Authentic APA Certification Exam FPC-Remote Questions Answers

Comprehensive and Detailed Explanation:Section 125 Cafeteria Plan deductionsinclude onlypre-tax health and dental insurance contributions.

Eligible Pre-Tax Deductions:

Health Insurance Premiums: $50.00

Dental Insurance Premiums: $20.00

Total Section 125 Deductions: $70.00

Non-Eligible Deductions:

Charitable Contributions ($5.00) → Not pre-tax.

457(b) Deferral ($100.00) → Retirement savings, not a Section 125 deduction.

Thus, the correct answer isA. $70.00.

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: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.