FPC Practice questions

in order to set up dd of payroll, you need which 3 pieces of info?

type of account (checking/savings) routing # account #

Last month, an employee emailed her mother on the company's email, photocopied fliers for her church picnic at work and used her work computer to update her resume. These services represent: a. taxable compensation b. de minimis fringes c. working condition fringes d. no-additional cost services

b. de minimis fringes

when system generated tools do not agree to batch control totals, what must occur? a. continue processing b. finding the cause and correcting the error c. delay finding the error until more time is available d. document the difference and continue processing

b. finding the cause and correcting the error

Under what conditions can an employee claim exemption from withholding on form W4? a. receiving overtime pay b. had no tax liability last year and expects no tax liability this year c. anticipates receiving a bonus d. an employee takes her first job

b. had no tax liability last year and expects no tax liability this year employees claiming exempt must owe no federal income tax both for the prior year and the current year as no tax will be withheld.

an employee claims exempt from withholding on his form W4. to continue the exempt status for the next year, a new form W4: a. must be filed by dec 31 b. must be filed by feb 15 of the following year c. is not necessary d. is invalid if the employee claims more than 10 dependents

b. must be filed by feb 15 of the following year the exempt status expires on feb 15 of the following year.

checking inputs or outputs against predetermined constraints is called: a. internal control b. validity edit c. system safeguard d. parallel test

b. validity edit one way to check for errors is to build validity edits into the system. the system automatically checks to make certain all inputs and outputs are within normally accepted ranges

a computerized payroll system can help a payroll dept accomplish all of the following tasks except: a. compliance w laws and regulations b. producing timely, accurate paychecks c. record retention d. recognize changes in laws and regulations

d. payroll professionals must research the constantly changing laws and regulations to ensure the payroll system remains in compliance

2. What type of pay is included in the regular rate of pay calculation? a. discretionary bonuses b. paid sick leave c. paid vacation leave d. production bonuses

d. production bonuses the FLSA excludes paid time off and discretionary bonuses from the regular rate of pay calculation

every month, all of the following records are reconciled EXCEPT: a. payroll liability accounts b. master record of payments c. payroll bank checking account d. validity edits

d. validity edits monthly account reconciliation helps validate the integrity of the info in your payroll system

under which type of plans are employee contributions subject to social security and medicare taxes? a. 401k only b. 403b only c. 457b only d. 401k, 403b, and 457b

d. all of the above

How long should employers keep payroll records beyond legal requirements a. 2 years b. 3 years c. 4 years d. as long as the company needs the records

d. as long as the company needs the records

All of the following regulate payments made by DD EXCEPT: a. consumer financial protection bureau b. NACHA C. State laws d. local laws

d. local laws the consumer financial protection bureaus regulation E allows the use of electronic funds transfer. NACHA provides the operational rules for EFT. state laws facilitate the payment process

for a payment after the employees death in the year AFTER the death, what taxes, if any, will be withheld? a. federal income tax only b. social security and medicare taxes only c. federal income and social security and medicare taxes d. no taxes will be withheld

d. no taxes will be withheld

in what part of a 2020 form w4 does an employee claim dependents? a. step 3 b. writing below step 4c c. step 2 d. dependents are not claimed on form W4

A. step 3

tips can be counted toward the employees minimum wage

TRUE

all employees must complete a new form w4 each year true false

false

an employee's parking garage is 2 blocks away from his downtown office. it costs $275/month to rent a stall there, but the employee doesn't mind because its convenient and his employer reimburses him 100% of the cost. How much of his monthly parking is taxable?

$15. remember: employer-provided parking is nontaxable up to $260/month

A server is paid $2.25/ hour and receives tips which average $150/week. She works 40 hours per week. Which of the following is true?

$2.25 x 40 hrs = $90 $90 + $150 = $240 now the minimum wage is $7.25 so $7.25 x 40= $290 ee must receive at least $290, so $290 - $240 = $50 so the employer owes an extra $50 Therefore, the employer must raise the ee's salary to $3.50/ hour for this pay period

an employee's most recent pay period began on Dec 15, 2020 and ended on dec 31, 2020. the employee was paid on jan 7, 2021. in what year are his wages earned between dec 15, 2020 and dec 31 2020, included in his taxable wages?

