Free and Premium APA FPC-Remote Dumps Questions Answers

Comprehensive and Detailed Explanation:UnderForm I-9 retention rules, an employermust retain the form for the later of:

Three years from the date of hire, or

One year from the termination date.

Employee hired on July 1, 2021→Three years from hire date= July 1, 2024

Employee terminated on September 30, 2022→One year from termination= September 30, 2023

Since thelatest date is September 30, 2024, that is theearliest date the employer may dispose of the Form I-9.

Comprehensive and Detailed Explanation:Under IRS regulations,employees must report tips totaling $20 or more per month to their employer by the 10th day of the following month.

Employee received $200.10 in tips in July.

Tip income must be reported by August 10.

Option B (September 10), Option C (September 30), and Option D (December 31) are incorrectbecause the IRS mandatesmonthly reporting.

Comprehensive and Detailed Explanation:Internal controlsare processes used to ensureaccuracy, security, and compliancein payroll operations. Effective internal controls include:

Option B (Segregating job duties)→ Prevents fraud by ensuring no one person has full control over payroll.

Option C (Rotating job duties)→ Reduces fraud risk and enhances cross-training.

Option D (Restricting system access)→ Protects sensitive payroll data.

Option A (Storing backup files on-site) is incorrectbecause internal control best practices recommendoff-site or cloud backupsto protect againstdata loss from disasters.

Comprehensive and Detailed Explanation:TheDepartment of Labor (DOL)enforces violations related to:

Overtime (A)– Under theFair Labor Standards Act (FLSA).

Child Labor (C)– Protecting workers underage 18.

Minimum Wage (D)– Enforcing thefederal minimum wage.

Option B (Sick Leave) is incorrectbecause the DOLdoes not regulate paid sick leave at the federal level.Sick leave laws vary by state, but there isno federal mandaterequiring paid sick leave.

Comprehensive and Detailed Explanation:To finddiscrepanciesin a general ledger, the following documents should be reviewed:

General Ledger Account Details (A)– To track postings and adjustments.

Bank Account Statements (B)– To ensure transactions reconcile with payroll expenses.

Payroll Register Totals (C)– To comparewages and tax liabilitiesagainst general ledger accounts.

Option D (Copies of Paychecks) is incorrectbecause physical paycheck copiesdo not verify account balances or identify out-of-balance errors.

Comprehensive and Detailed Explanation:Business transactions are classified usingfive main types of accounts:

Asset– Resources owned (e.g., cash, equipment, accounts receivable).

Liability– Amounts owed (e.g., payroll taxes, loans).

Expense– Costs incurred to operate the business (e.g., payroll expenses).

Revenue– Income earned (e.g., sales, service fees).

Equity– Owner’s interest in the business (e.g., retained earnings).

Option A is incorrectbecause "Inventory" is atype of asset, not a separate category.

Option C is incorrectbecause "Cash" is asubcategory of assets, not a primary account type.

Option D is incorrectbecause "Net Income" is the result ofrevenues minus expenses, not a separate account category.

Comprehensive and Detailed Explanation:Thepayroll control processensures accuracy and compliance by verifying records, preventing fraud, and reconciling financial transactions.

Batch Totals (Option A)– Used to verifytransaction accuracy.

System Edits (Option B)– Automated controls toprevent errors.

Balancing & Reconciliation (Option D)– Ensures payrollmatches financial records.

Option C (Unauthorized Overtime) is incorrectbecauseovertime management is an operational issue, not a control process.

Comprehensive and Detailed Explanation:According toForm I-9, Employment Eligibility Verification, anunexpired U.S. passportis aList A documentthat establishesbothan employee’sidentity and work authorization.

ASocial Security card(Option A) is aList C document, which only provesemployment authorizationbut not identity.

AVoter’s Registration Card(Option C) isnot an acceptable I-9 documentfor identity or work authorization.

