FPC Exam with Questions and Correct
Answers 2025
SS8 - CORRECT ANSWERS Determination of worker status for purposes of federal
employment taxes and income tax withholding; requests clarification on worker status
Acceptable work time rounding practices - CORRECT ANSWERS Can round to the
nearest quarter hour or 15 minutes; 1 to 7 minutes can be rounded down, 8 to 14
minutes must be rounded up
Exempt employee classification - CORRECT ANSWERS Not entitled to the benefits and
protections of the FLSA. May not have to be paid minimum-wage
White collar exemption classifications - CORRECT ANSWERS Executive,
administrative, and professional
14 and 15-year-olds child labor restrictions - CORRECT ANSWERS Nonschool days
less than eight hours; during the school week no more than 18 hours; no more than 40
hours when school is out
FUTA Rate - CORRECT ANSWERS Rate is set at 6% of the first 7000$ and employer
in a year
FUTA Credit - CORRECT ANSWERS The credit claimed cannot exceed 5.4%
whenever the maximum credit is applied against the federal rate, the effective rate will
fall to 0.6%
2023 social security wage base - CORRECT ANSWERS $160,200
Medicare tax withholding rate - CORRECT ANSWERS 1.45% over $200,000 add extra
0.9%
Back up withholding - CORRECT ANSWERS Withholding on taxes on certain type of
income if the employee does not provide his or her Social Security number rate of 28%
Form 940 - CORRECT ANSWERS Employers annual federal unemployment tax return;
to report the annual federal unemployment tax liabilities for employers subject to FUTA
Form 941 - CORRECT ANSWERS Employers quarterly federal tax return; it's to report
by employers to the IRS the total amount of wages paid, income taxes withheld, and
Social Security and Medicare taxes due (both portions).
, Form 941 - CORRECT ANSWERS Due date is the end of the month which follows the
end of each quarter. However, if all amounts due are timely deposited in the quarter, an
automatic extension of 10 days is added.
Schedule B - CORRECT ANSWERS Of form 941 is intended to reconcile the tax liability
amount for so called semi weekly depositors.
Form 943 - CORRECT ANSWERS Employers annual federal tax return for agricultural
employees
Form 944 - CORRECT ANSWERS Employers annual federal tax return those with A
combined annual liability for income, Social Security and Medicare taxes of no more
than $1000; IRS does not notify eligible employers
Form 945 - CORRECT ANSWERS Annual return of withheld federal income tax, is for
payers to report to the IRS the amount of federal income tax withheld on non payroll
payments ex: pensions, military retirement, Indian gaming profits, voluntary withholding,
back up withholding
Form W3 - CORRECT ANSWERS Transmittal of wage and tax statements; to
summarize the transmittal of paper copies of form W-2; only required when submitting
via paper forms
Decrease of allowances - CORRECT ANSWERS Must file new W4 within 10 days
Form SS5 - CORRECT ANSWERS Application for a Social Security card
NACHA - CORRECT ANSWERS Nonprofit organization that acts as the self regulatory
body for the ACH process
$20 - CORRECT ANSWERS Minimum tipped dollar amount reportable; Minimum
amount to withhold federal taxes from Tips
USCIS Retention - CORRECT ANSWERS Three years from date of hire or one year
from date of termination; I -9
IRS Retention - CORRECT ANSWERS Four years; tax forms, employer/employee info
FLSA Retention - CORRECT ANSWERS Three years; workweek, additions/deductions
to payroll; two years for basic information
System security - CORRECT ANSWERS Segregation of job duties, rotation of job
assignments, paychecks only deliver to employees, physical payouts, background
check of employees
Answers 2025
SS8 - CORRECT ANSWERS Determination of worker status for purposes of federal
employment taxes and income tax withholding; requests clarification on worker status
Acceptable work time rounding practices - CORRECT ANSWERS Can round to the
nearest quarter hour or 15 minutes; 1 to 7 minutes can be rounded down, 8 to 14
minutes must be rounded up
Exempt employee classification - CORRECT ANSWERS Not entitled to the benefits and
protections of the FLSA. May not have to be paid minimum-wage
White collar exemption classifications - CORRECT ANSWERS Executive,
administrative, and professional
14 and 15-year-olds child labor restrictions - CORRECT ANSWERS Nonschool days
less than eight hours; during the school week no more than 18 hours; no more than 40
hours when school is out
FUTA Rate - CORRECT ANSWERS Rate is set at 6% of the first 7000$ and employer
in a year
FUTA Credit - CORRECT ANSWERS The credit claimed cannot exceed 5.4%
whenever the maximum credit is applied against the federal rate, the effective rate will
fall to 0.6%
2023 social security wage base - CORRECT ANSWERS $160,200
Medicare tax withholding rate - CORRECT ANSWERS 1.45% over $200,000 add extra
0.9%
Back up withholding - CORRECT ANSWERS Withholding on taxes on certain type of
income if the employee does not provide his or her Social Security number rate of 28%
Form 940 - CORRECT ANSWERS Employers annual federal unemployment tax return;
to report the annual federal unemployment tax liabilities for employers subject to FUTA
Form 941 - CORRECT ANSWERS Employers quarterly federal tax return; it's to report
by employers to the IRS the total amount of wages paid, income taxes withheld, and
Social Security and Medicare taxes due (both portions).
, Form 941 - CORRECT ANSWERS Due date is the end of the month which follows the
end of each quarter. However, if all amounts due are timely deposited in the quarter, an
automatic extension of 10 days is added.
Schedule B - CORRECT ANSWERS Of form 941 is intended to reconcile the tax liability
amount for so called semi weekly depositors.
Form 943 - CORRECT ANSWERS Employers annual federal tax return for agricultural
employees
Form 944 - CORRECT ANSWERS Employers annual federal tax return those with A
combined annual liability for income, Social Security and Medicare taxes of no more
than $1000; IRS does not notify eligible employers
Form 945 - CORRECT ANSWERS Annual return of withheld federal income tax, is for
payers to report to the IRS the amount of federal income tax withheld on non payroll
payments ex: pensions, military retirement, Indian gaming profits, voluntary withholding,
back up withholding
Form W3 - CORRECT ANSWERS Transmittal of wage and tax statements; to
summarize the transmittal of paper copies of form W-2; only required when submitting
via paper forms
Decrease of allowances - CORRECT ANSWERS Must file new W4 within 10 days
Form SS5 - CORRECT ANSWERS Application for a Social Security card
NACHA - CORRECT ANSWERS Nonprofit organization that acts as the self regulatory
body for the ACH process
$20 - CORRECT ANSWERS Minimum tipped dollar amount reportable; Minimum
amount to withhold federal taxes from Tips
USCIS Retention - CORRECT ANSWERS Three years from date of hire or one year
from date of termination; I -9
IRS Retention - CORRECT ANSWERS Four years; tax forms, employer/employee info
FLSA Retention - CORRECT ANSWERS Three years; workweek, additions/deductions
to payroll; two years for basic information
System security - CORRECT ANSWERS Segregation of job duties, rotation of job
assignments, paychecks only deliver to employees, physical payouts, background
check of employees
