FPC Practice Test

When calculating overtime pay under the Fair Labor Standards Act (FLS

Which of the following best describes the term "constructive payment"?

The term "aggregate method" refers to a specific procedure used for:

What is the primary purpose of the Form W-4?

Which of the following payroll records must be retained for at least three years under the FLSA?

In payroll, "grossing up" refers to:

The "percentage method" for calculating federal income tax withholdings applies to:

Which of the following is true about the Social Security tax as it relates to payroll?

When must an employer deposit federal income tax withheld and both the employer and employee portions of Social Security and Medicare taxes?

What does the term "SUTA dumping" refer to?

For FICA tax purposes, what is the significance of the "wage base limit"?

Which of the following best describes the term "year-to-date" 'YTD' in payroll?

What is the primary purpose of the Electronic Federal Tax Payment System (EFTPS)?

In payroll, the "golden parachute" payment refers to:

Which of the following is a requirement for an employee to qualify for the "simplified method" for home office deductions?

What does the term "fringe benefits" include?

Under the IRS guidelines, which of the following employees is most likely to be classified as an independent contractor?

The term "backup withholding" refers to:

What is the main purpose of the Form 940?

In the context of payroll, what does the term "levy" refer to?

Which of the following is considered a compensable time for non-exempt employees under the Fair Labor Standards Act 'FLSA'?

In payroll processing, which of the following best describes the "payroll cycle"?

Which payroll record is essential for complying with the Equal Pay Act 'EPA'?

What is the primary function of the Form I-9 in the payroll process?

What does the term "net pay" refer to in payroll terminology?

Under the Affordable Care Act 'ACA', what is the significance of the term "full-time employee" for employers?

The process of "garnishment" in payroll involves:

For purposes of payroll, the term "exempt employee" refers to an employee who:

Which method is used to calculate federal income tax withholding on a lump-sum payment such as a bonus when the employer aggregates the bonus with regular wages?

When calculating overtime pay for an employee who receives a non-discretionary bonus, what must be included in the calculation?

How should an employer calculate the garnishment amount for an employee's disposable earnings that exceed the federal maximum allowed under the Consumer Credit Protection Act (CCP

What is the correct method to calculate the net pay for an employee after mandatory deductions and voluntary deductions have been applied?

When an employee participates in a 401(k) plan, how does their contribution affect the calculation of federal income tax withholding?

For an employee paid on a bi-weekly basis, how should a payroll administrator calculate the prorated salary if the employee starts mid-period and only works one week of the two-week period?

How is the taxable benefit of a company-provided vehicle determined for payroll purposes?

When an employee is given the choice between a taxable cash bonus and a non-taxable fringe benefit of equal value, how does the choice affect the employee's take-home pay?

What is the impact of statutory deductions on the calculation of an employee's gross pay?

In the context of payroll, how does a "safe harbor" 401(k) plan affect the calculation of an employee's taxable income?

When calculating the withholding for a non-resident alien employee in the United States, which additional amount must be added to the employee's income for the purpose of federal income tax withholding?

When calculating the withholding amount for supplemental wages combined with regular wages using the aggregate method, how does the tax rate applied to the supplemental portion differ from using the percentage method?

For an employee earning a salary plus commission, how should the regular rate of pay be calculated for overtime purposes according to the Fair Labor Standards Act (FLS

In a payroll period where an employee receives both regular wages and a retroactive pay increase, how should the increase be taxed?

How should an employer calculate the net pay for an employee participating in a flexible spending account 'FSA' for healthcare expenses?

When processing payroll, how is the taxable benefit of employer-provided group-term life insurance over $50,000 calculated?

What is the correct approach to handling the year-end tax treatment of a third-party sick pay?

How should the value of a non-cash fringe benefit, such as personal use of a company car, be treated in payroll calculations?

When determining the amount of state income tax to withhold for an employee, which factor is NOT typically considered?

