Free FPC-Remote Exam Dumps

Question 21

- (Topic 2)
Workers?? compensation payments are excluded from gross income and employment taxes EXCEPT when the amounts received:

A. Are related to injuries suffered on the job.
B. Are not related to illnesses suffered on the job.
C. Do not exceed the benefits provided under the state workers' compensation law.
D. Do not exceed the benefits provided under the federal workers' compensation law.

Correct Answer:B
✑ Workers?? compensation benefits are tax-exempt if they are paid for work-related injuries or illnesses.
✑ If payments are received for non-work-related illnesses (B), they become taxable.
✑ Amounts that do not exceed federal or state limits (C & D) remain tax-exempt. References:
✑ IRS Publication 525 (Taxable and Nontaxable Income)

Question 22

- (Topic 1)
All of the following workflow mapping descriptions are correct EXCEPT:

A. Logical thought processes must include every step with nothing assumed
B. Depictions and descriptions of sequences of operations of connected steps
C. Where each step follows the last without delay or gap and ends just prior to the next
D. When specifications detail the quality and level to be performed by one group for another

Correct Answer:D
Comprehensive and Detailed Explanation:Workflow mappingis avisual representation of payroll processesto ensureefficiency and accuracy.
✑ Option A (Logical thought processes)ensuresclarityand eliminates assumptions.
✑ Option B (Depictions of sequences)accurately describesworkflow design.
✑ Option C (Steps follow without delay)ensuresprocess efficiency.
✑ Option D is incorrectbecause it describesService Level Agreements (SLA), notworkflow mapping.
Reference:
Payroll.org – Payroll Workflow Mapping Guide
Process Improvement Standards – Payroll System Optimization

Question 23

- (Topic 2)
All of the following employees are examples of phantom employees EXCEPT:

A. A non-existent employee set up using false information.
B. A remote employee that is not required to record their time.
C. A terminated, salaried employee whose status was purposely not changed.
D. A deceased employee that continues to receive pay due to lost paperwork.

Correct Answer:B
Phantom employees are fraudulent payroll entries wheresalaries are paid to non-existent or inactive employees.
✑ Option A, C, and Dare examples of phantom employees.
✑ Option B (Remote employees not required to record time) is NOT a phantom employee, as long as they are legitimate workers.
References:
✑ Payroll Fraud Prevention, IRS
✑ Payroll Audit Techniques Guide (IRS Publication)

Question 24

- (Topic 1)
An employee's written notice of intent to take leave under the FMLA MUST be retained by the employer for a MINIMUM of:

A. 2 years
B. 3 years
C. 4 years
D. 5 years

Correct Answer:B
Comprehensive and Detailed Explanation:TheFamily and Medical Leave Act (FMLA)requires employers to retainall leave-related records for at least 3 years. This includes:
✑ Employee requests for leave
✑ Employer??s written responses
✑ Dates and duration of leave taken
✑ Premium payments for benefits during leave
✑ Option A (2 years) is incorrectbecause theminimum requirement is 3 years.
✑ Option C (4 years) and Option D (5 years) are incorrectbecause the law specifies a3-year retention period.
Reference:
U.S. Department of Labor – FMLA Recordkeeping Requirements Payroll.org – Payroll Compliance for Employee Leave Records

Question 25

- (Topic 2)
Payroll system security violations may result in:

A. Data entry errors
B. Unauthorized access
C. Validation edit failures
D. Unreconciled accounts

Correct Answer:B
✑ Unauthorized access (B) is a direct result of security breaches.
✑ Other options (A, C, D) may result from human error but not security violations. References:
✑ Payroll Security Guidelines (Payroll.org)