©Jason MacConnell 2025 ALL RIGHTS RESERVED.
FPC Certification Exam Questions With
Correct Answers A+
FLSA - Answer✔Fair Labor Standards Act
Journal - Answer✔Debits and credits to a specific ledger accout
Is batch processing interactive? - Answer✔No
By when must employers inform employees to submit a new W-4 if marital status or # of
allowances have changed? - Answer✔December 1st
Are non qualified deferred compensations plans subject to contribution limits? - Answer✔No
What plans are subject to contribution limits? - Answer✔401K, 457b, 403b
What form is used to correct mistakes done on form 941? - Answer✔Form 941-X
How many billing cycles does an employer have to update their payroll for changes to
employee's W-4? - Answer✔Two billing cycles (?)
The ability of a payroll department to provide accurate paychecks on a timely basis is an
example of the customer service principle of ___________. - Answer✔Reliability
FUTA - Answer✔Federal Unemployment Tax Act
Common Law Test is made up of what three things? - Answer✔behavioral control, relationship
of the parties, financial control
What are criteria used in calculating an employees federal income tax? - Answer✔# of
allowances, pay frequency, marital status
Tangibles that a payroll department displays are: - Answer✔Physical facilities, organization,
appearance of the payroll staff
If an employee's spouse passes away, when must the employee submit an amended W-4? -
Answer✔January 1st of the following year
What pay is considered discretionary? - Answer✔Holiday pay
1
, ©Jason MacConnell 2025 ALL RIGHTS RESERVED.
The payment of a creditor's wage garnishment withheld from the employee's wage will decrease
both the _________ and _____________. - Answer✔assets, liabilities
How frequently does federal law require master files to be updated? - Answer✔There are no
federal requirements for frequency of updates
FUTA taxes of more than $500.00 on wages paid in the first quarter must be deposited by when?
- Answer✔April 30th
Under FLSA, a record of employees must be retained for how long? - Answer✔Two years
TRUE or FALSE: Under deposited payroll tax liability is subject to penalties for late deposit
even if corrected within five days. - Answer✔TRUE
Under FLSA white collar exemption rules, an exempt executive employee must meet the
following criteria: - Answer✔Managing a recognized department, Directing the work of two or
more full time employees, Being paid a weekly salary of at least $455.00.
In what order does an employee need to withhold deductions for health insurance and union
dues? - Answer✔Any order the employee chooses
Form W-9 - Answer✔Request for Taxpayer Identification Number and Certification
What must an employer do if an independent contractor fails to provide a TIN? - Answer✔A
28% backup withholding tax on nonwage payments is withheld if the payee has failed to provide
a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is
incorrect.
What is form 945? - Answer✔Backup withholding is treated separately from payroll
withholding. It is deposited separately and reported separately on Form 945.
The initial determination of whether a worker is an employee or an independent contractor is
made by the: - Answer✔employer
- Answer✔The employer's only obligation is to give the contractor a completed Form 1099-
MISC when paying the contractor $600 or more during the calendar year (see Tax Tables and
Forms in the Online Resource Center) at the end of the year.
What is included on form 1099-MISC? - Answer✔Form 1099-MISC states how much the
contractor was paid for services rendered during the past calendar year. A copy of this form must
also be sent to the Internal Revenue Service (IRS).
When must an employer provide a contractor with a 1099-MISC? - Answer✔when paying the
contractor $600 or more during the calendar year and at the end of the year.
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company
can rely on all of the following methods EXCEPT:
2
FPC Certification Exam Questions With
Correct Answers A+
FLSA - Answer✔Fair Labor Standards Act
Journal - Answer✔Debits and credits to a specific ledger accout
Is batch processing interactive? - Answer✔No
By when must employers inform employees to submit a new W-4 if marital status or # of
allowances have changed? - Answer✔December 1st
Are non qualified deferred compensations plans subject to contribution limits? - Answer✔No
What plans are subject to contribution limits? - Answer✔401K, 457b, 403b
What form is used to correct mistakes done on form 941? - Answer✔Form 941-X
How many billing cycles does an employer have to update their payroll for changes to
employee's W-4? - Answer✔Two billing cycles (?)
The ability of a payroll department to provide accurate paychecks on a timely basis is an
example of the customer service principle of ___________. - Answer✔Reliability
FUTA - Answer✔Federal Unemployment Tax Act
Common Law Test is made up of what three things? - Answer✔behavioral control, relationship
of the parties, financial control
What are criteria used in calculating an employees federal income tax? - Answer✔# of
allowances, pay frequency, marital status
Tangibles that a payroll department displays are: - Answer✔Physical facilities, organization,
appearance of the payroll staff
If an employee's spouse passes away, when must the employee submit an amended W-4? -
Answer✔January 1st of the following year
What pay is considered discretionary? - Answer✔Holiday pay
1
, ©Jason MacConnell 2025 ALL RIGHTS RESERVED.
The payment of a creditor's wage garnishment withheld from the employee's wage will decrease
both the _________ and _____________. - Answer✔assets, liabilities
How frequently does federal law require master files to be updated? - Answer✔There are no
federal requirements for frequency of updates
FUTA taxes of more than $500.00 on wages paid in the first quarter must be deposited by when?
- Answer✔April 30th
Under FLSA, a record of employees must be retained for how long? - Answer✔Two years
TRUE or FALSE: Under deposited payroll tax liability is subject to penalties for late deposit
even if corrected within five days. - Answer✔TRUE
Under FLSA white collar exemption rules, an exempt executive employee must meet the
following criteria: - Answer✔Managing a recognized department, Directing the work of two or
more full time employees, Being paid a weekly salary of at least $455.00.
In what order does an employee need to withhold deductions for health insurance and union
dues? - Answer✔Any order the employee chooses
Form W-9 - Answer✔Request for Taxpayer Identification Number and Certification
What must an employer do if an independent contractor fails to provide a TIN? - Answer✔A
28% backup withholding tax on nonwage payments is withheld if the payee has failed to provide
a Taxpayer Identification Number (TIN) or the IRS has notified the payer that the TIN is
incorrect.
What is form 945? - Answer✔Backup withholding is treated separately from payroll
withholding. It is deposited separately and reported separately on Form 945.
The initial determination of whether a worker is an employee or an independent contractor is
made by the: - Answer✔employer
- Answer✔The employer's only obligation is to give the contractor a completed Form 1099-
MISC when paying the contractor $600 or more during the calendar year (see Tax Tables and
Forms in the Online Resource Center) at the end of the year.
What is included on form 1099-MISC? - Answer✔Form 1099-MISC states how much the
contractor was paid for services rendered during the past calendar year. A copy of this form must
also be sent to the Internal Revenue Service (IRS).
When must an employer provide a contractor with a 1099-MISC? - Answer✔when paying the
contractor $600 or more during the calendar year and at the end of the year.
To satisfy the Reasonable Basis test and treat a worker as an independent contractor, a company
can rely on all of the following methods EXCEPT:
2
