Free APA FPC-Remote Practice Exam with Questions & Answers | Set: 4

Wage assignmentsare voluntary deductions authorized by employees for things likeloan payments or union dues.

Garnishments, wage attachments, and medical support ordersarecourt-mandated deductions, making them involuntary.

References:

IRS Publication 15 (Employer’s Tax Guide)

Payroll Deduction Compliance Guide (Payroll.org)

Cash equivalents, such as gift cards (A), are always taxable income.

Nominal gifts (B, C, D) are generally tax-exempt under de minimis rules.

References:

IRS Publication 15-B (Taxable Fringe Benefits)

Prenotification ensures that the receiving bank (C) accepts and properly routes the direct deposit transaction before funds are sent.

References:

NACHA Direct Deposit Standards

A payroll business continuity plan (BCP) is designed to ensure payroll processes continue during a disruption. Critical tasks include validating system access, creating ACH files, and printing paychecks.Adding a new cost center is NOT criticalto issuing payroll, as it primarily affects financial reporting rather than payment processing.Payroll.orgrecommends focusing on system access, banking functions, and ensuring payroll runs smoothly.

References:

Payroll.org, Business Continuity and Disaster Recovery Guidelines

IRS Publication 15 (Employer’s Tax Guide)

TheEisenhower Matrixis a time management framework that categorizes tasks by urgency and importance:

Urgent & Important: Must be done immediately (e.g., payroll processing).

Not Urgent but Important: Planning and strategic tasks (e.g., compliance training).

Urgent but Not Important: Tasks that may be delegated (e.g., responding to non-critical emails).

Not Urgent & Not Important:These tasks have the lowest priorityas they do not contribute significantly to productivity (e.g., unnecessary meetings).

References:

Eisenhower Matrix Time Management Framework

Payroll Management Best Practices (Payroll.org)

Thefinal phase of the accounting process is generating financial statements (D), which summarize all accounting activities.

Transactions (A), journal entries (B), and general ledger (C) occur earlier in the process.

References:

Payroll Accounting Standards (Payroll.org)

Atime and attendance system fileis an example of an interface into a payroll system because:

Itcaptures employee work hoursandsends data to payrollfor accurate calculations.

Payroll interfaces ensureautomated and accurate payment processing.

Other options explained:

Check print file(A) is an output, not an interface.

ACH payment file(B) is used to process payments, not interface data.

General ledger transactions(D) are accounting-related, not payroll input.

References:

Payroll System Integration Guide (Payroll.org)

Step 1: Calculate excess GTL coverage

Employee GTL coverage =$78,000 × 2 = $156,000

Excludable amount =$50,000

Taxable excess =$156,000 - $50,000 = $106,000

Step 2: Use IRS Table for GTL Taxable Rates (for age 53: $0.23 per $1,000 of coverage)

$106 × $0.23 = $24.38 per month

References:

IRS Publication 15-B (Taxable Group Term Life Insurance)

Shrugging shoulders (B) is a sign of uncertainty or disinterest, making itnegative body language.

Making eye contact (C), nodding (D), and avoiding slouching (A) are positive active listening cues.

References:

Effective Communication in Payroll Training Guide (Payroll.org)

Withholding status (D) affects federal income tax deductionsand is essential for calculating net pay.

Rate of pay (A), hours worked (B), and shift differentials (C) impact gross pay but NOT net pay calculation.

References:

IRS Form W-4 Withholding Guidelines

Payroll Calculation Standards (Payroll.org)