x
x
x
x
FPC Practice questions with complete
x x x x x
solutions 100% guaranteed success.
x x x x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
cafeteria xplan xare xauthorized xby xwhat xInternal xRevenue xCode xSection? x
A. 125 x
B. 401k x
C. 403b x
D. 457b x- xcorrect xanswers.a. x125 x
x
all xof xthe xfollowing xare xtax ximplications xof xa xcafeteria xplan
xexcept: xa. xno xincome xtax xwithholding x
b. no xsocial xsecurity xand xmedicare xtax xwithholding x
c. must xwithhold xincome, xsocial xsecurity, xand xmedicare xtaxes x
d. no xform xW2 xreporting x- xcorrect xanswers.C. xmust xwithhold xincome, xsocial xsecurity,
xand xmedicare xtaxes x
x
One xof xthe xoptions xin xan xemployee's xcafeteria xbenefit xplan xis xa xdependent xcare
xflexible xspending xaccount. xHe xearmarked x$100 xper xmonth xto xthe xaccount xto xpay
xfor xchild xcare xbut xspend xonly x$1000 xby xthe xend xof xthe xplans xgrace xperiod. xat xthe
xend xof xthe xgrace xperiod, xwhat xhappens xto xthe x$200 xleft xin xthe xaccount? xa. xthe
xamount xis xforfeited x
b. it xwill xbe xadded xto xhis xtaxable xincome x
c. he xcan xuse xit xto x"buy" xab xadditional xbenefit x
d. it xill xcarry xover xto xthe xnext xyear x- xcorrect xanswers.A. xthe xamount xis xforfeited x
x
x
Prior xto xbeginning xwork xfor xa xcompany, xa xchemical xengineer xsigned xa xcontract
xstating
that xshe xagreed xto xwork xas xan xindependent xcontractor. xshe xperforms xall xher xduties
xin xthe x
companys xlaboratories, xworks xunder xthe xcompanys xdirection, xand xmaintains xregular
xoffice xhours. xwhat xis xher xstatus? x
a. independent xcontractor xunder xcommon xlaw x
b. independent xcontractor xunder xreasonable xbasis xtest x
c. employee x- xcorrect xanswers.C. xemployee x
x
,do xnot xassume xthat xthe xemployer xhas xfulfilled xits xresponsibilities xand xis xfree xfrom
xpenalty x
simply xby xhaving xa xworker xsign xa xcontract xstating xhe xis xa x1099. xindividuals xdo xnot
xhave xa x
x
right xto xwaive xtheir xee xstatus xin xa
xcontract.
x
A xretired xsafety xinspector xfor xthe xcompany xwas xrehired xas xa xconsultant xwhen xthe
xcompany xexpanded xits xplant xoperations. xthe xretired xemployee xwas xa xnatural
xchoice. xthe xtasks xhe xundertook xas xa xconsultant xwere xthe xsame xas xthe xones xhe
xperformed xbefore xretirement. xpaid xmonthly, xhe xhas xagreed xto xwork xunder xthe
xdirection xof xhis xold xboss xuntil xthe xnew xplant xfacilitates xare xfully xoperational? xWhat
xis xhis xstatus? xa. xindependent xcontractor xunder xcommon xlaw x
b. independent xcontractor xunder xreasonable xbasis xtest x
c. employee x- xcorrect xanswers.C. xemployee x
x
consultants xare xgenerally xtreated xas xindependent xcontractors. xhowever, xwhen xan xex
xee x
is xperforming xthe xsame xor xsimilar xjob xas xbefore xretirement, xit xis xunlikely xthat xhe
xqualified x
x
as xa x1099 xafter
xtermination
x
a xreceptionist xhas xagreed xto xwork xafternoons xat xthe xcompany xuntil xthe xcompany xcan
xfind xa xfull xtime xreplacement. xwhat xis xthe xreceptionists xstatus? xa. xindependent
xcontractor xunder xcommon xlaw x x
b. independent xcontractor xunder xreasonable xbasis x
c. employee x- xcorrect xanswers.C. xemployee x
x
whether xor xnot xan xee xis xfull xtime xor xpart xtime xor xworks xa xfew xweeks xor xa xlifetime
xfor xthe x
x
company xis xnot xrelevant xher. xshe xis xan
xemployee.