2021 wages are included in taxable income when paid on date

what is the correct chronological sequence for the following events associated with DD? 1. company creates ACH file 2. employee receives deposits in his or her bank accounts 3. company collects employee info 4. originating financial institution transmits data 5. settlement through ACH

3, 1, 4, 5, 2

a waitress is paid $2.25 per hour and she receives $225 in tips during the week. She works 4o hours per week. Which of the following is true? a. her employer is allowed to reduce her cash wage to no less than $2.13 per hour b. her base pay must be increase to $4.5 per hour after a 90 day training period. c. she must be paid $5.12 per hour by her employer d. her base salary must be raised to $3 per hour to comply with fed min wage requirements.

A. her employer is allowed to reduce her cash wage to no less than $2.13 per hour her employer can claim the full federal tip credit because she receives tips and with her tips, is paid more than the current federal minimum wage purposes, her employer must pay her at least $2.13 per hour and her hourly rate plus tips must equal at least the current federal min wage

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

A. teachers are exempt under the professional exemption only nonexempt ees must be paid overtime

One of the options in an employee's cafeteria benefit plan is a dependent care flexible spending account. He earmarked $100 per month to the account to pay for child care but spend only $1000 by the end of the plans grace period. at the end of the grace period, what happens to the $200 left in the account? a. the amount is forfeited b. it will be added to his taxable income c. he can use it to "buy" ab additional benefit d. it ill carry over to the next year

A. the amount is forfeited

in 2020, an employer must pay social security tax on an employees wages up to: a. 127,200 b. $128,400 c. 132,900 d. 137,700

D. $137,700

All of the following types of employees are classified as exempt from the FLSAs min wage and OT requirements except: a. professional b. outside salesperson c. administrative d. computer repairman

D. computer repairman a computer repairman does not perform the duties required to qualify as an exempt computer professional

when an employee begins to receive social security benefits, the employer no longer needs to withhold social security and medicare taxes. true false

FALSE

if the amounts are paid during the same year the employee dies, _______ and ______ must be withheld and reported on the W2. FIT is not reported on W2.

Social security and medicare must be withheld

when an employee lives and works in the same state, the employer withholds income tax for that state. true false

TRUE

An employer maintains the following information in its employee master file: hire date, termination date, payment date, regular rate of pay, additions/deductions from pay, frequency of payments. name 2 other records that must be kept in order to calculate overtime pay.

To comply with FLSA requirements for wage and hour repoting, you must also keep data on the following: - hours worked/day -hours worked/week -workweek -overtime hours/pay -shift bonys

what does an employer use to calculate the amount to withhold for a child support withholding order? a. disposable pay b. net pay c. take home pay d. taxable wages

a. disposable pay the employees disposable pay (all earning-deductions required by law) is used to determine the maximum child support withholding

Which of the following events would require an employee to fill out an amended form w4 within 10 days of its occurrence? a. employee becomes legally separated from his or her spouse who was claimed as a dependent b. employees spouse quits job to stay home with a new baby c. death of a spouse d. adoption of a kid

a. employee becomes legally separated from his or her spouse who was claimed as a dependent when an employees circumstances result in reduced income tax liability (such as when a child is adopted or a spouse stops working) less tax is withheld; an employee can fill out a new w4 at any time. however, when circumstances create an increased income tax liability, the employee must fill out a new w4 within 10 days.

an employee was sick the last week in december. his paycheck, dated dec 31, 2020 was held for him until he returned to work on Jan 6, 2021. these wages are taxable: a. in 2020 b. in 2021

a. in 2020 since the employees paycheck was available in 2020, according to the concept of constructive receipt, these wages are taxable in 2020.

When an employee is overpaid and the repayment occurs in the same year, the repayment requested is the employee's a. net overpayment b. gross overpayment c. gross overpayment minus social security and medicare tax d. gross overpayment minus federal income tax

a. net overpayment when an employee is overpaid and the repayment occurs in the same year, the repayment requested is the employee's net overpayment

All of the following are supplemental wages EXCEPT: a. salary b. bonus c. commission d. fringe benefits

a. salary

all of the following deductions are involuntary deductions EXCEPT: a. wage assignment b. tax levy c. child support d. creditor garnishment

a. wage assignment

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

b. $270 employer provided tokens for public transportation commuting expenses are nontaxable up to $270 per month for 2020.

