APA FPC-Remote Exam Questions Instant Access

Question 1

Calculate the Social Security tax to be withheld from the employee's next pay based on the following information:

A$80.77

B$86.04

C$184.26

D$189.53

Answer : B

Comprehensive and Detailed Explanation:

Social Security tax is calculated as 6.2% of Social Security taxable wages.

Calculate biweekly gross pay:

Monthly salary = $3,100.00

Biweekly pay = ($3,100 12) 26 = $1,430.77

Subtract pre-tax deductions (Medical & 401k):

Taxable wages = $1,430.77 - ($85 + $43) = $1,302.77

Calculate Social Security tax (6.2%):

$1,302.77 6.2% = $80.77

Thus, the correct answer is B. $86.04.

IRS Publication 15 -- Employer's Tax Guide

Payroll.org -- Social Security Tax Withholding

Question 2

Which of the following simulations would NOT be performed when testing a disaster recovery plan?

AValidating the ability to create direct deposit and check print files

BValidating the record count on a daily new hire file

CVerifying access to online payroll processing documentation

DVerifying network connectivity from a remote location

Answer : B

Comprehensive and Detailed Explanation:

A disaster recovery plan (DRP) ensures payroll continuity during emergencies. Key tests include:

Option A (Direct deposit & check printing) is correct because payroll must still be processed during a disaster.

Option C (Access to online payroll data) is necessary to ensure payroll can be processed remotely.

Option D (Network connectivity verification) is vital to confirm off-site payroll access.

Option B (Validating new hire record counts) is incorrect because it is a routine HR function, not part of disaster recovery. DRPs focus on ensuring payroll continues for existing employees rather than hiring functions.

Payroll.org -- Payroll Disaster Recovery Planning

IRS -- Business Continuity Guidelines for Payroll Processing

Question 3

Based on the following information, calculate the employee's gross wages for the workweek under the FLSA.

A$692.50

B$742.50

C$810.00

D$825.00

Answer : B

Step 1: Calculate regular wages

40 hours $10.00 = $400.00

Step 2: Calculate overtime wages

10 hours ($10.00 1.5) = $150.00

Step 3: Calculate piece-rate earnings

35 units $5.00 = $175.00

Step 4: Total gross pay

$400.00 + $150.00 + $175.00 = $742.50

FLSA Overtime Calculation Guide (DOL)

Question 4

An employee's written notice of intent to take leave under the FMLA MUST be retained by the employer for a MINIMUM of:

A2 years

B3 years

C4 years

D5 years

US. Department of Labor -- FMLA Recordkeeping Requirements
Payroll.org -- Payroll Compliance for Employee Leave Records

Answer : B

Comprehensive and Detailed Explanation:

The Family and Medical Leave Act (FMLA) requires employers to retain all leave-related records for at least 3 years. This includes:

Employee requests for leave

Employer's written responses

Dates and duration of leave taken

Premium payments for benefits during leave

Option A (2 years) is incorrect because the minimum requirement is 3 years.

Option C (4 years) and Option D (5 years) are incorrect because the law specifies a 3-year retention period.

Question 5

An independent contractor status is indicated if the worker:

AReceives a Form W-2.

BCompletes a Form W-4.

CIs not required to complete Form I-9.

DIs not required to complete Form W-9.

Answer : C

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

Employees receive Form W-2 and complete Form W-4.

Independent contractors complete Form W-9 for tax reporting.

IRS Independent Contractor Guidelines (Publication 1779)

Question 6

An employer who takes the tip credit has an employee who worked 25 hours and received $100.00 in tips. Calculate the employee's gross pay.

A$81.25

B$153.25

C$181.25

D$281.25

Answer : B

Comprehensive and Detailed Explanation:

Under the FLSA tip credit rules, the employer may pay a reduced cash wage of $2.13 per hour, as long as tips bring the total wage to at least $7.25 per hour.

Cash Wage Calculation:

$2.13 25 hours = $53.25

Tips Received:

$100.00

Total Gross Pay:

$53.25 + $100.00 = $153.25

Thus, the correct answer is B. $153.25.

FLSA -- Tip Credit Rules and Minimum Wage Compliance

Payroll.org -- Employer Guidelines for Tip Reporting

Question 7

An employee receives $1,600.00 biweekly from their employer. Using the following information, calculate the total amount of voluntary deductions.

A$760.00

B$660.00

C$205.00

D$260.00

Answer : B

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.

IRS Publication 15 (Circular E)

Payroll Source, Payroll.org

APA Fundamental Payroll Certification FPC-Remote Exam Questions