FPC EXAM TEST BANK 200+ QUESTIONS WITH 100% CORRECT ANSWERS UPDATED
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FPC
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FPC
FPC EXAM TEST BANK 200+ QUESTIONS WITH 100% CORRECT ANSWERS UPDATED
When you get paid for the last week of December it counts in the next year bc that is when the check was received
Employer social security max - Answer-Must pay SS tax up to employees wages of $132,900
Employer Social Secu...
FPC EXAM TEST BANK 200+
QUESTIONS WITH 100% CORRECT
ANSWERS UPDATED 2024-2025
When you get paid for the last week of December it counts in the next year bc that is
when the check was received
Employer social security max - Answer-Must pay SS tax up to employees wages of
$132,900
Employer Social Security Rate - Answer-6.2%
Voluntary Deducations - Answer-Require EE authorization
Ex.
- contributions to charity
- retirement contributions
- purchases from employer sponsored store
- health insurance premiums
- purchase of employer stock
- loan repayment
- union dues/fees
- wage assignment
wage assignment - Answer-An assignment by an employee by which an amount of his
or her wages is transferred to a creditor before the wages are paid to the employee
Gives creditor the opportunity to recover unpaid debt
Involuntary Deductions - Answer-Also called wage attachments
Payroll deductions such as tax levies and court-ordered child support that an employee
must pay
Ex.
- child support
- bankruptcy orders
- federal administrative garnishments
- federal tax levies
- student loan garnishments
- state tax levies
,- local tax levies
- creditor garnishments
Tax Levies - Answer-Unpaid federal or state taxes
Form 668-W - Answer-Notice of Levy on Wages, Salary, and Other Income
Form 668-D - Answer-Release of Levy/Release of Property from Levy
Child Support - Answer-court-ordered payments, typically made by a noncustodial
divorced parent, to support one's minor child or children
If employee supports a second family, amount withheld for child support cannot exceed
50%
If the employee does not support a second family withholding cannot exceed 60%
IWO - Answer-Income withholding orders
federal minimum wage - Answer-$7.25/hour
Student loan garnishments - Answer-The higher education act allows garnishments of
employees' wages for unpaid/delinquent student loans
no more than 15% of employee's disposable income
Cannot be discriminated against for having garnishments on wages
Employee must receive 30 days notice before garnishment withholding begins
Creditor Garnishment - Answer-lesser 25% or 30 x min wage
IRS Tax Levy - Answer-Employer uses employee taxable wages
Deceased employee - Answer-If an employee dies, accrued wages, vacation pay, and
other compensation paid after their death are taxable
Wages paid after death are not subject to federal income tax, however they are subject
to medicare and social security tax within 1 year of death -- if it is after 1 year of death,
no taxes are withheld.
Negative net pay - Answer-If an EE's total deductions when added up are more than
their gross wages
Their deduction will need to be reduced in order for their next payroll to net zero
, Net Pay - Answer-the total earnings paid to an employee after payroll taxes and other
deductions
Gross-up - Answer-An IRS-approved formula that employers can use to determine the
taxable gross payment when the employer wishes to pay the employee's share of tax
To calculate:
1) 100%-tax%= net %
2) Payment/net%= gross earnings
3) Check by calculating gross to net
Wages Subject to Taxation - Answer-Compensation and employee receives for services
performed by that employee for the employer
Includes payments made in cash or any other form for salaries, vacation time, bonuses.
commission, and fringe benefits.
Imputed Income - Answer-Reimbursements or expenses paid by an employer that are
treated as taxable income to the employee, such as excessive moving expenses.
Ex. Group term life
De Minimus Fringe Benefit - Answer-Any property or service the value of which is so
small as to make accounting for it unreasonable or administratively impracticable.
(personal copies, occasional small gifts like donuts or lunch (excluding cash), personal
calls on a company phone, etc.)
No additional cost services - Answer-Services the employer may provide the employee
at no additional cost to the employer.
Allowing an employee to utilize the services that the company provides to the public for
no additional cost - free airline tickets for airline employees or free phone services for
the phone company workers
Working Condition Fringes - Answer-A type of fringe benefit received by the employee
that is exclude from the employee's gross income. It consists of property or services
provided (paid or reimbursed) by the employer for which the employee could take a tax
deduction if the employee had paid for them.
- use of company car
- subscriptions to business periodicals
- professional development/job related seminars
Qualified Transportation Fringes - Answer-Transportation benefits provided by the
employer to the employee. Such benefits include
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