA2theA2optionsA2inA2anA2employee'sA2cafeteriaA2benefitA2planA2isA2aA2dependentA2c
areA2flexibleA2spendingA2account.A2HeA2earmarkedA2$100A2perA2monthA2toA2theA2accountA
2toA2payA2forA2childA2careA2butA2spendA2onlyA2$1000A2byA2theA2endA2ofA2theA2plansA2graceA
2period.A2atA2theA2endA2ofA2theA2graceA2period,A2whatA2happensA2toA2theA2$200A2leftA2inA2t
heA2account?
a.A2theA2amountA2isA2forfeited
b.A2itA2willA2beA2addedA2toA2hisA2taxableA2income
c.A2heA2canA2useA2itA2toA2"buy"A2abA2additionalA2benefit
d.A2itA2illA2carryA2overA2toA2theA2nextA2yearA2-A2Ans--A.A2theA2amountA2isA2forfeited
PriorA2toA2beginningA2workA2forA2aA2company,A2aA2chemicalA2engineerA2signedA2aA2contra
ctA2statingA2thatA2sheA2agreedA2toA2workA2asA2anA2independentA2contractor.A2sheA2perfor
msA2allA2herA2dutiesA2inA2theA2companysA2laboratories,A2worksA2underA2theA2companysA2d
irection,A2andA2maintainsA2regularA2officeA2hours.A2whatA2isA2herA2status?
a.A2independentA2contractorA2underA2commonA2law
b.A2independentA2contractorA2underA2reasonableA2basisA2test
c.A2employeeA2-A2Ans--C.A2employee
doA2notA2assumeA2thatA2theA2employerA2hasA2fulfilledA2itsA2responsibilitiesA2andA2isA2freeA2
fromA2penaltyA2simplyA2byA2havingA2aA2workerA2signA2aA2contractA2statingA2heA2isA2aA2109
9.A2individualsA2doA2notA2haveA2aA2rightA2toA2waiveA2theirA2eeA2statusA2inA2aA2contract.
AA2retiredA2safetyA2inspectorA2forA2theA2companyA2wasA2rehiredA2asA2aA2consultantA2when
A2theA2companyA2expandedA2itsA2plantA2operations.A2theA2retiredA2employeeA2wasA2aA2nat
uralA2choice.A2theA2tasksA2heA2undertookA2asA2aA2consultantA2wereA2theA2sameA2asA2theA2
onesA2heA2performedA2beforeA2retirement.A2paidA2monthly,A2heA2hasA2agreedA2toA2workA2
underA2theA2directionA2ofA2hisA2oldA2bossA2untilA2theA2newA2plantA2facilitatesA2areA2fullyA2op
erational?A2WhatA2isA2hisA2status?
,a.A2independentA2contractorA2underA2commonA2law
b.A2independentA2contractorA2underA2reasonableA2basisA2test
c.A2employeeA2-A2Ans--C.A2employee
consultantsA2areA2generallyA2treatedA2asA2independentA2contractors.A2however,A2whenA2a
nA2exA2eeA2isA2performingA2theA2sameA2orA2similarA2jobA2asA2beforeA2retirement,A2itA2isA2un
likelyA2thatA2heA2qualifiedA2asA2aA21099A2afterA2termination
aA2receptionistA2hasA2agreedA2toA2workA2afternoonsA2atA2theA2companyA2untilA2theA2comp
anyA2canA2findA2aA2fullA2timeA2replacement.A2whatA2isA2theA2receptionistsA2status?
a.A2independentA2contractorA2underA2commonA2lawA2
b.A2independentA2contractorA2underA2reasonableA2basis
c.A2employeeA2-A2Ans--C.A2employee
whetherA2orA2notA2anA2eeA2isA2fullA2timeA2orA2partA2timeA2orA2worksA2aA2fewA2weeksA2orA2aA
2lifetimeA2forA2theA2companyA2isA2notA2relevantA2her.A2sheA2isA2anA2employee.
