APA FPC Exam Questions and Answers
2024 Graded A
(1) Challenges in payroll - ANSWERS-complexity, communication, technology,
accuracy
(1) Payroll Process - ANSWERS-employee (new hire, W4, I9), payroll (reports,
reconciles), gov. (tax, reporting), employee (W2, pay statements)
(1) Tax withholding for employees - ANSWERS-FIT, SS, Medicare, state, local and pay
employer share
(1) TIN - ANSWERS-Taxpayer Identification Number (1099s)
(1) Worker status - ANSWERS-workers, either W2 or 1099, W2 either exempt or
nonexempt
(1) Common Law Test - ANSWERS-sets own hours, can work for multiple employers,
works by the job, can employ assistants, own tools/equipment, terms
(1) Reasonable Basis Test - ANSWERS-employers can classify certain workers as
1099 for tax purposes even though the ee meets requirements of Common Law test for
W2 if they have a reasonable basis for doing so (longstanding practice, judicial
precedent, consistently treated workers as 1099 with 1099-MISC form)
(1) PEO - ANSWERS-organization bears burden of paying, withholding, reporting,
providing benefits
(1) Immigration Reform and Control Act of 1986 (IRCA) - ANSWERS-requires employer
to verify ee eligibility for employment in the U.S.
(1) Illegal Immigrant Penalties - ANSWERS-range from $375 for first offense, $16k for
third
(1) Verification of eligibility - ANSWERS-burden of verification falls to employer after
1986, need I9 by 1st day of work
(1) SSA - ANSWERS-Social Security Administration, 240 million W2/yr with 10% having
numbers that do not match
(1) Earnings Suspense File - ANSWERS-where SSA places unposted wage amounts
(1) Employee's Withholding Allowance Certificate - ANSWERS-W4
, (1) SSNVS - ANSWERS-Social Security Number Verification Service to verify SSN,
requires FEIN/ee name, SSN, DOB
(1) Form SS5 - ANSWERS-Application for a Social Security Card
(1) New Hire Reporting - ANSWERS-20 days of hire, ee name, address, ssn, date of
employment, employer name, addres, FEIN
(1) HHS - ANSWERS-Secretary of Health and Human Services, multistate employers
(1) FLSA - ANSWERS-Fair Labor Standards Act of 1938 guarantees minimum wage,
overtime premium, minors, equal pay protection
(1) Exempt - ANSWERS-not covered by FLSA minimum wage/overtime requirements
(1) White Collar Exemptions - ANSWERS-based on duties, level of discretionary ability,
responsibilities, minimum weekly salary
(1) Salary requirements for exempt ee's - ANSWERS-exec ($455/wk), admin ($455/wk),
professionals ($455/wk), outside sales (none)
(1) Federal Minimum Wage - ANSWERS-$7.25 since 2009, under 20 paid $4.25 for first
90 calendar days
(1) State Minimum Wage - ANSWERS-employer required to pay higher minimum wage
(1) FLSA Tip Credit - ANSWERS-tip credit is $5.12/hr, over $30 tips/mo. - lowest rate is
$2.13/hr
(1) Shift Premium or Shift Differential - ANSWERS-different rate of pay depending on
the shift
(1) PTO - ANSWERS-FLSA does not require employers to pay for unworked sick days,
holidays or vacation days
(1) Overtime - ANSWERS-1.5 rate for all hours worked +40 in a workweek
(1) Portal to-Portal Act of 1947 - ANSWERS-the beginning of a workday is the time
when an ee commences their principal activities and ends when they stop their principal
activities
(1) Engaged to be waiting - ANSWERS-considered overtime
(1) Remedial Education - ANSWERS-10+ hours in excess of 40 not considered
overtime if ee is involved in remedial education program
