FPC Exam Question And Answers 2024, Exams of Nursing

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SS8 - correct answers ✅Determination of worker status for purposes of federal employment taxes and income tax withholding; requests clarification on worker status Acceptable work time rounding practices - correct answers ✅Can round to the nearest quarter hour or 15 minutes; 1 to 7 minutes can be rounded down, 8 to 14 minutes must be rounded up Exempt employee classification - correct answers ✅Not entitled to the benefits and protections of the FLSA. May not have to be paid minimum-wage White collar exemption classifications - correct answers ✅Executive, administrative, and professional 14 and 15-year-olds child labor restrictions - correct answers ✅Nonschool days less than eight hours; during the school week no more than 18 hours; no more than 40 hours when school is out FUTA Rate - correct answers ✅Rate is set at 6% of the first 7000$ and employer in a year FUTA Credit - correct answers ✅The credit claimed cannot exceed 5.4% whenever the maximum credit is

applied against the federal rate, the effective rate will fall to 0.6% 2023 social security wage base - correct answers ✅$160, Medicare tax withholding rate - correct answers ✅1.45% over $200,000 add extra 0.9% Back up withholding - correct answers ✅Withholding on taxes on certain type of income if the employee does not provide his or her Social Security number rate of 28% Form 940 - correct answers ✅Employers annual federal unemployment tax return; to report the annual federal unemployment tax liabilities for employers subject to FUTA Form 941 - correct answers ✅Employers quarterly federal tax return; it's to report by employers to the IRS the total amount of wages paid, income taxes withheld, and Social Security and Medicare taxes due (both portions). Form 941 - correct answers ✅Due date is the end of the month which follows the end of each quarter. However, if

all amounts due are timely deposited in the quarter, an automatic extension of 10 days is added. Schedule B - correct answers ✅Of form 941 is intended to reconcile the tax liability amount for so called semi weekly depositors. Form 943 - correct answers ✅Employers annual federal tax return for agricultural employees Form 944 - correct answers ✅Employers annual federal tax return those with A combined annual liability for income, Social Security and Medicare taxes of no more than $1000; IRS does not notify eligible employers Form 945 - correct answers ✅Annual return of withheld federal income tax, is for payers to report to the IRS the amount of federal income tax withheld on non payroll payments ex: pensions, military retirement, Indian gaming profits, voluntary withholding, back up withholding Form W3 - correct answers ✅Transmittal of wage and tax statements; to summarize the transmittal of paper copies of form W-2; only required when submitting via paper forms

Decrease of allowances - correct answers ✅Must file new W4 within 10 days Form SS5 - correct answers ✅Application for a Social Security card NACHA - correct answers ✅Nonprofit organization that acts as the self regulatory body for the ACH process $20 - correct answers ✅Minimum tipped dollar amount reportable; Minimum amount to withhold federal taxes from Tips USCIS Retention - correct answers ✅Three years from date of hire or one year from date of termination; I - IRS Retention - correct answers ✅Four years; tax forms, employer/employee info FLSA Retention - correct answers ✅Three years; workweek, additions/deductions to payroll; two years for basic information System security - correct answers ✅Segregation of job duties, rotation of job assignments, paychecks only

deliver to employees, physical payouts, background check of employees Batch totals - correct answers ✅Control totals that facilitate input and output controls Integrated system - correct answers ✅A system that two departments use that has real time results Customer service principles - correct answers ✅Reliability, responsiveness, assurance, empathy, tangibles Internal controls - correct answers ✅Series of checks and balances; purpose of ensuring accurate records Liabilities - correct answers ✅Accounts payable, notes payable, salary payable, FICA tax payable, employee income tax payable; typically credit Assets - correct answers ✅Items of value owned by business. Example: cash accounts receivable, inventory for resale, buildings, machinery; typically debit Assets - correct answers ✅Liability plus equity equals

Resources for Regulatory Changes - correct answers ✅Federal tax resources are provided by the Internal Revenue Service and include the following:

• Internal Revenue Code and Regulations
• Revenue Rulings, Revenue Procedures and Publications
• Internal Revenue Bulletins Federal statutory activity can be monitored via the following:
• Congressional Record
• Federal Register
• SSA/IRS Reporter (Social Security Administration, Internal Revenue Service) constructive receipt - correct answers ✅determines when wages are taxable pay frequency/method - correct answers ✅governance the process is left to regulation by each of the states. ACH process - correct answers ✅•Employer - initiates the electronic file containing the payment information.
• Originating Financial Institution - receives the file from the employer and initiates processing through the ACH network.
• ACH Network - settles the transactions between the financial institutions.

