APA FPC-Remote - Fundamental Payroll Certification

Step 1: Determine taxable wages

Regular wages:$2,000.00

Shift differential:$1,000.00

Total taxable wages = $3,000.00(Non-taxable tuition reimbursement and travel are excluded.)

Step 2: Calculate Social Security tax

$3,000 × 6.2% = $186.00 (Employer portion)

Step 3: Calculate Medicare tax

$3,000 × 1.45% = $43.50 (Employer portion)

Step 4: Total employer FICA tax

Social Security + Medicare = $186.00 + $43.50 = $229.50

Employer’s share = $229.50 × 2 = $459.00

References:

IRS Publication 15 (Employer’s Tax Guide)

Social Security and Medicare Tax Rates (IRS)

TheFair Labor Standards Act (FLSA)establishes child labor laws, and violations can result in fines.

As of recent updates, the penalty for a willful violation of child labor laws is $13,227.00(adjusted annually).

If serious injury or death occurs, penaltiesincrease significantly.

References:

FLSA Child Labor Penalty Guidelines (DOL)

Wage and Hour Division (DOL)

Unauthorized access (B) is a direct result of security breaches.

Other options (A, C, D) may result from human error but not security violations.

References:

Payroll Security Guidelines (Payroll.org)

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.

References:

IRS Publication 15 (Circular E)

Payroll Source®, Payroll.org

Constructive receiptmeans income isavailable to the employeeeven if not physically received.

Option C is correctbecause when a paycheck is mailed, it isnot immediately available, delaying constructive receipt.

References:

IRS Publication 15 (Employer’s Tax Guide)

Payroll Tax Compliance Guide (Payroll.org)

Form 941 is due on the last day of the month following the end of the quarter.

Example:

Q1 (Jan–Mar) due: April 30

Q2 (Apr–Jun) due: July 31

References:

IRS Form 941 Instructions

Step 1: Calculate excess GTL coverage

Employee GTL coverage =$78,000 × 2 = $156,000

Excludable amount =$50,000

Taxable excess =$156,000 - $50,000 = $106,000

Step 2: Use IRS Table for GTL Taxable Rates (for age 53: $0.23 per $1,000 of coverage)

$106 × $0.23 = $24.38 per month

References:

IRS Publication 15-B (Taxable Group Term Life Insurance)

USCIS audits (C) are related to immigration compliance, not overtime violations.

DOL investigations (D) and back pay requirements (A) are common FLSA enforcement actions.

Settlement pay (B) may be required in legal resolutions of wage disputes.

References:

FLSA Overtime Enforcement Guidelines (DOL)

Payroll Compliance Guide (Payroll.org)

Proper documentationensures uniformityin payroll and HR operations bystandardizing processes.

Conformity (C)refers to compliance but does not guarantee process standardization.

Responsibility (A) and adaptability (B)are important but not the primary reason for documentation.

References:

Payroll Process Standardization Guide (Payroll.org)

ODFI (Originating Depository Financial Institution)is responsible for initiating payroll transactions, including stop payments.

RDFI (Receiving Depository Financial Institution)receives funds but does not control stop payments.

NACHA (National Automated Clearing House Association)sets ACH rules but does not process transactions.

FDIC (Federal Deposit Insurance Corporation)insures bank deposits but does not handle payment stops.

References:

NACHA Operating Rules & Guidelines

Payroll Banking & ACH Processing Guide (Payroll.org)