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FPC-Remote Fundamental Payroll Certification Question and Answers

Question # 4

When an employee lives and works in the same state, the employer withholds income tax for that state.

A.

TRUE

B.

False

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Question # 5

Whichcafeteria plan are authorized by what Internal Revenue Code Section?

A.

125

B.

401k

C.

403b

D.

457b

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Question # 6

All of the following are reasons payroll keeps records except:

A.

compliance with laws

B.

demonstrate accuracy of paychecks

C.

demonstrate security of payroll

D.

periodic reporting

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Question # 7

An employee earns $1,000 weekly. his deductions are $174 for federal income tax, $62 for social security tax, and $14.50 for medicare tax. He is not supporting another family and has never been in arrears in his child support payments. What is the maximum child support payment that can be withheld from his wages?

A.

$600

B.

$500

C.

$449.70

D.

$500.18

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Question # 8

What form must a penisioner file to have input into the amount of federal income tax withheld?

A.

w4

B.

w4P

C.

w4s

D.

w9

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Question # 9

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

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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Question # 10

Payroll documentation accomplishes all of the following EXCEPT:

A.

provide uniformity

B.

simplify training

C.

ensure procedures are followed

D.

provide a reference tool

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Question # 11

A semiweekly depositor that has a payroll tax liability of $50,000 from a Monday payroll must deposit the liability by:

A.

tues

B.

weds

C.

thurs

D.

fri

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Question # 12

An employee was sick the last week in december. his paycheck, dated dec 31, 2020 was held for him until he returned to work on Jan 6, 2021. these wages are taxable:

A.

in 2020

B.

in 2021

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Question # 13

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?

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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Question # 14

Every month, all of the following records are reconciled EXCEPT:

A.

payroll liability accounts

B.

master record of payments

C.

payroll bank checking account

D.

validity edits

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Question # 15

When paying supplemental wages, when must the aggregate withholding method be used?

A.

when no income tax is withheld from regular wages for the current or preceding year

B.

when the employee claims more than 10 dependents

C.

when the employee doesnt complete a form W4

D.

when the employee claims heads of household

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Question # 16

Payroll documentation accomplishes all of the following goals EXCEPT:

A.

ensuring uniformity

B.

providing a reference tool

C.

ensuring that procedures are followed

D.

simplifying training

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Question # 17

Under the FLSA, an employee's workday is defined as:

A.

entire time spent on the job site

B.

time recorded on the employees time sheet

C.

time the employee is performing principal activities

D.

scheduled shift

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Question # 18

For her 10 years of service, an employee was given a gold necklace valued at $100. Which of the following is true?

A.

the gift must be included in her taxable compensation

B.

the gift is tax free

C.

only social security and medicare tax should be withheld on the fair market value of the award

D.

only federal income tax should be withheld on the fair market value of the award

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Question # 19

Checking inputs or outputs against predetermined constraints is called:

A.

internal control

B.

validity edit

C.

system safeguard

D.

parallel test

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Question # 20

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?

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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Question # 21

Which of the following employee benefits is taxable compensation?

A.

workers compensation benefits

B.

health savings account

C.

sick pay

D.

qualified transportation fringes

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Question # 22

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

A.

TRUE

B.

False

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Question # 23

The integrity of the data can be verified by:

A.

balancing and reconciliation

B.

system edits

C.

validity checks

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Question # 24

A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. the retired employee was a natural choice. the tasks he undertook as a consultant were the same as the ones he performed before retirement. paid monthly, he has agreed to work under the direction of his old boss until the new plantfacilitates are fully operational? What is his status?

A.

independent contractor under common law

B.

independent contractor under reasonable basis test

C.

employee

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Question # 25

How frequently must an employer include noncash fringe benefits in an employee's income?

A.

each pay period

B.

quarterly

C.

semiannually

D.

annually

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Question # 26

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:

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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Question # 27

when does an employer stop deducting a federal tax levy from an employee's wages?

A.

the amount on the levy is reached

B.

The IRS issues a form 668-D

C.

the employee asks that the levy deduction be stopped

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Question # 28

An employee works from midnight to 8am on a company paid holiday but does not work more than 40 hours during the workweek. under the FLSA, the employee must be paid:

A.

double time for working the holiday

B.

time and one half for working the holiday

C.

a shift differential for working the late night shift

D.

at least the federal minimum wage

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Question # 29

Last month, an employee emailed her mother on the company's email, photocopied fliers for her church picnic at work and used her work computer to update her resume. These services represent:

A.

taxable compensation

B.

de minimis fringes

C.

working condition fringes

D.

no-additional cost services

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Question # 30

You receive a penalty notice from a government agency. the info is not readily available. what should you do first?

A.

conduct a thorough investigation and send the report to the agency.

B.

ignore the letter because it will take time to location the information.

C.

send a short letter to the agency stating that the issues is being reviewed.

D.

call the agency and tell them you plan to location the info and send it in a few months.

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Question # 31

A plant supervisor met with the payroll department to schedule a special pay run that would accomodate the shutdown for the holidays. after payroll committed to the date, it realized that to meet this deadline would require working a weekend. Which customer service principle will be compromised if the deadline is not met?

A.

reliability

B.

responsiveness

C.

assurance

D.

empathy

E.

tangibles

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Question # 32

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

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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Question # 33

Assume that a deposit is due on Weds, but this is a non-banking day. to be considered made timely, the employers deposit of federal payroll taxes must be made on or before the close of business on:

A.

tuesday

B.

thursday

C.

monday

D.

friday

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Question # 34

A record of the daily transaction of a business is:

A.

balance sheet

B.

journal

C.

ledger

D.

chart of accounts

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Question # 35

A financial transaction is first posted in your organizations:

A.

chart of accounts

B.

ledger

C.

journal

D.

balance sheet

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Question # 36

Effective feedback, whether positive or negative, should be given as soon as possible after an incident

A.

TRUE

B.

False

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Question # 37

An employee who files an exempt form W4 is exempt from the withholding of:

A.

federal income tax only

B.

social security tax only

C.

medicare tax only

D.

all taxes

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Question # 38

All of the following features are present in a qualified plan except:

A.

discriminator in favor of highly compensated employees

B.

written documentation

C.

benefits for employees

D.

the right to benefits is nontrasferrable

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Question # 39

Which of the following types of accumulators, which one accumulates values over a period of time?

A.

segment accumulator

B.

balance accumulator

C.

compunding accumulator

D.

composite accumulator

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