FPC Post Test
Employers may provide qualified transportation fringe benefits for:
A. monthly commuter passes valued at $275.00.
B. bicycle commuting not to exceed $20.00 per month.
C. employer-provided cash advances for subway passes.
D. transit passes purchased through the company cafeteria plan on a pre-tax basis. - ANS-B.
bicycle commuting not to exceed $20.00 per month.
All of the following benefits are taxable EXCEPT:
A. company-paid transit pass valued at $50.00 per month.
B. an incentive sales award.
C. company-paid premiums for $10,000.00 in dependent group-term life insurance.
D. reimbursements for meal expenses incurred during relocation. - ANS-A. company-paid
transit pass valued at $50.00 per month.
Under the FLSA white-collar exemption rules, an exempt outside sales employee must meet all
of the following requirements EXCEPT:
A. obtaining orders as the employee's primary duty.
B. being paid a salary of at least $455.00 a week.
C. regularly working away from the employer's place of business.
D. making sales as the employee's primary duty. - ANS-B. being paid a salary of at least
$455.00 a week.
A nonexempt employee works a total of 38 hours for the week including a shift from midnight to
8:00 a.m. on a federal holiday. Under the FLSA, the employee must be paid:
A. double time for working the night shift on a holiday.
B. the federal minimum wage.
C. a shift differential for working the late-night shift.
D. time and one-half for working on a holiday. - ANS-B. the federal minimum wage.
An employee earns $50,000.00 annually and is paid monthly. Last pay period, the employee
had the following deductions: federal income tax $579.00, state income tax $203.00, social
security tax $252.22, Medicare tax $58.99, pre-tax health insurance $98.63, and union dues
$15.00. The employer receives a child support order against the employee for $1,900.00 per
month. The employee is not in arrears and is not supporting another family. Calculate the
employee's child support order deduction - ANS-$1,844.08
,$50, (months) = $4,166.67
$4166.67 - $579 -$203 -$252.22 -$58.99 = $3073.46
Max Child Support = 60%
60% of $3,073.46 = $1,844.08
Under IRCA, which of the following employee records must be retained?
A. Date marital status changed
B. Number of children
C. Hire date
D. Spouse's name - ANS-C. Hire date
Which of the following benefits is subject to federal income tax?
A. Qualified retirement advice services
B. Qualified moving expense reimbursements
C. Working condition fringes
D. Personal use of a company vehicle - ANS-D. Personal use of a company vehicle
Payroll's primary product - the paycheck - must be:
A. accurate only.
B. timely only.
C. timely and accurate.
D. processed electronically - ANS-C. timely and accurate.
If the FUTA tax liability for a quarter is less than $500.00, the taxes must be deposited:
A. by the last day of the quarter.
B. by the 15th of the month following the end of the quarter.
C. by the end of the month following the end of the quarter.
D. with the next quarter's liability if the total liability exceeds $500.00. - ANS-D. with the next
quarter's liability if the total liability exceeds $500.00.
An employee has elected to have $200.00 per month contributed to a medical flexible spending
account. At the end of the plan year's grace period, $100.00 remains in the account. What
happens to the $100.00?
A. The amount can be received in cash without taxation.
B. The amount becomes taxable income.
C. The amount can be carried over to the next plan year without amending the plan.
D. The amount is forfeited by the employee. - ANS-D. The amount is forfeited by the employee.
, A company making its federal tax deposits via EFTPS has elected to have its bank initiate the
transactions. This method is defined as:
A. Direct Deposit.
B. EFTPS-Through a Financial Institution.
C. Electronic Tax Application.
D. EFTPS-Direct. - ANS-B. EFTPS-Through a Financial Institution.
An employee parks a car in a parking garage close to the office with the employer paying 80%
of the parking costs. The monthly cost of the parking is $240.00. Calculate the value of the
parking that is included in the employee's income. - ANS-$0.00
Employer pays up to $255.00 for parking
The first step in setting up an employee's direct deposit is to:
A. set up an ACH file.
B. transmit payments to the ODFI.
C. secure the employee's authorization.
D. prenote the employee's information. - ANS-C. secure the employee's authorization.
An employee rides 470 miles each month to work in a company provided van, which seats
seven passengers. The employer has organized a vanpool, offering rides to four other
employees. The employer reimburses the employee for the commuting expenses at the
cents-per-mile method. Calculate the amount of commuting reimbursement that is taxable. -
ANS-$0.00
470 * 0.54 = $253.80
Company covers up to 255.00 for company vehicles
How frequently does federal law require master files to be updated?
