Free FPC Exam Questions That Helps Candidates Pass

The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20+ employees to offer continuation of health coverage after qualifying events like termination. Payroll professionals must ensure notices and premium collections comply with COBRA regulations.

The Employee Retirement Income Security Act (ERISA) requires detailed reporting and disclosure of retirement and health benefit plans. Payroll ensures deductions and contributions are accurate and timely.

The Department of Labor’s Wage and Hour Division (WHD) enforces the Fair Labor Standards Act (FLSA). Payroll professionals must comply with minimum wage, overtime, and child labor standards to avoid penalties.

Outsourcing payroll reduces workload and uses specialized expertise, often improving compliance and accuracy. However, employers remain legally liable for payroll obligations.

FICA is split evenly between employers and employees for Social Security and Medicare funding. FUTA and SUTA are employer-only taxes.