FPC-Remote Exam Dumps - Fundamental Payroll Certification

Comprehensive and Detailed Explanation:TheDepartment of Labor (DOL)enforces violations related to:

Overtime (A)– Under theFair Labor Standards Act (FLSA).

Child Labor (C)– Protecting workers underage 18.

Minimum Wage (D)– Enforcing thefederal minimum wage.

Option B (Sick Leave) is incorrectbecause the DOLdoes not regulate paid sick leave at the federal level.Sick leave laws vary by state, but there isno federal mandaterequiring paid sick leave.

Comprehensive and Detailed Explanation:To finddiscrepanciesin a general ledger, the following documents should be reviewed:

General Ledger Account Details (A)– To track postings and adjustments.

Bank Account Statements (B)– To ensure transactions reconcile with payroll expenses.

Payroll Register Totals (C)– To comparewages and tax liabilitiesagainst general ledger accounts.

Option D (Copies of Paychecks) is incorrectbecause physical paycheck copiesdo not verify account balances or identify out-of-balance errors.

Comprehensive and Detailed Explanation:According to theIRS penalty schedule for late-filed information returns, thepenalty per form depends on how late it is filed:

A screenshot of a computer screen AI-generated content may be incorrect.

Option A ($60.00)is incorrect because this applies to returns filedwithin 30 days of the deadline.

Option B ($120.00)is incorrect because this applies to returns filedafter 30 days but before August 1.

Option D ($630.00)is incorrect because this applies to cases ofintentional non-compliance.

Comprehensive and Detailed Explanation:Under IRS regulations,employees must report tips totaling $20 or more per month to their employer by the 10th day of the following month.

Employee received $200.10 in tips in July.

Tip income must be reported by August 10.

Option B (September 10), Option C (September 30), and Option D (December 31) are incorrectbecause the IRS mandatesmonthly reporting.

Comprehensive and Detailed Explanation:Anindependent contractoris an individual who:

Works on aper-project basis

Isnot under direct employer control

Provides services to multiple clients

Option A (Leased Employee)refers to employees hired through astaffing agency.

Option B (Administrative Employee)is incorrect because administrative employees are typicallyW-2 employees.

Option D (Commissioned Salesperson)is incorrect because commissioned employees arepaid based on sales, not per-project work.

Comprehensive and Detailed Explanation:Using theIRS Supplemental Wage Method, theflat tax rateof22%applies tobonuses:

Federal Income Tax:

$5,000 × 22% = $1,100.00

Social Security Tax:

$5,000 × 6.2% = $310.00

Medicare Tax:

$5,000 × 1.45% = $72.50

State Income Tax:

$5,000 × 5.0% = $250.00

Total Taxes Withheld:

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Comprehensive and Detailed Explanation:Under the8/80 rule, employees inhospital or healthcare settingsarepaid 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 isC. $1,148.00.

Comprehensive and Detailed Explanation:Apre-notification (pre-note) processis used by payroll departments to verifybanking detailsbefore initiatingdirect depositpayments.

Azero-dollar transactionis sent viaACH (Automated Clearing House)to ensureaccount validity.

This stepprevents payment errorsandfraudulent transactions.

Option Ais incorrect becausepre-notes are usually processed 3–6 days before payday, but not necessarilyfivedays in all cases.

Option Bis incorrect becausenot all employers require a pre-note before direct deposit begins.

Option Cis incorrect becauseACH verification does not confirm the employee’s full legal name.