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FPC-Remote Questions and Answers

Question # 6

All of the following types of records can be combined with payroll data in an integrated system except:

A.

personnel

B.

benefits

C.

purchasing

D.

human resources

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Question # 7

Payroll must withhold federal income tax from:

A.

contributions to 401k plans

B.

contributions to 457b plans

C.

contributions to nonqualified deferred compensation plans

D.

contributions to ROTH 401k plans

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Question # 8

An employee earns $40,000 annually. claiming single with no entries on lines 2,3, or 4 on her 2020 form W4, she contributes $6,000 annually to her 401k. How much must be withheld for federal income tax, social security, and or medicare tax on contribution?

A.

$0

B.

$459

C.

$918

D.

$1,779

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Question # 9

Which of the following is true regarding payroll tax deposits?

A.

employers are penalized for failing to deposit 100% of their tax liability by the due date.

B.

employers with accumulated payroll taxes under $2500 for a month can deposit the amount due with their quarterly tax return.

C.

employers accumulating a tax liability of more than $50,000 in the lookback period file schedule B with form 941.

D.

employers must withhold taxes on noncash fringe benefits at least quarterly.

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Question # 10

For her 10 years of service, an employee was given a gold necklace valued at $100. Which of the following is true?

A.

the gift must be included in her taxable compensation

B.

the gift is tax free

C.

only social security and medicare tax should be withheld on the fair market value of the award

D.

only federal income tax should be withheld on the fair market value of the award

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Question # 11

A financial transaction is first posted in your organizations:

A.

chart of accounts

B.

ledger

C.

journal

D.

balance sheet

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Question # 12

What authority controls the frequency with which employees must be paid?

A.

state laws

B.

FLSA rules

C.

Local laws

D.

IRS rules

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Question # 13

An employer contributes $175 per month to an employee's cafeteria plan. since her husband has medical/dental coverage through his employer, she wants to take the $175 per month in cash. which of the following statements is true?

A.

this option is not available; if the amount is not spent, it is lost

B.

the $175 becomes taxable income

C.

only social security tax and medicare tax are withheld from the $175 per month.

D.

the $175 is a tax free benefit to her.

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Question # 14

Internal control procedures include all of the following except:

A.

system interfaces

B.

rotation of duties

C.

segregating jobs

D.

account reconciliation

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Question # 15

Would each of the following entries be posted in the account as a debit (DR) or credit (CR)?

A.

purchase of a desk in an asset account

B.

purchase of stationary in an expense account

C.

withdrawal from a payroll checking account

D.

employer contributions to a 401k plan in an expense account

E.

state income tax withheld but not deposited in a liability account

F.

federal income tax withheld but not paid in a liability account

G.

mortgage payment in a liability account

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Question # 16

All of the following are reasons payroll keeps records except:

A.

compliance with laws

B.

demonstrate accuracy of paychecks

C.

demonstrate security of payroll

D.

periodic reporting

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Question # 17

What benefits can be provided in a section 125 cafeteria plan?

A.

scholarships

B.

discounts

C.

medical insurance

D.

commuter vans

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Question # 18

An employee earns $1,000 weekly. his deductions are $174 for federal income tax, $62 for social security tax, and $14.50 for medicare tax. He is not supporting another family and has never been in arrears in his child support payments. What is the maximum child support payment that can be withheld from his wages?

A.

$600

B.

$500

C.

$449.70

D.

$500.18

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Question # 19

An employee belongs to a professional organization. when his company pays his dues, the payment is:

A.

taxable compensation

B.

de minimis fringes

C.

a working condition fringe

D.

a no-additional cost service

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Question # 20

Which of the following events would require an employee to fill out an amended form w4 within 10 days of its occurrence?

A.

employee becomes legally separated from his or her spouse who was claimed as a dependent

B.

employees spouse quits job to stay home with a new baby

C.

death of a spouse

D.

adoption of a kid

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Question # 21

What advantages does a payroll checking account provide?

