FPC Exam Fundamental Payroll Exam
Actual Questions and Answers 2026
668-W -
correct answer ✅Notice of Levy on Wages, Salary, and Other
Income
1096 -
correct answer ✅Annual Summary and Transmittal of U.S.
Information Returns
Under the FLSA how old must a minor be to be employed? -
correct answer ✅14
What is the FUTA tax rate? -
correct answer ✅6.0%
On form 941, the employer reports -
correct answer ✅Social Security Wages
What is the formula for calculating an employees net pay? -
correct answer ✅Gross pay-deductions for taxes- other deductions
,FPC Exam Fundamental Payroll Exam
Actual Questions and Answers 2026
Which plan discriminates in favor of highly compensated
employees? -
correct answer ✅Nonqualified deferred compensation plans
What is the federal minimum wage per hour on January 1, 2018? -
correct answer ✅$7.25
What law determines time limits with which employees must be
paid after wages are earned? -
correct answer ✅State Laws
Cafeteria plans are authorized by what internal revenue code
section? -
correct answer ✅125
The direct deposit data sent to the bank after payroll processing is
an example of -
correct answer ✅Interface
What taxes, if any, must be withheld from payments to an
independent contractor who provided a tin? -
correct answer ✅No taxes are withheld
, FPC Exam Fundamental Payroll Exam
Actual Questions and Answers 2026
An external audit: -
correct answer ✅Allows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following
except: -
correct answer ✅Local Legislation
Under the FLSA, what basis is used to determine whether a non-
exempt employee is to be paid overtime? -
correct answer ✅Hours worked in a work week
Overtime payments are included in the calculation of what tax, if
any? -
correct answer ✅They are included in all tax calculations
What is the 2018 wage base for social security tax? -
correct answer ✅$128,400.00
Actual Questions and Answers 2026
668-W -
correct answer ✅Notice of Levy on Wages, Salary, and Other
Income
1096 -
correct answer ✅Annual Summary and Transmittal of U.S.
Information Returns
Under the FLSA how old must a minor be to be employed? -
correct answer ✅14
What is the FUTA tax rate? -
correct answer ✅6.0%
On form 941, the employer reports -
correct answer ✅Social Security Wages
What is the formula for calculating an employees net pay? -
correct answer ✅Gross pay-deductions for taxes- other deductions
,FPC Exam Fundamental Payroll Exam
Actual Questions and Answers 2026
Which plan discriminates in favor of highly compensated
employees? -
correct answer ✅Nonqualified deferred compensation plans
What is the federal minimum wage per hour on January 1, 2018? -
correct answer ✅$7.25
What law determines time limits with which employees must be
paid after wages are earned? -
correct answer ✅State Laws
Cafeteria plans are authorized by what internal revenue code
section? -
correct answer ✅125
The direct deposit data sent to the bank after payroll processing is
an example of -
correct answer ✅Interface
What taxes, if any, must be withheld from payments to an
independent contractor who provided a tin? -
correct answer ✅No taxes are withheld
, FPC Exam Fundamental Payroll Exam
Actual Questions and Answers 2026
An external audit: -
correct answer ✅Allows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following
except: -
correct answer ✅Local Legislation
Under the FLSA, what basis is used to determine whether a non-
exempt employee is to be paid overtime? -
correct answer ✅Hours worked in a work week
Overtime payments are included in the calculation of what tax, if
any? -
correct answer ✅They are included in all tax calculations
What is the 2018 wage base for social security tax? -
correct answer ✅$128,400.00