ADriver’s License(Option D) is aList B document, which only provesidentitybut not employment eligibility.

Comprehensive and Detailed Explanation:Ashadow payrollis amechanism used for employees on international assignmentswho remain on thehome country’s payrollbut mustcomply with host country tax withholding.

Thehome country employer processes payroll normally, while thehost country imposes local tax liabilities.

Theshadow payrollensures compliance withboth home and host country tax regulations.

Option A (Certified Payroll)applies togovernment contracts.

Option C (Off-Cycle Payroll)refers toout-of-schedule payments.

Option D (Supplemental Payroll)refers tobonus or commission payrolls.

Comprehensive and Detailed Explanation:Using theIRS Supplemental Wage Method, theflat tax rateof22%applies tobonuses:

Federal Income Tax:

$5,000 × 22% = $1,100.00

Social Security Tax:

$5,000 × 6.2% = $310.00

Medicare Tax:

$5,000 × 1.45% = $72.50

State Income Tax:

$5,000 × 5.0% = $250.00

Total Taxes Withheld:

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Comprehensive and Detailed Explanation:TheReasonable Basis Testallows an employer to classify a worker as anindependent contractorif:

A previous IRS audit approved similar treatment

A court ruling or IRS ruling supports classification

Industry practices support independent contractor status

Option A (Common Law Test)determines if a worker should be anemployee or independent contractor, butdoes not override misclassification.

Option C (Physical Presence Test)applies toforeign earned income exclusions.

Option D (Permanent Resident Test)applies toimmigration status, not worker classification.

Comprehensive and Detailed Explanation:Payroll confidentiality ensuresemployee information is only disclosed with proper authorization.

Option A (Payment history with written authorization) is NOT a breachbecause the employee provided consent.

Option C (General ledger costing shared with accounting) is NOT a breachsince accounting requires financial data for compliance.

Option D (Payroll records to legal department) is NOT a breachas legal teams need data for investigations.

Option B (Providing benefit election information to a spouse) is a breachunless the employeehas explicitly authorizedtheir spouse to receive this information.

Comprehensive and Detailed Explanation:In accounting, anormal balancerefers to theside (debit or credit) that increases the account balance.

Assets (Option A) normally have a debit balancebecause they representresources owned by the company(cash, accounts receivable, equipment, etc.).

Liabilities (Option C) and Revenue (Option D) normally have credit balances, meaning they increase with credits.

Capital (Option B) also has a normal credit balance, as it representsowner’s equity.

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:Reliabilityrefers to a company’sability to provide accurate and timely service. In payroll,failing to create an ACH file results in missed payments, affecting employees andviolating reliability standards.

Option A (Empathy)is incorrect because it relates tounderstanding and addressing employee concerns, not payroll processing.

Option C (Responsiveness)is incorrect because itdeals with reaction speedrather than payroll execution.

Option D (Tangibles)is incorrect because it refers tophysical aspects of service (documents, appearance, etc.).

Comprehensive and Detailed Explanation:Using theIRS Percentage MethodforMarried Filing Jointly (2019 W-4):

Calculate taxable wages:

Gross pay:$2,500.00

Less pre-tax deductions:-$425.00

Taxable wages:$2,075.00

Federal Income Tax (from IRS tax tables):

Using2019 IRS Percentage MethodforMarried, Semimonthly Pay:

First $1,640.00 taxed at 10% = $164.00

Remaining $435.00 taxed at 12% = $52.20

Total FIT = $216.20

Social Security Tax (6.2%):

$2,500.00 × 6.2% = $155.00

Medicare Tax (1.45%):

$2,500.00 × 1.45% = $36.25

Other deductions:

Child Support:$100.00

Total Taxes and Deductions:

216.20+155.00+36.25+100.00=507.45216.20 + 155.00 + 36.25 + 100.00 = 507.45216.20+155.00+36.25+100.00=507.45

Net Pay Calculation:

2,500.00−507.45=1,730.362,500.00 - 507.45 = 1,730.362,500.00−507.45=1,730.36

Thus, the correct answer isB. $1,730.36.

