California Payroll Administrator Certification Exam
Test Questions And Correct Answers (Verified
Answers) Plus Rationales 2025/2026 Q&A | Instant
Download Pdf
1. What is the current federal minimum wage in 2025?
A. $6.55
B. $7.25
C. $8.50
D. $15.00
The federal minimum wage is $7.25 per hour as of 2025, unless overridden by a
higher state minimum wage.
2. Which IRS form is used by employees to determine federal income tax
withholding?
A. 1099-MISC
B. W-4
C. W-2
D. 940
Form W-4 is completed by employees to determine how much federal income
tax to withhold from their paycheck.
, 3. What is the maximum amount of earnings subject to Social Security tax in
2025?
A. $137,700
B. $142,800
C. $168,600
D. Unlimited
As of 2025, the Social Security wage base limit is $168,600.
4. What is the current California state minimum wage for employers with 26
or more employees?
A. $13.00
B. $14.00
C. $16.00
D. $17.50
California’s minimum wage is $16.00 per hour for employers with 26 or more
employees as of 2025.
5. What does FICA stand for?
A. Federal Insurance Coverage Act
B. Federal Insurance Contributions Act
C. Federal Income Compliance Act
D. Federal Internal Compensation Agreement
FICA stands for Federal Insurance Contributions Act, which funds Social Security
and Medicare.
, 6. When must final wages be paid to an employee who is terminated in
California?
A. Within 48 hours
B. Immediately
C. Within 5 days
D. At the next scheduled payday
Under California law, final wages must be paid immediately upon termination.
7. What form must employers submit to report FUTA taxes?
A. W-3
B. 940
C. 941
D. DE 34
Form 940 is used to report and pay federal unemployment taxes (FUTA).
8. Which California agency handles state income tax withholding?
A. Department of Labor
B. Franchise Tax Bureau
C. Employment Development Department (EDD)
D. IRS
The California EDD administers state income tax withholding, unemployment,
and disability insurance.
9. What is the penalty for failing to provide a W-2 by the deadline?
A. $10 per form
B. $60–$310 per form depending on lateness
, C. No penalty
D. Flat $500
Penalties vary depending on how late the W-2 is issued, ranging from $60 to
$310 per form.
10.How often must employers deposit federal payroll taxes if they are semi-
weekly depositors?
A. Monthly
B. Quarterly
C. Within 3 banking days after payroll
D. Same day
Semi-weekly depositors must deposit taxes by the following Wednesday or
Friday depending on pay date.
11.Which form reports total annual wages and taxes withheld to employees?
A. 940
B. W-4
C. 1099
D. W-2
Form W-2 shows total annual wages and taxes withheld and must be issued to
employees by January 31.
12.What is California’s state unemployment insurance (UI) taxable wage base
in 2025?
A. $7,000
B. $7,000
Test Questions And Correct Answers (Verified
Answers) Plus Rationales 2025/2026 Q&A | Instant
Download Pdf
1. What is the current federal minimum wage in 2025?
A. $6.55
B. $7.25
C. $8.50
D. $15.00
The federal minimum wage is $7.25 per hour as of 2025, unless overridden by a
higher state minimum wage.
2. Which IRS form is used by employees to determine federal income tax
withholding?
A. 1099-MISC
B. W-4
C. W-2
D. 940
Form W-4 is completed by employees to determine how much federal income
tax to withhold from their paycheck.
, 3. What is the maximum amount of earnings subject to Social Security tax in
2025?
A. $137,700
B. $142,800
C. $168,600
D. Unlimited
As of 2025, the Social Security wage base limit is $168,600.
4. What is the current California state minimum wage for employers with 26
or more employees?
A. $13.00
B. $14.00
C. $16.00
D. $17.50
California’s minimum wage is $16.00 per hour for employers with 26 or more
employees as of 2025.
5. What does FICA stand for?
A. Federal Insurance Coverage Act
B. Federal Insurance Contributions Act
C. Federal Income Compliance Act
D. Federal Internal Compensation Agreement
FICA stands for Federal Insurance Contributions Act, which funds Social Security
and Medicare.
, 6. When must final wages be paid to an employee who is terminated in
California?
A. Within 48 hours
B. Immediately
C. Within 5 days
D. At the next scheduled payday
Under California law, final wages must be paid immediately upon termination.
7. What form must employers submit to report FUTA taxes?
A. W-3
B. 940
C. 941
D. DE 34
Form 940 is used to report and pay federal unemployment taxes (FUTA).
8. Which California agency handles state income tax withholding?
A. Department of Labor
B. Franchise Tax Bureau
C. Employment Development Department (EDD)
D. IRS
The California EDD administers state income tax withholding, unemployment,
and disability insurance.
9. What is the penalty for failing to provide a W-2 by the deadline?
A. $10 per form
B. $60–$310 per form depending on lateness
, C. No penalty
D. Flat $500
Penalties vary depending on how late the W-2 is issued, ranging from $60 to
$310 per form.
10.How often must employers deposit federal payroll taxes if they are semi-
weekly depositors?
A. Monthly
B. Quarterly
C. Within 3 banking days after payroll
D. Same day
Semi-weekly depositors must deposit taxes by the following Wednesday or
Friday depending on pay date.
11.Which form reports total annual wages and taxes withheld to employees?
A. 940
B. W-4
C. 1099
D. W-2
Form W-2 shows total annual wages and taxes withheld and must be issued to
employees by January 31.
12.What is California’s state unemployment insurance (UI) taxable wage base
in 2025?
A. $7,000
B. $7,000
