FPC Domain 2: Compliance/Research and Resources Welcome to your FPC Domain 2: Compliance/Research and Resources 1. FPC: Compliance/Research and Resources Which of the following statements best describes the primary purpose of Form W-4? A. To report an employee's annual earnings to the IRS. B. To determine the correct amount of federal income tax to withhold from an employee's paycheck. C. To verify an employee's eligibility to work in the United States. D. To report an employee's tips to the employer. None 2. FPC: Compliance/Research and Resources When must an employer deposit federal income tax withheld and both the employer and employee portions of Social Security and Medicare taxes? A. Monthly, by the 15th day of the following month. B. Quarterly, by the last day of the month following the end of the quarter. C. Annually, by January 31st of the following year. D. Deposit schedules may vary based on the employer's reported tax liability in the lookback period. None 3. FPC: Compliance/Research and Resources What is the primary purpose of the Fair Labor Standards Act (FLS A. A) To regulate securities transactions. B. To establish minimum wage, overtime pay eligibility, recordkeeping, and child labor standards. C. To enforce workplace health and safety standards. D. To regulate pension and welfare benefits for employees. None 4. FPC: Compliance/Research and Resources Which of the following best defines the term "constructive receipt" in payroll? A. The process of calculating deductions for employee benefits. B. The method used to determine the value of non-cash compensation. C. The point at which an employee has access to or control over wages, regardless of actual receipt. D. The scheduling of direct deposit transactions by an employer. None 5. FPC: Compliance/Research and Resources Under the Family and Medical Leave Act (FML A. how much job-protected leave is an eligible employee entitled to for the birth of a child, adoption, or to care for a sick family member? A) 6 weeks B. 12 weeks C. 16 weeks D. 24 weeks None 6. FPC: Compliance/Research and Resources Which document must employers file annually to report to the IRS the total amount of FICA taxes withheld from employees' wages and the total amount of FICA taxes paid by the employer? A. Form W-2 B. Form W-4 C. Form 941 D. Form 940 None 7. FPC: Compliance/Research and Resources What is the significance of the "lookback period" in determining an employer's federal tax deposit schedule? A. It determines the interest rate applied to underpaid taxes. B. It establishes the employer's eligibility for employment tax credits. C. It assesses the employer's compliance with minimum wage laws. D. It is used to determine if the employer will deposit taxes on a monthly or semi-weekly basis. None 8. FPC: Compliance/Research and Resources In payroll, what is the primary purpose of the Electronic Federal Tax Payment System (EFTPS)? A. To electronically file year-end tax documents. B. To allow employers to make federal tax deposits and payments electronically. C. To process employee direct deposit transactions. D. To verify employee Social Security numbers. None 9. FPC: Compliance/Research and Resources Which act requires employers to keep accurate records of employees' time worked and wages paid? A. Occupational Safety and Health Act (OSHA) B. Fair Labor Standards Act (FLSA) C. Employee Retirement Income Security Act (ERISA) D. Family and Medical Leave Act (FMLA) None 10. FPC: Compliance/Research and Resources What is the primary purpose of a Qualified Domestic Relations Order (QDRO) in relation to payroll? A. To modify withholding rates based on employee marital status. B. To enforce child support and alimony orders. C. To allocate a portion of an employee's retirement benefits to an ex-spouse or child. D. To change an employee's tax filing status. None 11. FPC: Compliance/Research and Resources For payroll purposes, which document is used to verify an employee's eligibility to work in the United States? A. Form W-2 B. Form W-4 C. Form I-9 D. Form 1099 None 12. FPC: Compliance/Research and Resources What is the primary role of the Social Security Administration (SS A. in payroll processing? A) To provide retirement and disability benefits. B. To regulate workplace safety standards. C. To ensure accurate reporting of wages for Social Security and Medicare purposes. D. To manage federal tax withholding for employees. None 13. FPC: Compliance/Research and Resources In the context of payroll compliance, which of the following actions is most appropriate when an employee presents a court order for garnishment that seems to exceed the maximum amount allowed under the Consumer Credit Protection Act (CCP A. A) Apply the garnishment as ordered, assuming the court has considered CCPA limits. B. Contact the employee for clarification and potentially negotiate a lower garnishment amount. C. Consult with legal counsel to ensure compliance with both the court order and CCPA before applying the garnishment. D. Immediately reject the court order and inform the employee that it violates federal law. None 14. FPC: Compliance/Research and Resources When conducting a payroll compliance audit, which of the following documents is essential for verifying adherence to the Fair Labor Standards Act (FLS A. minimum wage requirements? A) Employee satisfaction surveys. B. Time and attendance records. C. Future payroll budget projections. D. Previous year's tax returns. None 15. FPC: Compliance/Research and Resources Under the Family and Medical Leave Act (FML A. which of the following criteria must an employee meet to be eligible for FMLA leave? A) The employee must have been employed for at least 12 months and worked at least 1,250 hours over the past 12 months. B. The employee must have been employed for at least 6 months and worked at least 1,000 hours over the past 6 months. C. The employee must have a direct family member currently employed by the same employer. D. The employee must have previously utilized less than two weeks of FMLA leave in the current year. None 16. FPC: Compliance/Research and Resources Which of the following best describes the employer's obligation under the Uniformed Services Employment and Reemployment Rights Act (USERR A. in terms of providing health insurance benefits to employees who leave for military service? A) Employers must continue health insurance benefits for up to 6 months of military service. B. Employers are only required to offer COBRA options for employees serving in the military. C. Employers must continue health insurance benefits for the duration of military service, up to a maximum of 24 months. D. Employers have no obligation to continue health insurance benefits for employees who leave for military service. None 17. FPC: Compliance/Research and Resources Regarding the proper classification of workers, which of the following factors is NOT considered by the IRS to determine whether a worker is an employee or an independent contractor? A. The degree of control the business has over the work performed. B. The method of remuneration, such as a regular wage or a project-based fee. C. The presence of a written contract stating the worker is an independent contractor. D. The worker's opportunity for profit or loss depending on managerial skill. None 18. FPC: Compliance/Research and Resources In the payroll context, which of the following best describes "constructive receipt" of income? A. The actual date when an employee physically receives their paycheck. B. The date when an employee's direct deposit is available in their bank account. C. An accounting method where income is not recognized until it is actually or constructively received. D. A legal principle indicating that an employee has access to or control of wages, regardless of actual physical receipt. None 19. FPC: Compliance/Research and Resources Which regulation requires employers to provide detailed pay stubs to employees, breaking down hours worked, rates of pay, and deductions? A. Fair Labor Standards Act (FLSA) B. Family and Medical Leave Act (FMLA) C. State labor laws D. Employee Retirement Income Security Act (ERISA) None 20. FPC: Compliance/Research and Resources When determining the taxability of fringe benefits provided to employees, which of the following is NOT generally considered a taxable benefit? A. Personal use of a company car. B. Health insurance premiums paid by the employer. C. Reimbursements for business expenses under an accountable plan. D. Gym memberships provided by the employer. None 1 out of 20 Time is Up! Time's up
