FAC Payroll Processing & Administration 2

Question 1

An employee is paid biweekly and earns $62,400 annually. What is their gross pay per pay period?

Accepted Answer

$2,400.00

Answer

$62,400 divided by 26 biweekly pay periods equals $2,400.00 per period.

Question 2

Which IRS form must employers use to report annual wages and taxes withheld for each employee?

Accepted Answer

Form W-2

Answer

Form W-2 (Wage and Tax Statement) is issued to employees and filed with the SSA to report annual wages and withholdings.

Question 3

Under FLSA, which of the following workers is classified as non-exempt?

Accepted Answer

An hourly warehouse associate earning $15/hr

Answer

Hourly workers generally do not meet the salary basis test and are therefore non-exempt and entitled to overtime pay.

Question 4

What is the purpose of a payroll register?

Accepted Answer

To record each employee's earnings, deductions, and net pay for a pay period

Answer

A payroll register is a detailed record summarizing all payroll activity including gross pay, deductions, and net pay for every employee in a given period.

Question 5

Which payroll deduction reduces an employee's federal taxable income dollar-for-dollar?

Accepted Answer

Pre-tax 401(k) contributions

Answer

Traditional pre-tax 401(k) contributions are excluded from federal taxable income, reducing the amount subject to withholding.

(FAC) Finance and Accounting Certification Practice Test

(FAC) Finance and Accounting Certification Practice Test

FAC Payroll Processing & Administration 2