FPC Exam Fundamental Payroll
1096 - ANS-Annual Summary and Transmittal of U.S. Information Returns
4419 - ANS-Application for Filing Information Returns Electronically (FIRE)
668-W - ANS-Notice of Levy on Wages, Salary, and Other Income
940 - ANS-Employer's Annual Federal Unemployment (FUTA) Tax Return
941 - ANS-Employer's Quarterly Federal Tax Return
944 - ANS-Employer's Annual Federal Tax Return
A commission is included in the tax calculation of which tax, if any? - ANS-All Federal Taxes
A computerized payroll system can help a payroll department accomplish all the following tasks
EXCEPT: - ANS-recognize the changes in laws and regulations
A computerized payroll system can help a payroll dept. accomplish all of the following tasks
except: - ANS-Recognize changes in laws and regulations
A financial transaction is first posted in your organizations: - ANS-The journal
A plant supervisor met with the payroll dept. to schedule a special pay run that would
accommodate the shutdown for the holidays. After payroll committed to this date, they realized
to meet the deadline it would require working the weekend. What customer service principle will
be compromised if the deadline is not met? - ANS-Reliability. This is providing what has been
promised.
A record of daily transactions of a business is - ANS-Journal
A retail sales clerk took advantage of the company's employee discount program to purchase
clothes at 10% off the normal retail price. This service represents: - ANS-This represents a
qualified employee discount. The discount is 10% less than the cost to customers.
A voluntary deduction must be - ANS-Authorized by the employee
Aggregate Method - ANS-Add the supplemental wages to the regular wages for the most recent
payroll period or the current payroll period. Subtract the tax already withheld from the regular
wages and withhold the remaining tax from the supplemental wages.
All of the following issues are concerns of external auditors EXCEPT: - ANS-Efficiency of payroll
procedures
An employee belongs to a professional organization. When his company pays his dues, the
payment is: - ANS-A working condition fringe
An employee changed her United Way deduction. For two pay periods, the amount deducted
was correct. Then, for the following period the amount doubled. When she called the payroll
dept., the payroll coordinator told her that the situation would be corrected and gave her the
option to have the amount added to her next paycheck or receiving a special check for the
amount. Which customer service principle is being displayed here? - ANS-Responsiveness.
Correcting the situation promptly and giving the employee options as to how the problem can be
corrected.
An employee goes to the payroll department to ask a question about his paycheck. When he
arrives, the desks are unattended, files are open, desk tops are covered with paper, and the
, floor has stacks of reports askew. Which customer service principle could be improved in this
payroll department? - ANS-Tangibles. These are the physical appearance of the department.
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.
An employees parking garage is two blocks away from his downtown office. It costs $275.00 per
month to rent a stall there, but the employee doesn't mind because its convenient and his
employer reimburses him for 100% of the cost. How much of his monthly parking is taxable? -
ANS-$15.00 Employer- provided parking is nontaxable up to $260.00
An employer may provide all of the following features in a 401(k) plan except: - ANS-Higher
benefits for highly compensated employees
An employer provides an employee $300.00 a month in bus tokens so she can commute to
work. How much of this expense is nontaxable? - ANS-$260.00. Employer provided tokens for
public transportation are nontaxable up to $260.00 a month.
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
An exempt employee under the FLSA is exempt from - ANS-both minimum wage and overtime
An external audit: - ANS-Allows an objective assessment of the financial statements.
Are companies required to match employee contributions to 401(k) plans? - ANS-No
Business Continuity Planning - ANS-outlines procedures for keeping an organization operational
in the event of a natural disaster or network attack
Cafeteria plans are authorized by what internal revenue code section? - ANS-125
Checking inputs or outputs against predetermined constraints is - ANS-validity edit
Creditor Garnishment - ANS-Involves a court order to attach the employee's earnings in order to
pay off a debt which the employee incurred.
Currently three states have provisions for withholding state unemployment tax from employees
in addition to the employer tax - ANS-Alaska, New Jersey and Pennsylvania
Deferred compensation plans can be classified into two key groups - ANS-Qualified and Non
Qualified Plans
Describe the basic components of so-called white-collar exemptions to wage and overtime laws.
- ANS-White collar exemptions (executive, administrative, and professional) under FLSA rules
follow certain underlying guidelines, including duties and salary test: 1. salary basis and level
test--a minimum salary is $455/week except for outside sales and certain professions such as
doctors and teachers, and certain computer professionals who are paid $27.63/hour or more in
straight-time pay for each hour worked and subject to a highly compensated employee test. 2.
regardless of how much they are paid, employees who meet the exemption tests for their
categories do not have to be paid overtime pay. 3. a Salary alone does not make an employee
exempt. 4. Generally, exempt employees are the most important, highest-skilled workers in the
company. 5. A title alone does not make an employee exempt.
Discuss the reasons for the child labor law under the FSLA. - ANS-The Fair Standards Labor
Act are designed to prohibit children's employment in jobs that are detrimental to their health
and safety.
Discuss the requirements to change a workweek according to the FLSA. - ANS-The change
initiated must be permanent and not changed. The change must not be made to intentionally
avoid the overtime rules.
