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FPC-Remote Fundamental Payroll Certification Question and Answers

Question # 4

Examples of positive active listening through body language include all of the following actions EXCEPT:

A.

Avoiding slouching posture.

B.

Shrugging your shoulders.

C.

Making eye contact.

D.

Nodding your head.

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Question # 5

Documentation on legislative changes to Forms W-2 and W-3 is initiated by which of the following organizations?

A.

IRS

B.

OCSS

C.

SSA

D.

USCIS

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Question # 6

Which of the following forms of identification CANNOT be used in Section 2 of Form I-9?

A.

Driver’s license

B.

Employee badge

C.

School ID card with photo

D.

Voter’s registration card

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Question # 7

Using the percentage method for automated payroll systems, calculate the federal income tax withholding based on the following information:

A.

$18.65

B.

$26.92

C.

$39.04

D.

$41.69

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Question # 8

A company has engaged an individual to write a sales contract. The individual receives a flat amount for the task and has an assigned time frame for completion. This individual is classified as a(n):

A.

Leased Employee

B.

Administrative Employee

C.

Independent Contractor

D.

Commissioned Salesperson

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Question # 9

Which of the following simulations would NOT be performed when testing a disaster recovery plan?

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Question # 10

An employee clocked in for work at 8:07 a.m. and out at 4:08 p.m. According to the DOL policy on rounding work hours, which of the following recorded hours are CORRECT?

A.

8:00 a.m. to 4:00 p.m.

B.

8:15 a.m. to 4:15 p.m.

C.

8:15 a.m. to 4:00 p.m.

D.

8:00 a.m. to 4:15 p.m.

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Question # 11

When an employee fails to cash a payroll check and the employer cannot locate the employee, the Payroll Department should:

A.

Void the check and process a Form W-2c for the employee.

B.

Make a journal entry to post to a cash account as forfeited earnings.

C.

Use company policy and federal law to determine the process of submitting the unclaimed wages to the IRS.

D.

Use company policy and state law to determine the process of submitting the unclaimed wages to the state agency.

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Question # 12

All of the following activities are examples of an internal control EXCEPT:

A.

Storing backup files on-site

B.

Segregating job duties

C.

Rotating job duties

D.

Restricting access to the system

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Question # 13

Using the following information, calculate the social security tax to be withheld.

A.

$138.45

B.

$141.47

C.

$160.58

D.

$202.60

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Question # 14

An employee has YTD wages in the amount of $250,000.00 and receives a $1,753.00 bonus payment. Using the optional flat rate method, calculate the federal income tax withholding from the bonus payment.

A.

$385.00

B.

$420.13

C.

$534.63

D.

$647.50

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Question # 15

Which of the following documents listed on Form I-9 can be used to establish both an employee's identity and employment eligibility?

A.

Social Security Card

B.

U.S. Passport

C.

Voter’s Registration Card

D.

Driver’s License

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Question # 16

What is the purpose of the ACA legislation?

A.

Financial reform

B.

Healthcare reform

C.

Income tax reduction

D.

Supplemental tax increase

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Question # 17

An employee has received $169,000.00 in YTD earnings. The employee receives a payment of $16,600.00. The employer Medicare tax, if any, is:

A.

$2,450.50

B.

$1,029.20

C.

$240.70

D.

$1,859.01

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Question # 18

During open enrollment, the employee elects the following deductions. What is the total of the Section 125 Cafeteria Plan deductions?

A.

$70.00

B.

$75.00

C.

$100.00

D.

$175.00

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Question # 19

To reconcile a general ledger tax liability account balance, verify all of the following items EXCEPT:

A.

Entries from company accountants

B.

Checks issued by accounts payable

C.

Account entries against the payroll register

D.

Account activity against the quarterly returns

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Question # 20

All of the following criteria are used to determine FMLA eligibility EXCEPT the number of:

A.

Company Employees

B.

Dependents in the Household

C.

Hours Worked in the Previous 12 Months

D.

Employees within 75 Miles of the Worksite

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Question # 21

The types of accounts used by businesses to classify transactions are:

A.

Asset, Expense, Revenue, Inventory, and Equity

B.

Asset, Liability, Expense, Revenue, and Equity

C.

Inventory, Revenue, Equity, and Cash

D.

Revenue, Expense, Cash, and Net Income

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Question # 22

Employers who properly repay over-withheld amounts to employees can claim a credit against taxes due by making an adjustment on:

A.

Form 941

B.

Form 941-X

C.

Form W-2

D.

