FPC Exam Questions and Correct
Answers
Finding the base FIT using Percentage Method: - Answer-
Finding the FIT on Supplemental Wages: Optional Fat Rate- - Answer-(Other compensation + any
reimbursement) x 25%,
Finding Social Security Tax: - Answer-Total Compensation x 6.2%
Finding Medicare Tax: - Answer-Total Compensation x 1.45%
Finding the net pay: - Answer-Total Compensation - Base FIT -Supplement FIT -Social Security Tax-
Medicare Tax -Reimbursements
Finding the FIT - Answer-Base pay - 401k-Section 125=Gross FIT...Number of allowances x Amount per
allowance= Allowance amount...Gross FIT compensation - Allowance amount = Adjusted wages...Check
the appropriate percentage table...Adjusted waged - Excess allowed = Excess amount...Amount of tax +
(% x Excess amount) = FIT withholding
- Answer-
,Finding Soc Sec Tax: if YTD is under 118500 wages. - Answer-(Base pay - Sect 125 contrib) x 6.2%
Finding the medicare tax if YTD is under 200000 wages: - Answer-Base pay - Sect 125 x 1.45%
A nonexempt employee earns $10.00 per hour. Last week, the employee earned a production bonus of
$42.00 according to the union contract. The employee worked 44 hours last week. Calculate the
employee's gross pay for the week. - Answer-The correct answer is $503.91
Hours x rate
_____+ bonus =base
base/hours= regular rate of pay
RRP / 2 =OT rate
OT rate x OT hours= OT amount
OT amount + Base = answer
During an employee's qualified move, the employee drove 885 miles and submitted an expense report
to the employer in the amount of $698.88. Detailed on the expense report were $120.00 for hotel
rooms for two nights, $70.00 in meals, and $508.88 for the mileage. Calculate the taxable amount of the
employee's moving expenses. - Answer-The correct answer is $375.33 (.575 x miles driven) - (.23 x miles
driven) + meals= Answer
During and employee's qualified move, the employee drove 1485 miles and submitted to the employer
the amount of $1,038.88. Detailed on the expense report were $120 for the hotel, $65 in meals and
$853.88 for mileage. Calculate the taxable amount. - Answer-The correct answer is 577.33 (.575 x miles
driven) - (.23 x miles driven) + meals= Answer
An employee died in March 2015, and is owed a $1200 supplemental bonus. The employee total YTD
compensation is 50000. Using Optimal Flat Rate method, calculate the total amount of federal taxes to
be withheld. - Answer-The answer is $91.80
, Bonus x 7.65% = Answer ***FIT is NOT withheld***
A disadvantage of EFT compared to issuing paper checks is - Answer-the need for additional information
from the employee
An employer reimburses 100% of an employee's monthly parking space near the employee's work site.
The parking fees are $270 per month. Calculate the monthly taxable amount of the parking
reimbursement. - Answer-$20 Employer is taxed anything over $250
System generated audits trails may be limited due to: - Answer-System resources
An employee who meets the time test relocates 2400 miles away. The employer reimbursed all
expenses for the move. The employee drives 2400 miles and submits an expense report for
reimbursement to the employer for $75 for hotel, $110 for meals, and $1390 for mileage. Calculate the
taxable moving expense. - Answer-The correct answer is $938 (.575 x miles driven) - (.23 x miles driven)
+ meals= Answer
A qualified transportation fringe benefit allows employers to provide employees which of the following
benefits? - Answer-Transit passes for public buses not to exceed $130 per month
Form 843 is used to file abatement for all the following EXCEPT: - Answer-tax overpayments
An employee earns $24,283.00 per month and is paid semimonthly. The employee has received no
income other than regular wages during the year. Calculate the amount of social security and Medicare
taxes to be withheld from the first pay in December. - Answer-285.33.
