FPC Study Exam Questions 2024 with
171 complete Solutions 100% correct.
FPC Study Exam Questions 2024 with
171 complete Solutions 100% correct.
Challenges of Payroll - ANSWER- 1. Complexity = Federal, state and local laws change
frequently and must be incorporated into company policies
2. Communication = clear, consise payroll information
3. Technology = software, equipment and web-based applications can enhance payroll
process (automatic time keeping, record storage and retrieval)
4. Accuracy = employee's pay, tax filing, management of reports, etc.
payroll process - ANSWER- Employee >> Payroll >> Government >> Employee
Employee - ANSWER- New Hire, changes, time data, W4 and I9q
Payroll - ANSWER- Inputs, verifies, processes, distributes, reports and reconciles
Government - ANSWER- Tax Deposits, Periodic reports and reconciles
Common Law Test - ANSWER- Asks these questions:
How Independent is the worker? How much control can be exercised over the worker?
Reasonable Basis Test - ANSWER- Have consistently treated the worker or similar
workers as independent contractors and have filed tax returns (1099 - NEC) consistent
with their treatment as independent contractors.
Have longstanding, recognized practice in a significant segment of the employers
industry of treating similar works as IC
Have judicial precedent (court decisions) for treating workers in similar circumstance as
IC
Have received specific ruling from the IRS
Have a past IRS tax audit (that did not disallow the workers treatment as an IC)
Have received guidance form an attorney or CPA that the worker is an IC
Employment Eligibility Verification (IRCA - Immigration reform and Control Act) of 1986)
- ANSWER- Require employers to verify an employees eligibilty for employment in the
US.
If an employee hires an unauthorized alien, can face penalties ranging from $583 -
$23,331
$234 - $2,332 per person
,FPC Study Exam Questions 2024 with
171 complete Solutions 100% correct.
I-9 - ANSWER- employee's eligibility verification.
1. Section 1 must be filled by the first day of work
2. Section 2 must be completed by 3 days after
3. Form must be retained for three years from the hire date or one year from the date of
termination - whichever is later
What percent of SSN do not match W2? - ANSWER- 10% (if there are any
discrepancies provide information to SSA)
When verifying an employees name and SSN match through SSNVS of DHS - what
three items must be submitted? - ANSWER- 1. Employees last name, first name, and
middle inital
2. Social Security Number
3. Date of Birth
DHS can verify an individuals right to work in the US
Form SS-5 is used to: - ANSWER- obtain a new social security card or have a card
reissued.
New Hire Reporting - ANSWER- Employers must report newly hired employees within
20 days of the date of hire. Must report name, address, SSN, date of employment,
Employers name, address and FEIN.
An EE's date of hire is considered to be first day services are performed for wages, an
employee who works as little as one day must be reported.
Multistate employers that submit reports twice monthly (12-16 days apart) must submit
new hire info as soon as possible or no later than next semi- monthly reporting period.
New hire - ANSWER- New employee. If an EE has a break of employment of 60 days,
the rehired EE is a new hire.
What taxes, if any, must be withheld from an employee's pay? - ANSWER- Federal
income, social security and medicare
What taxes, if any, must be withheld from an independent contractor? - ANSWER- No
taxes are withheld
Who has the responsibility to determine if a worker is an employee or independent
contractor? - ANSWER- Hiring entity
FLSA Exempt Employees - ANSWER- Classification is based on responsibilities, not
titles.
1. Minimum salary of $684 (or $27.63 for Computer professionals)
, FPC Study Exam Questions 2024 with
171 complete Solutions 100% correct.
1. Executives: directs work of at least 2 FT workers, can hire and fire EE
2. Administrative: management, office related, school system, independent judgment
3. Professionals: learned or creative
4. Outside sales: must sell a company product or service and work off premises (no
salary requirement)
Exemptions: healthcare workers, transportation, home car and public sector employees
minimun wage - ANSWER- $7.25 - but state laws may vary. IL $13
Tip Credit - ANSWER- $5.12 Tip Credit
$2.13 cash wage
When choosing between state law and FLSA for pay credit - ANSWER- The employer
must choose the law that is most favorable to employees
Additional earnings - ANSWER- Employees may receive additional compensation, such
as tips, shift premiums, PTO, and bonuses.
A nonexempt employee works in a state with a minimum wage of $7.35 but lives in a
state with a minimum wage of $8.05. What is the minimum rate she must be paid? -
ANSWER- $7.35. The minimum wagę of where she lives is irrelevant.
8/80 Rule - ANSWER- Employee works more than 8 hours in any workday in the 14 day
work period or more than 80 hours in the 14 day period.
Firefighters and Police Officer Exception - ANSWER- 212 hours to 28 days (FF)
171 hours to 28 days (PD)
Regular rate of Pay - ANSWER- Pay for all hours worked / all hours worked
Nondiscretionary bonuses - ANSWER- Bonuses must be included in the calculation of
the employees regular rate of pay during the workweeks the bonus is earned
Regular rate of pay - ANSWER- -Base pay for all hours
-Non-discretionary bonuses
-Fair market value of non-cash compensation
-Shift premiums
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