FPC-Remote Exam Questions & Answers
Fundamental Payroll Certification Exam • APA
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Sample FPC-Remote Questions
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Which of the following data elements is needed to calculate an employee's net pay from gross pay?
Withholding status (D) affects federal income tax deductions and is essential for calculating net pay.
Rate of pay (A), hours worked (B), and shift differentials (C) impact gross pay but NOT net pay calculation.
IRS Form W-4 Withholding Guidelines
Payroll Calculation Standards (Payroll.org)
The reconciliation of an employee federal income tax withholding account occurs when which type of account is balanced?
Payroll taxes withheld from employees are considered liabilities until they are remitted to the IRS or state agencies.
Liability accounts track amounts owed, including federal income tax, Social Security, and Medicare withholdings.
Expense accounts (C) track company payroll expenses but are not used for withholding reconciliations.
IRS Payroll Accounting Guidelines
Payroll Tax Reconciliation Guide (Payroll.org)
Under the CCPA, use the following information to calculate the MAXIMUM child support order deduction allowed for an employee supporting a second family and in arrears.
Comprehensive and Detailed Explanation:
Under the Consumer Credit Protection Act (CCPA):
If the employee supports a second family and is in arrears, the maximum garnishment limit is 55% of disposable earnings.
Calculate Disposable Earnings:
Gross wages: $1,573.00
Less taxes withheld: $175.00
Disposable earnings = $1,573.00 - $175.00 = $1,398.00
Calculate Maximum Child Support Deduction (55% of disposable earnings):
$1,398.00 55% = $768.90
Thus, the correct answer is B. $768.90.
A non-exempt hospital employee works a 14-day period at $14.00 per hour under the 8/80 rule. The employee worked the following hours during the two-week period:
Calculate the employee's biweekly gross pay.
Comprehensive and Detailed Explanation:
Under the 8/80 rule, employees in hospital or healthcare settings are paid overtime if they work more than 8 hours in a day or 80 hours in a 14-day period.
Calculate Total Hours Worked:
Week 1: 9 + 10 + 9 + 4 + 10 = 42 hours
Week 2: 0 + 11 + 8 + 10 + 10 = 39 hours
Total Hours Worked = 81 hours
Identify Overtime:
Daily Overtime (More than 8 hours/day):
Monday (9 - 8) = 1 hour
Tuesday (10 - 8) = 2 hours
Wednesday (9 - 8) = 1 hour
Tuesday Week 2 (11 - 8) = 3 hours
Thursday Week 2 (10 - 8) = 2 hours
Total Daily Overtime = 9 hours
Biweekly Overtime:
Total worked: 81 hours (Over 80 hours) 1 extra hour
Total Overtime Hours = 9 + 1 = 10 hours
Gross Pay Calculation:
Regular Hours (80) $14 = $1,120.00
Overtime Hours (10) ($14 1.5) = $210.00
Total Gross Pay = $1,120 + $210 = $1,148.00
Thus, the correct answer is C. $1,148.00.
Fair Labor Standards Act (FLSA) -- 8/80 Rule for Healthcare Employees
Payroll.org -- Overtime Calculation in Healthcare Settings
Employer's federal quarterly employment taxes are reported on:
Form 941 is used to report quarterly employment taxes (including federal income tax, Social Security, and Medicare).
Form 940 reports FUTA taxes (A), not quarterly employment taxes.
Form 944 is for small employers who file annually instead of quarterly.
Form 945 is for non-wage income withholding (D).
IRS Form 941 Instructions
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