for a payment after the employee's death in the year of the death, what taxes, if any, will be withheld? a. federal income tax only b. social security and medicare taxes only c. both federal income and social security and medicare taxes d. no taxes will be withheld

b. social security and medicare taxes only the social security act requires withholding social security and medicare taxes from wages paid in the year of an employees death. these wages are paid to the employees estate or beneficiary are are reported on form W2.

for her 10 years of service, an employee was given a gold necklace valued at $100. Which of the following is true? a. the gift must be included in her taxable compensation b. the gift is tax free c. only social security and medicare tax should be withheld on the fair market value of the award d. only federal income tax should be withheld on the fair market value of the award

b. the gift is tax free most prizes and awards are taxable wages, but one exception is qualified awards for length of service or safety

which of the following employee benefits is nontaxable compensation? a. company vehicle (personal use) b. gifts, prizes awards c. company vehicle (business use) d. moving expense

c. company vehicle (business use) of these, only the business use of a company vehicle is a nontaxable. the tax treatment of certain fringe benefits (like company vehicles, educational assistances, thirs party sick pay, or GTLI) can get complicated. unless otherwise specific, fringe benefits are taxable

all of the following issues are concerns of external auditors except: a. safeguarding of the firms financial assets b. risks to the companys financial well being c. efficiency of payroll procedures d. material misstatements of financial statements

c. efficiency of payroll procedures

payroll documentation accomplishes all of the following EXCEPT: a. provide uniformity b. simplify training c. ensure procedures are followed d. provide a reference tool

c. ensure procedures are followed payroll management is entrusted with ensuring procedures are followed

an employer may provide all of the following features in a 401k plan except: a. matching contributions b. lower ceilings on contributions c. higher benefits for highly compensated employees d. catch up contribution

c. higher benefits for highly compensated employees

When must overtime be paid? a. each week b. with the next payroll c. as soon as practically possible

c. overtime is paid with the next regular payday, however, if overtime can not be paid with the next regular payday due to administrative reasons it can be delayed until the next payday

name one way payroll managers can increase security through stricter internal control of the payroll staff

dont have one person run be assigned to any task

employers who provide paid vacation leave must count the hours of paid time off when determining if the employee must receive an overtime premium when the total hours worked in a week exceed 40. true false

false only hours worked count toward determining whether overtime premiums must be paid under the FLSA

payroll tax liability accounts should be reconciled at least weekly true false

false reconciliations of liability accounts should occur at least monthly

an employee works 40 hours per week as a fry cook. during the week, she substitutes for one of the waitresses and reports $5 per week in tips. can her employer pay her $2.13 per hour? - yes - no

no because she isnt making $30 a month. the tip credit can be used to reduce the minimum wage only if the employee regularly receives tips and documents receiving more than $30/month

name 2 items that should be documented in the payroll dept

payroll policies procedures system and software user manuals employee job descriptions file descriptions

a nonexempt employee working at a hospital can work more than 40 hours in a week and not be paid overtime true false

true 8/80 rule and 14 day period

An employee worked for 30 hours on his regular shift at $10 per hour and 16 hours on the late night shift at $12 per hour. in addition, he earned a production bonus of $50. what is his total weekly compensation?

$577.34 step 1: 30x$10=$300 16x$12= $192 $300+$192+$50=$542 regular pay Step 2: $542/ 46 hours = $11.78 per hour regular rate of pay step 3: $11.78 x 0.5 = overtime premium rate $5.89 step 4: $5.89 x 6 OT hours = $35.34 premium pay for overtime step 5: $542 + $35.34 = $577.34 total weekly compensation

name 2 key features found in systems providing employee self service

- ability to update person data - ability to view and print pay statements - ability to view and print w2 forms

name 2 key advantages of automated interfacing

- data is entered once, reducing labor time - less chance of error than with manual systems - allows information to be shared on an as needed basis -more timely exchange of data between systems - more accurate data exchange

name 3 systems that commonly need to be interfaced with the payroll computer system

-general ledger - benefits - human resources -time and attendance - cost accounting -bank checking accounts -direct deposit

how long must you retain each of the following records in your files? - proof of tax deposits - form I9 - copies of your quarterly tax returns - wage and hour records - employee time cards - canceled checks -name/address occupation for each ee -work time schedule -form w4 -total wages and tips -overtime info -log of injuries on the job

