Fundamental Payroll Certification Trivia 5

Question 1

Which IRS notice informs an employer of a specific withholding amount to apply for a particular employee due to a tax debt?

Accepted Answer

Lock-in letter (Letter 2800C)

Answer

IRS Lock-in letters (Letter 2800C) instruct employers to withhold at a specific rate for an employee who has underwithheld taxes, overriding the employee's W-4.

Question 2

What is the maximum percentage of disposable earnings that can be garnished for ordinary debt under the Consumer Credit Protection Act (CCPA)?

Accepted Answer

25%

Answer

The CCPA limits ordinary debt garnishments to the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage.

Question 3

Which tax applies an additional 0.9% Medicare surtax on high earners?

Accepted Answer

Additional Medicare Tax

Answer

The Additional Medicare Tax of 0.9% applies to wages over $200,000 (single) or $250,000 (married filing jointly) and must be withheld by employers once wages exceed $200,000.

Question 4

Which organization offers the Fundamental Payroll Certification (FPC) designation?

Accepted Answer

American Payroll Association (APA)

Answer

The American Payroll Association (APA) administers both the FPC and the Certified Payroll Professional (CPP) credentials.

Question 5

Which payroll register column shows the running total of wages paid to an employee since January 1?

Accepted Answer

Year-to-date (YTD) gross

Answer

The year-to-date (YTD) gross column accumulates all gross wages from the beginning of the calendar year, which is essential for tracking wage base limits.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Trivia 5