Fundamental Payroll Certification Fundamental Payroll Certification MCQ 3

Question 1

Which federal agency administers the Family and Medical Leave Act (FMLA)?

Accepted Answer

The Department of Labor Wage and Hour Division

Answer

The Department of Labor's Wage and Hour Division enforces FMLA, which entitles eligible employees to up to 12 weeks of unpaid, job-protected leave.

Question 2

A tipped employee's hourly tip credit under the FLSA allows the employer to pay a cash wage as low as:

Accepted Answer

$2.13/hr

Answer

Federal law allows employers to pay tipped employees a direct cash wage of $2.13/hr, provided tips bring total compensation to at least the $7.25 federal minimum wage.

Question 3

Which payroll record retention period does the IRS generally require for employment tax records?

Accepted Answer

4 years

Answer

The IRS requires employers to retain employment tax records for at least 4 years after the date the tax is due or paid, whichever is later.

Question 4

An employee who works in two states during the same pay period is subject to income tax withholding based on:

Accepted Answer

Reciprocity agreements and nexus rules of each state

Answer

Multi-state withholding is governed by each state's nexus rules and any reciprocity agreements between states, which may allow withholding only in the residence state.

Question 5

Under the IRS Accountable Plan rules, which reimbursement must be included in an employee's taxable wages?

Accepted Answer

A $200 expense reimbursement with no business-purpose documentation

Answer

Accountable plan reimbursements must have a business connection, adequate substantiation, and return of excess amounts; without documentation, the reimbursement becomes taxable wages.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Certification MCQ 3