Fundamental Payroll Payroll Reporting and Compliance Flashcards
7 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
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An employer discovers an error on a previously filed Form 941. Which form must be used to correct it?
Answer: Form 941-X
Form 941-X is the Adjusted Employer's Quarterly Federal Tax Return used to correct errors on a previously filed Form 941.
What is the due date for depositing payroll taxes when an employer has a monthly deposit schedule and the liability was incurred in July?
Answer: August 15
Monthly schedule depositors must deposit payroll taxes by the 15th of the month following the month the liability was incurred.
Which IRS publication provides the withholding tables employers use to calculate federal income tax withholding?
Answer: Publication 15 (Circular E)
IRS Publication 15, also known as Circular E (Employer's Tax Guide), contains the federal income tax withholding tables and employer instructions.
An employee claims exempt from federal income tax withholding on Form W-4. How long is this exemption valid?
Answer: One calendar year
A withholding exemption claimed on Form W-4 expires on February 15 of the following year, making it valid for one calendar year.
Which of the following is reported in Box 12 of Form W-2 using Code DD?
Answer: Cost of employer-sponsored health coverage
Code DD in Box 12 of Form W-2 reports the cost of employer-sponsored health coverage under an employer-sponsored plan.
What is the lookback period used to determine whether an employer is a monthly or semiweekly depositor?
Answer: A 12-month period ending June 30 of the prior year
The lookback period is the 12-month period ending June 30 of the prior year; employers who reported $50,000 or less in taxes are monthly depositors.
A new employee fails to submit a Form W-4. What withholding rate must the employer apply?
Answer: The single filer rate at standard withholding
If an employee does not provide a Form W-4, the employer must withhold as if the employee is single with no adjustments.
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