1096 - ANS-Annual Summary and Transmittal of U.S. Information Returns
4419 - ANS-Application for Filing Information Returns Electronically (FIRE)
668-W - ANS-Notice of Levy on Wages, Salary, and Other Income
940 - ANS-Employer's Annual Federal Unemployment (FUTA) Tax Return
941 - ANS-Employer's Quarterly Federal Tax Return
944 - ANS-Employer's Annual Federal Tax Return
A commission is included in the tax calculation of which tax, if any? - ANS-All Federal Taxes
A computerized payroll system can help a payroll department accomplish all the following tasks
EXCEPT: - ANS-recognize the changes in laws and regulations
A computerized payroll system can help a payroll dept. accomplish all of the following tasks
except: - ANS-Recognize changes in laws and regulations
A financial transaction is first posted in your organizations: - ANS-The journal
A plant supervisor met with the payroll dept. to schedule a special pay run that would
accommodate the shutdown for the holidays. After payroll committed to this date, they realized
to meet the deadline it would require working the weekend. What customer service principle will
be compromised if the deadline is not met? - ANS-Reliability. This is providing what has been
promised.
A record of daily transactions of a business is - ANS-Journal
A retail sales clerk took advantage of the company's employee discount program to purchase
clothes at 10% off the normal retail price. This service represents: - ANS-This represents a
qualified employee discount. The discount is 10% less than the cost to customers.
A voluntary deduction must be - ANS-Authorized by the employee
Aggregate Method - ANS-Add the supplemental wages to the regular wages for the most recent
payroll period or the current payroll period. Subtract the tax already withheld from the regular
wages and withhold the remaining tax from the supplemental wages.
All of the following issues are concerns of external auditors EXCEPT: - ANS-Efficiency of payroll
procedures
An employee belongs to a professional organization. When his company pays his dues, the
payment is: - ANS-A working condition fringe
An employee changed her United Way deduction. For two pay periods, the amount deducted
was correct. Then, for the following period the amount doubled. When she called the payroll
dept., the payroll coordinator told her that the situation would be corrected and gave her the
option to have the amount added to her next paycheck or receiving a special check for the
amount. Which customer service principle is being displayed here? - ANS-Responsiveness.
Correcting the situation promptly and giving the employee options as to how the problem can be
corrected.
An employee goes to the payroll department to ask a question about his paycheck. When he
arrives, the desks are unattended, files are open, desk tops are covered with paper, and the
, floor has stacks of reports askew. Which customer service principle could be improved in this
payroll department? - ANS-Tangibles. These are the physical appearance of the department.
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.
An employees parking garage is two blocks away from his downtown office. It costs $275.00 per
month to rent a stall there, but the employee doesn't mind because its convenient and his
employer reimburses him for 100% of the cost. How much of his monthly parking is taxable? -
ANS-$15.00 Employer- provided parking is nontaxable up to $260.00
An employer may provide all of the following features in a 401(k) plan except: - ANS-Higher
benefits for highly compensated employees
An employer provides an employee $300.00 a month in bus tokens so she can commute to
work. How much of this expense is nontaxable? - ANS-$260.00. Employer provided tokens for
public transportation are nontaxable up to $260.00 a month.
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
An exempt employee under the FLSA is exempt from - ANS-both minimum wage and overtime
An external audit: - ANS-Allows an objective assessment of the financial statements.
Are companies required to match employee contributions to 401(k) plans? - ANS-No
Business Continuity Planning - ANS-outlines procedures for keeping an organization operational
in the event of a natural disaster or network attack
Cafeteria plans are authorized by what internal revenue code section? - ANS-125
Checking inputs or outputs against predetermined constraints is - ANS-validity edit
Creditor Garnishment - ANS-Involves a court order to attach the employee's earnings in order to
pay off a debt which the employee incurred.
Currently three states have provisions for withholding state unemployment tax from employees
in addition to the employer tax - ANS-Alaska, New Jersey and Pennsylvania
Deferred compensation plans can be classified into two key groups - ANS-Qualified and Non
Qualified Plans
Describe the basic components of so-called white-collar exemptions to wage and overtime laws.
- ANS-White collar exemptions (executive, administrative, and professional) under FLSA rules
follow certain underlying guidelines, including duties and salary test: 1. salary basis and level
test--a minimum salary is $455/week except for outside sales and certain professions such as
doctors and teachers, and certain computer professionals who are paid $27.63/hour or more in
straight-time pay for each hour worked and subject to a highly compensated employee test. 2.
regardless of how much they are paid, employees who meet the exemption tests for their
categories do not have to be paid overtime pay. 3. a Salary alone does not make an employee
exempt. 4. Generally, exempt employees are the most important, highest-skilled workers in the
company. 5. A title alone does not make an employee exempt.
Discuss the reasons for the child labor law under the FSLA. - ANS-The Fair Standards Labor
Act are designed to prohibit children's employment in jobs that are detrimental to their health
and safety.
Discuss the requirements to change a workweek according to the FLSA. - ANS-The change
initiated must be permanent and not changed. The change must not be made to intentionally
avoid the overtime rules.
