FPC-Remote Free Practice Test

- (Topic 1)
What is the purpose of Form I-9?

1. A. To request an ITIN
2. B. To determine how much FIT to withhold from a paycheck
3. C. To summarize taxable wages earned during the calendar year
4. D. To verify the identity and employment authorization of a worker

Correct Answer: D
Comprehensive and Detailed Explanation:FormI-9, Employment Eligibility Verification, is used by employers to:
✑ Verify the identity of newly hired employees
✑ Ensure employees are legally authorized to work in the U.S.
✑ Prevent illegal employment practices
✑ Option A (Request an ITIN)is incorrect because anITIN (Individual Taxpayer Identification Number)is requested usingForm W-7, not I-9.
✑ Option B (Determine FIT withholding)is incorrect becauseForm W-4is used for federal income tax withholding, not Form I-9.
✑ Option C (Summarize taxable wages)is incorrect becauseForm W-2summarizes
taxable wages. Reference:
U.S. Citizenship and Immigration Services (USCIS) – Form I-9 Instructions Payroll.org – Employment Eligibility Verification Guide

- (Topic 2)
Under the FMLA, employers MUST maintain related leave records for how many years?

1. A. 1
2. B. 3
3. C. 4
4. D. 5

Correct Answer: B
✑ The Family and Medical Leave Act (FMLA)requires employers to keepFMLA- related records for at least 3 years.
✑ These records include:
✑ The DOL may audit these records to ensure FMLA compliance. References:
✑ FMLA Recordkeeping Requirements (DOL)
✑ Payroll Record Retention Guidelines (Payroll.org)

- (Topic 1)
Based on the following information, using the percentage method, calculate the employee's net pay:

1. A. $1,649.01
2. B. $1,730.36
3. C. $1,804.01

Correct Answer: B
Comprehensive and Detailed Explanation:Using theIRS Percentage MethodforMarried Filing Jointly (2019 W-4):
✑ Calculate taxable wages:
✑ Federal Income Tax (from IRS tax tables):
✑ Social Security Tax (6.2%):
✑ Medicare Tax (1.45%):
✑ Other deductions: Total Taxes and Deductions:
* 216.20+155.00+36.25+100.00=507.45216.20 + 155.00 + 36.25 + 100.00 = 507.45216.20+155.00+36.25+100.00=507.45
Net Pay Calculation:
* 2,500.00507.45=1,730.362,500.00 - 507.45 = 1,730.362,500.00507.45=1,730.36
Thus, the correct answer isB. $1,730.36. Reference:
IRS Publication 15-T – Federal Income Tax Withholding Methods Payroll.org – Net Pay Calculation Guide

- (Topic 2)
Based on the following Section 125 Cafeteria Plan contributions, calculate the employee??sbiweekly deductions.

1. A. $69.61
2. B. $75.42
3. C. $77.69
4. D. $82.92

Correct Answer: A
✑ Health Insurance (Biweekly) = ($1,500 ?? 26) = $57.69
✑ Life Insurance (Biweekly) = ($15 ?? 12 ?? 26) = $6.92
✑ Dental Insurance = $5.00
✑ Total Biweekly Deduction = $57.69 + $6.92 + $5.00 = $69.61 References:
✑ IRS Section 125 Cafeteria Plan Rules

- (Topic 2)
Which of the following data elements is needed to calculate an employee??s net pay from gross pay?

1. A. Rate of pay
2. B. Hours worked
3. C. Shift differential
4. D. Withholding status

Correct Answer: D
✑ Withholding status (D) affects federal income tax deductionsand 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. References:
✑ IRS Form W-4 Withholding Guidelines
✑ Payroll Calculation Standards (Payroll.org)