AllA2ofA2theA2followingA2typesA2ofA2employeesA2areA2classifiedA2asA2exemptA2fromA2theA2F
LSAsA2minA2wageA2andA2OTA2requirementsA2except:
a.A2professional
b.A2outsideA2salesperson
c.A2administrative
d.A2computerA2repairmanA2-A2Ans--D.A2computerA2repairman
aA2computerA2repairmanA2doesA2notA2performA2theA2dutiesA2requiredA2toA2qualifyA2asA2anA
2exemptA2computerA2professional
aA2waitressA2isA2paidA2$2.25A2perA2hourA2andA2sheA2receivesA2$225A2inA2tipsA2duringA2theA
2week.A2SheA2worksA24oA2hoursA2perA2week.A2WhichA2ofA2theA2followingA2isA2true?
a.A2herA2employerA2isA2allowedA2toA2reduceA2herA2cashA2wageA2toA2noA2lessA2thanA2$2.13A
2perA2hour
b.A2herA2baseA2payA2mustA2beA2increaseA2toA2$4.5A2perA2hourA2afterA2aA290A2dayA2trainingA
2period.
c.A2sheA2mustA2beA2paidA2$5.12A2perA2hourA2byA2herA2employer
d.A2herA2baseA2salaryA2mustA2beA2raisedA2toA2$3A2perA2hourA2toA2complyA2withA2fedA2minA2
wageA2requirements.A2-A2Ans--
A.A2herA2employerA2isA2allowedA2toA2reduceA2herA2cashA2wageA2toA2noA2lessA2thanA2$2.13A
2perA2hour
herA2employerA2canA2claimA2theA2fullA2federalA2tipA2creditA2becauseA2sheA2receivesA2tipsA2
andA2withA2herA2tips,A2isA2paidA2moreA2thanA2theA2currentA2federalA2minimumA2wageA2purp
oses,A2herA2employerA2mustA2payA2herA2atA2leastA2$2.13A2perA2hourA2andA2herA2hourlyA2ra
teA2plusA2tipsA2mustA2equalA2atA2leastA2theA2currentA2federalA2minA2wage
ifA2aA2stateA2setsA2theA2minimumA2wageA2atA2aA2rateA2greaterA2thanA2theA2federalA2minimu
mA2wage,A2theA2stateA2minimumA2wageA2mustA2beA2paidA2toA2workersA2inA2thatA2state
,-A2true
-falseA2-A2Ans--TRUE
tipsA2canA2beA2countedA2towardA2theA2employeesA2minimumA2wageA2-A2Ans--TRUE
anA2employeeA2worksA240A2hoursA2perA2weekA2asA2aA2fryA2cook.A2duringA2theA2week,A2she
A2substitutesA2forA2oneA2ofA2theA2waitressesA2andA2reportsA2$5A2perA2weekA2inA2tips.A2canA
2herA2employerA2payA2herA2$2.13A2perA2hour?
-A2yesA2
-A2noA2-A2Ans--noA2
becauseA2sheA2isntA2makingA2$30A2aA2month.A2theA2tipA2creditA2canA2beA2usedA2toA2reduc
eA2theA2minimumA2wageA2onlyA2ifA2theA2employeeA2regularlyA2receivesA2tipsA2andA2docum
entsA2receivingA2moreA2thanA2$30/month
employersA2whoA2provideA2paidA2vacationA2leaveA2mustA2countA2theA2hoursA2ofA2paidA2tim
eA2offA2whenA2determiningA2ifA2theA2employeeA2mustA2receiveA2anA2overtimeA2premiumA2
whenA2theA2totalA2hoursA2workedA2inA2aA2weekA2exceedA240.
true
falseA2-A2Ans--false
onlyA2hoursA2workedA2countA2towardA2determiningA2whetherA2overtimeA2premiumsA2mustA
2beA2paidA2underA2theA2FLSA
theA2FLSAA2requiresA2immediateA2paymentA2ofA2anA2employeesA2finalA2paycheckA2uponA2
termination
true
falseA2-A2Ans--FALSE
however,A2mostA2statesA2imposeA2timeA2limitsA2governingA2whenA2anA2employeesA2finalA2
paycheckA2mustA2beA2paidA2toA2theA2employee
anA2employee'sA2parkingA2garageA2isA22A2blocksA2awayA2fromA2hisA2downtownA2office.A2itA
2costsA2$275/
monthA2toA2rentA2aA2stallA2there,A2butA2theA2employeeA2doesn'tA2mindA2becauseA2itsA2conv
enientA2andA2hisA2employerA2reimbursesA2himA2100%A2ofA2theA2cost.A2HowA2muchA2ofA2hi
sA2monthlyA2parkingA2isA2taxable?A2-A2Ans--$15.
