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APA FPC-Remote Fundamental Payroll Certification Exam Practice Test

Demo: 43 questions
Total 145 questions

Fundamental Payroll Certification Questions and Answers

Question 1

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

Options:

A.

Week

B.

Month

C.

Quarter

D.

Year

Question 2

Failure to create a payroll ACH file is a violation of which customer service principle?

Options:

A.

Empathy

B.

Reliability

C.

Responsiveness

D.

Tangibles

Question 3

The types of accounts used by businesses to classify transactions are:

Options:

A.

Asset, Expense, Revenue, Inventory, and Equity

B.

Asset, Liability, Expense, Revenue, and Equity

C.

Inventory, Revenue, Equity, and Cash

D.

Revenue, Expense, Cash, and Net Income

Question 4

A non-exempt hospital employee works a 14-day period at $14.00 per hour under the 8/80 rule. The employee worked the following hours during the two-week period:

Calculate the employee's biweekly gross pay.

Options:

A.

$1,134.00

B.

$1,141.00

C.

$1,148.00

D.

$1,225.00

Question 5

Using the following information, calculate the social security tax to be withheld.

Options:

A.

$138.45

B.

$141.47

C.

$160.58

D.

$202.60

Question 6

Which of the following account types has a normal debit balance?

Options:

A.

Asset

B.

Capital

C.

Liability

D.

Revenue

Question 7

An employee's written notice of intent to take leave under the FMLA MUST be retained by the employer for a MINIMUM of:

Options:

A.

2 years

B.

3 years

C.

4 years

D.

5 years

Question 8

When an information return is filed after August 1st of the same year, the penalty amount per form is:

Options:

A.

$60.00

B.

$120.00

C.

$310.00

D.

$630.00

Question 9

Specifying a defined response time for an employee's payroll-related question is a component of a Payroll Department’s:

Options:

A.

General Service Contract

B.

Service Level Agreement

C.

Standards of Excellence

D.

Time Management

Question 10

Which of the following master file components is NOT part of the employment data?

Options:

A.

Shift Premium

B.

Workweek

C.

Hire Date

D.

Net Pay

Question 11

Using the wage bracket method and the information below, calculate the employee's weekly net pay.

Options:

A.

$230.40

B.

$244.99

C.

$246.90

D.

$259.99

Question 12

Which of the following amounts is subject to federal income tax withholding?

Options:

A.

401(k) Deferral

B.

Salary Advance

C.

Military-Related Moving Expenses

D.

Health Savings Account (HSA) Contribution

Question 13

All of the following plans are deferred compensation plans EXCEPT:

Options:

A.

401(k)

B.

403(b)

C.

457(b)

D.

501(c)

Question 14

Which of the following expenses is a non-operating expense?

Options:

A.

Insurance

B.

Interest paid on income taxes

C.

Legal fees

D.

Utilities

Question 15

Payroll standard operating procedures should be updated no less frequently than:

Options:

A.

Annually

B.

Quarterly

C.

When revising workflow

D.

When management changes

Question 16

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 17

Which of the following plans may be treated as a nonqualified plan?

Options:

A.

401(k)

B.

403(b)

C.

408(p)

D.

457(b)

Question 18

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 19

Even if a worker meets the definition of an employee, an employer can still treat the worker as an independent contractor if the worker passes the:

Options:

A.

Common Law Test

B.

Reasonable Basis Test

C.

Physical Presence Test

D.

Permanent Resident Test

Question 20

Where should a firm’s business transactions FIRST be recorded?

Options:

A.

Balance Sheet

B.

General Ledger

C.

Journal

D.

Trial Balance

Question 21

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 22

Payroll staff should be aware of all of the following potential warning signs of a data breach EXCEPT:

Options:

A.

Excessive system security reset requests

B.

Requests for large amounts of payroll data

C.

An employee email request for a reprinted W-2 form

D.

Payroll system activity occurring outside normal work hours

Question 23

All of the following preventative measures would help protect personally identifiable information EXCEPT:

Options:

A.

Locking files containing employee information.

B.

Signed confidentiality agreements for staff.

C.

Reviewing system security periodically.

D.

Limiting communications to e-mail.

Question 24

All of the following standards demonstrate effective communication techniques EXCEPT:

Options:

A.

Empathy.

B.

Listening.

C.

Feedback.

D.

Measurability.

Question 25

Based on the following information, calculate the employee's gross wages for the workweek under the FLSA.

Options:

A.

$692.50

B.

$742.50

C.

$810.00

D.

$825.00

Question 26

The lowest priority is given to which of the following time management categories?

Options:

A.

Urgent and important

B.

Not urgent but important

C.

Urgent but not important

D.

Not urgent and not important

Question 27

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 28

TheMAXIMUMamount a52-year-oldemployee can contribute to their401(k) planis:

Options:

A.

$22,500.00

B.

$23,000.00

C.

$30,000.00

D.

$30,500.00

Question 29

Examples of positive active listening through body language include all of the following actions EXCEPT:

Options:

A.

Avoiding slouching posture.

B.

Shrugging your shoulders.

C.

Making eye contact.

D.

Nodding your head.

Question 30

Which of the following awards are included in an employee's taxable income?

Options:

A.

A $5.00 restaurant gift card

B.

A coupon for a free holiday turkey

C.

A wearable fitness tracker for a safety award

D.

An engraved clock, valued at $100.00, to celebrate an employee's retirement

Question 31

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 32

An out-of-balance condition in the general ledger could be caused by:

Options:

A.

A direct deposit error

B.

Increased overtime

C.

Vacation payout

D.

High turnover

Question 33

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 34

Employee privacy rights are NOT governed by:

Options:

A.

Company policy

B.

Federal law

C.

FLSA

D.

State regulations

Question 35

Which of the following deductions from pay is considered a voluntary deduction?

Options:

A.

Garnishments

B.

Wage assignments

C.

Wage attachments

D.

Medical support orders

Question 36

Using the following information, calculate theFUTA tax liability:

Options:

A.

$6.24

B.

$6.60

C.

$6.68

D.

$6.77

Question 37

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 38

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 39

Documentation on legislative changes to Forms W-2 and W-3 is initiated by which of the following organizations?

Options:

A.

IRS

B.

OCSS

C.

SSA

D.

USCIS

Question 40

When testing a payroll business continuity plan, all of the following tasks are critical to issuing payments to employees EXCEPT:

Options:

A.

Validating system access.

B.

Adding a new cost center.

C.

Creating the ACH file.

D.

Printing paychecks.

Question 41

A willful violation of child labor laws, that does NOT involve serious harm or death, can result in a fine of up to:

Options:

A.

$1,000.00

B.

$2,203.00

C.

$10,000.00

D.

$13,227.00

Question 42

Which organization should be contacted when placing a stop payment on a check?

Options:

A.

FDIC

B.

NACHA

C.

ODFI

D.

RDFI

Question 43

A paycheck that is never collected by the employee is considered:

Options:

A.

Voided.

B.

Written off.

C.

Accounts payable.

D.

Abandoned property.

Demo: 43 questions
Total 145 questions