APA CPP-Remote - Certified Payroll Professional

Comprehensive and Detailed In-Depth Explanation:

Allocated tipsare tips assigned to employees by the employer (usually in large food/beverage establishments) when reported tips are below a certain percentage of sales. These are reportedin Box 8of theForm W-2andnot included in Box 1 wagesbecause they're not subject to withholding unless actually received.

Box 1– Wages, tips, compensation

Box 3– Social Security wages

Box 7– Social Security tips

Box 8–Allocated tips

Comprehensive and Detailed in-Depth Explanation:

Mostliabilityaccounts (e.g., taxes payable, wages payable) allow for accrual entries and will balance once funds are disbursed.Cash accounts, however, require accuratetimingbetween disbursement and journal posting. Posting payroll before the cash actually clears can cause reconciliation issues.

Comprehensive and Detailed In-Depth Explanation:

Gross pay per period: $130,000 ÷ 26 = $5,000.00

401(k) deferral: 10% of $5,000 = $500

Taxable wages= $5,000 - $500 = $4,500

Now using the2019 IRS Percentage Method for Married with 3 allowances:

Each allowance = approx. $159.60 per pay period → 3 × $159.60 = $478.80

$4,500 − $478.80 = $4,021.20 (taxable income for FIT)

Apply IRS tax table (based on 2019 tables; simplified example):

Let’s say the FIT withheld = $482.52 (approximate for this band)

Then add:

FICA: SS ($5,000 × 6.2%) = $310.00

Medicare ($5,000 × 1.45%) = $72.50

Deductions:

$500 (401k)

$482.52 (FITW)

$310.00 + $72.50 = $382.50 (FICA total)

Total deductions≈ $1,365.02

Net pay= $5,000 − $1,365.02 =$3,734.98→ Closest match:B. $3,729.98

Comprehensive and Detailed In-Depth Explanation:

RRTA provides federal-level benefits similar to Social Security but applies specifically torailroad workers. It includes:

Retirement

Disability

Survivor benefits

Workers’ compensationis covered understate laws, not RRTA.

Comprehensive and Detailed in Depth Explanation:

TheInternal Revenue Code (IRC)is theofficial federal tax law, enacted by Congress and signed by the President.

IRS Regulationsinterpret the IRC

Revenue ProceduresandRevenue Rulingsprovide guidance

Internal Revenue Bulletin (IRB)publishes the above but is not the law itself

✅Correct answer:B – Internal Revenue Code

Comprehensive and Detailed In-Depth Explanation:

Payment vouchersare typicallyAccounts Payabledocuments, not payroll-specific inputs. All other options (A, C, D) are essential parts of payroll data flow for deductions, taxation, and payment.

Comprehensive and Detailed in Depth Explanation:

Source documentsare original records that support business transactions, such as:

Timecards

Invoices

Purchase orders

Payroll registers

They serve asevidence of a transaction, and are used to create journal entries in the accounting system.

Other options:

BandDrelate to financial statements

Crefers to forecasts, not actual transactions

✅Correct answer:A – Financial transaction data

Comprehensive and Detailed in-Depth Explanation:

The Tentative Withholding Amount is a calculated figure used in certain methods to determine the appropriate amount of federal income tax to withhold from an employee's wages. The aggregate, percentage, and wage bracket methods all utilize this concept. However, the mandatory flat rate method applies a fixed percentage (currently 22%) to supplemental wages without considering a tentative withholding amount. Therefore, the correct answer is D. mandatory flat rate.