A. Every day
B. Every week
C. Every pay period
D. There are no federal requirements for the frequency of updates - ANS-D. There are no
federal requirements for the frequency of updates
When batching data, all of the following actions occur EXCEPT:
A. immediate update of data entered.
B. developing totals.
C. grouping similar data.
Employers may provide qualified transportation fringe benefits for:
A. monthly commuter passes valued at $275.00.
B. bicycle commuting not to exceed $20.00 per month.
C. employer-provided cash advances for subway passes.
D. transit passes purchased through the company cafeteria plan on a pre-tax basis. - ANS-B.
bicycle commuting not to exceed $20.00 per month.
All of the following benefits are taxable EXCEPT:
A. company-paid transit pass valued at $50.00 per month.
B. an incentive sales award.
C. company-paid premiums for $10,000.00 in dependent group-term life insurance.
D. reimbursements for meal expenses incurred during relocation. - ANS-A. company-paid
transit pass valued at $50.00 per month.
Under the FLSA white-collar exemption rules, an exempt outside sales employee must meet all
of the following requirements EXCEPT:
A. obtaining orders as the employee's primary duty.
B. being paid a salary of at least $455.00 a week.
C. regularly working away from the employer's place of business.
D. making sales as the employee's primary duty. - ANS-B. being paid a salary of at least
$455.00 a week.
A nonexempt employee works a total of 38 hours for the week including a shift from midnight to
8:00 a.m. on a federal holiday. Under the FLSA, the employee must be paid:
A. double time for working the night shift on a holiday.
B. the federal minimum wage.
C. a shift differential for working the late-night shift.
D. time and one-half for working on a holiday. - ANS-B. the federal minimum wage.
An employee earns $50,000.00 annually and is paid monthly. Last pay period, the employee
had the following deductions: federal income tax $579.00, state income tax $203.00, social
security tax $252.22, Medicare tax $58.99, pre-tax health insurance $98.63, and union dues
$15.00. The employer receives a child support order against the employee for $1,900.00 per
month. The employee is not in arrears and is not supporting another family. Calculate the
employee's child support order deduction - ANS-$1,844.08
,$50, (months) = $4,166.67
$4166.67 - $579 -$203 -$252.22 -$58.99 = $3073.46
Max Child Support = 60%
60% of $3,073.46 = $1,844.08
Under IRCA, which of the following employee records must be retained?
A. Date marital status changed
B. Number of children
C. Hire date
D. Spouse's name - ANS-C. Hire date
Which of the following benefits is subject to federal income tax?
A. Qualified retirement advice services
B. Qualified moving expense reimbursements
C. Working condition fringes
D. Personal use of a company vehicle - ANS-D. Personal use of a company vehicle
Payroll's primary product - the paycheck - must be:
A. accurate only.
B. timely only.
C. timely and accurate.
D. processed electronically - ANS-C. timely and accurate.
If the FUTA tax liability for a quarter is less than $500.00, the taxes must be deposited:
A. by the last day of the quarter.
B. by the 15th of the month following the end of the quarter.
C. by the end of the month following the end of the quarter.
D. with the next quarter's liability if the total liability exceeds $500.00. - ANS-D. with the next
quarter's liability if the total liability exceeds $500.00.
An employee has elected to have $200.00 per month contributed to a medical flexible spending
account. At the end of the plan year's grace period, $100.00 remains in the account. What
happens to the $100.00?
A. The amount can be received in cash without taxation.
B. The amount becomes taxable income.
C. The amount can be carried over to the next plan year without amending the plan.
D. The amount is forfeited by the employee. - ANS-D. The amount is forfeited by the employee.
, A company making its federal tax deposits via EFTPS has elected to have its bank initiate the
transactions. This method is defined as:
A. Direct Deposit.
B. EFTPS-Through a Financial Institution.
C. Electronic Tax Application.
D. EFTPS-Direct. - ANS-B. EFTPS-Through a Financial Institution.
An employee parks a car in a parking garage close to the office with the employer paying 80%
of the parking costs. The monthly cost of the parking is $240.00. Calculate the value of the
parking that is included in the employee's income. - ANS-$0.00
Employer pays up to $255.00 for parking
The first step in setting up an employee's direct deposit is to:
A. set up an ACH file.
B. transmit payments to the ODFI.
C. secure the employee's authorization.
D. prenote the employee's information. - ANS-C. secure the employee's authorization.
An employee rides 470 miles each month to work in a company provided van, which seats
seven passengers. The employer has organized a vanpool, offering rides to four other
employees. The employer reimburses the employee for the commuting expenses at the
cents-per-mile method. Calculate the amount of commuting reimbursement that is taxable. -
ANS-$0.00
470 * 0.54 = $253.80
Company covers up to 255.00 for company vehicles
How frequently does federal law require master files to be updated?
A. Every day
B. Every week
C. Every pay period
D. There are no federal requirements for the frequency of updates - ANS-D. There are no
federal requirements for the frequency of updates
When batching data, all of the following actions occur EXCEPT:
A. immediate update of data entered.
B. developing totals.
C. grouping similar data.
