APA Certification FPC-Remote Syllabus Exam Questions Answers

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)