Question 1

How may FIT be withheld from separation pay and accrued vacation wages totaling $20,000 that are paid at the time of termination and identified separately on the EE's pay stub, if the EE has been paid $25,000 so far this year and had income tax withheld from her most recent wage payment?

Options :

A : using the aggregate method only

B : using the prior 12 months' tax rate

C : at the optional flat rate for all payouts at termination only

D : at the optional flat rate or using the aggregate method

Answer: D

Question 2

Which of the following elements is essential to a disaster recovery plan?

Options :

A : an excess supply of checks and direct deposit stubs

B : a compatible off-site remote location to produce payrolls

C : detailed documentation of current company policies

D : a procedure for limiting security system access

Answer: A

Question 3

Which of the following items represents an input interface to the payroll system?

Options :

A : general ledger

B : time and attendance

C : benefit payments

D : material usage records

Answer: B

Question 4

Which of the following forms may be submitted to the IRS in order to receive a written determination of a worker's status as an EE or independent contractor?

Options :

A : Form W-5

B : Form SS-5

C : Form SS-8

D : Form W-9

Answer: C

Question 5

When determining the value of ER-provided parking, which of the following valuation methods is allowed?

Options :

A : ER-s cost

B : EE-s cost

C : lower of EE-s cost or fair market value

D : fair market value

Answer: D

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