For employees receiving tips, how must employers calculate the amount of FICA taxes due on reported tip income?

In the context of payroll, how should an employer calculate the withholding tax on an employee's year-end bonus that is paid separately from regular wages and elects to use the percentage method?

For an employee participating in a High Deductible Health Plan (HDHP) with a Health Savings Account 'HSA', how do HSA contributions affect the calculation of federal income taxes?

When calculating overtime for an employee who worked 50 hours in a workweek, including 10 hours on a holiday paid at double time, how should the holiday hours be treated?

How does participation in a cafeteria plan (Section 125 Plan) impact the calculation of an employee's taxable income?

What is the primary purpose of a payroll reconciliation process?

Which system is typically used to automate the distribution of employees' pay through direct deposit?

What is the primary function of a Time and Attendance system in payroll processing?

In payroll processing, what is the significance of the payroll cut-off date?

Which document outlines the specific steps and processes involved in the payroll function, including preparation, processing, and distribution of payroll?

What is the primary role of a payroll journal in the payroll process?

In the context of payroll, what is the purpose of a variance analysis?

What is the role of a payroll service provider (PSP) in payroll administration?

In payroll management, what is the primary purpose of conducting a payroll reconciliation?

Which of the following best describes the process of "gross-to-net" calculation in payroll?

Which payroll function is primarily responsible for ensuring compliance with employment tax laws and regulations?

What is the primary purpose of a payroll audit trail?

In the context of payroll, what does the term "year-end reconciliation" refer to?

Which factor is crucial when selecting a payroll system for a global workforce?

What type of account is 'Payroll Tax Expense' and where does it appear?

Which accounting principle requires payroll expenses to be matched with the revenue they helped earn?

What is the purpose of the payroll clearing account?

When preparing a payroll reconciliation, what is the impact of identifying unclaimed paychecks on the accounting records?

Upon discovering an overpayment to an employee due to a payroll processing error, how should the correction be accounted for?

How should bonuses paid to employees be recorded in the financial statements?

In payroll accounting, what is the double entry for recording the employer's contribution to employee's health insurance?

During a payroll audit, an auditor would expect to find the withholding taxes in which account before remittance?

When must an employer deposit federal income tax withheld and both the employer and employee portions of Social Security and Medicare taxes?

Which of the following statements best describes the primary purpose of Form W-4?

What is the primary purpose of the Fair Labor Standards Act (FLS

Under the Family and Medical Leave Act (FML

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?

Which of the following best defines the term "constructive receipt" in payroll?

What is the significance of the "lookback period" in determining an employer's federal tax deposit schedule?

Which act requires employers to keep accurate records of employees' time worked and wages paid?

In payroll, what is the primary purpose of the Electronic Federal Tax Payment System (EFTPS)?

What is the primary purpose of a Qualified Domestic Relations Order (QDRO) in relation to payroll?

For payroll purposes, which document is used to verify an employee's eligibility to work in the United States?

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

What is the primary role of the Social Security Administration (SS

Which of the following best describes the employer's obligation under the Uniformed Services Employment and Reemployment Rights Act (USERR

When conducting a payroll compliance audit, which of the following documents is essential for verifying adherence to the Fair Labor Standards Act (FLS

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?

Under the Family and Medical Leave Act (FML

What role does a third-party auditor play in a payroll audit?

What is the significance of conducting a year-end audit in payroll?

During a payroll audit, what is the importance of verifying the classification of employees as exempt or non-exempt?

In the context of payroll audits, what is the primary purpose of analyzing time and attendance records?

Which document is essential for verifying the accuracy of employee wages and tax withholdings during a payroll audit?

What is the purpose of verifying the accuracy of payroll tax filings during an audit?

In a payroll audit, why is it critical to examine the integration of payroll and human resources information systems (HRIS)?

Which regulation requires employers to maintain records of wages, hours, and other items for FLSA compliance?

Under the FLSA, which of the following employees is most likely to be classified as exempt?