FPC Exam Fundamental Payroll Practice Questions and Answers

FPC Exam Fundamental Payroll Practice Questions and Answers 668-W - Correct Answer️️ -Notice of Levy on Wages, Salary, and Other Income 1096 - Correct Answer️️ -Annual Summary and Transmittal of U.S. Information Returns Under the FLSA how old must a minor be to be employed? - Correct Answer️️ -14 What is the FUTA tax rate? - Correct Answer️️ -6.0% On form 941, the employer reports - Correct Answer️️ -Social Security Wages What is the formula for calculating an employees net pay? - Correct Answer️️ -Gross pay-deductions for taxes- other deductions Which plan discriminates in favor of highly compensated employees? - Correct Answer️️ -Nonqualified deferred compensation plans What is the federal minimum wage per hour on January 1, 2018? - Correct Answer️️ - $7.25 What law determines time limits with which employees must be paid after wages are earned? - Correct Answer️️ -State Laws Cafeteria plans are authorized by what internal revenue code section? - Correct Answer️️ -125 The direct deposit data sent to the bank after payroll processing is an example of - Correct Answer️️ -Interface What taxes, if any, must be withheld from payments to an independent contractor who provided a tin? - Correct Answer️️ -No taxes are withheld An external audit: - Correct Answer️️ -Allows an objective assessment of the financial statements. Employees' privacy rights are governed by all of the following except: - Correct Answer️️ -Local Legislation Under the FLSA, what basis is used to determine whether a non-exempt employee is to be paid overtime? - Correct Answer️️ -Hours worked in a work week Overtime payments are included in the calculation of what tax, if any? - Correct Answer️️ -They are included in all tax calculations What is the 2018 wage base for social security tax? - Correct Answer️️ -$128,400.00 If an employee does not have federal tax withheld and has not claimed exempt, what must the employer do? - Correct Answer️️ -Provide the employee with the EITC notice A computerized payroll system can help a payroll dept. accomplish all of the following tasks except: - Correct Answer️️ -Recognize changes in laws and regulations An employee's profit sharing bonus is payable in the year following his death. How should the bonus be taxed and reported? - Correct Answer️️ -Withhold no taxes and report the bonus on for 1099-misc. In what ways can a computerized system increase the accuracy of employees paychecks? - Correct Answer️️ -By reducing human error What federal taxes must an employer withhold from an employe