FPC-Remote Exam Dumps - APA Certification Questions and Answers

Comprehensive and Detailed Explanation:Constructive receiptmeans an employee isconsidered paidwhen wages aremade available without restriction, even if they do not physically receive the money.

Option A (On the paycheck date)is incorrect because the date of the paycheck does not determinewhen wages are constructively received.

Option B (When cashed)is incorrect because an employee isconsidered paid before they cash the check.

Option C (When ACH file is created)is incorrect because the wages are not yet available to the employee.

Option D is correct because once wages are accessible (direct deposit or paycheck available for pickup), the IRS considers them "received" for tax purposes.

Comprehensive and Detailed Explanation:AJournal(Option C) is thefirst placewhere business transactions are recorded inchronological orderbefore posting to theGeneral Ledger.

Option A (Balance Sheet)is incorrect because it is afinancial statement, not a transaction log.

Option B (General Ledger)is incorrect because transactionsmust first be recorded in a journal before being posted.

Option D (Trial Balance)is incorrect because it isa summary of ledger balances used for reconciliation.

Comprehensive and Detailed Explanation:State Unemployment Tax Act (SUTA) liabilityis determined based onwhere an employee works and receives direction from, not necessarily where a company is incorporated.

Thekey factors for determining SUTA stateinclude:

Base of Operations (Option A)– Where the employee works.

Employee’s Residency (Option B)– If an employee works in multiple states, residency may be considered.

Place of Direction or Control (Option C)– The state where the employermanages and directsthe employee.

Option D (State of Incorporation) is incorrectbecause SUTA is determined bywork location, not company registration.

Comprehensive and Detailed Explanation:Social Security tax is6.2%forboth the employer and employee, so total liability is12.4%ofSocial Security taxable wages.

Calculate Social Security taxable wages:

Gross pay:$32,500.00

Less pre-tax deductions (Health Insurance & 401k do NOT reduce Social Security taxable wages):

Taxable Wages = $32,500.00 - $1,200.00 = $31,300.00

Calculate Social Security tax (12.4% total for employer & employee):

$31,300 × 12.4% = $3,881.20

Thus, the correct answer isC. $3,881.20.

Comprehensive and Detailed Explanation:Apayroll system upgradeaffects documentationrelated to payroll processingbutdoes not change union contracts.

Option A (User manuals):Correct –New system features require updated manuals for payroll staff.

Option C (Business continuity plans):Correct –System changes must be included in disaster recovery plans.

Option D (Standard operating procedures – SOPs):Correct –Payroll procedures need updates for new workflows.

However,union contracts (Option B) remain unchangedunless anew agreement is negotiated.

Comprehensive and Detailed Explanation:Awage attachment(also called awage levy) is alegal withholdingfrom an employee’s paycheck to satisfy an outstanding debt.

IRS tax leviesare a type ofwage attachmentused to collectunpaid federal taxesdirectly from an employee’s wages.

Employersmust comply immediatelywhen notified by the IRS.

Option A (Bankruptcy Order)is incorrect because bankruptcy payments are handled bycourt-appointed trustees, not wage levies.

Option B (Creditor Garnishment)is incorrect because IRS tax leviesdo not require a court orderlike private creditor garnishments.

Option C (Voluntary Deduction)is incorrect because IRS wage leviesare mandatory, not voluntary.

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: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:Apre-notification (pre-note) processis used by payroll departments to verifybanking detailsbefore initiatingdirect depositpayments.

Azero-dollar transactionis sent viaACH (Automated Clearing House)to ensureaccount validity.

This stepprevents payment errorsandfraudulent transactions.

Option Ais incorrect becausepre-notes are usually processed 3–6 days before payday, but not necessarilyfivedays in all cases.

Option Bis incorrect becausenot all employers require a pre-note before direct deposit begins.

Option Cis incorrect becauseACH verification does not confirm the employee’s full legal name.

Comprehensive and Detailed Explanation:Workflow mappingis avisual representation of payroll processesto ensureefficiency and accuracy.

Option A (Logical thought processes)ensuresclarityand eliminates assumptions.

Option B (Depictions of sequences)accurately describesworkflow design.

Option C (Steps follow without delay)ensuresprocess efficiency.

Option D is incorrectbecause it describesService Level Agreements (SLA), notworkflow mapping.