Fundamental Payroll Certification Trivia 3 â Questions and Answers
Question 1: Which tax deposit schedule applies to employers whose total tax liability during the lookback period was $50,000 or less?
- Daily
- Monthly (Correct answer)
- Semi-weekly
- Quarterly
Correct answer: Monthly
Employers with $50,000 or less in lookback period tax liability are monthly depositors.
Question 2: What is the Social Security wage base for 2024?
- $147,000
- $160,200
- $168,600 (Correct answer)
- $176,100
Correct answer: $168,600
For 2024, Social Security tax applies only to wages up to $168,600; there is no wage base cap for Medicare.
Question 3: Which form is used to report an employer's quarterly federal tax obligations for income, Social Security, and Medicare taxes?
- Form 940
- Form 941 (Correct answer)
- Form 944
- Form W-3
Correct answer: Form 941
Form 941, the Employer's Quarterly Federal Tax Return, reports withheld income taxes and FICA taxes each quarter.
Question 4: Under the FLSA, which type of employee is NOT entitled to overtime pay?
- Non-exempt hourly employee
- Part-time employee earning $10/hr
- Exempt salaried executive (Correct answer)
- Temporary worker paid hourly
Correct answer: Exempt salaried executive
Exempt employeesâsuch as bona fide executives, administrators, and professionals meeting salary and duties testsâare not entitled to overtime under FLSA.
Question 5: What does the acronym 'EIN' stand for in payroll?
- Employee Identification Number
- Employer Identification Number (Correct answer)
- Electronic Income Number
- Earnings Index Number
Correct answer: Employer Identification Number
An EIN (Employer Identification Number) is issued by the IRS and used to identify a business entity for tax purposes.
Question 6: Which type of deduction reduces an employee's taxable wages for federal income tax purposes?
- Post-tax deduction
- Garnishment
- Pre-tax deduction (Correct answer)
- Net pay deduction
Correct answer: Pre-tax deduction
Pre-tax deductionsâsuch as 401(k) contributions and health insurance premiumsâreduce gross wages before income tax is calculated.
Question 7: Which document establishes employment eligibility verification requirements in the U.S.?
- FLSA
- IRCA (Correct answer)
- ERISA
- FMLA
Correct answer: IRCA
The Immigration Reform and Control Act (IRCA) of 1986 requires employers to verify employment eligibility using Form I-9.
Fundamental Payroll Certification Trivia 3
Which tax deposit schedule applies to employers whose total tax liability during the lookback period was $50,000 or less?