FPC Payroll Concepts UPDATED ACTUAL
Exam Questions and CORRECT Answers
Workweek - CORRECT ANSWER - Consists of 7 consecutive 24 hour periods; a 168
hour period. Employers set when it begins. Intended to be permanent but can be changed when a
business need occurs.
W9 - CORRECT ANSWER - Request for taxpayer ID number and certification. Is used by
a payee to provide their taxpayer ID number (TIN) which can be a SSN or EIN
Minimum weekly exempt salary - CORRECT ANSWER - Under the FLSA white collar
exemption rules, exempt employees must be paid at least $455/week. Teachers, lawyers, &
attorneys are not required to be paid a salary
Traits of EE - CORRECT ANSWER - Has taxes withheld from wages
Reimbursed for expenses
Complies with ER's instructions about when, where, and how to work
Work is done personally
Performs services under ER's name
8/80 Rule - CORRECT ANSWER - FLSA rule. Workweek exception for hospitals and
nursing homes. ERs using this rule pay OT for work over 8 hrs/day or 80 hrs in 2 week period
Everify - CORRECT ANSWER - Online tool that allows verification of new hire's identity
and eligibility to work in the US. Government contractors and employers in some states are
required to use this
minimum pay tipped EE - CORRECT ANSWER - _____ may be paid no less than
$2.13/hr
Minimum meal period - CORRECT ANSWER - 30 minutes of uninterrupted time
, exempt EE - CORRECT ANSWER - Under FLSA, ____ perform job duties meeting
certain requirements and be paid a weekly salary of $455/week. Exempt from minimum wage &
OT
Independent contractor - CORRECT ANSWER - Sets own hrs
determines sequence of work
works for multiple organizations
self-employed
works by the job
employs assistants
W4 - CORRECT ANSWER - EE's withholding allowance certificate. Is used by EEs to
provide their ER their name, address, SSN, marital status and allowances. May also indicate
exempt status. Must be completed before 1st PR calced to avoid havint FIT calced with Single/0.
Non discretionary bonus - CORRECT ANSWER - Contractual or agreed upon bonus or
incentive. ___ paid to nonexempt EEs are included in the RRoP in week earned
FMLA leave - CORRECT ANSWER - Guarantees eligible EEs 12 weeks of unpaid leave
in a 12 month period
2 FSLA tests - CORRECT ANSWER - Enterprise coverage test and individual employee
coverage test
Child labor under 18 - CORRECT ANSWER - Restricts minors under the age of 18 from
working in a job that has been declared hazardous by the DOL
Reasonable basis test - CORRECT ANSWER - allows a worker classified as an EE under
the common law test to be treated as an independent contractor
Exam Questions and CORRECT Answers
Workweek - CORRECT ANSWER - Consists of 7 consecutive 24 hour periods; a 168
hour period. Employers set when it begins. Intended to be permanent but can be changed when a
business need occurs.
W9 - CORRECT ANSWER - Request for taxpayer ID number and certification. Is used by
a payee to provide their taxpayer ID number (TIN) which can be a SSN or EIN
Minimum weekly exempt salary - CORRECT ANSWER - Under the FLSA white collar
exemption rules, exempt employees must be paid at least $455/week. Teachers, lawyers, &
attorneys are not required to be paid a salary
Traits of EE - CORRECT ANSWER - Has taxes withheld from wages
Reimbursed for expenses
Complies with ER's instructions about when, where, and how to work
Work is done personally
Performs services under ER's name
8/80 Rule - CORRECT ANSWER - FLSA rule. Workweek exception for hospitals and
nursing homes. ERs using this rule pay OT for work over 8 hrs/day or 80 hrs in 2 week period
Everify - CORRECT ANSWER - Online tool that allows verification of new hire's identity
and eligibility to work in the US. Government contractors and employers in some states are
required to use this
minimum pay tipped EE - CORRECT ANSWER - _____ may be paid no less than
$2.13/hr
Minimum meal period - CORRECT ANSWER - 30 minutes of uninterrupted time
, exempt EE - CORRECT ANSWER - Under FLSA, ____ perform job duties meeting
certain requirements and be paid a weekly salary of $455/week. Exempt from minimum wage &
OT
Independent contractor - CORRECT ANSWER - Sets own hrs
determines sequence of work
works for multiple organizations
self-employed
works by the job
employs assistants
W4 - CORRECT ANSWER - EE's withholding allowance certificate. Is used by EEs to
provide their ER their name, address, SSN, marital status and allowances. May also indicate
exempt status. Must be completed before 1st PR calced to avoid havint FIT calced with Single/0.
Non discretionary bonus - CORRECT ANSWER - Contractual or agreed upon bonus or
incentive. ___ paid to nonexempt EEs are included in the RRoP in week earned
FMLA leave - CORRECT ANSWER - Guarantees eligible EEs 12 weeks of unpaid leave
in a 12 month period
2 FSLA tests - CORRECT ANSWER - Enterprise coverage test and individual employee
coverage test
Child labor under 18 - CORRECT ANSWER - Restricts minors under the age of 18 from
working in a job that has been declared hazardous by the DOL
Reasonable basis test - CORRECT ANSWER - allows a worker classified as an EE under
the common law test to be treated as an independent contractor
