PAYROLL FUNDAMENTALS CERTIFICATION EXAM
2025 NEWEST ACTUAL EXAM WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
Benefits paid through social security -CORRECT ANSWER retirement, disability, &
survivors
Common law test -CORRECT ANSWER a worker is a common law employee if the
employer has the right to control what work will be done & how it will be done
Behavioral control -CORRECT ANSWER the right to direct or control the means by
which the worker performs the work to be done (including instructions & training)
Financial control -CORRECT ANSWER whether a worker has the opportunity to make a
profit or suffer a loss
Relationship of the parties -CORRECT ANSWER the examination of how the worker &
employer perceive their relationship
Reasonable bias test -CORRECT ANSWER allows employers to treat workers who
would be considered employees under the common law test as individual contractors
W-9 Form -CORRECT ANSWER Request for Taxpayer Identification Number &
Certification; used by nonemployees/payees to provide a taxpayer ID # (TIN) (SSN or
EIN) to the company for which the nonemployee/payee has received a reportable
payment
Minimum weekly salary 2022 -CORRECT ANSWER $684.00
Federal minimum wage 2022 -CORRECT ANSWER $7.25/hours
Opportunity wage -CORRECT ANSWER a lower minimum wage for teenage
employees under 20 of $4.25 (only for their first 90 days of employment)
Tip pay requirements -CORRECT ANSWER $2.13 in minimum wage as long as their
tips amount is high enough to raise their pay to minimum wage
,Nondiscretionary bonus -CORRECT ANSWER contractual bonuses related to the
employee's production, efficiency, or some measure of performance (commissions,
quality bonus, production bonus)
Engaged to be waiting -CORRECT ANSWER compensable worktime because the
employer requires the employee to wait to begin work
Waiting to be engaged -CORRECT ANSWER not work time; employee is freed from
duties for a period of time
Types of compensation that the FLSA excludes from regular rate of pay -CORRECT
ANSWER pay for time not worked (holiday pay), contributions to benefits plans (401K),
or reimbursement of business expenses
Does FLSA require payments for working holidays, evenings, or night shifts? -
CORRECT ANSWER No
When can an employee file an exempt W-4? -CORRECT ANSWER when they had no
tax liability last year & expect to have none for this year
When should employers remind employees to submit new W-4s by if their anticipated
filing status or federal income tax liability has changed? -CORRECT ANSWER By
December 1st
Does regular rate of pay include shift premiums? -CORRECT ANSWER Yes
Form SS-5 -CORRECT ANSWER application for a social security card
Allowable tip credit -CORRECT ANSWER no more than $5.12 per hour
Child labor under the age of 18 -CORRECT ANSWER Department of Labor restricts
working in a job declared hazardous
Backup withholding -CORRECT ANSWER 24% FIT withholding on reportable non-
payroll payments when a TIN is not provided or the organization is notified by the IRS;
reported annually on Form 945
Form W-4P -CORRECT ANSWER Withholding Certificate for Pension or Annuity
Payments; allows pension of annuity payment payees the ability to claim marital statues
and allowances for federal income tax withholding
When must an amended W-4 be implemented? -CORRECT ANSWER within the first
payroll no later than 30 days after the form is submitted
, Administrative employee duties -CORRECT ANSWER performing nonmanual or office
work directly related to the management of business operations of the employer or
customers (exempt)
4 types of white collar exempt employees -CORRECT ANSWER administrative,
executive, professional, & outside sales
Federal wage and hour law -CORRECT ANSWER Fair Labor Standards Act (FLSA);
covers minimum wage, overtime requirements, child labor rules, & equal pay rules
E-Verify -CORRECT ANSWER an online tool that allows the verification of a new hire's
identity & eligibility to work in the U.S.; government contractors & employers in some
states are required to use this
Meal periods time worked -CORRECT ANSWER a meal period that is not at least 30
minutes of uninterrupted time
Workweek -CORRECT ANSWER 7 consecutive 24-hours periods
Form W-4 -CORRECT ANSWER Employee's Withholding Certificate; used by
employees to provide their employer with their name, address, social security number,
martial status, adjustments, and may indicate exempt status
Child labor for age 14 & 15 years old -CORRECT ANSWER allowed to work 3 hours a
day, 18 hours a week while school is in session and 8 hours a day, 40 hours a week
when school is not in session; under 14 is generally prohibited unless employees by a
parent or in special situations (actors, ballboys, batboys)
When must a Form W-4 be completed by? -CORRECT ANSWER before a new hire's
first payroll is calculated
Professional employee duties -CORRECT ANSWER either learned (advanced
knowledge) or creative (invention or talent); exempt
What varies in a fluctuating workweek? -CORRECT ANSWER a nonexempt employee's
hours (salary remains consistent)
Independent contractor traits -CORRECT ANSWER sets own hours, determines own
sequence of work, works for multiple organizations, self-employed, works by the job, &
employs assistants
Form I-9 -CORRECT ANSWER Employment Eligibility Verification; part 1 completed by
employe providing personal information & part 2 completed by employers with
identity/eligibility to work in the U.S. documents