-proof of tax deposits: 4 years -form 19: 3 years after date of hire of 1 year after date of termination, whichever is later -copies of quarterly tax returns: 4 years -wage and hour recors: 3 years - employee time cards: 2 years - canceled checks: 4 years - name/address/occ: 3 years -work time schedule: 2 years -form W4: at least 4 years after the date the last return was filed using the info on the w4 -total wages and tips: 4 years -overtime info: 3 years -log of injuries on the job (OSHA): 5 year

if the amounts are paid after the year of death, no SS and medicare are withheld and no reporting is done on the W2. Instead it is reported on _______ misc.

1099-misc

what is the employer's social security tax rate in 2020? a. 1.45% b. 6.2$ c. 7.65% d. 12.4%

6.2%

An employee belongs to a professional organization. when his company pays his dues, the payment is: a. taxable compensation b. de minimis fringes c. a working condition fringe d. a no-additional cost service

C. a working condition fringe dues to professional organizations are tax free as working condition fringe benefits

A retired safety inspector for the company was rehired as a consultant when the company expanded its plant operations. the retired employee was a natural choice. the tasks he undertook as a consultant were the same as the ones he performed before retirement. paid monthly, he has agreed to work under the direction of his old boss until the new plant facilitates are fully operational? What is his status? a. independent contractor under common law b. independent contractor under reasonable basis test c. employee

C. employee consultants are generally treated as independent contractors. however, when an ex ee is performing the same or similar job as before retirement, it is unlikely that he qualified as a 1099 after termination

Prior to beginning work for a company, a chemical engineer signed a contract stating that she agreed to work as an independent contractor. she performs all her duties in the companys laboratories, works under the companys direction, and maintains regular office hours. what is her status? a. independent contractor under common law b. independent contractor under reasonable basis test c. employee

C. employee do not assume that the employer has fulfilled its responsibilities and is free from penalty simply by having a worker sign a contract stating he is a 1099. individuals do not have a right to waive their ee status in a contract.

a receptionist has agreed to work afternoons at the company until the company can find a full time replacement. what is the receptionists status? a. independent contractor under common law b. independent contractor under reasonable basis c. employee

C. employee whether or not an ee is full time or part time or works a few weeks or a lifetime for the company is not relevant her. she is an employee.

all of the following are tax implications of a cafeteria plan except: a. no income tax withholding b. no social security and medicare tax withholding c. must withhold income, social security, and medicare taxes d. no form W2 reporting

C. must withhold income, social security, and medicare taxes

An employee was recently married. the employer pays on the 15th and last day of every month. on June 10, the employee submitted a revised W4. When must you change the amount of his withholding? a. on his june 15th paycheck b. on his june 30th paycheck c. on his july 15th paycheck d. on his july 31 paychecl

C. on his july 15th paycheck must reflect the change in a withholding no later than the first payroll period ending on or after the 30th day from the date you received the amended form W4

All of the following are reasons payroll keeps records except: a. compliance with laws b. demonstrate accuracy of paychecks c. demonstrate security of payroll d. periodic reporting

C. security of payroll records are used to determine compliance, calculate pay, and produce reports

the FLSA requires immediate payment of an employees final paycheck upon termination true false

FALSE however, most states impose time limits governing when an employees final paycheck must be paid to the employee

the FLSA requires that time worked on saturday be paid at overtime rates and time worked on sunday be paid at double time rates

FALSE under the FLSA, overtime premiums must be paid only when the employee works more than 40 hours in a workweek.

True of false: if an employee dies and a final payment is made, the employer continues to withhold taxes as if the employee is still alive.

FALSE- no federal taxes are withheld

Percentage method practice: an employee who is married with 4 allowances earns a biweekly salary of $1500. Calculate his federal income tax using the percentage method.

Find Net/Adjusted Wages (after deduction for withholding allowances) §$161.50 x 4 = $646.00 Gross wages - Allowances = Adjusted Wages (Net Wages) §$1500.00 - $646.00 = $854.00 Apply Percentage Table (Appendix) §Net Wages over $454.00 but not over $1,200.00 Adjusted Wages - Threshold Amount = Excess Amount §$854.00 - $454.00 = $400.00 Amount of Tax + (Excess Amount x Percentage) = Total Withholding §0.00 + ($400.00 x 10%) = $40.00

An employee works 38 hours in a workweek, takes 8 hours sick time, and receives bonus check for productivity. How many overtime hours should he be paid?

