FPC Exam Fundamental Payroll
668-W - ANS-Notice of Levy on Wages, Salary, and Other Income
1096 - ANS-Annual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANS-14
What is the FUTA tax rate? - ANS-6.0%
On form 941, the employer reports - ANS-Social Security Wages
What is the formula for calculating an employees net pay? - ANS-Gross pay-deductions for
taxes- other deductions
Which plan discriminates in favor of highly compensated employees? - ANS-Nonqualified
deferred compensation plans
What is the federal minimum wage per hour on January 1, 2018? - ANS-$7.25
What law determines time limits with which employees must be paid after wages are earned? -
ANS-State Laws
Cafeteria plans are authorized by what internal revenue code section? - ANS-125
The direct deposit data sent to the bank after payroll processing is an example of -
ANS-Interface
What taxes, if any, must be withheld from payments to an independent contractor who provided
a tin? - ANS-No taxes are withheld
An external audit: - ANS-Allows an objective assessment of the financial statements.
Employees' privacy rights are governed by all of the following except: - ANS-Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is to be paid
overtime? - ANS-Hours worked in a work week
Overtime payments are included in the calculation of what tax, if any? - ANS-They are included
in all tax calculations
What is the 2018 wage base for social security tax? - ANS-$128,400.00
, If an employee does not have federal tax withheld and has not claimed exempt, what must the
employer do? - ANS-Provide the employee with the EITC notice
A computerized payroll system can help a payroll dept. accomplish all of the following tasks
except: - ANS-Recognize 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? - ANS-Withhold no taxes and report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees paychecks? -
ANS-By reducing human error
What federal taxes must an employer withhold from an employees reported tips? - ANS-Federal
income, social security and medicare tax
The main purpose of batch controls is to - ANS-Validate data entry accuracy
Which of the following types of compensation is taxable? - ANS-Backpay awards
What is used when calculating an employee's gross up? - ANS-Net set
Employees can provide their employer with their marital status and allowances for income tax
withholding purposes by: - ANS-Completing form W-4
Generally, what is the largest expense for most companies? - ANS-Salaries and benefits
What authority controls the frequency with which employees must be paid? - ANS-State Laws
What is the general ledger? - ANS-A record of transactions by account
What, if any, is the 2018 wage base for Medicare tax? - ANS-There is no limit
An employer should remind employees to complete an amended W-4 if they have any changes
in status by - ANS-December 1 of each year
If an employee provides an invalid W-4, the employer must: - ANS-Refuse to accept the form
Under the FLSA, an employees workday is defined as the: - ANS-time the employee is
performing principle activities
Under the FLSA, rounding must - ANS-be consistent
An exempt employee under the FLSA is exempt from - ANS-both minimum wage and overtime
668-W - ANS-Notice of Levy on Wages, Salary, and Other Income
1096 - ANS-Annual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANS-14
What is the FUTA tax rate? - ANS-6.0%
On form 941, the employer reports - ANS-Social Security Wages
What is the formula for calculating an employees net pay? - ANS-Gross pay-deductions for
taxes- other deductions
Which plan discriminates in favor of highly compensated employees? - ANS-Nonqualified
deferred compensation plans
What is the federal minimum wage per hour on January 1, 2018? - ANS-$7.25
What law determines time limits with which employees must be paid after wages are earned? -
ANS-State Laws
Cafeteria plans are authorized by what internal revenue code section? - ANS-125
The direct deposit data sent to the bank after payroll processing is an example of -
ANS-Interface
What taxes, if any, must be withheld from payments to an independent contractor who provided
a tin? - ANS-No taxes are withheld
An external audit: - ANS-Allows an objective assessment of the financial statements.
Employees' privacy rights are governed by all of the following except: - ANS-Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is to be paid
overtime? - ANS-Hours worked in a work week
Overtime payments are included in the calculation of what tax, if any? - ANS-They are included
in all tax calculations
What is the 2018 wage base for social security tax? - ANS-$128,400.00
, If an employee does not have federal tax withheld and has not claimed exempt, what must the
employer do? - ANS-Provide the employee with the EITC notice
A computerized payroll system can help a payroll dept. accomplish all of the following tasks
except: - ANS-Recognize 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? - ANS-Withhold no taxes and report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees paychecks? -
ANS-By reducing human error
What federal taxes must an employer withhold from an employees reported tips? - ANS-Federal
income, social security and medicare tax
The main purpose of batch controls is to - ANS-Validate data entry accuracy
Which of the following types of compensation is taxable? - ANS-Backpay awards
What is used when calculating an employee's gross up? - ANS-Net set
Employees can provide their employer with their marital status and allowances for income tax
withholding purposes by: - ANS-Completing form W-4
Generally, what is the largest expense for most companies? - ANS-Salaries and benefits
What authority controls the frequency with which employees must be paid? - ANS-State Laws
What is the general ledger? - ANS-A record of transactions by account
What, if any, is the 2018 wage base for Medicare tax? - ANS-There is no limit
An employer should remind employees to complete an amended W-4 if they have any changes
in status by - ANS-December 1 of each year
If an employee provides an invalid W-4, the employer must: - ANS-Refuse to accept the form
Under the FLSA, an employees workday is defined as the: - ANS-time the employee is
performing principle activities
Under the FLSA, rounding must - ANS-be consistent
An exempt employee under the FLSA is exempt from - ANS-both minimum wage and overtime
