FPC Exam Fundamental Payroll
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668-W - ANSWER✅✅Notice of Levy on Wages, Salary, and Other Income
1096 - ANSWER✅✅Annual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANSWER✅✅14
What is the FUTA tax rate? - ANSWER✅✅6.0%
On form 941, the employer reports - ANSWER✅✅Social Security Wages
What is the formula for calculating an employees net pay? - ANSWER✅✅Gross pay-
deductions for taxes- other deductions
Which plan discriminates in favor of highly compensated employees? -
ANSWER✅✅Nonqualified deferred compensation plans
, What is the federal minimum wage per hour on January 1, 2018? -
ANSWER✅✅$7.25
What law determines time limits with which employees must be paid after wages
are earned? - ANSWER✅✅State Laws
Cafeteria plans are authorized by what internal revenue code section? -
ANSWER✅✅125
The direct deposit data sent to the bank after payroll processing is an example of -
ANSWER✅✅Interface
What taxes, if any, must be withheld from payments to an independent contractor
who provided a tin? - ANSWER✅✅No taxes are withheld
An external audit: - ANSWER✅✅Allows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following except: -
ANSWER✅✅Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is
to be paid overtime? - ANSWER✅✅Hours worked in a work week
Overtime payments are included in the calculation of what tax, if any? -
ANSWER✅✅They are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER✅✅$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt,
what must the employer do? - ANSWER✅✅Provide the employee with the EITC
notice
A computerized payroll system can help a payroll dept. accomplish all of the
following tasks except: - ANSWER✅✅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? - ANSWER✅✅Withhold no taxes and
report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees
paychecks? - ANSWER✅✅By reducing human error
What federal taxes must an employer withhold from an employees reported tips? -
ANSWER✅✅Federal income, social security and medicare tax
The main purpose of batch controls is to - ANSWER✅✅Validate data entry accuracy
Exam, Latest Expert Premium
Update(2025-2026)|Brand New
Exam Questions with 100% Correct
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A+|>100% Guaranteed Success.
668-W - ANSWER✅✅Notice of Levy on Wages, Salary, and Other Income
1096 - ANSWER✅✅Annual Summary and Transmittal of U.S. Information Returns
Under the FLSA how old must a minor be to be employed? - ANSWER✅✅14
What is the FUTA tax rate? - ANSWER✅✅6.0%
On form 941, the employer reports - ANSWER✅✅Social Security Wages
What is the formula for calculating an employees net pay? - ANSWER✅✅Gross pay-
deductions for taxes- other deductions
Which plan discriminates in favor of highly compensated employees? -
ANSWER✅✅Nonqualified deferred compensation plans
, What is the federal minimum wage per hour on January 1, 2018? -
ANSWER✅✅$7.25
What law determines time limits with which employees must be paid after wages
are earned? - ANSWER✅✅State Laws
Cafeteria plans are authorized by what internal revenue code section? -
ANSWER✅✅125
The direct deposit data sent to the bank after payroll processing is an example of -
ANSWER✅✅Interface
What taxes, if any, must be withheld from payments to an independent contractor
who provided a tin? - ANSWER✅✅No taxes are withheld
An external audit: - ANSWER✅✅Allows an objective assessment of the financial
statements.
Employees' privacy rights are governed by all of the following except: -
ANSWER✅✅Local Legislation
Under the FLSA, what basis is used to determine whether a non-exempt employee is
to be paid overtime? - ANSWER✅✅Hours worked in a work week
Overtime payments are included in the calculation of what tax, if any? -
ANSWER✅✅They are included in all tax calculations
What is the 2018 wage base for social security tax? - ANSWER✅✅$128,400.00
If an employee does not have federal tax withheld and has not claimed exempt,
what must the employer do? - ANSWER✅✅Provide the employee with the EITC
notice
A computerized payroll system can help a payroll dept. accomplish all of the
following tasks except: - ANSWER✅✅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? - ANSWER✅✅Withhold no taxes and
report the bonus on for 1099-misc.
In what ways can a computerized system increase the accuracy of employees
paychecks? - ANSWER✅✅By reducing human error
What federal taxes must an employer withhold from an employees reported tips? -
ANSWER✅✅Federal income, social security and medicare tax
The main purpose of batch controls is to - ANSWER✅✅Validate data entry accuracy
