FPC-Remote APA Exam Lab Questions

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Option A (Annually)is incorrect becausewaiting a full yearcould lead to outdated procedures.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