• Receiving Financial Institution - designated by the employee, receipt of funds is posted to the employee account.
• Employee - designates the receiving financial institution and accesses funds as required. escheat laws - correct answers ✅Most states have an annual November 1 deadline for filing and remitting unclaimed property; states dictate how long employer must hold Common Law Test - correct answers ✅Worker classification criteria for establishing if worker is an employee or contractor Leased employee - correct answers ✅the workers generally are employees of the leasing company, which is responsible for all withholding and employment taxes as well as the administration and funding of any benefits 8/80 - correct answers ✅14 day period instead of workweek; overtime after 8hrs in a day or 80 in 14 days, whichever is more favorable FLSA Components - correct answers ✅Sets min wage & overtime rates; requires record keeping by all covered employees; places restrictions on the types of work

minors can do & the hours they can work;mandates equal pay for equal work IRCA - correct answers ✅Act of 1986; makes it illegal for an employee to hire an unauthorized worker Flat rate method - correct answers ✅Wages in excess of $1,000,000; 39.6% Taxable wages - correct answers ✅All remuneration for services including non cash benefits. Nontaxable benefits - correct answers ✅IRC Section 132; de minimis fringes; working condition fringes; no additional cost services; qualified employees discounts Qualified Plan - correct answers ✅Profit sharing plans; defined contribution plans; defined benefit plans; 401k plan; complies with Section 401 of IRC Nonqualified Plan - correct answers ✅Compensation that will be deferred to a later date; does not meet requirements of IRC; deferred compensation plan; can be discriminatory

Grossing up - correct answers ✅Desired net pay divided by 100% - total of all tax paid ACA - correct answers ✅Affordable Care Act Form 1094B - correct answers ✅Transmittal of Health Coverage Information Returns; small groups not subject to the employer shared responsibility provisions Form 1094C - correct answers ✅Transmittal of Employer Provided Health Insurance Offer and Coverage Information Returns; large groups Form 1095B - correct answers ✅Health Coverage; small groups not subject to the employer shared responsibility provisions Form 1095C - correct answers ✅Employer Provided Health Insurance Offer and Coverage; large groups IRC Section 6056 - correct answers ✅explains what businesses need to do to notify their employees and the IRS about the health care coverage they offer. Resources for Legislative and Regulatory Changes - correct answers ✅The Congressional Record; The Federal

Register; Internal Revenue Bulletin; Cumulative Bulletin; SSA/IRS Reporter Five Days - correct answers ✅Time requirement for a Single-entry reversal for direct deposit without authorization Same day - correct answers ✅Time requirement that employee must be notified of a direct deposit entry reversal Stop payment procedures for checks - correct answers ✅Wait no more than five business days Review cleared checks Notify the bank to place stop Have employee execute surety bond or affidavit protecting employer Reissue check FMLA - correct answers ✅Allows eligible employees to take up to 12 weeks of unpaid job protected leave in a 12 month period for specified family and medical reasons Basic FMLA requirements - correct answers ✅An employee must: work for a covered employer, have worked for the employer 12 months, have worked at least

1,250 hours over the 12 months, and work at a location in the US or US possession where at least 50 employees are employed by the employer within 75 miles. Supplemental wages - correct answers ✅Reported tips, overtime pay, bonuses, back pay, commissions are examples of Tax deposit methods - correct answers ✅Required to use the IRS' Electronic Federal Tax Payment System (EFTPS); the only time an employer can pay taxes with a check is when filing forms, 940, 941, 943, 944, or 945. Child support withholding - correct answers ✅50% of the employees disposable earnings if the employee is supporting another spouse and or children; or 60% if the employee is not supporting another spouse and or children; these amounts increase to 55% and 65% if the employee is at least 12 weeks in arrears 1099 MISC - correct answers ✅Required to be filled by any individual or entity that he's at least $10 in royalties or at least $600 in aggregate for various items such as rents, services and awards. Copies B and 2 must be sent to the non-employee who received the payments by January 31 of the year after the year during which the payments were made.

Look back period - correct answers ✅12 month period from July 1 of the second previous year through June 30th of the previous year. 668W - correct answers ✅Notice of Levy on Wages, Salary, or Other Income; give to employer to begin a federal tax levy garnishment 668D - correct answers ✅Release of Levy; contains total amount due, after paid Levy is released New hire reporting - correct answers ✅Employees name, address, SSN; Employers name, address, and EIN; First day of work SSNVS - correct answers ✅Online social security number verification service Monthly depositor - correct answers ✅Look back liability is no greater than $50,000; Required to deposit no later than the 15th day of the following month Semiweekly Depositor - correct answers ✅Look back liability greater than $50,000; wages paid on Wednesday, Thursday, and Friday must deposit by the following Wednesday. Wages paid Saturday, Sunday, Monday, and Tuesday must deposit by the following Friday.