remember:A2employer-providedA2parkingA2isA2nontaxableA2upA2toA2$260/month
aA2retailA2salesA2clerkA2tookA2advantageA2ofA2theA2company'sA2employeeA2discountA2progr
amA2toA2purchaseA2clothesA2atA210%A2offA2theA2normalA2retailA2price.A2thisA2serviceA2repre
sents:
a.A2taxableA2compensation
b.A2aA2qualifiedA2employeeA2discount
c.A2aA2workingA2conditionA2fringe
, d.A2aA2no-additionalA2costA2serviceA2-A2Ans--b.A2aA2qualifiedA2employeeA2discount
LastA2month,A2anA2employeeA2emailedA2herA2motherA2onA2theA2company'sA2email,A2photo
copiedA2fliersA2forA2herA2churchA2picnicA2atA2workA2andA2usedA2herA2workA2computerA2toA2
updateA2herA2resume.A2TheseA2servicesA2represent:
a.A2taxableA2compensation
b.A2deA2minimisA2fringes
c.A2workingA2conditionA2fringes
d.A2no-additionalA2costA2servicesA2-A2Ans--b.A2deA2minimisA2fringes
TrueA2ofA2false:A2ifA2anA2employeeA2diesA2andA2aA2finalA2paymentA2isA2made,A2theA2emplo
yerA2continuesA2toA2withholdA2taxesA2asA2ifA2theA2employeeA2isA2stillA2alive.A2-A2Ans--
FALSE-A2noA2federalA2taxesA2areA2withheld
ifA2theA2amountsA2areA2paidA2afterA2theA2yearA2ofA2death,A2noA2SSA2andA2medicareA2areA2
withheldA2andA2noA2reportingA2isA2doneA2onA2theA2W2.A2InsteadA2itA2isA2reportedA2onA2___
____A2misc.A2-A2Ans--1099-misc
ifA2theA2amountsA2areA2paidA2duringA2theA2sameA2yearA2theA2employeeA2dies,A2_______A2
andA2______A2mustA2beA2withheldA2andA2reportedA2onA2theA2W2.A2FITA2isA2notA2reportedA2
onA2W2.A2-A2Ans--SocialA2securityA2andA2medicareA2mustA2beA2withheld
PercentageA2methodA2practice:A2anA2employeeA2whoA2isA2marriedA2withA24A2allowancesA2
earnsA2aA2biweeklyA2salaryA2ofA2$1500.A2CalculateA2hisA2federalA2incomeA2taxA2usingA2the
A2percentageA2method.A2-A2Ans--FindA2Net/
AdjustedA2WagesA2(afterA2deductionA2forA2withholdingA2allowances)
§$161.50A2xA24A2=A2$646.00
GrossA2wagesA2-A2AllowancesA2=A2AdjustedA2WagesA2(NetA2Wages)
§$1500.00A2-A2$646.00A2=A2$854.00
ApplyA2PercentageA2TableA2(Appendix)
§NetA2WagesA2overA2$454.00A2butA2notA2overA2$1,200.00
AdjustedA2WagesA2-A2ThresholdA2AmountA2=A2ExcessA2Amount
§$854.00A2-A2$454.00A2=A2$400.00
AmountA2ofA2TaxA2+A2(ExcessA2AmountA2xA2Percentage)A2=A2TotalA2Withholding
§0.00A2+A2($400.00A2xA210%)A2=A2$40.00
CalculateA2theA2totalA2compensationA2forA2anA2electricianA2whoA2workedA244A2hoursA2lastA
2week.A2InA2additionA2toA2hisA2regularA2wageA2ofA2$10/
hour,A2theA2electricianA2wasA2paidA2$50A2forA2supervisingA2aA2trainee.A2WhatA2isA2theA2ele
ctriciansA2totalA2weeklyA2compensation?A2-A2Ans--StepA21:A244A2hoursA2xA2$10/
A2hourA2=A2$440A2+A2$50=A2$490A2regularA2pay
StepA22:A2$490/44A2hoursA2=A2$11.14A2regularA2rateA2ofA2pay
StepA23:A2$11.14A2xA25A2=A2$5.57A2overtimeA2premiumA2rate
CORRECT ANSWERS
cafeteriaA2planA2areA2authorizedA2byA2whatA2InternalA2RevenueA2CodeA2Section?
