FPC Test Questions with Complete
Solutions18
The payroll tax deposit due date falls on a nonbusiness day. A monthly depositor must deposit
its payroll tax liability:
A. by the next business day
b. Within three business days
c. by the end of the following week
D. by the end of the month - ANSWERS -A. by the next business day
Employers making quarterly deposits accumulate a payroll tax liability of less than:
A 2500 for the month
B. 1000 for the month
C. 2500 for the current or previous quarter
D. 3000 for the quarter - ANSWERS -c. 2500 for the current or previous quarter
How, if at all, are employment-related payments and wages that are excluded from the FUTA tax
reported on Form 940?.
A. included in Total payments to all employees and payments exempt from FUTA tax
B. included in total payments to all employees only
C. included in payments exempt from FUTA tax only
D. not reported on form 940 - ANSWERS -A. included in total payments to all employees and
payments exempt from FUTA tax
,What is form 944? - ANSWERS -An annual employment tax return for employers with a history
of annual tax liabilities of less than $1000
Deferrals into deferred compensation plans are subject to social security and medicare taxes
for: - ANSWERS -401(k), 403(b) and 457(b) plans
Which of the following statements is true regarding 401(k) plans?
A. 401k plans must allow eligible employees to defer up to 15% of their wages.
B. 401k Plans can be funded through salary deferral plans.
C. 401k plans are deferred compensation plans for employees of state and local governments
only.
D. Employers must match employee deferrals to 401K plans. - ANSWERS -B. 401k plans can be
funded through salary deferral plans
What is the 2018 annual compensation limit for defined benefit and contribution plans? -
ANSWERS -$275,000
Which of the following plans can discriminate in favor of highly compensated employees?
A. 401k plans.
B. 403B plans
C. 457b plans
D. Qualified defined benefit plans - ANSWERS -457b Plans
Nonqualified deferred compensation plans generally contain all of the following options EXCEPT:
A. They provide equal benefits for all employees
B. The deferrals are not subject to federal income tax when deferred
C. There are no limit to deferral amounts
, D. They discriminate in favor of highly compensated employees - ANSWERS -A. They provide
equal benefits for all employees.
An employee uses cafeteria plan benefits of $350.00 per month to pay for chosen benefits. The
$350.00 represents:
A. a nontaxable compensation if not chosen as a cash benefit
B. Taxable compensation for all federal taxes
C. Taxable compensation for social security and Medicare taxes only
D. Taxable compensation for federal income tax only - ANSWERS -A. Nontaxable compensation if
not chosen as a cash benefit
A company contributes $350.00 each month to a qualified Sec 125 plan for medical insurance.
In addition, $100.00 is contributed to a dependent care flexible spending account. How are
these amounts taxed?
A. only $100 is fully taxable
B. only $350 is fully taxable
C. $450 is subject only to social security and medicare taxation
D. $450 is not taxable income - ANSWERS -D. $450 is not taxable income
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?
A. On or before the following Wednesday
B. On or before the following Friday
C. On or before the 15th day of the following month
D. By the next business day - ANSWERS -C. On or before the 15th day of the following month
Solutions18
The payroll tax deposit due date falls on a nonbusiness day. A monthly depositor must deposit
its payroll tax liability:
A. by the next business day
b. Within three business days
c. by the end of the following week
D. by the end of the month - ANSWERS -A. by the next business day
Employers making quarterly deposits accumulate a payroll tax liability of less than:
A 2500 for the month
B. 1000 for the month
C. 2500 for the current or previous quarter
D. 3000 for the quarter - ANSWERS -c. 2500 for the current or previous quarter
How, if at all, are employment-related payments and wages that are excluded from the FUTA tax
reported on Form 940?.
A. included in Total payments to all employees and payments exempt from FUTA tax
B. included in total payments to all employees only
C. included in payments exempt from FUTA tax only
D. not reported on form 940 - ANSWERS -A. included in total payments to all employees and
payments exempt from FUTA tax
,What is form 944? - ANSWERS -An annual employment tax return for employers with a history
of annual tax liabilities of less than $1000
Deferrals into deferred compensation plans are subject to social security and medicare taxes
for: - ANSWERS -401(k), 403(b) and 457(b) plans
Which of the following statements is true regarding 401(k) plans?
A. 401k plans must allow eligible employees to defer up to 15% of their wages.
B. 401k Plans can be funded through salary deferral plans.
C. 401k plans are deferred compensation plans for employees of state and local governments
only.
D. Employers must match employee deferrals to 401K plans. - ANSWERS -B. 401k plans can be
funded through salary deferral plans
What is the 2018 annual compensation limit for defined benefit and contribution plans? -
ANSWERS -$275,000
Which of the following plans can discriminate in favor of highly compensated employees?
A. 401k plans.
B. 403B plans
C. 457b plans
D. Qualified defined benefit plans - ANSWERS -457b Plans
Nonqualified deferred compensation plans generally contain all of the following options EXCEPT:
A. They provide equal benefits for all employees
B. The deferrals are not subject to federal income tax when deferred
C. There are no limit to deferral amounts
, D. They discriminate in favor of highly compensated employees - ANSWERS -A. They provide
equal benefits for all employees.
An employee uses cafeteria plan benefits of $350.00 per month to pay for chosen benefits. The
$350.00 represents:
A. a nontaxable compensation if not chosen as a cash benefit
B. Taxable compensation for all federal taxes
C. Taxable compensation for social security and Medicare taxes only
D. Taxable compensation for federal income tax only - ANSWERS -A. Nontaxable compensation if
not chosen as a cash benefit
A company contributes $350.00 each month to a qualified Sec 125 plan for medical insurance.
In addition, $100.00 is contributed to a dependent care flexible spending account. How are
these amounts taxed?
A. only $100 is fully taxable
B. only $350 is fully taxable
C. $450 is subject only to social security and medicare taxation
D. $450 is not taxable income - ANSWERS -D. $450 is not taxable income
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?
A. On or before the following Wednesday
B. On or before the following Friday
C. On or before the 15th day of the following month
D. By the next business day - ANSWERS -C. On or before the 15th day of the following month
