Question 1

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

Question 2

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 3

ERs in non-credit reduction states that pay their state unemployment taxes on time can deduct up to what percentage from the full FUTA tax rate in calculating their FUTA tax payments?

Options :

A : 0.6%

B : 4.5%

C : 5.4%

D : 6.0%

Answer: C

Question 4

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 5

Under the FLSA, how long are ERs required to keep records relating to wages, hours, and conditions of employment?

Options :

A : 3 years

B : 4 years or until the file is no longer active

C : 7 years

D : permanently

Answer: A