CPS Payroll Fundamentals 2

Question 1

An employee works 46 hours in a workweek. How many overtime hours must be paid at the FLSA overtime rate?

Accepted Answer

6 hours

Answer

FLSA requires overtime pay for all hours worked over 40 in a workweek, so 46 - 40 = 6 overtime hours.

Question 2

Which IRS form must employers file quarterly to report federal income tax withheld and FICA taxes?

Accepted Answer

Form 941

Answer

Form 941, the Employer's Quarterly Federal Tax Return, reports wages paid, federal income tax withheld, and FICA taxes each quarter.

Question 3

What is the employer's share of the Social Security tax rate applied to wages up to the wage base?

Accepted Answer

6.2%

Answer

Employers pay 6.2% for Social Security (OASDI) on wages up to the annual wage base, matching the employee's contribution.

Question 4

A salaried exempt employee earns $52,000 annually. What is her gross pay per biweekly pay period?

Accepted Answer

$2,000.00

Answer

$52,000 ÷ 26 biweekly periods = $2,000.00 per pay period.

Question 5

Under the FLSA, which of the following workers is most likely classified as exempt from overtime?

Accepted Answer

A systems analyst earning $68,000/year with primary duty of office work

Answer

To qualify for the administrative exemption, an employee must earn at least $684/week and have a primary duty of office/non-manual work exercising discretion.

(CPS) Certified Payroll Specialist Practice Test

(CPS) Certified Payroll Specialist Practice Test

CPS Payroll Fundamentals 2