2025 NEWEST ACTUAL EXAM WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
Benefits paid through social security -CORRECT ANSWER retirement, disability, &
survivors
Common law test -CORRECT ANSWER a worker is a common law employee if the
employer has the right to control what work will be done & how it will be done
Behavioral control -CORRECT ANSWER the right to direct or control the means by
which the worker performs the work to be done (including instructions & training)
Financial control -CORRECT ANSWER whether a worker has the opportunity to make a
profit or suffer a loss
Relationship of the parties -CORRECT ANSWER the examination of how the worker &
employer perceive their relationship
Reasonable bias test -CORRECT ANSWER allows employers to treat workers who
would be considered employees under the common law test as individual contractors
W-9 Form -CORRECT ANSWER Request for Taxpayer Identification Number &
Certification; used by nonemployees/payees to provide a taxpayer ID # (TIN) (SSN or
EIN) to the company for which the nonemployee/payee has received a reportable
payment
Minimum weekly salary 2022 -CORRECT ANSWER $684.00
Federal minimum wage 2022 -CORRECT ANSWER $7.25/hours
Opportunity wage -CORRECT ANSWER a lower minimum wage for teenage
employees under 20 of $4.25 (only for their first 90 days of employment)
Tip pay requirements -CORRECT ANSWER $2.13 in minimum wage as long as their
tips amount is high enough to raise their pay to minimum wage
,Nondiscretionary bonus -CORRECT ANSWER contractual bonuses related to the
employee's production, efficiency, or some measure of performance (commissions,
quality bonus, production bonus)
Engaged to be waiting -CORRECT ANSWER compensable worktime because the
employer requires the employee to wait to begin work
Waiting to be engaged -CORRECT ANSWER not work time; employee is freed from
duties for a period of time
Types of compensation that the FLSA excludes from regular rate of pay -CORRECT
ANSWER pay for time not worked (holiday pay), contributions to benefits plans (401K),
or reimbursement of business expenses
Does FLSA require payments for working holidays, evenings, or night shifts? -
CORRECT ANSWER No
When can an employee file an exempt W-4? -CORRECT ANSWER when they had no
tax liability last year & expect to have none for this year
When should employers remind employees to submit new W-4s by if their anticipated
filing status or federal income tax liability has changed? -CORRECT ANSWER By
December 1st
Does regular rate of pay include shift premiums? -CORRECT ANSWER Yes
Form SS-5 -CORRECT ANSWER application for a social security card
Allowable tip credit -CORRECT ANSWER no more than $5.12 per hour
Child labor under the age of 18 -CORRECT ANSWER Department of Labor restricts
working in a job declared hazardous
Backup withholding -CORRECT ANSWER 24% FIT withholding on reportable non-
payroll payments when a TIN is not provided or the organization is notified by the IRS;
reported annually on Form 945
Form W-4P -CORRECT ANSWER Withholding Certificate for Pension or Annuity
Payments; allows pension of annuity payment payees the ability to claim marital statues
and allowances for federal income tax withholding
When must an amended W-4 be implemented? -CORRECT ANSWER within the first
payroll no later than 30 days after the form is submitted
, Administrative employee duties -CORRECT ANSWER performing nonmanual or office
work directly related to the management of business operations of the employer or
customers (exempt)
4 types of white collar exempt employees -CORRECT ANSWER administrative,
executive, professional, & outside sales
Federal wage and hour law -CORRECT ANSWER Fair Labor Standards Act (FLSA);
covers minimum wage, overtime requirements, child labor rules, & equal pay rules
E-Verify -CORRECT ANSWER an online tool that allows the verification of a new hire's
identity & eligibility to work in the U.S.; government contractors & employers in some
states are required to use this
Meal periods time worked -CORRECT ANSWER a meal period that is not at least 30
minutes of uninterrupted time
Workweek -CORRECT ANSWER 7 consecutive 24-hours periods
Form W-4 -CORRECT ANSWER Employee's Withholding Certificate; used by
employees to provide their employer with their name, address, social security number,
martial status, adjustments, and may indicate exempt status
Child labor for age 14 & 15 years old -CORRECT ANSWER allowed to work 3 hours a
day, 18 hours a week while school is in session and 8 hours a day, 40 hours a week
when school is not in session; under 14 is generally prohibited unless employees by a
parent or in special situations (actors, ballboys, batboys)
When must a Form W-4 be completed by? -CORRECT ANSWER before a new hire's
first payroll is calculated
Professional employee duties -CORRECT ANSWER either learned (advanced
knowledge) or creative (invention or talent); exempt
What varies in a fluctuating workweek? -CORRECT ANSWER a nonexempt employee's
hours (salary remains consistent)
Independent contractor traits -CORRECT ANSWER sets own hours, determines own
sequence of work, works for multiple organizations, self-employed, works by the job, &
employs assistants
Form I-9 -CORRECT ANSWER Employment Eligibility Verification; part 1 completed by
employe providing personal information & part 2 completed by employers with
identity/eligibility to work in the U.S. documents