A.A2125
B.A2401k
C.A2403b
D.A2457bA2-A2Ans--a.A2125
allA2ofA2theA2followingA2areA2taxA2implicationsA2ofA2aA2cafeteriaA2planA2except:
a.A2noA2incomeA2taxA2withholding
b.A2noA2socialA2securityA2andA2medicareA2taxA2withholding
c.A2mustA2withholdA2income,A2socialA2security,A2andA2medicareA2taxes
d.A2noA2formA2W2A2reportingA2-A2Ans--
C.A2mustA2withholdA2income,A2socialA2security,A2andA2medicareA2taxes
OneA2ofA2theA2optionsA2inA2anA2employee'sA2cafeteriaA2benefitA2planA2isA2aA2dependentA2c
areA2flexibleA2spendingA2account.A2HeA2earmarkedA2$100A2perA2monthA2toA2theA2accountA
2toA2payA2forA2childA2careA2butA2spendA2onlyA2$1000A2byA2theA2endA2ofA2theA2plansA2graceA
2period.A2atA2theA2endA2ofA2theA2graceA2period,A2whatA2happensA2toA2theA2$200A2leftA2inA2t
heA2account?
a.A2theA2amountA2isA2forfeited
b.A2itA2willA2beA2addedA2toA2hisA2taxableA2income
c.A2heA2canA2useA2itA2toA2"buy"A2abA2additionalA2benefit
d.A2itA2illA2carryA2overA2toA2theA2nextA2yearA2-A2Ans--A.A2theA2amountA2isA2forfeited
PriorA2toA2beginningA2workA2forA2aA2company,A2aA2chemicalA2engineerA2signedA2aA2contra
ctA2statingA2thatA2sheA2agreedA2toA2workA2asA2anA2independentA2contractor.A2sheA2perfor
msA2allA2herA2dutiesA2inA2theA2companysA2laboratories,A2worksA2underA2theA2companysA2d
irection,A2andA2maintainsA2regularA2officeA2hours.A2whatA2isA2herA2status?
a.A2independentA2contractorA2underA2commonA2law
b.A2independentA2contractorA2underA2reasonableA2basisA2test
c.A2employeeA2-A2Ans--C.A2employee
doA2notA2assumeA2thatA2theA2employerA2hasA2fulfilledA2itsA2responsibilitiesA2andA2isA2freeA2
fromA2penaltyA2simplyA2byA2havingA2aA2workerA2signA2aA2contractA2statingA2heA2isA2aA2109
9.A2individualsA2doA2notA2haveA2aA2rightA2toA2waiveA2theirA2eeA2statusA2inA2aA2contract.
AA2retiredA2safetyA2inspectorA2forA2theA2companyA2wasA2rehiredA2asA2aA2consultantA2when
A2theA2companyA2expandedA2itsA2plantA2operations.A2theA2retiredA2employeeA2wasA2aA2nat
uralA2choice.A2theA2tasksA2heA2undertookA2asA2aA2consultantA2wereA2theA2sameA2asA2theA2
onesA2heA2performedA2beforeA2retirement.A2paidA2monthly,A2heA2hasA2agreedA2toA2workA2
underA2theA2directionA2ofA2hisA2oldA2bossA2untilA2theA2newA2plantA2facilitatesA2areA2fullyA2op
erational?A2WhatA2isA2hisA2status?
,a.A2independentA2contractorA2underA2commonA2law
b.A2independentA2contractorA2underA2reasonableA2basisA2test
c.A2employeeA2-A2Ans--C.A2employee
consultantsA2areA2generallyA2treatedA2asA2independentA2contractors.A2however,A2whenA2a
nA2exA2eeA2isA2performingA2theA2sameA2orA2similarA2jobA2asA2beforeA2retirement,A2itA2isA2un
likelyA2thatA2heA2qualifiedA2asA2aA21099A2afterA2termination
aA2receptionistA2hasA2agreedA2toA2workA2afternoonsA2atA2theA2companyA2untilA2theA2comp
anyA2canA2findA2aA2fullA2timeA2replacement.A2whatA2isA2theA2receptionistsA2status?
a.A2independentA2contractorA2underA2commonA2lawA2
b.A2independentA2contractorA2underA2reasonableA2basis
c.A2employeeA2-A2Ans--C.A2employee
whetherA2orA2notA2anA2eeA2isA2fullA2timeA2orA2partA2timeA2orA2worksA2aA2fewA2weeksA2orA2aA
2lifetimeA2forA2theA2companyA2isA2notA2relevantA2her.A2sheA2isA2anA2employee.
