Fundamental Payroll Certification Cheat Sheet 2026

The 30 highest-yield Fundamental Payroll Certification facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the primary purpose of segregation of duties in the payroll function? → To reduce errors and prevent fraud by dividing payroll tasks among multiple individuals
2. Which audit procedure would BEST detect errors in the calculation of employee net pay? → Recalculating gross-to-net pay independently using payroll inputs and tax tables
3. Which IRS form is served on an employer to levy an employee's wages for unpaid federal taxes? → Form 668-W
4. Under the FLSA, the standard workweek for overtime purposes is defined as: → Any 7 consecutive days designated by the employer
5. Which tax deposit schedule applies to employers whose total tax liability during the lookback period was $50,000 or less? → Monthly
6. Which copy of Form W-2 must be filed with the Social Security Administration? → Copy A
7. An employee who did not provide a Form W-4 started work in 2024. What withholding status must the employer use? → Single or Married filing separately at the default rate per Publication 15-T
8. A new employee who fails to submit a W-4 must be treated as: → Single with zero allowances (post-2019: no adjustments)
9. Form 941 (Employer's Quarterly Federal Tax Return) is generally due: → By the last day of the month following the end of the quarter
10. What is the FLSA statute of limitations for filing a claim for unpaid minimum wages or overtime? → Two years, or three years for willful violations
11. A Health Savings Account (HSA) can only be opened by an employee enrolled in which type of health plan? → High-Deductible Health Plan (HDHP)
12. Which employees of a corporation must adhere to a confidentiality agreement respecting personnel records? → Human Resources and Payroll
13. A state's garnishment law limits creditor garnishments to 10% of disposable earnings. The federal CCPA limit is 25%. Which limit should the employer apply? → Apply the limit that is more protective of the employee (the lower 10% limit)
14. A payroll department discovers that an employee was overpaid $300 in the prior period. Which entry corrects the balance sheet if repayment is received in cash? → Debit Cash $300 and credit Wages Expense $300
15. Which of the following is NOT required under the FLSA? → Vacation Pay
16. What is the penalty for a payroll deposit that is 1-5 days late? → 5%
17. Which of the following correctly describes the FLSA child labor restrictions for minors aged 14–15? → Limited to 3 hours on school days and 18 hours in school weeks
18. Which form is furnished to each full-time employee to report health coverage offers under the Affordable Care Act? → Form 1095-C
19. Under FLSA, what is the minimum salary threshold for the white-collar exemptions as of 2024? → $844 per week
20. Which federal agency is primarily responsible for enforcing FLSA recordkeeping requirements? → Department of Labor Wage and Hour Division
21. Which of the following would cause a payroll bank account reconciliation to show an outstanding item? → An employee's paycheck that has not yet been cashed
22. If an employee has not received Form W-2 by February 15, what is the recommended course of action? → Contact the employer first, then the IRS if still unresolved
23. An employee's pay is levied by the IRS. Compared to a commercial creditor garnishment, the exempt amount for an IRS levy is determined by: → Publication 1494 (exempt amount tables based on filing status and dependents)
24. An employee earns $52,000 annually. If paid biweekly, what is the gross pay per pay period? → $2,000.00
25. Under the FLSA, records showing time and day the workweek begins must be kept for how long? → 2 years
26. Under Section 125, a cafeteria plan allows employees to choose between which of the following? → Taxable cash and qualified non-taxable benefits
27. When a federal tax levy and a state tax levy are received simultaneously for the same employee, which generally takes priority? → Federal levy, because federal law supersedes state law
28. Which of the following payments is generally EXEMPT from FICA taxes? → Workers' compensation payments
29. Which IRS form is used to request an extension of time to file information returns such as W-2s with the SSA? → Form 8809
30. When must an employer provide employees with their annual W-2 forms? → By January 31 of the following year