- (Topic 2)
Which of the following forms of identification CANNOT be used in Section 2 of Form I-9?
Correct Answer:
B
✑ Employee badges (B) are NOT acceptable as proof of identity for Form I-9.
✑ Acceptable IDs include passports, driver??s licenses, and other government-issued documents.
References:
✑ USCIS Form I-9 Acceptable Documents List
- (Topic 2)
Documentation on legislative changes to Forms W-2 and W-3 is initiated by which of the following organizations?
Correct Answer:
A
✑ TheInternal Revenue Service (IRS)is responsible for issuing updates related toForms W-2 and W-3under federal tax laws.
✑ SSA (Social Security Administration)processes W-2s but does not initiate changes.
✑ OCSS (Office of Child Support Services)andUSCIS (U.S. Citizenship and Immigration Services)are not involved in payroll tax forms.
References:
✑ IRS Publication 15 (Employer??s Tax Guide)
✑ IRS Form W-2 & W-3 Guidelines
- (Topic 1)
Which of the following account types has a normal debit balance?
Correct Answer:
A
Comprehensive and Detailed Explanation:In accounting, anormal balancerefers to theside (debit or credit) that increases the account balance.
✑ Assets (Option A) normally have a debit balancebecause they representresources
owned by the company(cash, accounts receivable, equipment, etc.).
✑ Liabilities (Option C) and Revenue (Option D) normally have credit balances, meaning they increase with credits.
✑ Capital (Option B) also has a normal credit balance, as it representsowner??s
equity. Reference:
GAAP Accounting Principles – Normal Account Balances Payroll.org – Payroll Accounting Basics
- (Topic 1)
Which of the following statements about payments made under workers' compensation benefits is FALSE?
Correct Answer:
C
Comprehensive and Detailed Explanation:Workers' compensation benefitsare NOT subject to FUTA (Federal Unemployment Tax Act)as long as they are paid under aworkers' compensation law.
✑ Option A (Not included in gross income) is correctbecauseworkers' compensation
is tax-exemptunder IRS rules.
✑ Option B (Received for work-related injuries/illnesses) is correctbecause these paymentsreplace lost wagesdue to job-related incidents.
✑ Option D (Not subject to FICA under state laws) is correctbecauseworkers' compensation payments are exempt from Social Security & Medicare taxesif they are made under astate-approved program.
✑ Option C is incorrectbecause workers' compensation paymentsare NOT subject to FUTA, regardless of the amount paid.
Reference:
IRS Publication 525 – Taxability of Workers?? Compensation
Payroll.org – Payroll Taxation of Disability and Workers' Compensation Benefits
- (Topic 1)
Under the FLSA, all of the following categories are defined as "white-collar" exemptions EXCEPT:
Correct Answer:
D
Comprehensive and Detailed Explanation:Under theFair Labor Standards Act (FLSA), "white-collar exemptions" apply tocertain salaried employees who meet specific duties and salary tests. The three main categories are:
✑ Executive (Option A)– Managers with supervisory responsibilities.
✑ Administrative (Option B)– Employees in non-manual work related to business operations.
✑ Outside Sales (Option C)– Sales employees working away from the employer??s place of business.
✑ Option D (Computer Hardware Operators) is incorrectbecause this roledoes not qualifyfor exemption under the FLSA white-collar rules. Onlycertain IT professionals (software engineers, systems analysts, etc.)qualify under theComputer Employee Exemption.
Reference:
U.S. Department of Labor – FLSA Exemptions Payroll.org – White-Collar Exemption Criteria