Wage Assignments - correct answers ✅Responsibility of the payroll department of an employer to send a portion of an employees payroll to a third party on the employees behalf. This can be voluntary or involuntary. Consumer Credit Protection Act - correct answers ✅Places restrictions on creditor garnishments; lesser of 25% of disposable earnings for THE WEEK or Min wage x 30 (divide by weeks if necessary) -disposable earnings Bankruptcy regulations - correct answers ✅Require all prior withholding orders to stop with the exception of child support orders. $30 - correct answers ✅Minimum dollar amount that can be received during a month for an employee to receive tipped hourly wage 4 years - correct answers ✅IRS/SSA/FUTA retention rate 3 years - correct answers ✅FLSA/IRCA/ USCIS (I-9) Record retention 3 years - correct answers ✅FMLA record retention

2 years - correct answers ✅FLSA record retention $50 - correct answers ✅Fee per return if incorrectly filed and corrected by March 2 $260 - correct answers ✅Fee per return if incorrectly files and corrected after August 1 $100 - correct answers ✅Fee per return if incorrectly filed and corrected between March 3 to August 1 Understatement of taxes - correct answers ✅Penalty is 20% of the underpayment; 75% of the underpayment if due to fraud Withholding failures - correct answers ✅Penalty is 100% of the withholding; in addition, officers or employees could be personally liable for an equal amount Child labor violations - correct answers ✅Fines up to $11,000 per violation 50,000 it's a violation causes death or serious injury of a child

Failure to report new hires - correct answers ✅States can issue penalties of $25 per new employee not reported or $500 if conspiring not to report an employee Failure to pay minimum wage and overtime - correct answers ✅Recovery of back wages and equal damages, and for repeated willful violations the penalty can be up to $1100 per violation Failure to verify documentation - correct answers ✅Fines from $110-$ Knowingly hiring unauthorized aliens - correct answers ✅Fines from $375-$16,000 depending upon the number of offenses Federal standard mileage rate - correct answers ✅For 2016: $.54 per mile for business miles; $.19 per mile for a medical or moving $300 per month - correct answers ✅The value of the excluded benefit in 2023 for transportation in a commuter highway vehicle and employer provided passes, tokens, or fare cards; excluded from income After the year of death - correct answers ✅Payment made; not subject to federal income tax withholding,

Social Security, Medicare, or FUTA taxes and should be reported only in box 3 of form 1099 MISC in the name of the beneficiary of the payment Same year of death - correct answers ✅Payment made; not subject to federal income tax withholdings but is subject to Social Security, Medicare, and FUTA taxes. Wages are reported on a W-2 and also 1099 MISC in the name of the beneficiary State disbursement unit - correct answers ✅States are required to establish for the collection and disbursement of child support payments Cafeteria plan - correct answers ✅A plan in which all participants are employees who choose from a minimum of two or more benefits that consist of cash and qualified benefits; section 125 Defined contribution plan - correct answers ✅Individual accounts for each employee, with a set amount being contributed into the account by the employer Section 132 - correct answers ✅Exams certain fringe benefits from inclusion in income, once certain conditions are met. They are not subject to federal income tax withholding or Social Security, Medicare, or FUTA taxes.

Deferred compensation plan - correct answers ✅Deferrals into this plan are subject to Social Security and Medicare taxes for 401(k) 403B and 457B plans Master file - correct answers ✅Required for calculating a paycheck; including such things as employee data, employment data, tax and payroll data, data for both payroll period and calendar year (name, hire date, allowances, total wages) Journal - correct answers ✅Accounting document with chronological records of daily transactions of a business Validity edit - correct answers ✅Checking input or output against predetermined constraints Batch processing - correct answers ✅Method of coding and collecting items to be processed into similar groups System security - correct answers ✅Limit system access, secure files, develop audit trails, productive games computer viruses, and secure data

Customer service resolution resources - correct answers ✅Internal revenue code and regulations, revenue rulings, revenue procedures and publications, internal revenue bulletins, Congressional record, federal register, SSA/IRS reporter 39.6% - correct answers ✅Rate for supplemental wage payments if wages exceed 1 million Debit - correct answers ✅Increase to an expense account Credit - correct answers ✅Decrease to an asset account Credit - correct answers ✅Increase to a revenue account Credit - correct answers ✅Decrease to an expense account Unemployment insurance - correct answers ✅Reserve ratio, benefit wage ratio, benefit ratio; used to determine this DOL - correct answers ✅The family and medical leave act of 1993 is administered and forced by this

3 years - correct answers ✅retention rate for payroll records, collective bargaining agreements, sales and purchase records. 2 years - correct answers ✅i.e., time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages;wage computations records should be retained for Deductible moving expenses - correct answers ✅Transportation of household goods and expenses of traveling from old home to new home .5% - correct answers ✅ Box 1 - correct answers ✅Taxable wages Box 2 - correct answers ✅Federal Income withheld Box 3 - correct answers ✅Social security wages Box 4 - correct answers ✅Social Security withheld

Box 5 - correct answers ✅Medicare wages and tips Box 6 - correct answers ✅Medicare tax withheld Box 7 - correct answers ✅Social security tips Box 8 - correct answers ✅Allocated tips Box 10 - correct answers ✅Dependent care benefits Box 11 - correct answers ✅Non qualified plans Box 12 code c - correct answers ✅Box and code for value of group term life insurance Box 12 code D - correct answers ✅Box and code for 401k contributions Box 12 Code E - correct answers ✅Box and code for 403B contributions Box 12 Code P - correct answers ✅Box and code for excludable reimburse moving expenses

Box 12 code AA - correct answers ✅Box and code for Roth401k contributions Box 12 Code DD - correct answers ✅Box and code for employee paid health coverage Box 13 - correct answers ✅Check for sick pay, retirement plan, or third party sick pay