FPC-REMOTE Online Practice Questions and Answers

A superintendent of schools who will be 49 years of age on Dec 31 2020 earns $100,000. his school district has a 403b plan. what is the maximum that he can contribute to this plan before taxes in 2020?

A. $19,000

B. $19,500

C. $25,000

D. $26,000

Last week, a high school teacher spent 40 hours in the classroom, worked 10 hours grading papers and was required to put in another 8 hours on saturday at the school sponsored science fair. under the FLSA, what overtime hours, if any, must the teacher be paid?

A. time and a one half for 0 hours

B. time and a one half for 8 hours

C. time and a one half for 10 hours

D. time and a one half for 18 hours

An employer contributes $175 per month to an employee's cafeteria plan. since her husband has medical/dental coverage through his employer, she wants to take the $175 per month in cash. which of the following statements is true?

A. this option is not available; if the amount is not spent, it is lost

B. the $175 becomes taxable income

C. only social security tax and medicare tax are withheld from the $175 per month.

D. the $175 is a tax free benefit to her.

An employer contributes $200 per month to an employee cafeteria plan. the pretax medical/dental package that she has chosen costs $250 per month. she contributes the extra $50 for this benefit plan. payroll must withhold:

A. social security tax and medicare tax from only the employee contribution

B. social security tax, medicare tax, and federal income tax from only the employee contribution

C. no tax from either the employee or employer contribution

D. social security tax and medicare tax from only the employer contribution

When using the Optional Flat Rate Method, which of the following items is considered when making the calculation?

A. taxable wages

B. pay frequency

C. filing status

D. number of dependents

Which of the following records must be kept for 4 years:

A. OSHA records

B. time cards

C. voided payroll checks

D. hours worked

The owners of a company want to set up a retirement program for themselves, but do not want to make contributions on behalf of their employees. all of their employees are under age 30. What can they do?

A. establish only a 401k plan that restricts eligibility to employees over age 30.

B. set up nonqualified deferred compensation plan only

C. establish only a 401k plan that restricts eligibility to employees over age 30, and set up a nonqualified deferred compensation plan.

D. establish a 403b plan for all employees

If an employee provides an invalid form w4, the employer must:

A. accept the form until the employee completes a new form.

B. implement the form and notify the IRS

C. refuse to accept the form

D. implement the form as is

An employer provides an employee $300 each month in bus tokens so she can commute to work. How much of this expense is taxable?

A. $135

B. $270

C. $280

D. $300

What does an employer use to calculate the amount to withhold for an IRS tax levy?

A. disposable pay

B. net pay

C. take home pay

D. taxable wages