NONE doesn't include sick pay, holiday pay, vacation pay, jury duty pay, or similar pay for unworked hours

Calculate the total compensation for an electrician who worked 44 hours last week. In addition to his regular wage of $10/hour, the electrician was paid $50 for supervising a trainee. What is the electricians total weekly compensation?

Step 1: 44 hours x $10/ hour = $440 + $50= $490 regular pay Step 2: $490/44 hours = $11.14 regular rate of pay Step 3: $11.14 x 5 = $5.57 overtime premium rate Step 4: $5.57 x 4 hours = $22.28 premium pay for overtime Step 5: $490 + $22.28 = $512.28 total compensation

if a state sets the minimum wage at a rate greater than the federal minimum wage, the state minimum wage must be paid to workers in that state - true -false

TRUE

the federal minimum wage is used when figuring the amount to withhold for a creditor garnishment true false

TRUE however, in some states the states minimum wage is used

required deductions must take precedence over voluntary deductions true false

TRUE involuntary deductions have priority over other deductions

a retail sales clerk took advantage of the company's employee discount program to purchase clothes at 10% off the normal retail price. this service represents: a. taxable compensation b. a qualified employee discount c. a working condition fringe d. a no-additional cost service

b. a qualified employee discount

an employee earns $40,000 annually. claiming single with no entries on lines 2,3, or 4 on her 2020 form W4, she contributes $6,000 annually to her 401k. How much must be withheld for federal income tax, social security, and or medicare tax on contribution? a. $0 b. $459 c. $918 d. $1,779

b. $459 you must withhold social security and medicare tax ONLY from 401k contribution employee SS tax on $6,000 is $372 (6,000x6.2%). medicare tax is $87(6,000x 1.45%) 372 +87 = $459

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

b. 19,500 not 50 years or older so cant contribute more

during thanksgiving week, a nonexempt employee was paid for the following hours: sun- none mon- 10 hours worked tues- 10 hrs work weds- 8 hr sicks day thurs- 8 hr holiday fri-8 hr vacation sat- 8 hr work How many overtime hours, if any, did the ee work? a. 0 hours b. 4 hours c. 12 hours

a. 0 hours overtime is based on time worked, not time compensated. the ee physically worked 28 hours that workweek.

cafeteria plan are authorized by what Internal Revenue Code Section? A. 125 B. 401k C. 403b D. 457b

a. 125

A voluntary deduction must be: a. authorized by the employee b. deducted without the employee's permission c. changed to what the employer needs to deduct

a. authorized by the employee

the integrity of the data can be verified by: a. balancing and reconciliation b. system edits c. validity checks

a. balancing and reconciliation

all of the following features are present in a qualified plan except: a. discriminator in favor of highly compensated employees b. written documentation c. benefits for employees d. the right to benefits is nontrasferrable

a. discrimination in favor of highly compensated employees

when does an employer stop deducting a federal tax levy from an employee's wages? a. the amount on the levy is reached b. The IRS issues a form 668-D c. the employee asks that the levy deduction be stopped

b. The IRS issues a form 668-D

An employee is married with one child. His beginning salary is $1,000 semimonthly. because of an unexpected business trip, the employee fails to submit a 2020 form W4 by his first payday. what withholding status must the employer use for his first paycheck? a. single/married filing separately, no entries in steps 2,3,4 b. married filing jointly, no entries in steps 2,3,4 c. single/married filing separately, entry in step 3 for one dependent d. married filing jointly, entry in step 3 for one dependent

a. single/married filing separately no entries in steps 2,3,4

What federal taxes, if any, must the salesperson's employer withhold for his personal use of the company vehicle? a. social security and medicare tax only b. federal income tax only c. federal income tax, social security tax, and medicare tax d. no taxes are required to be withheld

a. social security and medicare tax only if the employee is notified by Jan 31, the employer is not required to withhold federal income tax. Social secuirty tax and medicare tax must be withheld for the employee's personal use of the vehicle

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

a. taxable wages when using the optional flat rate, only the taxable wages is used in the calculation.

