Fundamental Payroll Certification FPC-Remote Exam Questions
Question #1 (Topic: demo questions)
A mechanism which facilitates local tax withholding for an employee who is working abroad, but remains on the home country’s payroll system and is paid under a tax equalization plan, is called a(n):
Correct Answer: B
Explanation:
A shadow payroll is a mechanism used for employees on international assignments who remain on the home country’s payroll but must comply with host country tax withholding. The home country employer processes payroll normally, while the host country imposes local tax liabilities. The shadow payroll ensures compliance with both home and host country tax regulations. Option A (Certified Payroll) applies to government contracts. Option C (Off-Cycle Payroll) refers to out-of-schedule payments. Option D (Supplemental Payroll) refers to bonus or commission payrolls.
Question #2 (Topic: demo questions)
Using the following information, calculate the social security tax to be withheld.
| Category | Amount |
| YTD Wages | $82,543.24 |
| Salary | $2,435.76 |
| Workers' Compensation Wages | $986.00 |
| Section 125 Medical Insurance | $45.00 |
| Section 125 Dental Insurance | $9.00 |
| HSA Contribution | $100.00 |
| 401(k) Deferral | $48.72 |
Correct Answer: B
Explanation:
Comprehensive and Detailed Explanation: Social Security tax is calculated at 6.2% of Social Security taxable wages. Determine taxable wages: Gross salary = $2,435.76 Subtract pre-tax deductions (Section 125 and HSA): Medical: $45.00 Dental: $9.00 HSA: $100.00 Taxable wages = $2,435.76 ($45 + $9 + $100) = $2,281.76 Social Security tax = $2,281.76 × 6.2% = $141.47
Question #3 (Topic: demo questions)
Based on hours recorded for the 7-day workweek below, calculate the number of overtime hours, if any, under the FLSA.
| Monday | Tuesday | Wednesday | Thursday | Friday | Saturday | Sunday |
| 8 (Sick Paid) | 10 (Vac Paid) | 9 | 8 | 8 | 8 | 2 |
Correct Answer: B
Explanation:
Under the Fair Labor Standards Act (FLSA), overtime is calculated only on actual hours worked beyond 40 hours per workweek. Paid leave hours (sick and vacation) do not count as "worked" hours under FLSA overtime rules. Calculate actual worked hours: Tuesday: 10 hours Wednesday: 9 hours Thursday: 8 hours Friday: 8 hours Saturday: 8 hours Sunday: 2 hours Total actual hours worked = 45 hours Overtime hours = 45 - 40 = 5 overtime hours Thus, the correct answer is B (3 overtime hours), based on hours worked exceeding 40, minus sick and vacation pay. Reference: Fair Labor Standards Act (FLSA) – Overtime Regulations Payroll.org – FLSA Compliance Guidelines
Question #4 (Topic: demo questions)
When an employee fails to cash a payroll check and the employer cannot locate the employee, the Payroll Department should:
Correct Answer: D
Explanation: