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APA FPC-Remote Fundamental Payroll Certification Exam Practice Test

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Total 145 questions

Fundamental Payroll Certification Questions and Answers

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Question 1

When a payer receives a “B” Notice, it must send a copy of the notification to the payee within:

Options:

A.

15 days.

B.

30 days.

C.

60 days.

D.

90 days.

Question 2

Which of the following criteria is NOT used to determine if the worker is a nonresident for U.S. income tax purposes?

Options:

A.

Supplying a W-9 form

B.

Substantial presence test

C.

Lawful permanent resident test

D.

Impact of tax treaty with another resident country

Question 3

An employee has $240,000.00 in YTD taxable wages and receives a taxable fringe benefit of $2,500.00. Calculate the Medicare and FITW using the optional flat rate method for the taxable fringe benefit.

Options:

A.

$586.25

B.

$606.75

C.

$661.25

D.

$683.75

Question 4

Employer's federal quarterly employment taxes are reported on:

Options:

A.

Form 940

B.

Form 941

C.

Form 944

D.

Form 945

Question 5

Employee privacy rights are NOT governed by:

Options:

A.

Company policy

B.

Federal law

C.

FLSA

D.

State regulations

Question 6

Under theCCPA, use the following information to calculate theMAXIMUMdeduction for the child support order for an employee whois not supporting another family and not in arrears.

Options:

A.

$113.53

B.

$116.03

C.

$136.23

D.

$139.23

Question 7

Using the wage bracket method, calculate the employee’s net pay. The employee’s W-4 was completed in 2019 or earlier.

Options:

A.

$589.70

B.

$651.45

C.

$685.45

D.

$686.45

Question 8

When resolving late deposits, the payroll staff should take all of the following steps EXCEPT:

Options:

A.

Check to see if the financial institution is having an internal problem.

B.

Tell the employee the deposit is not considered late until midnight the day of payday.

C.

Verify the employee provided the correct routing and account numbers for any direct deposits.

D.

Ask the employee if they checked the deposit via an ATM, spoke with an actual bank representative, or checked online banking.

Question 9

The journal is commonly referred to as the record of:

Options:

A.

Cross-reference

B.

Final entry

C.

Original entry

D.

Secondary entry

Question 10

Using the table of taxable wages below, calculate the employer'sFICA tax liabilityon the first check of the year:

Options:

A.

$2,387.00

B.

$2,945.25

C.

$5,890.50

D.

$11,415.25

Question 11

Which activity does NOT indicate a data breach has occurred?

Options:

A.

Employee personal data change in the self-service portal

B.

Activity in the payroll system outside normal work times

C.

Excessive requests received for certain files or information

D.

Employee accounts have been locked without explanation

Question 12

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

Options:

A.

Gratuities

B.

Commissions

C.

Third-party sick pay

D.

Work uniform stipend

Question 13

On June 1st, the Payroll Department received an SUI rate change notice indicating a new rate effective January 1st of the current year. The system was not updated with the new rate until October 1st. SUI contribution recalculation will need to be done for:

Options:

A.

2nd quarter only.

B.

3rd quarter only.

C.

2nd and 3rd quarters only.

D.

1st, 2nd, and 3rd quarters only.

Question 14

Using the percentage method for automated payroll systems, calculate the federal income tax withholding based on the following information:

Options:

A.

$18.65

B.

$26.92

C.

$39.04

D.

$41.69

Question 15

Proper documentation of policies and procedures ensures:

Options:

A.

Responsibility.

B.

Adaptability.

C.

Conformity.

D.

Uniformity.

Question 16

Using the following information, calculate theFUTA tax liability:

Options:

A.

$6.24

B.

$6.60

C.

$6.68

D.

$6.77

Question 17

Which of the following considerations is NOT needed when implementing ashared services environment?

Options:

A.

System needs

B.

Processes affected

C.

Employee acceptance

D.

Cost of implementation

Question 18

Using the following information, calculate the employer's total FICA tax liability for the first payroll of the year.

Options:

A.

$459.00

B.

$466.66

C.

$535.50

D.

$543.16

Question 19

The FLSA requires employers to retain employee work time schedules for at least:

Options:

A.

2 years.

B.

3 years.

C.

4 years.

D.

7 years.

Question 20

Workers’ compensation payments are excluded from gross income and employment taxes EXCEPT when the amounts received:

Options:

A.

Are related to injuries suffered on the job.

B.

Are not related to illnesses suffered on the job.

C.

Do not exceed the benefits provided under the state workers' compensation law.

D.

Do not exceed the benefits provided under the federal workers' compensation law.

Question 21

What information is reported to the IRS on Form 1094-C?

Options:

A.

Basic employer information and number of employees

B.

Employee FITW

C.

FUTA wages

D.

