OCPS Payroll Processing & Tax Compliance 2

Question 1

An employer pays wages semi-monthly. How many pay periods occur in a calendar year?

Accepted Answer

24

Answer

Semi-monthly means twice per month, so 2 × 12 = 24 pay periods per year.

Question 2

Which IRS form must an employer use to report annual wages and federal income tax withheld for each employee?

Accepted Answer

W-2

Answer

Form W-2 is the Wage and Tax Statement used to report annual wages and withholding to employees and the IRS.

Question 3

Under the FLSA, what is the standard overtime pay rate for nonexempt employees?

Accepted Answer

1.5 times the regular rate

Answer

The FLSA requires overtime pay of at least 1.5 times the employee's regular rate for hours over 40 in a workweek.

Question 4

Which payroll tax deposit schedule applies to employers with a lookback period tax liability of $50,000 or less?

Accepted Answer

Monthly

Answer

Employers whose lookback period liability is $50,000 or less are classified as monthly depositors.

Question 5

What is the wage base limit for Social Security (OASDI) tax in recent years?

Accepted Answer

A cap applies; earnings above the limit are not subject to OASDI

Answer

Social Security tax applies only up to an annual wage base limit; wages above that limit are exempt from the OASDI portion.

(OCPS) Online Certified Payroll Systems Certified Professional Practice Test