2016 Flash Cards Questions
1. Which form is used for Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8
2. What amount must an independent contractor be paid for services rendered before an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company’s fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600
3. Qualified real estate agents and direct sellers are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors
4. Under the common law test, the IRS examiners are to group the evidence they gather into three general types or “categories”. Which of the following is not one of them?
A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties
5. Which of the following is not regulated by the FLSA?
A. Child labor
B. Overtime pay
C. Minimum Wage Rates
D. 8 hour work day
6. Agent-drivers, commission-drivers and full-time life insurance salespersons are which of the following?
A. Statutory Employees
B. Statutory Nonemployees
C. Employees
D. Independent Contractors
7. There are three parts of the ABC test, which is not one of them?
A. Business-unusual and/ or away
B. Risk of loss
C. Customarily independent contractor
D. Absence of control
8. Under the federal new hire reporting requirement how many days does an employer have after hire date?
A. 10 days
B. 20 days
C. 30 days
D. 40 days
9. What is Form I-9 used for?
A. Application for Employer Identification Number
B. Determination of Employee Work Status
C. Application for IRS Individual Taxpayer Identification Number
D. Employment Eligibility Verification
10. Under the reasonable basis test, which of the following does not support an employer’s treatment of a worker as an independent contractor?
A. Past IRS employment tax audit
B. Published IRS rulings
C. Place of work
D. Private letter rulings
11. What does FLSA stand for?
A. Federal Labor Standards Act
B. Fair Labor Standards Act
C. Federal Labor Standards Agency
D. Fair Labor Standards Agency
12. Which of the following is not covered under the FLSA?
A. Regulate how often employees must be paid
B. Mandates equal pay for equal work
C. Requires recordkeeping by employers
D. sets the minimum wage and overtime rates employees must receive for their work
13. Who enforces the Federal Wage-Hour Law?
A. Individual States
B. IRS
C. EEOC
D. DOL
14. Who enforces the equal pay provisions?
A. Individual States
B. IRS
C. EEOC
D. DOL
15. Which is not one of the White Collar Exemption?
A. Administrative
B. Executive
C. Management
D. Professional employees
16. For overtime pay. Which one is included in the regular rate?
A. Discretionary bonuses
B. Nondiscretionary bonuses
C. Gifts
D. Reimbursed expenses
17. For calculation of overtime pay. Which one is not included in the regular rate?
A. Supplemental disability payments
B. On-call pay
C. Retroactive pay
D. Vacation pay
18. A computer professional must be paid at least what per hour to be exempt from overtime requirements under the FLSA?
A. Minimum wage per hour
B. 21.55 per hour
C. 27.63 per hour
D. 29.67 per hour
19. Ryan’s regular workweek is 37.50 hours and he is paid biweekly. Ryan worked 38 hours in the first week and worked 45 hours in the second. How many hours are paid at the overtime rate?
A. 2.50
B. 5
C. 7.5
D. 8
20. What is the federal minimum wage rate?
A. 4.25
B. 5.85
C. 6.55
D. 7.25
21. So long as the employee’s tips are enough to make up the remainder of the minimum hourly wage. What is the federal minimum wage for tipped employee?
A. 2.01
B. 2.07
C. 2.09
D. 2.13
22. What is the time limit on filing an FLSA complaint with the Wage and Hour Division?
A. 1 or 2 years
B. 2 or 3 years
C. 3 or 4 years
D. 4 or 5 years
23. A “working condition” fringe benefit is?
A. Discount offered employees that’s not more than 20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an
employer in the line of business in which the employee works
24. A “de minimis” fringe benefit is?
A. Discount offered employees that’s not more than
20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an employer in the line of business in which the employee works
25. A “Qualified employee discount” is?
A. Discount offered employees that’s not more than
20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an employer in the line of business in which the employee works
26. A “No-additional-cost services” is?
A. Discount offered employees that’s not more than
20% of the price for services offered to customers
B. A service or an item of such small value as to make accounting for the benefit unreasonable
C. A service the employee could deduct as a business expense if he or she had paid for it
D. Services provided free or at reduced rates by an employer in the line of business in which the employee works
27. What is the maximum amount excluded from income by law in 2016 for employer-provided parking?
A. $125.00
B. $130.00
C. $250.00
D. $255.00
28. What is the maximum amount excluded from income by law in 2016 for Transit passes?
A. $125.00
B. $130.00
C. $250.00
D. $255.00
29. What is the maximum per round trip an employee may receive under commuting valuation method?
A. $6.00
B. $3.00
C. $1.50
D. 0.00
30. Expenses on a job-related move can be considered deductible and reimbursements for them excluded from income when what is met?
A. New workplace must be at least 50 miles farther from the employee’s old residence than the previous workplace was
B. 12 months immediately following move, must work fulltime for at least 39 weeks in the general location of the new workplace
C. At least 50 miles from old workplace then new
D. Both A and B
31. An employee’s date of birth is April 15, 1978. What age would be used for calculating group term life insurance for January 2016?
A. 27
B. 28
C. 37
D. 38
32. An employee is temporarily disabled and is being paid by a third party who is not an agent. To request federal income tax withheld from third-party sick pay, which of the following form must be completed?
