FREE Fundamental Payroll Certification MCQ Question and Answers

Question 1

What impact does an employer paying the employee's portion of Social Security and Medicare taxes on a fringe benefit have on the employee's income?

Accepted Answer

The amount of the fringe benefit is included in the employee's income

Answer

There is no change

Answer

There are no Social Security or Medicare taxes on fringe benefits

Answer

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

Question 2

What methodology is employed to assess the worth of a fringe benefit that an employer offers to a worker?

Accepted Answer

General valuation rule

Answer

Actual cash value

Answer

Actual market value

Answer

Implied benefit value

Question 3

Which form might an employee use to report tips received to an employer?

Accepted Answer

Form 4070

Answer

Form 940

Answer

Form 8109

Answer

Form 1096

Question 4

How should the employer calculate the employee's withholding if the employee doesn't submit a Form W-4?

Accepted Answer

Single with no other adjustments

Answer

Single with the box checked in step 2, part c

Answer

Married with the box checked in step 2, part c

Answer

Married with no other adjustments

Question 5

Which employees of a corporation must adhere to a confidentiality agreement respecting personnel records?

Accepted Answer

Human Resources and Payroll

Answer

Every employee

Answer

Payroll and an employee's supervisor

Answer

Human Resources and an employee's supervisor

Question 6

What situation can lead an employee to file a lawsuit against an employer for breaking the Americans with Disabilities Act?

Accepted Answer

The confidentiality of an employee's medical records is compromised

Answer

Employee medical information is released to a supervisor

Answer

Medical records are provided to an insurance company for a medical exam

Answer

Medical records are not kept in a separate locked file cabinet

Question 7

Which of the following punishments is not imposed on an employer that submits a W-2 form that is incomplete or incorrect?

Accepted Answer

$35 for each W-2 form that is properly filed after 30 days but before August 1st

Answer

$100 for each W-2 form if the employer ignores the W-2 filing requirement

Answer

$50 for each W-2 form that isn't filed by August 1st

Answer

$15 for each W-2 form that is properly filed within 30 days