A.

prevents fraud

B.

facilitates reconciliations

C.

ensures that reconciliations are completed in a timely manner

D.

ensures that checks are issued correctly

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Question # 22

when a payroll department does not respond promptly to a penalty notice from a governmental agency against an employee, this is an example of:

A.

poor problem solving

B.

breaching confidentiality

C.

lack of compliance

D.

responding to higher priorities

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Question # 23

For a payment after the employees death in the year AFTER the death, what taxes, if any, will be withheld?

A.

federal income tax only

B.

social security and medicare taxes only

C.

federal income and social security and medicare taxes

D.

no taxes will be withheld

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Question # 24

Last week, a high school teacher spent 40 hours in the classroom, worked 10 hours grading papers and was required to put in another 8 hours on saturday at the school sponsored science fair. under the FLSA, what overtime hours, if any, must the teacher be paid?

A.

time and a one half for 0 hours

B.

time and a one half for 8 hours

C.

time and a one half for 10 hours

D.

time and a one half for 18 hours

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Question # 25

Salaries earned but not yet paid in the current month must be recorded as:

A.

debit to salary payable

B.

credit to salary expense

C.

debit to cash

D.

debit to salary expense

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Question # 26

Assume that a deposit is due on Weds, but this is a non-banking day. to be considered made timely, the employers deposit of federal payroll taxes must be made on or before the close of business on:

A.

tuesday

B.

thursday

C.

monday

D.

friday

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Question # 27

An employer maintains its employee master file in computer files. which of the following statements is true?

A.

under federal law, the employer is required to keep a backup of these records

B.

employment records must be kept for 7 years

C.

there is no federal requirement to update the data monthly

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Question # 28

When does an exempt W4 expire?

A.

at the end of each quarter

B.

Feb 15 of next year

C.

it continues as long as the ee is subject to ss tax

D.

dec 31 each year

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Question # 29

Effective feedback, whether positive or negative, should be given as soon as possible after an incident

A.

TRUE

B.

False

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Question # 30

All of the following types of employees are classified as exempt from the FLSAs min wage and OT requirements except:

A.

professional

B.

outside salesperson

C.

administrative

D.

computer repairman

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Question # 31

A receptionist has agreed to work afternoons at the company until the company can find a full time replacement. what is the receptionists status?

A.

independent contractor under common law

B.

independent contractor under reasonable basis

C.

employee

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Question # 32

All of the following types of payments are included in the regular rate of pay calculation except:

A.

a production bonus to be paid in June which the employer announced in jan

B.

an agreement with the union to pay one half of one weeks salary to workers with over 5 years of services

C.

a traditional $50 gift certificate which the firm has paid for the past 5 years during holiday season

D.

shift differential for working the 4pm to midnight shift

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Question # 33

Payroll documentation accomplishes all of the following EXCEPT:

A.

provide uniformity

B.

simplify training

C.

ensure procedures are followed

D.

provide a reference tool

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Question # 34

A superintendent of schools who will be 49 years of age on Dec 31 2020 earns $100,000. his school district has a 403b plan. what is the maximum that he can contribute to this plan before taxes in 2020?

A.

$19,000

B.

$19,500

C.

$25,000

D.

$26,000

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Question # 35

A voluntary deduction must be:

A.

authorized by the employee

B.

deducted without the employee's permission

C.

changed to what the employer needs to deduct

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Question # 36

An employer provides an employee $300 each month in bus tokens so she can commute to work. How much of this expense is taxable?

A.

$135

B.

$270

C.

$280

D.

$300

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Question # 37

A semiweekly depositor that has a payroll tax liability of $50,000 from a Monday payroll must deposit the liability by:

A.

tues

B.

weds

C.

thurs

D.

fri

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Question # 38

Which of the following statements is correct regarding section 125 plans?

A.

employees working 10 hours a week or more must be included in the companys section 125 plan

B.

any benefits received in cash are not taxed

C.

at the end of the plan year, employees receive cash payments for amounts remaining

D.

benefits can be changed during the plan year if there is a qualified change in status

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Question # 39

All of the following are tax implications of a cafeteria plan except:

A.

no income tax withholding

B.

no social security and medicare tax withholding

C.

must withhold income, social security, and medicare taxes

D.

no form W2 reporting

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