AllA2ofA2theA2followingA2typesA2ofA2employeesA2areA2classifiedA2asA2exemptA2fromA2theA2F
LSAsA2minA2wageA2andA2OTA2requirementsA2except:
a.A2professional
b.A2outsideA2salesperson
c.A2administrative
d.A2computerA2repairmanA2-A2Ans--D.A2computerA2repairman
aA2computerA2repairmanA2doesA2notA2performA2theA2dutiesA2requiredA2toA2qualifyA2asA2anA
2exemptA2computerA2professional
aA2waitressA2isA2paidA2$2.25A2perA2hourA2andA2sheA2receivesA2$225A2inA2tipsA2duringA2theA
2week.A2SheA2worksA24oA2hoursA2perA2week.A2WhichA2ofA2theA2followingA2isA2true?
a.A2herA2employerA2isA2allowedA2toA2reduceA2herA2cashA2wageA2toA2noA2lessA2thanA2$2.13A
2perA2hour
b.A2herA2baseA2payA2mustA2beA2increaseA2toA2$4.5A2perA2hourA2afterA2aA290A2dayA2trainingA
2period.
c.A2sheA2mustA2beA2paidA2$5.12A2perA2hourA2byA2herA2employer
d.A2herA2baseA2salaryA2mustA2beA2raisedA2toA2$3A2perA2hourA2toA2complyA2withA2fedA2minA2
wageA2requirements.A2-A2Ans--
A.A2herA2employerA2isA2allowedA2toA2reduceA2herA2cashA2wageA2toA2noA2lessA2thanA2$2.13A
2perA2hour
herA2employerA2canA2claimA2theA2fullA2federalA2tipA2creditA2becauseA2sheA2receivesA2tipsA2
andA2withA2herA2tips,A2isA2paidA2moreA2thanA2theA2currentA2federalA2minimumA2wageA2purp
oses,A2herA2employerA2mustA2payA2herA2atA2leastA2$2.13A2perA2hourA2andA2herA2hourlyA2ra
teA2plusA2tipsA2mustA2equalA2atA2leastA2theA2currentA2federalA2minA2wage
ifA2aA2stateA2setsA2theA2minimumA2wageA2atA2aA2rateA2greaterA2thanA2theA2federalA2minimu
mA2wage,A2theA2stateA2minimumA2wageA2mustA2beA2paidA2toA2workersA2inA2thatA2state
,-A2true
-falseA2-A2Ans--TRUE
tipsA2canA2beA2countedA2towardA2theA2employeesA2minimumA2wageA2-A2Ans--TRUE
anA2employeeA2worksA240A2hoursA2perA2weekA2asA2aA2fryA2cook.A2duringA2theA2week,A2she
A2substitutesA2forA2oneA2ofA2theA2waitressesA2andA2reportsA2$5A2perA2weekA2inA2tips.A2canA
2herA2employerA2payA2herA2$2.13A2perA2hour?
-A2yesA2
-A2noA2-A2Ans--noA2
becauseA2sheA2isntA2makingA2$30A2aA2month.A2theA2tipA2creditA2canA2beA2usedA2toA2reduc
eA2theA2minimumA2wageA2onlyA2ifA2theA2employeeA2regularlyA2receivesA2tipsA2andA2docum
entsA2receivingA2moreA2thanA2$30/month
employersA2whoA2provideA2paidA2vacationA2leaveA2mustA2countA2theA2hoursA2ofA2paidA2tim
eA2offA2whenA2determiningA2ifA2theA2employeeA2mustA2receiveA2anA2overtimeA2premiumA2
whenA2theA2totalA2hoursA2workedA2inA2aA2weekA2exceedA240.
true
falseA2-A2Ans--false
onlyA2hoursA2workedA2countA2towardA2determiningA2whetherA2overtimeA2premiumsA2mustA
2beA2paidA2underA2theA2FLSA
theA2FLSAA2requiresA2immediateA2paymentA2ofA2anA2employeesA2finalA2paycheckA2uponA2
termination
true
falseA2-A2Ans--FALSE
however,A2mostA2statesA2imposeA2timeA2limitsA2governingA2whenA2anA2employeesA2finalA2
paycheckA2mustA2beA2paidA2toA2theA2employee
anA2employee'sA2parkingA2garageA2isA22A2blocksA2awayA2fromA2hisA2downtownA2office.A2itA
2costsA2$275/
monthA2toA2rentA2aA2stallA2there,A2butA2theA2employeeA2doesn'tA2mindA2becauseA2itsA2conv
enientA2andA2hisA2employerA2reimbursesA2himA2100%A2ofA2theA2cost.A2HowA2muchA2ofA2hi
sA2monthlyA2parkingA2isA2taxable?A2-A2Ans--$15.