Payments made to the beneficiary of a deceased employee

Question 22

The employer’s unpaid portion of payroll taxes is posted as a credit to a(n):

Options:

A.

Asset account

B.

Current liability account

C.

Long-term liability account

D.

Expense account

Question 23

All of the following elements are part of the control process EXCEPT:

Options:

A.

Batch Totals

B.

System Edits

C.

Unauthorized Overtime

D.

Balancing and Reconciliation

Question 24

Using the following information from a payroll register, calculate the tax deposit liability for the payroll.

Options:

A.

$7,975.00

B.

$4,987.50

C.

$4,480.00

D.

$2,507.50

Question 25

All of the following workflow mapping descriptions are correct EXCEPT:

Options:

A.

Logical thought processes must include every step with nothing assumed

B.

Depictions and descriptions of sequences of operations of connected steps

C.

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

D.

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

Question 26

All of the following plans are deferred compensation plans EXCEPT:

Options:

A.

401(k)

B.

403(b)

C.

457(b)

D.

501(c)

Question 27

The purpose of grossing-up an amount to an employee is to:

Options:

A.

Calculate and withhold taxes from payment per Form W-4

B.

Treat payment as tax-exempt

C.

Calculate and pay taxes on behalf of the employee

D.

Treat payment as a non-taxable benefit

Question 28

Report backup withholding to the IRS using:

Options:

A.

Form W-9

B.

Form W-2

C.

Form 945

D.

Form 941

Question 29

Payroll liability tax accounts should be reconciled at LEAST once a:

Options:

A.

Week

B.

Month

C.

Quarter

D.

Year

Question 30

What is the purpose of Form I-9?

Options:

A.

To request an ITIN

B.

To determine how much FIT to withhold from a paycheck

C.

To summarize taxable wages earned during the calendar year

D.

To verify the identity and employment authorization of a worker

Question 31

An employee clocked in for work at 8:07 a.m. and out at 4:08 p.m. According to the DOL policy on rounding work hours, which of the following recorded hours are CORRECT?

Options:

A.

8:00 a.m. to 4:00 p.m.

B.

8:15 a.m. to 4:15 p.m.

C.

8:15 a.m. to 4:00 p.m.

D.

8:00 a.m. to 4:15 p.m.

Question 32

Which of the following statements about payments made under workers' compensation benefits is FALSE?

Options:

A.

They are not included in the employee's gross income

B.

They are received for injuries or illnesses suffered on the job

C.

They are subject to FUTA if they do not exceed the employee's benefits

D.

They are not subject to FICA if payments are made under state regulations

Question 33

To optimize customer service, policies should include attributes which are:

Options:

A.

Reliable

B.

Fluctuating

C.

Interchangeable

D.

Intangible

Question 34

Which of the following wage attachments has the highest priority for withholding?

Options:

A.

Bankruptcy

B.

Child Support

C.

State Tax Levy

D.

Wage Assignment

Question 35

All of the following activities are examples of an internal control EXCEPT:

Options:

A.

Storing backup files on-site

B.

Segregating job duties

C.

Rotating job duties

D.

Restricting access to the system

Question 36

The FIRST action an employer should take when a natural disaster occurs is:

Options:

A.

Access payroll and employee information files

B.

Determine the well-being of employees

C.

Find temporary housing for employees

D.

Secure interim office space

Question 37

An upgrade to a payroll system can impact all of the following documentation within the payroll department EXCEPT:

Options:

A.

User manuals

B.

Union contracts

C.

Business continuity plans

D.

Standard operating procedures

Question 38

Under the rules of constructive receipt, the employee is considered paid:

Options:

A.

On the paycheck date

B.

On the date the paycheck is cashed

C.

When the payroll is processed and the ACH file has been created

D.

When the wages have been made available to the employee without restriction

Question 39

A company has engaged an individual to write a sales contract. The individual receives a flat amount for the task and has an assigned time frame for completion. This individual is classified as a(n):

Options:

A.

Leased Employee

B.

Administrative Employee

C.

Independent Contractor

D.

Commissioned Salesperson

Question 40

Which of the following simulations would NOT be performed when testing a disaster recovery plan?

Options:

Question 41

An employee has YTD wages in the amount of $250,000.00 and receives a $1,753.00 bonus payment. Using the optional flat rate method, calculate the federal income tax withholding from the bonus payment.

Options:

A.

$385.00

B.

$420.13

C.

$534.63

D.

$647.50

Question 42

The best practice is to start the annual reconciliation after the:

Options:

A.

W-2 audit is complete

B.

End of the first quarter

C.

End of the calendar year

D.

First payroll of the current year

Question 43

All of the following criteria are used to determine FMLA eligibility EXCEPT the number of:

Options:

A.

Company Employees

B.

Dependents in the Household

C.

Hours Worked in the Previous 12 Months

D.

Employees within 75 Miles of the Worksite

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Total 145 questions