Fundamental Payroll Certification Fundamental Payroll Certification 3

Question 1

An employer must deposit payroll taxes using the Electronic Federal Tax Payment System (EFTPS). A monthly depositor's deposits are due by the:

Accepted Answer

15th of the following month

Answer

Monthly depositors must deposit accumulated taxes by the 15th day of the month following the month in which the taxes accumulated.

Question 2

Which of the following payments is generally EXEMPT from FICA taxes?

Accepted Answer

Workers' compensation payments

Answer

Workers' compensation payments are excluded from FICA because they are not considered wages for tax purposes.

Question 3

A new employee who fails to submit a W-4 must be treated as:

Accepted Answer

Single with zero allowances (post-2019: no adjustments)

Answer

Per IRS rules, if no valid W-4 is received, the employer withholds as if the employee is single with no adjustments.

Question 4

Which payroll concept describes the total compensation paid to an employee before any deductions are taken?

Accepted Answer

Gross pay

Answer

Gross pay is the total amount earned before taxes, benefits, or any other deductions are subtracted.

Question 5

Under the Consumer Credit Protection Act (CCPA), the maximum garnishment for a regular creditor from an employee's disposable earnings per week is:

Accepted Answer

25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage, whichever is LESS

Answer

CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum hourly wage.

Fundamental Payroll Certification Practice Test