Fundamental Payroll Certification (FPC-Remote) Free Practice Test

Question 1

IRS regulations require employers to take all of the following actions for taxable noncash awards EXCEPT:

A. Tax the value of the award when received

B. Recognize the value of the award as a business expense

C. Gross up the value of the award

D. Include the value of the award on Form W-2 in Boxes 1, 3, and 5

Correct Answer: C

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Question 2

Which of the following forms is used by an employer to file an annual return of withheld FIT from nonwage payments?

A. Form 945

B. Form 941

C. Form 940

D. Form 944

Correct Answer: A

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Question 3

As of December 31, 2024, what is the MAXIMUM amount, if any, a 49-year-old employee can contribute to a 401(k) plan?

A. $7,500.00

B. No Limit

C. $23,000.00

D. $30,500.00

Correct Answer: C

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Question 4

To reconcile a general ledger tax liability account balance, verify all of the following items EXCEPT:

A. Entries from company accountants

B. Account entries against the payroll register

C. Checks issued by accounts payable

D. Account activity against the quarterly returns

Correct Answer: A

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Question 5

An out-of-balance condition in the general ledger could be caused by:

A. High turnover

B. Vacation payout

C. Increased overtime

D. A direct deposit error

Correct Answer: D

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Question 6

An example of an interface into a payroll system is a(n):

A. Check print file.

B. Transmission of general ledger transactions.

C. ACH payment file.

D. Time and attendance system file.

Correct Answer: D

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Question 7

An upgrade to a payroll system can impact all of the following documentation within the payroll department EXCEPT:

A. Standard operating procedures

B. Business continuity plans

C. Union contracts

D. User manuals

Correct Answer: C

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Question 8

The DOL can issue fines for all the following violations EXCEPT:

A. Overtime

B. Sick Leave

C. Child Labor

D. Minimum Wage

Correct Answer: B

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Question 9

Using the following information, calculate the imputed income that MUST be included in the employee's monthly gross pay.

A. $24.38

B. $6.44

C. $23.00

D. $34.50

Correct Answer: A

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Question 10

Employers can take advantage of all of the following affordability safe harbors set forth in the ACA regulations EXCEPT:

A. Section 530

B. Rate of pay

C. The federal poverty line

D. Form W-2 wages

Correct Answer: A

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APA Fundamental Payroll Certification (FPC-Remote) Free Practice Test