x
All xof xthe xfollowing xtypes xof xemployees xare xclassified xas xexempt xfrom xthe
xFLSAs xmin xwage xand xOT xrequirements xexcept: xa. xprofessional x
b. outside xsalesperson x
c. administrative x
d. computer xrepairman x- xcorrect xanswers.D. xcomputer xrepairman x
x
a xcomputer xrepairman xdoes xnot xperform xthe xduties xrequired xto xqualify xas xan
xexempt x
x
computer
xprofessional
x
,a xwaitress xis xpaid x$2.25 xper xhour xand xshe xreceives x$225 xin xtips xduring xthe xweek.
xShe x
x
works x4o xhours xper xweek. xWhich xof xthe xfollowing xis
xtrue?
x
a. xher xemployer xis xallowed xto xreduce xher xcash xwage xto xno xless xthan x$2.13 xper
xhour
x
b. xher xbase xpay xmust xbe xincrease xto x$4.5 xper xhour xafter xa x90 xday xtraining
xperiod.
c. she xmust xbe xpaid x$5.12 xper xhour xby xher xemployer x
d. her xbase xsalary xmust xbe xraised xto x$3 xper xhour xto xcomply xwith xfed xmin xwage
xrequirements. x- xcorrect xanswers.A. xher xemployer xis xallowed xto xreduce xher xcash
xwage xto xno xless xthan x$2.13 xper xhour x
x
her xemployer xcan xclaim xthe xfull xfederal xtip xcredit xbecause xshe xreceives xtips xand xwith
xher x
tips, xis xpaid xmore xthan xthe xcurrent xfederal xminimum xwage xpurposes, xher xemployer
xmust x
x
pay xher xat xleast x$2.13 xper xhour xand xher xhourly xrate xplus xtips xmust xequal xat
xleast xthe
x
current xfederal xmin
xwage
x
if xa xstate xsets xthe xminimum xwage xat xa xrate xgreater xthan xthe xfederal xminimum xwage,
xthe x
x
state xminimum xwage xmust xbe xpaid xto xworkers xin xthat
xstate
x
-
xtrue
x
-false x- xcorrect
xanswers.TRUE
x
tips xcan xbe xcounted xtoward xthe xemployees xminimum xwage x- xcorrect xanswers.TRUE x
x
an xemployee xworks x40 xhours xper xweek xas xa xfry xcook. xduring xthe xweek, xshe
xsubstitutes x
x
for xone xof xthe xwaitresses xand xreports x$5 xper xweek xin xtips. xcan xher xemployer xpay
xher
x
$2.13 xper
xhour?
x x
-
xyes
x x
- xno x- xcorrect
xanswers.no
x
, because xshe xisnt xmaking x$30 xa xmonth. xthe xtip xcredit xcan xbe xused xto xreduce xthe
xminimum xwage xonly xif xthe xemployee xregularly xreceives xtips xand xdocuments
xreceiving xmore xthan x$30/month x
x
employers xwho xprovide xpaid xvacation xleave xmust xcount xthe xhours xof xpaid xtime xoff
xwhen xdetermining xif xthe xemployee xmust xreceive xan xovertime xpremium xwhen xthe
xtotal xhours xworked xin xa xweek xexceed x40. xtrue x
false x- xcorrect xanswers.false x
x
only xhours xworked xcount xtoward xdetermining xwhether xovertime xpremiums xmust xbe
xpaid x
x
under xthe
xFLSA
x
the xFLSA xrequires ximmediate xpayment xof xan xemployees xfinal xpaycheck
xupon x
x
termination
x
true
x
false x- xcorrect
xanswers.FALSE
x
however, xmost xstates ximpose xtime xlimits xgoverning xwhen xan xemployees xfinal
xpaycheck x
x
must xbe xpaid xto xthe
xemployee
x
x
an xemployee's xparking xgarage xis x2 xblocks xaway xfrom xhis xdowntown xoffice. xit
xcosts
$275/month xto xrent xa xstall xthere, xbut xthe xemployee xdoesn't xmind xbecause xits
xconvenient x
and xhis xemployer xreimburses xhim x100% xof xthe xcost. xHow xmuch xof xhis xmonthly
xparking xis x
x
taxable? x- xcorrect
xanswers.$15.
x
remember: xemployer-provided xparking xis xnontaxable xup xto x$260/month x
x
a xretail xsales xclerk xtook xadvantage xof xthe xcompany's xemployee xdiscount
xprogram xto x
x
purchase xclothes xat x10% xoff xthe xnormal xretail xprice. xthis xservice
xrepresents:
x
a. xtaxable
xcompensation
x
b. xa xqualified xemployee
xdiscount
x
x
x
FPC Practice questions with complete
x x x x x
solutions 100% guaranteed success.
