Examination Practice Questions And

Illinois Payroll Specialist Certification Examination Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• What is the federal minimum wage under the Fair Labor Standards Act

(FLSA)?

A. $6.75

B. $7.25

C. $8.25

D. $10.00

Ans: B

Rationale: FLSA sets a federal minimum wage of $7.25; states may exceed

but not go below.

• Illinois’ minimum wage for most employees (non-tipped) as of 2024 is: 1 / 4

A. $10.00

B. $12.00

C. $14.00

D. $15.00

Ans: C

Rationale: Illinois has been phasing in increases; in 2024 it is $14.00 for

most adults.

3. Overtime under Illinois and federal law is required after:

• 35 hours/week
• 40 hours/week
• 8 hours/day
• 40 hours/week (no daily requirement)

Ans: D

Rationale: Illinois follows FLSA; overtime is weekly, not daily, unless a

union contract states otherwise.

• Which form is used for federal income tax withholding elections?

A. IL-W-4

B. 1099-NEC

C. W-4

D. W-3

Ans: C

Rationale: Employees complete Form W-4 to designate withholding

allowances and status. 2 / 4

• Which form is issued to employees annually showing wages and

withholding?

A. 941

B. 940

C. W-2

D. W-9

Ans: C

Rationale: Form W-2 details annual wages, taxes withheld, and must be

provided to employees.

6. Illinois requires final wages to be paid:

• Within 1 month
• On the next payday only
• No later than the next regular payday
• Within 3 business days

Ans: C

Rationale: Illinois Wage Payment and Collection Act requires final pay by

next scheduled payday.

7. The employer Social Security tax rate is:

A. 5.65%

B. 12.4%

C. 6.2%

D. 7.65% 3 / 4

Ans: C

_Rationale: Social Security tax is split; employer and employee each pay

6.2%. _

8. The Medicare tax rate for employers is:

A. 1.45%

B. 0.9%

C. 3.8%

D. 2.9%

Ans: A

Rationale: Medicare tax is 1.45% for employers; employees pay the same

plus possible additional 0.9%.

9. Additional Medicare Tax of 0.9% applies to:

• All wages
• Employer only
• Employee wages above threshold
• Employer and employee equally

Ans: C

Rationale: The surtax applies only to employees once wages exceed IRS

thresholds.

10. Illinois income tax withholding is based on:

• Graduated brackets
• Flat tax rate
• / 4