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APA FPC-Remote Fundamental Payroll Certification Exam Practice Test

Demo: 37 questions
Total 133 questions

Fundamental Payroll Certification Questions and Answers

Question 1

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?

Options:

A.

$19,000

B.

$19,500

C.

$25,000

D.

$26,000

Question 2

Under the FLSA, what type of pay is included in a nonexempt employee's regular rate of pay calculation?

Options:

A.

paid vacation leave

B.

paid sick leave

C.

discretionary bonuses

D.

production bonuses

Question 3

You receive a letter of inquiry concerning an employee. What should you do?

Options:

A.

follow your companys policy on the release of employee info

B.

ignore the letter becuase its the employees issue

C.

send a short letter to the agency stating that the issue is being reviewed.

D.

call the requested and tell them you plan to locate the info and send it in a few months.`

Question 4

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

Options:

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

Question 5

During thanksgiving week, a nonexempt employee was paid for the following hours:

sun- none

mon- 10 hours worked

tues- 10 hrs work

weds- 8 hr sicks day

thurs- 8 hr holiday

fri-8 hr vacation

sat- 8 hr work

How many overtime hours, if any, did the ee work?

Options:

A.

0 hours

B.

4 hours

C.

12 hours

Question 6

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

Options:

A.

personnel

B.

benefits

C.

purchasing

D.

human resources

Question 7

Under which type of plans are employee contributions subject to social security and medicare taxes?

Options:

A.

401k only

B.

403b only

C.

457b only

D.

401k, 403b, and 457b

Question 8

Payroll documentation accomplishes all of the following goals EXCEPT:

Options:

A.

ensuring uniformity

B.

providing a reference tool

C.

ensuring that procedures are followed

D.

simplifying training

Question 9

When an employee is overpaid and the repayment occurs in the same year, the repayment requested is the employee's

Options:

A.

net overpayment

B.

gross overpayment

C.

gross overpayment minus social security and medicare tax

D.

gross overpayment minus federal income tax

Question 10

Which of the following types of accumulators, which one accumulates values over a period of time?

Options:

A.

segment accumulator

B.

balance accumulator

C.

compunding accumulator

D.

composite accumulator

Question 11

When supplemental wages are paid at the same time as regular wages, how are withholding taxes computer?

Options:

A.

withholding on supplemental wages is taxed separately

B.

withholding taxes are based on the total of the wages and supplemental wages

C.

supplemental wages are not subject to withholding taxes

D.

supplemental wages are taxed at a different withholding rate

Question 12

All of the following issues are concerns of external auditors except:

Options:

A.

safeguarding of the firms financial assets

B.

risks to the companys financial well being

C.

efficiency of payroll procedures

D.

material misstatements of financial statements

Question 13

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

Options:

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

Question 14

All of the following statements about FLSA overtime regulations are true EXCEPT:

Options:

A.

a bonus paid under a union contract is included in the regular rate of pay

B.

a holiday bonus, paid at the discretion of the employer is excluded from the regular rate of pay

C.

the weeks regular rate of pay must include shift premiums

D.

employers must pay overtime when employees work more than 8 hours in a workday.

Question 15

What is the effect on an employees income when the employer pays that employees share of social security and medicare taxes on a fringe benefit?

Options:

A.

there is no change

B.

the taxes paid by the employer are considered income to the employee

C.

the amount of the fringe benefit is included in the employees income

D.

there are no ss or medicare taxes on fringe benefits

Question 16

A company is a monthly depositer for 2020. on payday, the company accumulates apayroll tax liability of $101,000. the payroll tax deposits for this liability must be made:

Options:

A.

on or before the following wednesday

B.

on or before the following friday

C.

by the next business day

D.

by the 15th the following month

Question 17

Under what conditions can an employee claim exemption from withholding on form W4?

