FPC Exam Chapter 1 ACTUAL Exam
Questions and CORRECT Answers
What taxes, if any, must be withheld from an employee's pay? - CORRECT ANSWER -
Federal income, social security and Medicare
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN? -
CORRECT ANSWER - No taxes are withheld
Who has the responsibility to determine if the worker is an employee or independent contractor?
- CORRECT ANSWER - Employer
Prior to beginning work for a company, a chemical engineer signed a contract stating she agreed
to work as an independent contractor. She performs all her duties in the company laboratories,
where she has full access to the company's testing equipment. She works under the company's
direction and maintains regular office hours. What is her status? - CORRECT ANSWER -
Employee
A retired safety inspector for the company was rehired as a consultant when the company
expanded its plant operations. The retired employee was a natural choice. The tasks he undertook
as a consultant were the same as the ones he performed before retirement. Paid monthly, he has
agreed to work under the direction of his old boss until the new plant facilities are fully
operational. What is his status? - CORRECT ANSWER - Employee
A receptionist has agreed to work afternoons at the company until the company can find a full-
time replacement. What is the receptionist's status? - CORRECT ANSWER - Employee
What are exempt employees exempt from? - CORRECT ANSWER - minimum wage and
overtime
All of the following types of employees are classified as exempt from FLSA's minimum wage
and overtime requirements except: Professional, Outside salesperson, Administrative, Computer
repairman. - CORRECT ANSWER - Computer repairman
, A waitress is paid $2.25 per hour, and she receives $225.00 in tips during the week. She works
40 hours per week. Which of the following is true? - CORRECT ANSWER - Her
employer is allowed to reduce her cash wage to no less than $2.13 per hour.
If a state sets the minimum wage at a rate greater than the federal minimum wage the state
minimum wage must be paid to workers in that state. True or False - CORRECT
ANSWER - True
A nonexempt employee works in a state with a minimum wage of $7.35 per hour, while living in
a state with a minimum wage of $8.05. What is the minimum rate he must be paid? - CORRECT
ANSWER - $7.35
Tips can be counted toward the employee's minimum wage. True or False - CORRECT
ANSWER - True
An employee works 40 hours per week as a fry cook. During the week, she substitutes for one of
the waitresses and reports $5.00 per week in tips. Can her employer pay her $2.13 per hour? Y or
N - CORRECT ANSWER - No
Employers who provide paid vacation leave must count the hours of paid time off when
determining if the employee must receive an overtime premium when the total hours worked in a
week exceed 40. T or F - CORRECT ANSWER - False
The FLSA requires immediate payment of an employee's final paycheck upon termination. T or F
- CORRECT ANSWER - False
The FLSA requires that time worked on Saturday be paid at overtime and time worked on
Sunday be paid at double time rates. T or F - CORRECT ANSWER - False
If a state wage and hour law requires that a nonexempt employee be paid an overtime premium
when the employee works more than 8 hours in a day and the employee works the following
schedule, how many overtime hours must be paid?
Questions and CORRECT Answers
What taxes, if any, must be withheld from an employee's pay? - CORRECT ANSWER -
Federal income, social security and Medicare
What taxes, if any, must be withheld from an independent contractor's pay who provides a TIN? -
CORRECT ANSWER - No taxes are withheld
Who has the responsibility to determine if the worker is an employee or independent contractor?
- CORRECT ANSWER - Employer
Prior to beginning work for a company, a chemical engineer signed a contract stating she agreed
to work as an independent contractor. She performs all her duties in the company laboratories,
where she has full access to the company's testing equipment. She works under the company's
direction and maintains regular office hours. What is her status? - CORRECT ANSWER -
Employee
A retired safety inspector for the company was rehired as a consultant when the company
expanded its plant operations. The retired employee was a natural choice. The tasks he undertook
as a consultant were the same as the ones he performed before retirement. Paid monthly, he has
agreed to work under the direction of his old boss until the new plant facilities are fully
operational. What is his status? - CORRECT ANSWER - Employee
A receptionist has agreed to work afternoons at the company until the company can find a full-
time replacement. What is the receptionist's status? - CORRECT ANSWER - Employee
What are exempt employees exempt from? - CORRECT ANSWER - minimum wage and
overtime
All of the following types of employees are classified as exempt from FLSA's minimum wage
and overtime requirements except: Professional, Outside salesperson, Administrative, Computer
repairman. - CORRECT ANSWER - Computer repairman
, A waitress is paid $2.25 per hour, and she receives $225.00 in tips during the week. She works
40 hours per week. Which of the following is true? - CORRECT ANSWER - Her
employer is allowed to reduce her cash wage to no less than $2.13 per hour.
If a state sets the minimum wage at a rate greater than the federal minimum wage the state
minimum wage must be paid to workers in that state. True or False - CORRECT
ANSWER - True
A nonexempt employee works in a state with a minimum wage of $7.35 per hour, while living in
a state with a minimum wage of $8.05. What is the minimum rate he must be paid? - CORRECT
ANSWER - $7.35
Tips can be counted toward the employee's minimum wage. True or False - CORRECT
ANSWER - True
An employee works 40 hours per week as a fry cook. During the week, she substitutes for one of
the waitresses and reports $5.00 per week in tips. Can her employer pay her $2.13 per hour? Y or
N - CORRECT ANSWER - No
Employers who provide paid vacation leave must count the hours of paid time off when
determining if the employee must receive an overtime premium when the total hours worked in a
week exceed 40. T or F - CORRECT ANSWER - False
The FLSA requires immediate payment of an employee's final paycheck upon termination. T or F
- CORRECT ANSWER - False
The FLSA requires that time worked on Saturday be paid at overtime and time worked on
Sunday be paid at double time rates. T or F - CORRECT ANSWER - False
If a state wage and hour law requires that a nonexempt employee be paid an overtime premium
when the employee works more than 8 hours in a day and the employee works the following
schedule, how many overtime hours must be paid?