x x x x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
cafeteria xplan xare xauthorized xby xwhat xInternal xRevenue xCode xSection? x
A. 125 x
B. 401k x
C. 403b x
D. 457b x- xcorrect xanswers.a. x125 x
x
all xof xthe xfollowing xare xtax ximplications xof xa xcafeteria xplan
xexcept: xa. xno xincome xtax xwithholding x
b. no xsocial xsecurity xand xmedicare xtax xwithholding x
c. must xwithhold xincome, xsocial xsecurity, xand xmedicare xtaxes x
d. no xform xW2 xreporting x- xcorrect xanswers.C. xmust xwithhold xincome, xsocial xsecurity,
xand xmedicare xtaxes x
x
One xof xthe xoptions xin xan xemployee's xcafeteria xbenefit xplan xis xa xdependent xcare
xflexible xspending xaccount. xHe xearmarked x$100 xper xmonth xto xthe xaccount xto xpay
xfor xchild xcare xbut xspend xonly x$1000 xby xthe xend xof xthe xplans xgrace xperiod. xat xthe
xend xof xthe xgrace xperiod, xwhat xhappens xto xthe x$200 xleft xin xthe xaccount? xa. xthe
xamount xis xforfeited x
b. it xwill xbe xadded xto xhis xtaxable xincome x
c. he xcan xuse xit xto x"buy" xab xadditional xbenefit x
d. it xill xcarry xover xto xthe xnext xyear x- xcorrect xanswers.A. xthe xamount xis xforfeited x
x
x
Prior xto xbeginning xwork xfor xa xcompany, xa xchemical xengineer xsigned xa xcontract
xstating
that xshe xagreed xto xwork xas xan xindependent xcontractor. xshe xperforms xall xher xduties
xin xthe x
companys xlaboratories, xworks xunder xthe xcompanys xdirection, xand xmaintains xregular
xoffice xhours. xwhat xis xher xstatus? x
a. independent xcontractor xunder xcommon xlaw x
b. independent xcontractor xunder xreasonable xbasis xtest x
c. employee x- xcorrect xanswers.C. xemployee x
x
,do xnot xassume xthat xthe xemployer xhas xfulfilled xits xresponsibilities xand xis xfree xfrom
xpenalty x
simply xby xhaving xa xworker xsign xa xcontract xstating xhe xis xa x1099. xindividuals xdo xnot
xhave xa x
x
right xto xwaive xtheir xee xstatus xin xa
xcontract.
x
A xretired xsafety xinspector xfor xthe xcompany xwas xrehired xas xa xconsultant xwhen xthe
xcompany xexpanded xits xplant xoperations. xthe xretired xemployee xwas xa xnatural
xchoice. xthe xtasks xhe xundertook xas xa xconsultant xwere xthe xsame xas xthe xones xhe
xperformed xbefore xretirement. xpaid xmonthly, xhe xhas xagreed xto xwork xunder xthe
xdirection xof xhis xold xboss xuntil xthe xnew xplant xfacilitates xare xfully xoperational? xWhat
xis xhis xstatus? xa. xindependent xcontractor xunder xcommon xlaw x
b. independent xcontractor xunder xreasonable xbasis xtest x
c. employee x- xcorrect xanswers.C. xemployee x
x
consultants xare xgenerally xtreated xas xindependent xcontractors. xhowever, xwhen xan xex
xee x
is xperforming xthe xsame xor xsimilar xjob xas xbefore xretirement, xit xis xunlikely xthat xhe
xqualified x
x
as xa x1099 xafter
xtermination
x
a xreceptionist xhas xagreed xto xwork xafternoons xat xthe xcompany xuntil xthe xcompany xcan
xfind xa xfull xtime xreplacement. xwhat xis xthe xreceptionists xstatus? xa. xindependent
xcontractor xunder xcommon xlaw x x
b. independent xcontractor xunder xreasonable xbasis x
c. employee x- xcorrect xanswers.C. xemployee x
x
whether xor xnot xan xee xis xfull xtime xor xpart xtime xor xworks xa xfew xweeks xor xa xlifetime
xfor xthe x
x
company xis xnot xrelevant xher. xshe xis xan
xemployee.