Options:

A.

receiving overtime pay

B.

had no tax liability last year and expects no tax liability this year

C.

anticipates receiving a bonus

D.

an employee takes her first job

Question 18

An employee works from midnight to 8am on a company paid holiday but does not work more than 40 hours during the workweek. under the FLSA, the employee must be paid:

Options:

A.

double time for working the holiday

B.

time and one half for working the holiday

C.

a shift differential for working the late night shift

D.

at least the federal minimum wage

Question 19

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?

Options:

A.

$0

B.

$459

C.

$918

D.

$1,779

Question 20

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?

Options:

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

Question 21

All of the following statements are correct regarding online processing EXCEPT:

Options:

A.

the data is changed immediately

B.

the system is interactive

C.

the operator can communicate with the system as the fata is being processed

D.

the data to be processed may be abtched

Question 22

The owners of a company want to set up a retirement program for themselves, but do not want to make contributions on behalf of their employees. all of their employees are under age 30. What can they do?

Options:

A.

establish only a 401k plan that restricts eligibility to employees over age 30.

B.

set up nonqualified deferred compensation plan only

C.

establish only a 401k plan that restricts eligibility to employees over age 30, and set up a nonqualified deferred compensation plan.

D.

establish a 403b plan for all employees

Question 23

Under the FLSA, an employee's workday is defined as:

Options:

A.

entire time spent on the job site

B.

time recorded on the employees time sheet

C.

time the employee is performing principal activities

D.

scheduled shift

Question 24

For a payment after the employee's death in the year of the death, what taxes, if any, will be withheld?

Options:

A.

federal income tax only

B.

social security and medicare taxes only

C.

both federal income and social security and medicare taxes

D.

no taxes will be withheld

Question 25

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

Options:

A.

debit to salary payable

B.

credit to salary expense

C.

debit to cash

D.

debit to salary expense

Question 26

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

Options:

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

Question 27

An employer contributes $200 per month to an employee cafeteria plan. the pretax medical/dental package that she has chosen costs $250 per month. she contributes the extra $50 for this benefit plan. payroll must withhold:

Options:

A.

social security tax and medicare tax from only the employee contribution

B.

social security tax, medicare tax, and federal income tax from only the employee contribution

C.

no tax from either the employee or employer contribution

D.

social security tax and medicare tax from only the employer contribution

Question 28

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

Options:

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

Question 29

The integrity of the data can be verified by:

Options:

A.

balancing and reconciliation

B.

system edits

C.

validity checks

Question 30

hat type of pay is included in the regular rate of pay calculation?

Options:

A.

discretionary bonuses

B.

paid sick leave

C.

paid vacation leave

D.

production bonuses

Question 31

Which of the following records must be kept for 4 years:

Options:

A.

OSHA records

B.

time cards

C.

voided payroll checks

D.

hours worked

Question 32

Which of the following amounts is used when calculating an employee's gross up?

Options:

A.

disposable income

B.

take home pay

C.

gross income

D.

net pay

Question 33

Actions that control the staff in order to protect the company against fraud include all of the following except:

Options:

A.

physical payouts

B.

rotate assignemtns

C.

segregate job duties

D.

restrict system access

Question 34

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

Options:

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

Question 35

A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. the retired employee was a natural choice. the tasks he undertook as a consultant were the same as the ones he performed before retirement. paid monthly, he has agreed to work under the direction of his old boss until the new plantfacilitates are fully operational? What is his status?

Options:

A.

independent contractor under common law

B.

independent contractor under reasonable basis test

C.

employee

Question 36

Payroll documentation accomplishes all of the following EXCEPT:

Options:

A.

provide uniformity

B.

simplify training

C.

ensure procedures are followed

D.

provide a reference tool

Question 37

when does an employer stop deducting a federal tax levy from an employee's wages?

Options:

A.

the amount on the levy is reached

B.

The IRS issues a form 668-D

C.

the employee asks that the levy deduction be stopped

Demo: 37 questions
Total 133 questions