APA FPC-Remote Exam Practice Test Instant Access

Question 1

An employee receives a total of $200.10 in cash tips in July. Determine the latest date the employee MUST report tip income to the employer.

AAugust 10

BSeptember 10

CSeptember 30

DDecember 31

Answer : A

Comprehensive and Detailed Explanation:

Under IRS regulations, employees must report tips totaling $20 or more per month to their employer by the 10th day of the following month.

Employee received $200.10 in tips in July.

Tip income must be reported by August 10.

Option B (September 10), Option C (September 30), and Option D (December 31) are incorrect because the IRS mandates monthly reporting.

IRS Publication 531 -- Reporting Tip Income

Payroll.org -- Employer Tip Withholding Responsibilities

Question 2

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

Question 3

When an information return is filed after August 1st of the same year, the penalty amount per form is:

A$60.00

B$120.00

C$310.00

D$630.00

Answer : C

Comprehensive and Detailed Explanation:

According to the IRS penalty schedule for late-filed information returns, the penalty per form depends on how late it is filed:

Option A ($60.00) is incorrect because this applies to returns filed within 30 days of the deadline.

Option B ($120.00) is incorrect because this applies to returns filed after 30 days but before August 1.

Option D ($630.00) is incorrect because this applies to cases of intentional non-compliance.

IRS Instructions for Forms W-2 & 1099 -- Late Filing Penalties

Payroll.org -- Compliance with Information Return Filing Deadlines

Question 4

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 5

When providing wage data for a workers' compensation audit, which of the following wage types would be included as compensation?

AGratuities

BCommissions

CThird-party sick pay

DWork uniform stipend

Answer : B

Workers' compensation includes commissions (B) as part of employee earnings.

Gratuities (A) and uniform stipends (D) are usually excluded.

State Workers' Compensation Audit Guidelines

Question 6

What is the purpose of Form I-9?

ATo request an ITIN

BTo determine how much FIT to withhold from a paycheck

CTo summarize taxable wages earned during the calendar year

DTo verify the identity and employment authorization of a worker

US. Citizenship and Immigration Services (USCIS) -- Form I-9 Instructions
Payroll.org -- Employment Eligibility Verification Guide

Answer : D

Comprehensive and Detailed Explanation:

Form I-9, Employment Eligibility Verification, is used by employers to:

Verify the identity of newly hired employees

Ensure employees are legally authorized to work in the U.S.

Prevent illegal employment practices

Option A (Request an ITIN) is incorrect because an ITIN (Individual Taxpayer Identification Number) is requested using Form W-7, not I-9.

Option B (Determine FIT withholding) is incorrect because Form W-4 is used for federal income tax withholding, not Form I-9.

Option C (Summarize taxable wages) is incorrect because Form W-2 summarizes taxable wages.

Question 7

All of the following workflow mapping descriptions are correct EXCEPT:

ALogical thought processes must include every step with nothing assumed

BDepictions and descriptions of sequences of operations of connected steps

CWhere each step follows the last without delay or gap and ends just prior to the next

DWhen specifications detail the quality and level to be performed by one group for another

Answer : D

Comprehensive and Detailed Explanation:

Workflow mapping is a visual representation of payroll processes to ensure efficiency and accuracy.

Option A (Logical thought processes) ensures clarity and eliminates assumptions.

Option B (Depictions of sequences) accurately describes workflow design.

Option C (Steps follow without delay) ensures process efficiency.

Option D is incorrect because it describes Service Level Agreements (SLA), not workflow mapping.

Payroll.org -- Payroll Workflow Mapping Guide

Process Improvement Standards -- Payroll System Optimization

APA Fundamental Payroll Certification FPC-Remote Exam Practice Test