figure out the YTD if over 118500 for soc Sec - don't tax. If over 200000 times it by 2.35%
Answers
Finding the base FIT using Percentage Method: - Answer-
Finding the FIT on Supplemental Wages: Optional Fat Rate- - Answer-(Other compensation + any
reimbursement) x 25%,
Finding Social Security Tax: - Answer-Total Compensation x 6.2%
Finding Medicare Tax: - Answer-Total Compensation x 1.45%
Finding the net pay: - Answer-Total Compensation - Base FIT -Supplement FIT -Social Security Tax-
Medicare Tax -Reimbursements
Finding the FIT - Answer-Base pay - 401k-Section 125=Gross FIT...Number of allowances x Amount per
allowance= Allowance amount...Gross FIT compensation - Allowance amount = Adjusted wages...Check
the appropriate percentage table...Adjusted waged - Excess allowed = Excess amount...Amount of tax +
(% x Excess amount) = FIT withholding
- Answer-
,Finding Soc Sec Tax: if YTD is under 118500 wages. - Answer-(Base pay - Sect 125 contrib) x 6.2%
Finding the medicare tax if YTD is under 200000 wages: - Answer-Base pay - Sect 125 x 1.45%
A nonexempt employee earns $10.00 per hour. Last week, the employee earned a production bonus of
$42.00 according to the union contract. The employee worked 44 hours last week. Calculate the
employee's gross pay for the week. - Answer-The correct answer is $503.91
Hours x rate
_____+ bonus =base
base/hours= regular rate of pay
RRP / 2 =OT rate
OT rate x OT hours= OT amount
OT amount + Base = answer
During an employee's qualified move, the employee drove 885 miles and submitted an expense report
to the employer in the amount of $698.88. Detailed on the expense report were $120.00 for hotel
rooms for two nights, $70.00 in meals, and $508.88 for the mileage. Calculate the taxable amount of the
employee's moving expenses. - Answer-The correct answer is $375.33 (.575 x miles driven) - (.23 x miles
driven) + meals= Answer
During and employee's qualified move, the employee drove 1485 miles and submitted to the employer
the amount of $1,038.88. Detailed on the expense report were $120 for the hotel, $65 in meals and
$853.88 for mileage. Calculate the taxable amount. - Answer-The correct answer is 577.33 (.575 x miles
driven) - (.23 x miles driven) + meals= Answer
An employee died in March 2015, and is owed a $1200 supplemental bonus. The employee total YTD
compensation is 50000. Using Optimal Flat Rate method, calculate the total amount of federal taxes to
be withheld. - Answer-The answer is $91.80
, Bonus x 7.65% = Answer ***FIT is NOT withheld***
A disadvantage of EFT compared to issuing paper checks is - Answer-the need for additional information
from the employee
An employer reimburses 100% of an employee's monthly parking space near the employee's work site.
The parking fees are $270 per month. Calculate the monthly taxable amount of the parking
reimbursement. - Answer-$20 Employer is taxed anything over $250
System generated audits trails may be limited due to: - Answer-System resources
An employee who meets the time test relocates 2400 miles away. The employer reimbursed all
expenses for the move. The employee drives 2400 miles and submits an expense report for
reimbursement to the employer for $75 for hotel, $110 for meals, and $1390 for mileage. Calculate the
taxable moving expense. - Answer-The correct answer is $938 (.575 x miles driven) - (.23 x miles driven)
+ meals= Answer
A qualified transportation fringe benefit allows employers to provide employees which of the following
benefits? - Answer-Transit passes for public buses not to exceed $130 per month
Form 843 is used to file abatement for all the following EXCEPT: - Answer-tax overpayments
An employee earns $24,283.00 per month and is paid semimonthly. The employee has received no
income other than regular wages during the year. Calculate the amount of social security and Medicare
taxes to be withheld from the first pay in December. - Answer-285.33.
figure out the YTD if over 118500 for soc Sec - don't tax. If over 200000 times it by 2.35%