Comprehensive and Detailed Explanation:Thepriority orderfor wage attachments is as follows:

Bankruptcy orders (Option A)– Court-ordered payments under the U.S.Bankruptcy Codetaketop priorityover all other wage deductions.

Child support (Option B)– Thesecond-highest priorityunderfederal law, governed by theConsumer Credit Protection Act (CCPA).

State tax levies (Option C)– Third in priority, varies by state.

Wage assignments (Option D)–Lowest priority, usually voluntary agreements by employees.

Comprehensive and Detailed Explanation:PayrollStandard Operating Procedures (SOPs)must beregularly updatedto maintain compliance and accuracy.

Best practice is to update SOPs whenever workflows change(Option C).

Option A (Annually)is incorrect becausewaiting a full yearcould lead to outdated procedures.

Option B (Quarterly)is incorrect unless payroll processes are highly dynamic.

Option D (When management changes)is incorrect becauseprocesses may change independently of leadership changes.

Comprehensive and Detailed Explanation:Independent contractors do NOT receive a salary.They:

Invoice for services renderedrather than receivingfixed wages.

Risk profit or loss(Option B) based on how they manage expenses.

Can hire assistants(Option C) to help complete tasks.

Can end the relationship at any time(Option D) unless bound by a contract.

Option A (Receive a salary) is incorrectbecausesalaries are paid only to employees, not independent contractors.

Comprehensive and Detailed Explanation:Employers must reportunclaimed wagesto the state according toescheatment laws. Required information includes:

Last Known Address (A)– To help locate the employee.

Full Name (B)– To identify the rightful owner.

Payment Amount & Date (D)– To track the missing wages.

Option C (Date of Birth) is NOT requiredin most state reporting systems, as name and address are sufficient for identification.

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.

USCIS audits (C) are related to immigration compliance, not overtime violations.

DOL investigations (D) and back pay requirements (A) are common FLSA enforcement actions.

Settlement pay (B) may be required in legal resolutions of wage disputes.

References:

FLSA Overtime Enforcement Guidelines (DOL)

Payroll Compliance Guide (Payroll.org)

Form W-9is used for independent contractors (U.S. residents) butdoes NOT determine residency for tax purposes.

TheSubstantial Presence Test (B)andGreen Card Test (C)are used to determine tax residency.

Tax treaties (D) impact tax status for nonresidents.

References:

IRS Publication 519 (U.S. Tax Guide for Aliens)

The Family and Medical Leave Act (FMLA)requires employers to keepFMLA-related records for at least 3 years.

These records include:

Employee leave requests

Employer responses

Payroll and benefits records

Medical certifications

The DOL may audit these records to ensure FMLA compliance.

References:

FMLA Recordkeeping Requirements (DOL)

Payroll Record Retention Guidelines (Payroll.org)

Employee badges (B) are NOT acceptable as proof of identity for Form I-9.

Acceptable IDs include passports, driver’s licenses, and other government-issued documents.

References:

USCIS Form I-9 Acceptable Documents List

Gross pay:$15 × 40 = $600.00

401(k) deduction:$50.00(Pre-tax)

FITW, Social Security (6.2%), Medicare (1.45%)applied

Using the IRS Wage Bracket Method, net pay is $651.45

References:

IRS Publication 15-T (Federal Income Tax Withholding Tables)

Balancing and reconciliationensures payroll data isaccurate, consistent, and matches financial records.

Gap analysis(A) is used to compare actual vs. expected performance.

Evaluating system performance(C) focuses on efficiency, not data verification.

Periodic auditing (D)is important but not the primary method of payroll validation.

References:

Payroll Balancing & Reconciliation Guidelines (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)

As a semiweekly depositor, if the tax liability exceeds $100,000 in a single day, the employer must deposit the full amount by the next business day.

