Free APA FPC-Remote Practice Exam with Questions & Answers | Set: 2

Comprehensive and Detailed Explanation:Payroll professionals must stay updated ontax laws, wage regulations, and compliance requirements. Key resources include:

A (PAYO – Payroll.org)→ Provides training, updates, and compliance resources.

B (DOL – Department of Labor)→ Overseeswage & hour laws (FLSA).

D (IRS – Internal Revenue Service)→ Issues payroll tax regulations.

Option C (FTC – Federal Trade Commission) is incorrectbecause theFTC does not regulate payroll laws. The FTC primarilymonitors consumer protection laws.

Comprehensive and Detailed Explanation:Medicare tax is1.45%onwages up to $200,000, and2.35%(including the Additional Medicare Tax) on wagesabove$200,000.

YTD Wages before payment:$169,000.00

New total earnings after bonus:$169,000 + $16,600 = $185,600.00

Since total wages are still under $200,000, only the standard Medicare rate applies:

$16,600 × 1.45% = $240.70

Thus, the correct answer isC. $240.70.

Comprehensive and Detailed Explanation:UnderFair Labor Standards Act (FLSA) rounding rules, employers may round employee timeto the nearest 15-minute incrementusing the7-minute rule:

If an employee clocks inbefore the 7-minute mark, rounddown.

If an employee clocks inafter the 7-minute mark, roundup.

Employee's actual times:

Clock in: 8:07 a.m.→ Roundeddown to 8:00 a.m.

Clock out: 4:08 p.m.→ Roundedup to 4:15 p.m.

Thus, the correct answer isD. 8:00 a.m. to 4:15 p.m..

Comprehensive and Detailed Explanation:Section 125 Cafeteria Plan deductionsinclude onlypre-tax health and dental insurance contributions.

Eligible Pre-Tax Deductions:

Health Insurance Premiums: $50.00

Dental Insurance Premiums: $20.00

Total Section 125 Deductions: $70.00

Non-Eligible Deductions:

Charitable Contributions ($5.00) → Not pre-tax.

457(b) Deferral ($100.00) → Retirement savings, not a Section 125 deduction.

Thus, the correct answer isA. $70.00.

Comprehensive and Detailed Explanation:Grossing upmeansincreasing the payment amountso that the employeereceives a specific net amountafter taxes are withheld. Employerspay the taxes on behalf of the employeein such cases.

This is commonly used for:

Relocation reimbursements

Bonus payments

Tax equalization for expatriates

Option Ais incorrect because grossing up is done to cover taxes, not to determine withholdings.

Option Bis incorrect becausegrossed-up amounts are taxable, not tax-exempt.

Option Dis incorrect becausegrossed-up payments are always taxable.

Formula:

Comprehensive and Detailed Explanation:Acredit balancemeans an accountnormally holds a liability or revenue amount.

Accounts Payable (Option A)representsamounts owedto vendors, which is aliability accountandnormally has a credit balance.

Option B (Cash)is incorrect because cash is anasset accountandtypically has a debit balance.

Option C (Office Equipment)is incorrect because it is afixed assetand alsohas a debit balance.

Option D (Prepaid Expenses)is incorrect because prepaid expenses areassetsthat aredebited when paid.

Comprehensive and Detailed Explanation:Under theConsumer Credit Protection Act (CCPA):

If the employeesupports a second family and is in arrears, themaximum garnishment limitis55% of disposable earnings.

Calculate Disposable Earnings:

Gross wages:$1,573.00

Less taxes withheld:$175.00

Disposable earnings = $1,573.00 - $175.00 = $1,398.00

Calculate Maximum Child Support Deduction (55% of disposable earnings):

$1,398.00 × 55% = $768.90

Thus, the correct answer isB. $768.90.

Comprehensive and Detailed Explanation:Apayroll system upgradeaffects documentationrelated to payroll processingbutdoes not change union contracts.

Option A (User manuals):Correct –New system features require updated manuals for payroll staff.

Option C (Business continuity plans):Correct –System changes must be included in disaster recovery plans.

Option D (Standard operating procedures – SOPs):Correct –Payroll procedures need updates for new workflows.

However,union contracts (Option B) remain unchangedunless anew agreement is negotiated.

Comprehensive and Detailed Explanation:For2024, the401(k) contribution limitis:

$23,000.00 for employees under 50 years old.

$30,500.00 for employees 50 and older(includes$7,500 catch-up contribution).

Since the employee is49 years old, theydo not qualify for the catch-up contribution, so the maximum contribution is$23,000.00.

Comprehensive and Detailed Explanation:Awage attachment(also called awage levy) is alegal withholdingfrom an employee’s paycheck to satisfy an outstanding debt.

IRS tax leviesare a type ofwage attachmentused to collectunpaid federal taxesdirectly from an employee’s wages.

Employersmust comply immediatelywhen notified by the IRS.

Option A (Bankruptcy Order)is incorrect because bankruptcy payments are handled bycourt-appointed trustees, not wage levies.

Option B (Creditor Garnishment)is incorrect because IRS tax leviesdo not require a court orderlike private creditor garnishments.

Option C (Voluntary Deduction)is incorrect because IRS wage leviesare mandatory, not voluntary.