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Latest FPC-REMOTE Exam Practice Questions

The practice questions for FPC-REMOTE exam was last updated on 2025-06-03 .

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Question#1

A payroll employee has just entered a group of timecards for one of their 25 retail stores.
What is the BEST way to verify that the data was entered accurately?

A. Review a few employees from the batch
B. Check totals on the check register
C. Review earnings report after payroll is processed
D. Run a batch total report

Explanation:
The best way to verify payroll accuracy is to run a batch total report (Option D) because it:
Compares actual payroll totals to expected amounts
Identifies discrepancies before payroll processing
Option A (Review a few employees) is insufficient because errors in other records might be missed.
Option B (Check Register) occurs after payroll is processed.
Option C (Earnings Report) is useful but is generated after payroll is processed, making corrections harder.
Reference: Payroll.org C Payroll Data Verification Best Practices
IRS C Payroll Accuracy and Compliance Guidelines

Question#2

Which of the following forms is used by an employer to file an annual return of withheld FIT from nonwage payments?

A. Form 940
B. Form 941
C. Form 944
D. Form 945

Explanation:
Form 945 is used for reporting federal income tax withheld from nonwage payments, such as:
Pension distributions
Gambling winnings
Certain annuities
Form 941 (B) is for employment taxes on wages.
Form 940 (A) is for FUTA taxes.
Reference: IRS Form 945 Instructions
IRS Withholding Rules

Question#3

When an employee does not answer an unclaimed wage inquiry, the employer should:

A. Refer to state laws for final resolution of the wages
B. Maintain listings of the unclaimed wages indefinitely
C. Reissue the payment and mail it to the last known address
D. Convert the wages to reportable income and remove the liability balance

Explanation:
State unclaimed property (escheat) laws govern how unclaimed wages must be handled.
Employers must report and transfer unclaimed wages to the state treasury after a specified period.
Maintaining wages indefinitely (B) is not compliant, and reissuing payments (C) without confirmation could lead to payroll errors.
Reference: State Escheatment Laws (National Association of Unclaimed Property Administrators - NAUPA) IRS Payroll Compliance Guidelines

Question#4

All of the following resources are available to help a Payroll Professional stay abreast of regulatory changes EXCEPT the:

A. PAYO
B. DOL
C. FTC
D. IRS

Explanation:
Payroll professionals must stay updated on tax laws, wage regulations, and compliance requirements. Key resources include:
A (PAYO C Payroll.org) → Provides training, updates, and compliance resources.
B (DOL C Department of Labor) → Oversees wage & hour laws (FLSA).
D (IRS C Internal Revenue Service) → Issues payroll tax regulations.
Option C (FTC C Federal Trade Commission) is incorrect because the FTC does not regulate payroll laws. The FTC primarily monitors consumer protection laws.
Reference: Payroll.org C Payroll Compliance Updates
IRS & DOL C Payroll Tax and Wage Regulations

Question#5

When resolving late deposits, the payroll staff should take all of the following steps EXCEPT:

A. Check to see if the financial institution is having an internal problem.
B. Tell the employee the deposit is not considered late until midnight the day of payday.
C. Verify the employee provided the correct routing and account numbers for any direct deposits.
D. Ask the employee if they checked the deposit via an ATM, spoke with an actual bank representative, or checked online banking.

Explanation:
Deposits should be available on payday morning, and payroll staff must act immediately if there is an issue.
Telling the employee to wait until midnight (B) is incorrect because it delays action and could lead to compliance issues.
Reference: NACHA Direct Deposit Guidelines
Payroll Banking & Deposit Compliance Guide (Payroll.org)

Exam Code: FPC-REMOTEQ & A: 162 Q&AsUpdated:  2025-06-03

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