Missouri Payroll Professional
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
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1. Which federal form is used to report quarterly federal payroll taxes?
A. Form W-2
B. Form 940
C. Form 941
D. Form 1099
Correct Answer: C
Rationale: Form 941 is used to report quarterly federal income tax,
Social Security, and Medicare taxes withheld from employee wages.
2. Which tax is split evenly between employer and employee under
FICA?
A. Federal unemployment tax
B. Medicare tax
, C. State income tax
D. Local occupational tax
Correct Answer: B
Rationale: Medicare tax under FICA is generally shared equally
between employer and employee.
3. What is the purpose of Form W-4?
A. Report annual wages
B. Determine employee tax withholding
C. Report unemployment tax
D. File quarterly payroll taxes
Correct Answer: B
Rationale: Form W-4 tells employers how much federal income tax to
withhold based on employee information.
4. Which agency administers federal unemployment tax (FUTA)?
A. IRS
B. Department of Labor
C. Social Security Administration
D. Missouri Department of Revenue
Correct Answer: A
Rationale: The IRS collects FUTA tax, although it funds federal and
state unemployment programs.
5. What is the standard payroll record retention period recommended by
the FLSA?
, A. 1 year
B. 2 years
C. 3 years
D. 7 years
Correct Answer: C
Rationale: The FLSA requires employers to keep payroll records for at
least 3 years.
6. Which payroll item is considered taxable wages?
A. Qualified moving expenses
B. Employer-paid health insurance premiums
C. Bonuses
D. Reimbursed business expenses
Correct Answer: C
Rationale: Bonuses are taxable wages subject to income and payroll
taxes.
7. What does FUTA stand for?
A. Federal Uniform Tax Act
B. Federal Unemployment Tax Act
C. Federal Utility Tax Assessment
D. Federal Underwriting Tax Agreement
Correct Answer: B
Rationale: FUTA is the Federal Unemployment Tax Act that funds
unemployment compensation.
, 8. Which form is provided to employees annually showing total wages
and taxes withheld?
A. Form 941
B. Form W-2
C. Form 940
D. Form 1096
Correct Answer: B
Rationale: Form W-2 summarizes annual wages and taxes withheld
for employees.
9. Which is NOT a deduction from gross pay?
A. Federal income tax
B. Social Security tax
C. Employer payroll tax
D. Medicare tax
Correct Answer: C
Rationale: Employer payroll taxes are not deducted from employee
wages.
10. Overtime under FLSA is generally paid at what rate?
A. Regular rate
B. 1.25 times regular rate
C. 1.5 times regular rate
D. 2 times regular rate
Correct Answer: C
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which federal form is used to report quarterly federal payroll taxes?
A. Form W-2
B. Form 940
C. Form 941
D. Form 1099
Correct Answer: C
Rationale: Form 941 is used to report quarterly federal income tax,
Social Security, and Medicare taxes withheld from employee wages.
2. Which tax is split evenly between employer and employee under
FICA?
A. Federal unemployment tax
B. Medicare tax
, C. State income tax
D. Local occupational tax
Correct Answer: B
Rationale: Medicare tax under FICA is generally shared equally
between employer and employee.
3. What is the purpose of Form W-4?
A. Report annual wages
B. Determine employee tax withholding
C. Report unemployment tax
D. File quarterly payroll taxes
Correct Answer: B
Rationale: Form W-4 tells employers how much federal income tax to
withhold based on employee information.
4. Which agency administers federal unemployment tax (FUTA)?
A. IRS
B. Department of Labor
C. Social Security Administration
D. Missouri Department of Revenue
Correct Answer: A
Rationale: The IRS collects FUTA tax, although it funds federal and
state unemployment programs.
5. What is the standard payroll record retention period recommended by
the FLSA?
, A. 1 year
B. 2 years
C. 3 years
D. 7 years
Correct Answer: C
Rationale: The FLSA requires employers to keep payroll records for at
least 3 years.
6. Which payroll item is considered taxable wages?
A. Qualified moving expenses
B. Employer-paid health insurance premiums
C. Bonuses
D. Reimbursed business expenses
Correct Answer: C
Rationale: Bonuses are taxable wages subject to income and payroll
taxes.
7. What does FUTA stand for?
A. Federal Uniform Tax Act
B. Federal Unemployment Tax Act
C. Federal Utility Tax Assessment
D. Federal Underwriting Tax Agreement
Correct Answer: B
Rationale: FUTA is the Federal Unemployment Tax Act that funds
unemployment compensation.
, 8. Which form is provided to employees annually showing total wages
and taxes withheld?
A. Form 941
B. Form W-2
C. Form 940
D. Form 1096
Correct Answer: B
Rationale: Form W-2 summarizes annual wages and taxes withheld
for employees.
9. Which is NOT a deduction from gross pay?
A. Federal income tax
B. Social Security tax
C. Employer payroll tax
D. Medicare tax
Correct Answer: C
Rationale: Employer payroll taxes are not deducted from employee
wages.
10. Overtime under FLSA is generally paid at what rate?
A. Regular rate
B. 1.25 times regular rate
C. 1.5 times regular rate
D. 2 times regular rate
Correct Answer: C
