Exam 1 2025
Questions | Answers with Rationales
1. What federal agency is primarily responsible for enforcing the Fair Labor
Standards Act (FLSA)?
A. IRS
B. Department of Labor (DOL)
C. Social Security Administration
D. Equal Employment Opportunity Commission
The DOL enforces FLSA provisions, including minimum wage, overtime,
and child labor laws.
2. Which form is used by an employee to establish federal income tax
withholding?
A. Form 941
B. Form 1099-MISC
C. Form W-4
D. Form W-2
Form W-4 allows employees to declare withholding allowances for
calculating federal income tax.
3. What is the current federal minimum wage (as of 2025)?
A. $6.55
B. $7.25
, C. $7.25
D. $15.00
$7.25 is the federal minimum wage, although many states have set higher
minimums.
4. Which form reports quarterly federal income tax and FICA taxes withheld
from employee pay?
A. Form W-2
B. Form 941
C. Form 944
D. Form 940
Form 941 is used quarterly to report income taxes and FICA withheld.
5. Which tax is not subject to a wage base limit?
A. Social Security
B. Federal Unemployment Tax (FUTA)
C. State Unemployment Tax (SUTA)
D. Medicare
Medicare has no wage base limit, unlike Social Security and
unemployment taxes.
6. What is the wage base limit for Social Security tax in 2025?
A. $127,200
B. $168,600
C. $142,800
D. No limit
The Social Security wage base is annually adjusted; in 2025, it is $168,600.