Fundamental Payroll Certification (FPC) Exam 20 Questions with Verified Answers, Exams of Business Economics

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Fundamental Payroll Certification (FPC) Exam 20 Questions

with Verified Answers

Which form is completed by the employee to establish federal income tax withholding? - CORRECT ANSWER Form W- A nonexempt employee works 37½ hours per week at a regular monthly salary of $3,932.50. Under the FLSA, calculate the employee's regular rate of pay. - CORRECT ANSWER $24. A nonexempt employee works 40 hours per week at a regular annual salary of $45,240. Under the FLSA, calculate the employee's regular rate of pay. - CORRECT ANSWER $21. Which amount is the basis for the calcuation of federal income tax withholding? - CORRECT ANSWER Taxable wages An employee has total YTD wages of $68,000. Calculate the gross-up on a bonus payment of $2,000. Assume state income tax withholding is 3%. - CORRECT ANSWER $2,969. Which form is used by employers to report quarterly wages and federal payroll tax withholdings and deposits? - CORRECT ANSWER Form 941 Which entry would be posted as a debit? - CORRECT ANSWER Increase to an expense account The primary purpose of written departmental procedures is to: - CORRECT ANSWER document processes for the uniform application of policies. Which is a common type of employee bonus? - CORRECT ANSWER All of these What is the primary purpose of a gross-up payment? - CORRECT ANSWER To cover an employee's tax liability on additional pay

Which formula is used to calculate the grossed-up bonus amount? - CORRECT ANSWER Net Bonus Amount ÷ (1 - Tax Rate) When are gross-up payments most commonly used? - CORRECT ANSWER For annual performance bonuses What does FLSA stand for? - CORRECT ANSWER Fair Labor Standards Act Which is not covered by the FLSA? - CORRECT ANSWER Workplace safety standards Who enforces the FLSA? - CORRECT ANSWER U.S. Department of Labor What is the current federal minimum wage stipulated by the FLSA? - CORRECT ANSWER $7.25 per hour Under FLSA, after how many hours of work in a week is an employee eligible for overtime pay? - CORRECT ANSWER 40 Who is typically not covered by the FLSA? - CORRECT ANSWER All of these What type of damages can be recovered for violations of the FLSA's wage and hour provisions? - CORRECT ANSWER Back pay and liquidated damages Can states set their own minimum wage rates under the FLSA? - CORRECT ANSWER Yes, they can set any rate they choose