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 tax deposit schedule applies to employers whose total tax liability during the lookback period was $50,000 or less? → Monthly
4. Which copy of Form W-2 must be filed with the Social Security Administration? → Copy A
5. 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
6. A Health Savings Account (HSA) can only be opened by an employee enrolled in which type of health plan? → High-Deductible Health Plan (HDHP)
7. Which employees of a corporation must adhere to a confidentiality agreement respecting personnel records? → Human Resources and Payroll
8. Which of the following is NOT required under the FLSA? → Vacation Pay
9. Which federal agency is primarily responsible for enforcing FLSA recordkeeping requirements? → Department of Labor Wage and Hour Division
10. 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
11. An employee earns $52,000 annually. If paid biweekly, what is the gross pay per pay period? → $2,000.00
12. Under the FLSA, records showing time and day the workweek begins must be kept for how long? → 2 years
13. Under Section 125, a cafeteria plan allows employees to choose between which of the following? → Taxable cash and qualified non-taxable benefits
14. What does the acronym 'EIN' stand for in payroll? → Employer Identification Number
15. How many pay stubs must an employer typically retain under federal record-keeping requirements? → 3 years
16. When recording the employer's share of FICA taxes, which account is debited? → Payroll Tax Expense
17. For creditor garnishments, CCPA protects a weekly floor equal to how many times the federal minimum wage? → 30 times
18. Which deposit schedule applies to a new employer with no lookback period history? → Monthly depositor
19. Except for whom of the following are all non-exempt workers? → A person whose primary job is to index computer files continuously
20. Under COBRA, who is responsible for paying the premium for continuation coverage? → The former employee, up to 102% of the group plan cost
21. What two forms must be completed before you may get paid? → Form W-4 and Employee's Withholding Allowance Certificate
22. Which of the following describes a 'parallel run' during a payroll system implementation? → Running two payroll systems simultaneously to compare results before fully switching
23. Medicare tax is levied at what rate on all covered wages with no wage base limit? → 1.45%
24. Which of the following workers is classified as a 'statutory employee' for FICA purposes even if they may be an independent contractor under common law? → A full-time life insurance salesperson who sells only for one company
25. What class of worker is not covered by the Fair Labor Standards Act (FLSA)? → All of the above
26. What situation can lead an employee to file a lawsuit against an employer for breaking the Americans with Disabilities Act? → The confidentiality of an employee's medical records is compromised
27. A payroll system is described as 'cloud-based SaaS.' What does this primarily mean for the employer? → The software is hosted and maintained by the vendor and accessed via the internet
28. Which regulation may lead to the ownership of unpaid wages when an employer records an employee's start and stop timings using rounding practices? → The seven-minute rule
29. An employer discovers an error on a previously filed Form 941. Which form must be used to correct it? → Form 941-X
30. What is the Social Security wage base for 2024? → $168,600