Fundamental Payroll Certification Fundamental Payroll Core Payroll Concepts 2

Question 1

Which IRS form do employees complete to tell their employer how much federal income tax to withhold from their paychecks?

Accepted Answer

Form W-4

Answer

Form W-4 (Employee's Withholding Certificate) is completed by employees to indicate their withholding allowances and filing status for federal income tax purposes.

Question 2

The Social Security tax rate for employees under FICA is:

Accepted Answer

6.2%

Answer

Employees pay 6.2% of wages for Social Security (OASDI), up to the annual wage base limit, while employers match that same 6.2%.

Question 3

An employee earns $52,000 annually. If paid biweekly, what is the gross pay per pay period?

Accepted Answer

$2,000.00

Answer

Biweekly means 26 pay periods per year; $52,000 ÷ 26 = $2,000.00 per pay period.

Question 4

Which of the following is considered a pre-tax deduction that reduces an employee's taxable wages?

Accepted Answer

Traditional 401(k) contributions

Answer

Traditional 401(k) contributions are pre-tax, reducing the employee's federal taxable income, unlike Roth 401(k) contributions which are made after-tax.

Question 5

Medicare tax is levied at what rate on all covered wages with no wage base limit?

Accepted Answer

1.45%

Answer

Employees pay 1.45% for Medicare on all covered wages, with no cap, and employers match that 1.45%.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Core Payroll Concepts 2