x
All xof xthe xfollowing xtypes xof xemployees xare xclassified xas xexempt xfrom xthe
xFLSAs xmin xwage xand xOT xrequirements xexcept: xa. xprofessional x
b. outside xsalesperson x
c. administrative x
d. computer xrepairman x- xcorrect xanswers.D. xcomputer xrepairman x
x
a xcomputer xrepairman xdoes xnot xperform xthe xduties xrequired xto xqualify xas xan
xexempt x
x
computer
xprofessional
x
,a xwaitress xis xpaid x$2.25 xper xhour xand xshe xreceives x$225 xin xtips xduring xthe xweek.
xShe x
x
works x4o xhours xper xweek. xWhich xof xthe xfollowing xis
xtrue?
x
a. xher xemployer xis xallowed xto xreduce xher xcash xwage xto xno xless xthan x$2.13 xper
xhour
x
b. xher xbase xpay xmust xbe xincrease xto x$4.5 xper xhour xafter xa x90 xday xtraining
xperiod.
c. she xmust xbe xpaid x$5.12 xper xhour xby xher xemployer x
d. her xbase xsalary xmust xbe xraised xto x$3 xper xhour xto xcomply xwith xfed xmin xwage
xrequirements. x- xcorrect xanswers.A. xher xemployer xis xallowed xto xreduce xher xcash
xwage xto xno xless xthan x$2.13 xper xhour x
x
her xemployer xcan xclaim xthe xfull xfederal xtip xcredit xbecause xshe xreceives xtips xand xwith
xher x
tips, xis xpaid xmore xthan xthe xcurrent xfederal xminimum xwage xpurposes, xher xemployer
xmust x
x
pay xher xat xleast x$2.13 xper xhour xand xher xhourly xrate xplus xtips xmust xequal xat
xleast xthe
x
current xfederal xmin
xwage
x
if xa xstate xsets xthe xminimum xwage xat xa xrate xgreater xthan xthe xfederal xminimum xwage,
xthe x
x
state xminimum xwage xmust xbe xpaid xto xworkers xin xthat
xstate
x
-
xtrue
x
-false x- xcorrect
xanswers.TRUE
x
tips xcan xbe xcounted xtoward xthe xemployees xminimum xwage x- xcorrect xanswers.TRUE x
x
an xemployee xworks x40 xhours xper xweek xas xa xfry xcook. xduring xthe xweek, xshe
xsubstitutes x
x
for xone xof xthe xwaitresses xand xreports x$5 xper xweek xin xtips. xcan xher xemployer xpay
xher
x
$2.13 xper
xhour?
x x
-
xyes
x x
- xno x- xcorrect
xanswers.no
x
, because xshe xisnt xmaking x$30 xa xmonth. xthe xtip xcredit xcan xbe xused xto xreduce xthe
xminimum xwage xonly xif xthe xemployee xregularly xreceives xtips xand xdocuments
xreceiving xmore xthan x$30/month x
x
employers xwho xprovide xpaid xvacation xleave xmust xcount xthe xhours xof xpaid xtime xoff
xwhen xdetermining xif xthe xemployee xmust xreceive xan xovertime xpremium xwhen xthe
xtotal xhours xworked xin xa xweek xexceed x40. xtrue x
false x- xcorrect xanswers.false x
x
only xhours xworked xcount xtoward xdetermining xwhether xovertime xpremiums xmust xbe
xpaid x
x
under xthe
xFLSA
x
the xFLSA xrequires ximmediate xpayment xof xan xemployees xfinal xpaycheck
xupon x
x
termination
x
true
x
false x- xcorrect
xanswers.FALSE
x
however, xmost xstates ximpose xtime xlimits xgoverning xwhen xan xemployees xfinal
xpaycheck x
x
must xbe xpaid xto xthe
xemployee
x
x
an xemployee's xparking xgarage xis x2 xblocks xaway xfrom xhis xdowntown xoffice. xit
xcosts
$275/month xto xrent xa xstall xthere, xbut xthe xemployee xdoesn't xmind xbecause xits
xconvenient x
and xhis xemployer xreimburses xhim x100% xof xthe xcost. xHow xmuch xof xhis xmonthly
xparking xis x
x
taxable? x- xcorrect
xanswers.$15.
x
remember: xemployer-provided xparking xis xnontaxable xup xto x$260/month x
x
a xretail xsales xclerk xtook xadvantage xof xthe xcompany's xemployee xdiscount
xprogram xto x
x
purchase xclothes xat x10% xoff xthe xnormal xretail xprice. xthis xservice
xrepresents:
x
a. xtaxable
xcompensation
x
b. xa xqualified xemployee
xdiscount