Form W-4

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Question # 23

Failure to create a payroll ACH file is a violation of which customer service principle?

A.

Empathy

B.

Reliability

C.

Responsiveness

D.

Tangibles

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Question # 24

Where should a firm’s business transactions FIRST be recorded?

A.

Balance Sheet

B.

General Ledger

C.

Journal

D.

Trial Balance

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Question # 25

Payroll liability tax accounts should be reconciled at LEAST once a:

A.

Week

B.

Month

C.

Quarter

D.

Year

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Question # 26

Which of the following expenses is a non-operating expense?

A.

Insurance

B.

Interest paid on income taxes

C.

Legal fees

D.

Utilities

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Question # 27

Even if a worker meets the definition of an employee, an employer can still treat the worker as an independent contractor if the worker passes the:

A.

Common Law Test

B.

Reasonable Basis Test

C.

Physical Presence Test

D.

Permanent Resident Test

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Question # 28

Payroll standard operating procedures should be updated no less frequently than:

A.

Annually

B.

Quarterly

C.

When revising workflow

D.

When management changes

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Question # 29

All of the following workflow mapping descriptions are correct EXCEPT:

A.

Logical thought processes must include every step with nothing assumed

B.

Depictions and descriptions of sequences of operations of connected steps

C.

Where each step follows the last without delay or gap and ends just prior to the next

D.

When specifications detail the quality and level to be performed by one group for another

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Question # 30

Using the following information from a payroll register, calculate the tax deposit liability for the payroll.

A.

$7,975.00

B.

$4,987.50

C.

$4,480.00

D.

$2,507.50

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Question # 31

Which account type is used to classify accrued, but not yet taken, paid leave that is carried over from one year to the next?

A.

Current assets

B.

Deferred assets

C.

Expenses

D.

Long-term liabilities

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Question # 32

The FLSA is enforced by which of the following entities?

A.

DOL

B.

ICE

C.

IRS

D.

SSA

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Question # 33

When an employer engages with a leasing company to lease an employee, the employer does NOT:

A.

Hire and fire

B.

Report wages

C.

Set rate of pay

D.

Supervise the work

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Question # 34

Using the following information, calculate the employer's total FICA tax liability for the first payroll of the year.

A.

$459.00

B.

$466.66

C.

$535.50

D.

$543.16

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Question # 35

Which of the following data elements is needed to calculate an employee’s net pay from gross pay?

A.

Rate of pay

B.

Hours worked

C.

Shift differential

D.

Withholding status

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Question # 36

When resolving late deposits, the payroll staff should take all of the following steps EXCEPT:

A.

Check to see if the financial institution is having an internal problem.

B.

Tell the employee the deposit is not considered late until midnight the day of payday.

C.

Verify the employee provided the correct routing and account numbers for any direct deposits.

D.

Ask the employee if they checked the deposit via an ATM, spoke with an actual bank representative, or checked online banking.

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Question # 37

Using the following information, calculate the imputed income that MUST be included in the employee’s monthly gross pay.

A.

$6.44

B.

$23.00

C.

$24.38

D.

$34.50

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Question # 38

Employer's federal quarterly employment taxes are reported on:

A.

Form 940

B.

Form 941

C.

Form 944

D.

Form 945

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Question # 39

All of the following preventative measures would help protect personally identifiable information EXCEPT:

A.

Locking files containing employee information.

B.

Signed confidentiality agreements for staff.

C.

Reviewing system security periodically.

D.

Limiting communications to e-mail.

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Question # 40

The monthly account reconciliation should include all of the following procedures EXCEPT:

A.

Balance the payroll tax liabilities

B.

Reconciling the payroll bank account

C.

Balance the payroll deduction liabilities

D.

Reconcile the payroll register to source documents

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Question # 41

An employee has $240,000.00 in YTD taxable wages and receives a taxable fringe benefit of $2,500.00. Calculate the Medicare and FITW using the optional flat rate method for the taxable fringe benefit.

A.

$586.25

B.

$606.75

C.

$661.25

D.

$683.75

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Question # 42

Using the wage bracket method, calculate the employee’s net pay. The employee’s W-4 was completed in 2019 or earlier.

A.

$589.70

B.

$651.45

C.

$685.45

D.

$686.45

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Question # 43

Which of the following awards are included in an employee's taxable income?

A.

A $5.00 restaurant gift card

B.

A coupon for a free holiday turkey

C.

A wearable fitness tracker for a safety award

D.

An engraved clock, valued at $100.00, to celebrate an employee's retirement

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