remember:A2employer-providedA2parkingA2isA2nontaxableA2upA2toA2$260/month
aA2retailA2salesA2clerkA2tookA2advantageA2ofA2theA2company'sA2employeeA2discountA2progr
amA2toA2purchaseA2clothesA2atA210%A2offA2theA2normalA2retailA2price.A2thisA2serviceA2repre
sents:
a.A2taxableA2compensation
b.A2aA2qualifiedA2employeeA2discount
c.A2aA2workingA2conditionA2fringe
, d.A2aA2no-additionalA2costA2serviceA2-A2Ans--b.A2aA2qualifiedA2employeeA2discount
LastA2month,A2anA2employeeA2emailedA2herA2motherA2onA2theA2company'sA2email,A2photo
copiedA2fliersA2forA2herA2churchA2picnicA2atA2workA2andA2usedA2herA2workA2computerA2toA2
updateA2herA2resume.A2TheseA2servicesA2represent:
a.A2taxableA2compensation
b.A2deA2minimisA2fringes
c.A2workingA2conditionA2fringes
d.A2no-additionalA2costA2servicesA2-A2Ans--b.A2deA2minimisA2fringes
TrueA2ofA2false:A2ifA2anA2employeeA2diesA2andA2aA2finalA2paymentA2isA2made,A2theA2emplo
yerA2continuesA2toA2withholdA2taxesA2asA2ifA2theA2employeeA2isA2stillA2alive.A2-A2Ans--
FALSE-A2noA2federalA2taxesA2areA2withheld
ifA2theA2amountsA2areA2paidA2afterA2theA2yearA2ofA2death,A2noA2SSA2andA2medicareA2areA2
withheldA2andA2noA2reportingA2isA2doneA2onA2theA2W2.A2InsteadA2itA2isA2reportedA2onA2___
____A2misc.A2-A2Ans--1099-misc
ifA2theA2amountsA2areA2paidA2duringA2theA2sameA2yearA2theA2employeeA2dies,A2_______A2
andA2______A2mustA2beA2withheldA2andA2reportedA2onA2theA2W2.A2FITA2isA2notA2reportedA2
onA2W2.A2-A2Ans--SocialA2securityA2andA2medicareA2mustA2beA2withheld
PercentageA2methodA2practice:A2anA2employeeA2whoA2isA2marriedA2withA24A2allowancesA2
earnsA2aA2biweeklyA2salaryA2ofA2$1500.A2CalculateA2hisA2federalA2incomeA2taxA2usingA2the
A2percentageA2method.A2-A2Ans--FindA2Net/
AdjustedA2WagesA2(afterA2deductionA2forA2withholdingA2allowances)
§$161.50A2xA24A2=A2$646.00
GrossA2wagesA2-A2AllowancesA2=A2AdjustedA2WagesA2(NetA2Wages)
§$1500.00A2-A2$646.00A2=A2$854.00
ApplyA2PercentageA2TableA2(Appendix)
§NetA2WagesA2overA2$454.00A2butA2notA2overA2$1,200.00
AdjustedA2WagesA2-A2ThresholdA2AmountA2=A2ExcessA2Amount
§$854.00A2-A2$454.00A2=A2$400.00
AmountA2ofA2TaxA2+A2(ExcessA2AmountA2xA2Percentage)A2=A2TotalA2Withholding
§0.00A2+A2($400.00A2xA210%)A2=A2$40.00
CalculateA2theA2totalA2compensationA2forA2anA2electricianA2whoA2workedA244A2hoursA2lastA
2week.A2InA2additionA2toA2hisA2regularA2wageA2ofA2$10/
hour,A2theA2electricianA2wasA2paidA2$50A2forA2supervisingA2aA2trainee.A2WhatA2isA2theA2ele
ctriciansA2totalA2weeklyA2compensation?A2-A2Ans--StepA21:A244A2hoursA2xA2$10/
A2hourA2=A2$440A2+A2$50=A2$490A2regularA2pay
StepA22:A2$490/44A2hoursA2=A2$11.14A2regularA2rateA2ofA2pay
StepA23:A2$11.14A2xA25A2=A2$5.57A2overtimeA2premiumA2rate
