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FPC-Remote Fundamental Payroll Certification Questions and Answers

Questions 4

When making a supplemental wage payment to an employee whose supplemental YTD wages exceed $1,000,000 what tax rate is used to calculate federal income tax withholding?

Options:

A.

6%

B.

22%

C.

24%

D.

37%

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Questions 5

For a payment after the employee's death in the year of the death, what taxes, if any, will be withheld?

Options:

A.

federal income tax only

B.

social security and medicare taxes only

C.

both federal income and social security and medicare taxes

D.

no taxes will be withheld

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Questions 6

What authority controls the frequency with which employees must be paid?

Options:

A.

state laws

B.

FLSA rules

C.

Local laws

D.

IRS rules

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Questions 7

When an employee begins to receive social security benefits, the employer no longer needs to withhold social security and medicare taxes.

Options:

A.

TRUE

B.

False

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Questions 8

The federal minimum wage is used when figuring the amount to withhold for a creditor garnishment

Options:

A.

TRUE

B.

False

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Questions 9

Privacy of employee info should be a top priority of the payroll manager, but not necessarily a top priority of the payroll staff.

Options:

A.

true

B.

false

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Questions 10

An employee is married with one child. His beginning salary is $1,000 semimonthly. because of an unexpected business trip, the employee fails to submit a 2020 form W4 by his first payday. what withholding status must the employer use for his first paycheck?

Options:

A.

single/married filing separately, no entries in steps 2,3,4

B.

married filing jointly, no entries in steps 2,3,4

C.

single/married filing separately, entry in step 3 for one dependent

D.

married filing jointly, entry in step 3 for one dependent

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Questions 11

Which of the following employee benefits is nontaxable compensation?

Options:

A.

company vehicle (personal use)

B.

gifts, prizes awards

C.

company vehicle (business use)

D.

moving expense

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Questions 12

When an employee is overpaid and the repayment occurs in the same year, the repayment requested is the employee's

Options:

A.

net overpayment

B.

gross overpayment

C.

gross overpayment minus social security and medicare tax

D.

gross overpayment minus federal income tax

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Questions 13

A company is a monthly depositer for 2020. on payday, the company accumulates apayroll tax liability of $101,000. the payroll tax deposits for this liability must be made:

Options:

A.

on or before the following wednesday

B.

on or before the following friday

C.

by the next business day

D.

by the 15th the following month

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Questions 14

All of the following types of payments are included in the regular rate of pay calculation except:

Options:

A.

a production bonus to be paid in June which the employer announced in jan

B.

an agreement with the union to pay one half of one weeks salary to workers with over 5 years of services

C.

a traditional $50 gift certificate which the firm has paid for the past 5 years during holiday season

D.

shift differential for working the 4pm to midnight shift

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Questions 15

A record of the daily transaction of a business is:

Options:

A.

balance sheet

B.

journal

C.

ledger

D.

chart of accounts

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Questions 16

A financial transaction is first posted in your organizations:

Options:

A.

chart of accounts

B.

ledger

C.

journal

D.

balance sheet

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Questions 17

An employee earns $40,000 annually. claiming single with no entries on lines 2,3, or 4 on her 2020 form W4, she contributes $6,000 annually to her 401k. How much must be withheld for federal income tax, social security, and or medicare tax on contribution?

Options:

A.

$0

B.

$459

C.

$918

D.

$1,779

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Questions 18

Under which type of plans are employee contributions subject to social security and medicare taxes?

Options:

A.

401k only

B.

403b only

C.

457b only

D.

401k, 403b, and 457b

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Questions 19

All of the following statements are correct regarding online processing EXCEPT:

Options:

A.

the data is changed immediately

B.

the system is interactive

C.

the operator can communicate with the system as the fata is being processed

D.

the data to be processed may be abtched

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Questions 20

Which of the following statements is correct regarding section 125 plans?

Options:

A.

employees working 10 hours a week or more must be included in the companys section 125 plan

B.

any benefits received in cash are not taxed

C.

at the end of the plan year, employees receive cash payments for amounts remaining

D.

benefits can be changed during the plan year if there is a qualified change in status

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Questions 21

What does an employer use to calculate the amount to withhold for an IRS tax levy?

