©Jason MacConnell 2025 ALL RIGHTS RESERVED.
FPC Exam Questions With Correct Answers
A+
Payroll, human resources, personnel, benefits, and time and attendance systems share many data
elements and are ideally integrated. - Answer✔purchasing
Under the FLSA, when an employee is paid more than one rate of pay during a workweek, what
is the employee's regular rate of pay? - Answer✔The weighted average of the rates based on the
hours worked
--Under the FLSA, employees with more than one rate of pay during the workweek will have
their regular rate of pay calculated using the weighted average of the rates times the hours
worked at those rates during the workweek.
A true statement regarding an involuntary wage attachment is: - Answer✔a creditor garnishment
is a court order attaching an employee's wages.
An employee earns $800.00 semimonthly. Deductions include $13.00 for federal income tax,
$61.20 for social security and Medicare taxes, and $100.00 for court-ordered child support
payments. Calculate the employee's semimonthly disposable pay. - Answer✔725.80
An employer pays $284.00 per month for an employee's parking spot near the job site. Calculate
the taxable amount of the monthly parking. - Answer✔Under IRS qualified transportation fringe
benefit rules, the fair market value of parking near the employee's job site or at a park and ride in
excess of the monthly exclusion ($265.00 in 2019) is the monthly taxable value.
--284-265/12
--The correct answer is: $19.00
A company is a monthly depositor. Its paydays are on Wednesdays. When is the company's
payroll tax deposit due if the liability is less than $100,000.00? - Answer✔On or before the 15th
day of the following month
1
, ©Jason MacConnell 2025 ALL RIGHTS RESERVED.
--A monthly depositor with a liability less than $100,000.00 for the month must deposit the
monthly liability by the 15th of the following month.
An employee earning $7,200.00 per month defers $480.00 each month to a 403(b) plan.
Calculate any federal taxes that must be withheld from the 403(b) deferral. - Answer✔Under IRS
rules, employee contributions to a 403(b) plan are not subject to income tax but are subject to
social security (6.2%) and Medicare (1.45%) taxes.
SS= 6.2=29.76
MED= 1.45= 6.96
The correct answer is: $36.72
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. - Answer✔The correct answer is: $1,844.08
What is the primary difference between a nonqualified deferred compensation plan and a
qualified plan? - Answer✔Nonqualified plans can discriminate in favor of highly compensated
employees.
--The primary differences between a nonqualified deferred compensation plan and a qualified
plan are that nonqualified plans can discriminate in favor of officers and highly compensated
employees and that nonqualified plans have no limits to the contributions made by employees or
employers.
Which of the following federal taxes, if any, must an employer withhold from an employee's tips
when the amount reported exceeds $20.00 in the month? - Answer✔Federal income, social
security, and Medicare taxes
--Under IRS rules, an employer must withhold federal income, social security, and Medicare
taxes from an employee's tips when the amount of tips reported is in excess of $20.00 each
month.
2
FPC Exam Questions With Correct Answers
A+
Payroll, human resources, personnel, benefits, and time and attendance systems share many data
elements and are ideally integrated. - Answer✔purchasing
Under the FLSA, when an employee is paid more than one rate of pay during a workweek, what
is the employee's regular rate of pay? - Answer✔The weighted average of the rates based on the
hours worked
--Under the FLSA, employees with more than one rate of pay during the workweek will have
their regular rate of pay calculated using the weighted average of the rates times the hours
worked at those rates during the workweek.
A true statement regarding an involuntary wage attachment is: - Answer✔a creditor garnishment
is a court order attaching an employee's wages.
An employee earns $800.00 semimonthly. Deductions include $13.00 for federal income tax,
$61.20 for social security and Medicare taxes, and $100.00 for court-ordered child support
payments. Calculate the employee's semimonthly disposable pay. - Answer✔725.80
An employer pays $284.00 per month for an employee's parking spot near the job site. Calculate
the taxable amount of the monthly parking. - Answer✔Under IRS qualified transportation fringe
benefit rules, the fair market value of parking near the employee's job site or at a park and ride in
excess of the monthly exclusion ($265.00 in 2019) is the monthly taxable value.
--284-265/12
--The correct answer is: $19.00
A company is a monthly depositor. Its paydays are on Wednesdays. When is the company's
payroll tax deposit due if the liability is less than $100,000.00? - Answer✔On or before the 15th
day of the following month
1
, ©Jason MacConnell 2025 ALL RIGHTS RESERVED.
--A monthly depositor with a liability less than $100,000.00 for the month must deposit the
monthly liability by the 15th of the following month.
An employee earning $7,200.00 per month defers $480.00 each month to a 403(b) plan.
Calculate any federal taxes that must be withheld from the 403(b) deferral. - Answer✔Under IRS
rules, employee contributions to a 403(b) plan are not subject to income tax but are subject to
social security (6.2%) and Medicare (1.45%) taxes.
SS= 6.2=29.76
MED= 1.45= 6.96
The correct answer is: $36.72
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. - Answer✔The correct answer is: $1,844.08
What is the primary difference between a nonqualified deferred compensation plan and a
qualified plan? - Answer✔Nonqualified plans can discriminate in favor of highly compensated
employees.
--The primary differences between a nonqualified deferred compensation plan and a qualified
plan are that nonqualified plans can discriminate in favor of officers and highly compensated
employees and that nonqualified plans have no limits to the contributions made by employees or
employers.
Which of the following federal taxes, if any, must an employer withhold from an employee's tips
when the amount reported exceeds $20.00 in the month? - Answer✔Federal income, social
security, and Medicare taxes
--Under IRS rules, an employer must withhold federal income, social security, and Medicare
taxes from an employee's tips when the amount of tips reported is in excess of $20.00 each
month.
2
