APA FPC-Remote - Fundamental Payroll Certification

Comprehensive and Detailed Explanation:Social Security tax is6.2%forboth the employer and employee, so total liability is12.4%ofSocial Security taxable wages.

Calculate Social Security taxable wages:

Gross pay:$32,500.00

Less pre-tax deductions (Health Insurance & 401k do NOT reduce Social Security taxable wages):

Taxable Wages = $32,500.00 - $1,200.00 = $31,300.00

Calculate Social Security tax (12.4% total for employer & employee):

$31,300 × 12.4% = $3,881.20

Thus, the correct answer isC. $3,881.20.

Comprehensive and Detailed Explanation:

Gross Pay Calculation:

Hourly Rate × Hours Worked = $10.00 × 40 = $400.00

Taxable Wages:

Gross Pay: $400.00

Pre-Tax Deductions: $50 (Medical) + $10 (Dental) + $25 (401k) = $85.00

Taxable Wages = $400 - $85 = $315.00

Federal Income Tax Withholding (Wage Bracket Method):

Based on IRS tables for single filers, FIT = approx. $20.00

Social Security & Medicare Taxes:

Social Security (6.2%) = $400 × 6.2% = $24.80

Medicare (1.45%) = $400 × 1.45% = $5.80

Total Deductions:

$20.00 (FIT) + $24.80 (SS) + $5.80 (Medicare) + $25.00 (Union Dues) = $75.60

Net Pay:

$400 - $75.60 = $259.99

Thus, the correct answer isD. $259.99.

Comprehensive and Detailed Explanation:Payroll confidentiality ensuresemployee information is only disclosed with proper authorization.

Option A (Payment history with written authorization) is NOT a breachbecause the employee provided consent.

Option C (General ledger costing shared with accounting) is NOT a breachsince accounting requires financial data for compliance.

Option D (Payroll records to legal department) is NOT a breachas legal teams need data for investigations.

Option B (Providing benefit election information to a spouse) is a breachunless the employeehas explicitly authorizedtheir spouse to receive this information.

Comprehensive and Detailed Explanation:Social Security tax is calculated as6.2%ofSocial 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 isB. $86.04.

Comprehensive and Detailed Explanation:Workflow mappingis avisual representation of payroll processesto ensureefficiency and accuracy.

Option A (Logical thought processes)ensuresclarityand eliminates assumptions.

Option B (Depictions of sequences)accurately describesworkflow design.

Option C (Steps follow without delay)ensuresprocess efficiency.

Option D is incorrectbecause it describesService Level Agreements (SLA), notworkflow mapping.

Comprehensive and Detailed Explanation:State Unemployment Tax Act (SUTA) liabilityis determined based onwhere an employee works and receives direction from, not necessarily where a company is incorporated.

Thekey factors for determining SUTA stateinclude:

Base of Operations (Option A)– Where the employee works.

Employee’s Residency (Option B)– If an employee works in multiple states, residency may be considered.

Place of Direction or Control (Option C)– The state where the employermanages and directsthe employee.

Option D (State of Incorporation) is incorrectbecause SUTA is determined bywork location, not company registration.

Comprehensive and Detailed Explanation:To finddiscrepanciesin a general ledger, the following documents should be reviewed:

General Ledger Account Details (A)– To track postings and adjustments.

Bank Account Statements (B)– To ensure transactions reconcile with payroll expenses.

Payroll Register Totals (C)– To comparewages and tax liabilitiesagainst general ledger accounts.

Option D (Copies of Paychecks) is incorrectbecause physical paycheck copiesdo not verify account balances or identify out-of-balance errors.

Comprehensive and Detailed Explanation:Payroll security professionals must monitor forpotential payroll fraud or data breaches.

A (Excessive security reset requests)→ Could indicate ahacker attempting unauthorized access.

B (Large payroll data requests)→ Could signalattempted data theft.

D (Activity outside normal hours)→ Could be anexternal breach or insider threat.

Option C (Reprinting a W-2) is NOT necessarily suspicious, as employees frequently request reprints during tax season.

Comprehensive and Detailed Explanation:FormI-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 anITIN (Individual Taxpayer Identification Number)is requested usingForm W-7, not I-9.

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

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

Comprehensive and Detailed Explanation:Business transactions are classified usingfive main types of accounts:

Asset– Resources owned (e.g., cash, equipment, accounts receivable).

Liability– Amounts owed (e.g., payroll taxes, loans).

Expense– Costs incurred to operate the business (e.g., payroll expenses).

Revenue– Income earned (e.g., sales, service fees).

Equity– Owner’s interest in the business (e.g., retained earnings).

Option A is incorrectbecause "Inventory" is atype of asset, not a separate category.

Option C is incorrectbecause "Cash" is asubcategory of assets, not a primary account type.

Option D is incorrectbecause "Net Income" is the result ofrevenues minus expenses, not a separate account category.