When paying supplemental wages, when must the aggregate withholding method be used? a. when no income tax is withheld from regular wages for the current or preceding year b. when the employee claims more than 10 dependents c. when the employee doesnt complete a form W4 d. when the employee claims heads of household

a. the IRS requires the use of the aggregate method where no income tax has been withheld in the current of preceding year

what form must a penisioner file to have input into the amount of federal income tax withheld? a. w4 b. w4P c. w4s d. w9

b. W4P

an employee earns $1,000 weekly. his deductions are $174 for federal income tax, $62 for social security tax, and $14.50 for medicare tax. He is not supporting another family and has never been in arrears in his child support payments. What is the maximum child support payment that can be withheld from his wages? a. $600 b. $500 c. $449.70 d. $500.18

c. $449.70 if the employee has no second family and is not in arrears, the maximum deduction is 60% of disposable pay. the employee's disposable pay is $749.50 (1,000-174-62-14.50). therefore, the maximum child support payment is $449.70(749.50x.60)

If a state wage and hour law requires that a nonexempt employee be paid an overtime premium when the employee works more than 8 hours in a day and the employee works the following schedule, how many overtime hours must the employee be paid? sun-5 mon-7 tues-6 weds-8 thurs-10 fri-8 sat-6 a.0 b.2 c.10 d.14

c. 10 the employee has worked 50 hours in the week and must be paid the overtime premium on the greater of the hours over 40 or more than 8 hours per day. in this case, it would be 10 overtime hours

All of the following types of compensation are included in calculating an employees regular rate of pay for overtime purposes except: a. shift premiums b. production bonus of $15 c. 4 hours paid but not worked d. 4% cost of living adjustment

c. 4 hours paid but not worked only hours physically worked are included in the regular rate of pay overtime calculation under the FLSA

the amount of federal income tax that is withheld from an employees regular wages is determined by a formula that uses all of the following items except: a. employees taxable wages b. pay period c. a flat rate d. filing status

c. a flat rate only when paying a supplemental wage can an employer use the optional flat rate method to calculate federal income tax

all of the following types of payments are included in the regular rate of pay calculation except: a. a production bonus to be paid in June which the employer announced in jan b. an agreement with the union to pay one half of one weeks salary to workers with over 5 years of services c. a traditional $50 gift certificate which the firm has paid for the past 5 years during holiday season d. shift differential for working the 4pm to midnight shift

c. a traditional $50 gift certification during holiday season if a bonus paid during the holiday season or on other occasions is a gift, it may be excluded from regular rate of pay even if it is paid with regularity and employees come to expect it. to be excluded, the employer must retain discretion over whether the bonus is paid and amount. preannouncements of union agreements make the bonus nondiscretionary.

which of the following is the best method of guarding against phantom employees? a. monthly bank reconciliation b. validity edits c. physical payout d. audit trails

c. physical payout have auditors physically hand out checks to each employee and require identification

all of the following types of records can be combined with payroll data in an integrated system except: a. personnel b. benefits c. purchasing d. human resources

c. purchasing integrated databases include payroll, benefits, and other human resources data

If you need very rapid response time with minimal lag between input and output into your computer system, look for: a. batch processing b. remote entry processing c. real time processing d. network processing

c. real time processing

which of the following employee benefits is taxable compensation? a. workers compensation benefits b. health savings account c. sick pay d. qualified transportation fringes

c. sick pay of these, sick pay is taxable. the other benefits are excluded from income by law

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

c. take home pay The IRS requires the employees take home pay to be used when calculating the levy deduction

An employer maintains its employee master file in computer files. which of the following statements is true? a. under federal law, the employer is required to keep a backup of these records b. employment records must be kept for 7 years c. there is no federal requirement to update the data monthly

c. there is no federal requirement to update the data monthly while records should be current, no federal regulations mandate update monthly updating however it is in the companys best interest. most employment data must be kept for only 3 years.

all of the following deferred compensation plans limit the employee to making a deferral contribution of $19,500 in 2020 except: a. 401k b. 403b c. 457b d. nonqualified

d. nonqualified

name 2 key advantages of integrated databases

help reduce data integrity issues, eliminate timing issues, eliminate the need for sending data from one system to another

resident aliens are generally subject to the same federal tax withholdings as US citizens true false

true resident aliens are generally subjected to federal income tax, withholding and ss and medicare taxes on the same basis as US citizens