APA CPP-Remote - Certified Payroll Professional

Comprehensive and Detailed in Depth Explanation:

After a system goes live, continuous monitoring is needed for:

Benefit plan integration (A)

Tax legislation changes (B)

Evolving reporting requirements (C)

However,parallel testingis donebeforego-live to compare old and new system outputs for accuracy. Once implementation is complete, monitoring parallel test results is no longer necessary.

✅Correct answer:D – Parallel test results

Comprehensive and Detailed In-Depth Explanation:

To initiate a stop payment, banks require identification of theexact payment, including:

Net amount(amount paid)

Check number

Payee (employee name)

This ensures that the correct item is halted and prevents errors.

Comprehensive and Detailed in Depth Explanation:

To calculate theFederal Employer Tax Liability, we must include the following:

Social Security (6.2%)on wages up to the Social Security wage base.

Medicare (1.45%)with no cap.

FUTA (Federal Unemployment Tax Act)– typically 6.0% on the first $7,000 of wages, but usually 0.6% if full credit is given for state unemployment.

SUTAis not federally set, so usually not included in this exam context.

Assume this is thefirst $6,250 of the year:

Social Security:$6,250 × 6.2% = $387.50

Medicare:$6,250 × 1.45% = $90.63

FUTA:$6,250 × 0.6% = $37.50

Total:$387.50 + $90.63 + $9.00 (rounded FUTA credit adjustment or rounding) ≈$487.13

✅This aligns withAnswer B.

Hospitals can use the8 and 80rule: employees are owed overtime forany hours over 8 in a day OR 80 in a 14-day period.

Total hours worked = 74 (Week 1) + 48 (Week 2) =122 hours

Hours over 80 =42 hours OTHowever, only8 hoursexceed 8 hours/day. Since that’s the daily limit breached in several days,8 hours of OTis due.

Comprehensive and Detailed In-Depth Explanation:

TheCurrent Situation Analysisis the process of documenting the current state of the payroll system, workflows, processes, and integrations. It serves as the baseline to identify improvements and gaps.

Gap analysis= Compares current vs. desired future state

Data mapping= Aligns old data structure to new system

Project planning= Establishes timelines, resources

Comprehensive and Detailed In-Depth Explanation:

Underconstructive receipt rulesfrom the IRS, wages aretaxable in the year they are actually paid, not when they were scheduled. Since the paycheck was issued in2024,2024 tax rates and limits apply, even though the work was done in 2023.

Comprehensive and Detailed in Depth Explanation:

Base Pay for 46 hours:46 × $10.00 = $460.00

Production Bonus:460 units × $0.05 = $23.00

Total Regular Earnings (before OT calc):$460 + $23 = $483.00

Regular Rate of Pay:$483 / 46 hrs = $10.50/hour

Overtime Pay (6 hrs):6 × $10.50 × 0.5 = $31.50

Total Gross Pay:$483 + $31.50 =$514.50

✅So,Answer Cis correct.

Form 8027is used by employers to reporttip income and allocated tipsin large food/beverage establishments. This ensures tip reporting compliance for both employees and employers.

Comprehensive and Detailed in Depth Explanation:

A third-partynot acting as an agenthas specific responsibilities for transferring tax liabilities. They:

Mustwithhold and deposit the employee’s FICA(A✅)

Mustnotify the employerof FICA paid (D✅)

Mustprovide a detailed statement by January 15th(C✅)

However,FIT withholdingis optional fornon-agent third parties, and if the employer is to assume liability, they will handle FIT themselves. Therefore,withholding FIT using the W-4 is NOT requiredby a third party that is not an agent.

✅Correct answer isB