A. Form W-4
B. Form W-4P
C. Form W-4S
D. Form W-5
33. On what form must wages be reported on if an employee dies after receiving a paycheck but before cashing it and the check is reissued to the employee’s personal representative?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R
34. Wages paid after the year of death are subject to what withholding taxes?
A. Social Security, Medicare, Federal income tax and FUTA
B. Social Security, Medicare and FUTA
C. Social Security, Medicare
D. None
35. The IRS approved rate for employer provided fuel for 2016 is?
A. 5 cents per mile
B. 5.5 cents per mile
C. 54 cents per mile
D. 57.5 cents per mile
36. Which of the following is not a recordkeeping requirement for business use of company provided vehicles?
A. Trips mileage
B. Trips date
C. Trips usage of car phone
D. Business purpose of the trip
37. Wages paid after the year of death are report on which of the following form?
A. Form W-2D
B. Form W-2
C. Form 1099-MISC
D. Form 1099-R
38. The IRS standard business mileage rate for 2016 is?
A. 5.5 cents per mile
B. 57.5 cents per mile
C. 56.5 cents per mile
D. 54 cents per mile
39. What are the two types of deductible moving expenses?
A. Transportation of household goods and expenses of moving employee (and family) including meals
B. All expenses of the move are deductible
C. Transportation of household goods and expenses of moving employee (and family) not including meals
D. Hotel, meals and mileage
40. Employee’s personal use of a company provided vehicle is generally a taxable benefit. Which of the following is not one of the three special valuation methods used to determine the taxable amount?
A. Annual lease value
B. Commuting
C. Parking
D. Vehicle cents per mile
41. Under the “fixed date” method, an advance for substantiated business travel expenses can be provided no more than how many days before an expense is incurred?
A. 10 days
B. 30 days
C. 60 days
D. 120 days
42. An employee has three children and her dependent care expenses are $7,500 for 2016. The employer reimburses her the full $7,500 in 2016. How much if any is taxable?
A. $300 (only amount above 2,400 per child)
B. $2,500
C. $2,550
D. $7,500
43. What is the maximum amount of employer provided group term life insurance that can be excluded from an employee’s income?
A. One times their annual salary
B. $2,000
C. $50,000
D. $100,000
44. Which of the following is a “de minimis” fringe and is excluded from taxable earnings?
A. $25 gift certificate for Rainbow Foods
B. $25 Target gift certificate
C. $25 company check
D. Gift certificate (e.g. Ham, Turkey)
45. Which of the following is a non-taxable moving expense?
A. Meal
B. Pre-move househunting
C. Packing
D. Temporary living
46. Under the IRC, which section regulates cafeteria plans?
A. 123
B. 125
C. 127
D. 129
47. What is the maximum amount for 2016 that an employee may elect to defer to a 401 (k) or 403 (b) plan?
A. $15,500
B. $17,000
C. $17,500
D. $18,000
48. What is the maximum amount for 2016 that an employee may elect to defer to a 457 plan?
A. $15,500
B. $17,000
C. $17,500
D. $18,000
49. What is the maximum amount for 2016 that an employee may elect for FSA dependent care?
A. $2,400
B. $5,000
C. $7,500
D. No Limit
50. An employer with 120 participants offering a cafeteria plan must annually file what form?
A. Suspended in 2002 no filing needed
B. Form 5500 C/R
C. Form 5500
D. Form 5550 C/R
51. Which of the following can not be part of a cafeteria plan?
A. Group-term life insurance
B. Qualified adoption assistance
C. Cash
D. Medical Savings Accounts
52. Under a cafeteria plan, pretax contribution to a 401 (k) are subject to what federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None
53. CODA stand for what?
A. Cash or Deferred Account
B. Cost of Dependent Adoption
C. Cash or Deferred Arrangement
D. Cafeteria or Deferred Account
54. Who is at risk of forfeiture in a cafeteria plan health care FSA?
A. No one is at risk
B. Employee only
C. Employer only
D. Both employee and employer
55. What does FSA stand for?
A. Federal Savings Accounts
B. Flexible Spending Arrangement
C. Fair Standards Act of 1985
D. Federal Service Agency
56. Under a 125 plan pretax deductions are subject to what federal taxes?
A. FICA, FUTA and FIT
B. FICA and FUTA
C. FICA
D. None
57. State and local government employees would participate in which of the following deferred plans?
A. 401 (k)
B. 403 (b)
C. 408
D. 457
58. Public schools employees would participate in which of the following deferred plans?
A. 401 (k)
B. 403 (b)
C. 408
D. 457
59. Which of the following employer stock purchase plans might be included in a qualified 401 (k) plan?
A. ERISA
B. ESOP
C. IRA
D. SEP
60. What does ADP stand for?
A. Automatic Deposited Paycheck
B. Automated Data Process
C. Actual Defined Pension
D. Actual Deferral Percentage
61. The defined benefit plans are generally administer by which department?
A. Human Resources
B. Payroll
C. Employment
D. Benefits
62. The Family and Medical Leave Act of 1993 is administered and enforced by what department?
A. Internal Revenue Service
B. Fair Labor Standards Act
C. Department of Labor
D. Equal Employment Opportunity Commission
63. Which of the following may not be regulated by state law?
A. How often employees must be paid
B. What employers must do with unclaimed paychecks
C. How soon employees must be paid after their employment is terminated
D. What minimum wage an employee must receive
64. What day of the week occurs 53 times in 2016?
A. Tuesday
B. Wednesday
C. Thursday
D. Friday and Saturday
65. Which of the following is not a advantage of the direct deposit system to the employer?
A. Direct deposit cannot be made mandatory in most states
B. Prevents lost and stolen checks
C. Employees do not have to take time out of their work day to cash or deposit their paycheck
D. Better control of check stock
66. Which of the following is not a disadvantage of the direct deposit system to the employer?
A. Direct deposit is not a paperless system
B. Cannot dictate the bank that the employee uses