FPC-Remote Exam Dumps - APA Certification Questions and Answers

Step 1: Calculate Medicare Tax

Medicare rate: 1.45% up to $200,000; 2.35% for amounts above $200,000

Medicare tax: ($2,500 × 2.35%) = $58.75

Step 2: Calculate FITW using the Optional Flat Rate (22%)

$2,500 × 22% = $550.00

Total tax liability = $550.00 + $58.75 = $606.75

References:

IRS Publication 15-B (Fringe Benefits Taxation)

Proper documentationensures uniformityin payroll and HR operations bystandardizing processes.

Conformity (C)refers to compliance but does not guarantee process standardization.

Responsibility (A) and adaptability (B)are important but not the primary reason for documentation.

References:

Payroll Process Standardization Guide (Payroll.org)

Independent contractors DO NOT complete Form I-9, as they are not employees underIRCA (Immigration Reform and Control Act).

Employees receiveForm W-2and completeForm W-4.

Independent contractors completeForm W-9for tax reporting.

References:

IRS Independent Contractor Guidelines (Publication 1779)

TheInternal Revenue Service (IRS)is responsible for issuing updates related toForms W-2 and W-3under federal tax laws.

SSA (Social Security Administration)processes W-2s but does not initiate changes.

OCSS (Office of Child Support Services)andUSCIS (U.S. Citizenship and Immigration Services)are not involved in payroll tax forms.

References:

IRS Publication 15 (Employer’s Tax Guide)

IRS Form W-2 & W-3 Guidelines

As a semiweekly depositor, if the tax liability exceeds $100,000 in a single day, the employer must deposit the full amount by the next business day.

The combined liability of $169,200 must be deposited on Monday.

References:

IRS Publication 15 (Federal Deposit Rules)

Voluntary deductions include:

401(k):$160.00

Medical insurance:$85.00

Dental insurance:$15.00

Total voluntary deductions:$160 + $85 + $15 =$260.00

Federal income tax, Social Security, Medicare, and tax levies are mandatory deductions, so they are NOT included in voluntary deductions.

References:

IRS Publication 15 (Circular E)

Payroll Source®, Payroll.org

Step 1: Calculate excess GTL coverage

Employee GTL coverage =$78,000 × 2 = $156,000

Excludable amount =$50,000

Taxable excess =$156,000 - $50,000 = $106,000

Step 2: Use IRS Table for GTL Taxable Rates (for age 53: $0.23 per $1,000 of coverage)

$106 × $0.23 = $24.38 per month

References:

IRS Publication 15-B (Taxable Group Term Life Insurance)

TheEisenhower Matrixis a time management framework that categorizes tasks by urgency and importance:

Urgent & Important: Must be done immediately (e.g., payroll processing).

Not Urgent but Important: Planning and strategic tasks (e.g., compliance training).

Urgent but Not Important: Tasks that may be delegated (e.g., responding to non-critical emails).

Not Urgent & Not Important:These tasks have the lowest priorityas they do not contribute significantly to productivity (e.g., unnecessary meetings).

References:

Eisenhower Matrix Time Management Framework

Payroll Management Best Practices (Payroll.org)

The ACA (Affordable Care Act) was enacted to reform healthcare.

It mandates employer-provided health insurance and individual coverage.

References:

Affordable Care Act (IRS)

Unauthorized access (B) is a direct result of security breaches.

Other options (A, C, D) may result from human error but not security violations.

References:

Payroll Security Guidelines (Payroll.org)