The combined liability of $169,200 must be deposited on Monday.

References:

IRS Publication 15 (Federal Deposit Rules)

TheFair Labor Standards Act (FLSA)establishes child labor laws, and violations can result in fines.

As of recent updates, the penalty for a willful violation of child labor laws is $13,227.00(adjusted annually).

If serious injury or death occurs, penaltiesincrease significantly.

References:

FLSA Child Labor Penalty Guidelines (DOL)

Wage and Hour Division (DOL)

Step 1: Determine taxable wages

Regular wages:$2,000.00

Shift differential:$1,000.00

Total taxable wages = $3,000.00(Non-taxable tuition reimbursement and travel are excluded.)

Step 2: Calculate Social Security tax

$3,000 × 6.2% = $186.00 (Employer portion)

Step 3: Calculate Medicare tax

$3,000 × 1.45% = $43.50 (Employer portion)

Step 4: Total employer FICA tax

Social Security + Medicare = $186.00 + $43.50 = $229.50

Employer’s share = $229.50 × 2 = $459.00

References:

IRS Publication 15 (Employer’s Tax Guide)

Social Security and Medicare Tax Rates (IRS)

FLSA governs wages and hours, not privacy rights.

Privacy laws are governed by federal/state regulations and company policies.

References:

Employee Privacy Rights (DOL)

Total taxable wages: $384.62 + $76.92 + $38.46 = $500.00

Using IRS percentage method tables, withholding = $39.04

References:

IRS Publication 15-T (Tax Withholding Tables)

Form 941 is due on the last day of the month following the end of the quarter.

Example:

Q1 (Jan–Mar) due: April 30

Q2 (Apr–Jun) due: July 31

References:

IRS Form 941 Instructions

FLSA requires that work time schedules, payroll records, and related documents be kept for a minimum of 3 years.

References:

Fair Labor Standards Act (FLSA) Recordkeeping Requirements (DOL)

Thefederal minimum wageis$7.25 per hour.

A state's minimum wage is$0.60 higher, so$7.25 + $0.60 = $7.85.

FLSA requires thehigherof state or federal minimum wage.

References:

FLSA Minimum Wage Provisions (Department of Labor)

Employers are not required to "gross up" (A) taxable awards unless they choose to cover the employee’s tax liability.

The IRS mandates taxation and W-2 reporting (B, C, D).

References:

IRS Publication 15-B

Workers’ compensation benefits are tax-exempt if they are paid for work-related injuries or illnesses.

If payments are received for non-work-related illnesses (B), they become taxable.

Amounts that do not exceed federal or state limits (C & D) remain tax-exempt.

References:

IRS Publication 525 (Taxable and Nontaxable Income)

Step 1: Calculate regular wages

40 hours × $10.00 =$400.00

Step 2: Calculate overtime wages

10 hours × ($10.00 × 1.5) =$150.00

Step 3: Calculate piece-rate earnings

35 units × $5.00 =$175.00

Step 4: Total gross pay$400.00 + $150.00 + $175.00 =$742.50

References:

FLSA Overtime Calculation Guide (DOL)

System needs (A), processes affected (B), and cost of implementation (D) are critical factors in designing a shared services model.

Employee acceptance (C) is valuable but not a primary technical or financial consideration.

References:

Payroll Process Improvement Guidelines (Payroll.org)

A "B" Notice (Backup Withholding Notice)is sent by theIRS when a payee’s taxpayer ID does not match records.

The employer must notify the payee within30 daysto correct their details.

Failure to comply results inbackup withholding of 24%on future payments.

References:

IRS Publication 1281 (Backup Withholding Notices)

Workers’ compensation includes commissions (B) as part of employee earnings.

Gratuities (A) and uniform stipends (D) are usually excluded.

References:

State Workers' Compensation Audit Guidelines