Options:

A.

disposable pay

B.

net pay

C.

take home pay

D.

taxable wages

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Questions 22

An employer may provide all of the following features in a 401k plan except:

Options:

A.

matching contributions

B.

lower ceilings on contributions

C.

higher benefits for highly compensated employees

D.

catch up contribution

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Questions 23

Payroll documentation accomplishes all of the following EXCEPT:

Options:

A.

provide uniformity

B.

simplify training

C.

ensure procedures are followed

D.

provide a reference tool

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Questions 24

When does an exempt W4 expire?

Options:

A.

at the end of each quarter

B.

Feb 15 of next year

C.

it continues as long as the ee is subject to ss tax

D.

dec 31 each year

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Questions 25

Which of the following statements about the FLSA overtime requirements is correct?

Options:

A.

an employer may establish one workweek for clerical employees and another for assembly workers

B.

an employer's workweek must coincide with the calendar week

C.

employers must pay overtime when employees work more than 8 hours in a workday

D.

employer must pay overtime for hours worked on federal holidays

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Questions 26

An employee claims exempt from withholding on his form W4. to continue the exempt status for the next year, a new form W4:

Options:

A.

must be filed by dec 31

B.

must be filed by feb 15 of the following year

C.

is not necessary

D.

is invalid if the employee claims more than 10 dependents

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Questions 27

All of the following regulate payments made by DD EXCEPT:

Options:

A.

consumer financial protection bureau

B.

NACHA

C.

State laws

D.

local laws

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Questions 28

In what part of a 2020 form w4 does an employee claim dependents?

Options:

A.

step 3

B.

writing below step 4c

C.

step 2

D.

dependents are not claimed on form W4

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Questions 29

Which of the following employee benefits is taxable compensation?

Options:

A.

workers compensation benefits

B.

health savings account

C.

sick pay

D.

qualified transportation fringes

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Questions 30

Last week, a high school teacher spent 40 hours in the classroom, worked 10 hours grading papers and was required to put in another 8 hours on saturday at the school sponsored science fair. under the FLSA, what overtime hours, if any, must the teacher be paid?

Options:

A.

time and a one half for 0 hours

B.

time and a one half for 8 hours

C.

time and a one half for 10 hours

D.

time and a one half for 18 hours

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Questions 31

When supplemental wages are paid at the same time as regular wages, how are withholding taxes computer?

Options:

A.

withholding on supplemental wages is taxed separately

B.

withholding taxes are based on the total of the wages and supplemental wages

C.

supplemental wages are not subject to withholding taxes

D.

supplemental wages are taxed at a different withholding rate

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Questions 32

At the beginning of the year, an employee elected to buy group term life insurance as part of his benefit package through his companys cafeteria benefit plan. in may he took out an individual life insurance policy. since he no longer needs group coverage, he wants to replace the insurance option with increase contributions to his 401k plans. is this possible?

Options:

A.

yes, if both GTL and the 401k plan are part of the same cafeteria benefit program, he can switch

B.

yes but he will have to pay taxes on the amount.

C.

no

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Questions 33

What is the effect on an employees income when the employer pays that employees share of social security and medicare taxes on a fringe benefit?

Options:

A.

there is no change

B.

the taxes paid by the employer are considered income to the employee

C.

the amount of the fringe benefit is included in the employees income

D.

there are no ss or medicare taxes on fringe benefits

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Questions 34

What benefits can be provided in a section 125 cafeteria plan?

Options:

A.

scholarships

B.

discounts

C.

medical insurance

D.

commuter vans

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Questions 35

Which plan is specifically set up for government employees?

Options:

A.

401k plan

B.

457b plan

C.

403b plan

D.

nonqualified deferred compensation plan

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Questions 36

In 2020, an employer must pay social security tax on an employees wages up to:

Options:

A.

127,200

B.

$128,400

C.

132,900

D.

137,700

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Questions 37

Which type of report does not originate from the employees earning record?

Options:

A.

taxable wages for each ee

B.

calc of the appropriate tax rates

C.

a report of form 1099 earnings

D.

payroll analysis report

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Exam Code: FPC-Remote
Exam Name: Fundamental Payroll Certification
Last Update: Nov 30, 2024
Questions: 133

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