10 free, exam-style Fundamental Payroll Certification (FPC) practice questions with answers and explanations. No signup required. Work through them below, then take the full free FPC practice test to study every exam domain.
A real estate agent is paid solely by commission, signs a written contract stating she is self-employed, and meets the statutory criteria. For federal employment tax purposes, she is treated as:
Correct answer: D - A statutory non-employee under IRC §3508
The 2024 U.S. Department of Labor final rule that would have raised the white-collar exempt salary threshold to $1,128/week:
Correct answer: B - Was vacated nationwide on November 15, 2024
An employee paid via the fluctuating workweek (FWW) method earns a fixed $1,000 weekly salary and works 50 hours in the week. The overtime premium owed (0.5x method) is:
Correct answer: C - $100.00 in overtime premium
Employers must begin withholding the Additional Medicare Tax of 0.9% from an employee's wages exceeding what threshold in a calendar year, regardless of filing status?
Correct answer: C - $200,000 in calendar-year wages
Under SECURE 2.0, the enhanced 401(k) catch-up contribution available to participants ages 60 through 63 in 2025 is:
Correct answer: A - $11,250 enhanced catch-up
A tipped employee earns the federal minimum cash wage of $2.13 plus tip credit. After applying the maximum tip credit to overtime hours, the CASH overtime rate the employer must pay per OT hour is:
Correct answer: B - $5.76 per overtime hour
An employee has $600 in disposable earnings this week. The employer receives BOTH a $150 ordinary creditor garnishment AND a $240 active child support order. What amount should the employer withhold this week?
Correct answer: C - $240 (child support takes priority)
An employee earns $80,000 in annual wages, defers $8,000 to a traditional 401(k), and pays $2,000 toward pre-tax §125 health insurance premiums. What amount is reported in W-2 Box 5 (Medicare wages and tips)?
Correct answer: D - $78,000 (only §125 health reduces Medicare wages)
When U.S. Immigration and Customs Enforcement (ICE) serves a Notice of Inspection (NOI) for Form I-9 records, the employer is typically required to produce the requested documents within:
Correct answer: A - Three (3) business days
Under the National Labor Relations Act (NLRA), an employer's pay confidentiality policy must NOT prohibit employees from:
Correct answer: D - Discussing their own wages with co-workers
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