Fundamental Payroll Certification (FPC) 2025 – 400 Free Practice Questions to Pass the Exam

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What does 'timekeeping' refer to in relation to payroll?

The tracking of employee performance

The process of tracking employee hours worked

Timekeeping refers to the process of tracking employee hours worked. This is a crucial aspect of payroll as it directly influences how much employees are compensated for their work. Accurate timekeeping ensures that employees are paid correctly for the hours they have put in, whether it involves regular hours, overtime, or any other formatting that affects pay.

While the tracking of employee performance can be important in evaluating work quality, it does not relate directly to the specific function of payroll. Similarly, calculating payroll taxes and scheduling paydays are important payroll functions but are distinct from the concept of timekeeping. Timekeeping focuses specifically on recording and verifying the amount of time employees have worked, which is foundational for any payroll processing.

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The method of calculating payroll taxes

The schedule for employee paydays

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