FPC Exam Fundamental Payroll graded A

668-W - Notice of Levy on Wages, Salary, and Other Income

1096 - Annual Summary and Transmittal of U.S. Information Returns

Under the FLSA how old must a minor be to be employed? - 14

What is the FUTA tax rate? - 6.0%

On form 941, the employer reports - Social Security Wages

What is the formula for calculating an employees net pay? - Gross pay-deductions for taxes- other deductions

Which plan discriminates in favor of highly compensated employees? - Nonqualified deferred compensation plans

What is the federal minimum wage per hour on January 1, 2018? - $7.25

What law determines time limits with which employees must be paid after wages are earned? - State Laws

Cafeteria plans are authorized by what internal revenue code section? - 125

The direct deposit data sent to the bank after payroll processing is an example of - Interface

What taxes, if any, must be withheld from payments to an independent contractor who provided a tin? - No taxes are withheld

An external audit: - Allows an objective assessment of the financial statements.

Employees' privacy rights are governed by all of the following except: - Local Legislation

Under the FLSA, what basis is used to determine whether a non-exempt employee is to be paid overtime? - Hours worked in a work week

Overtime payments are included in the calculation of what tax, if any? - They are included in all tax calculations

What is the 2018 wage base for social security tax? - $128,400.00

If an employee does not have federal tax withheld and has not claimed exempt, what must the employer do? - Provide the employee with the EITC notice

A computerized payroll system can help a payroll dept. accomplish all of the following tasks except: - Recognize changes in laws and regulations

An employee's profit sharing bonus is payable in the year following his death. How should the bonus be taxed and reported? - Withhold no taxes and report the bonus on for 1099-misc.

In what ways can a computerized system increase the accuracy of employees paychecks? - By reducing human error

What federal taxes must an employer withhold from an employees reported tips? - Federal income, social security and medicare tax

The main purpose of batch controls is to - Validate data entry accuracy

Which of the following types of compensation is taxable? - Backpay awards

What is used when calculating an employee's gross up? - Net set

Employees can provide their employer with their marital status and allowances for income tax withholding purposes by: - Completing form W-4

Generally, what is the largest expense for most companies? - Salaries and benefits

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

What is the general ledger? - A record of transactions by account