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| Section | Weight | Objectives |
|---|
| Calculation of the Paycheck | 20% | - Net Pay Calculation
- 1. YTD calculations
- 2. Paycheck formatting
- Deductions
- 1. Statutory deductions (Taxes)
- 2. Garnishments and child support
- 3. Voluntary deductions
- Gross Pay
- 1. Regular and overtime pay
- 2. Commissions and bonuses
- 3. Shift differentials
|
| Compliance/Research and Resources | 16% | - Research Tools
- 1. Professional resources
- 2. IRS Publications
- 3. State agency websites
- Federal Regulations
- 1. DOL regulations
- 2. IRS regulations and publications
- 3. Garnishment laws
- State and Local Regulations
- 1. Local taxes
- 2. State-specific labor laws
- 3. Income tax withholding
|
| Accounting | 9% | - Accounting Principles
- 1. General ledger
- 2. Account reconciliation
- Financial Reporting
- 1. Financial statements impact
- 2. Payroll journal entries
|
| Audits | 9% | - Audit Procedures
- 1. Reconciliations
- 2. Discrepancy resolution
- Audit Types
- 1. Internal controls
- 2. IRS audits (W-2/W-4)
- 3. Third-party audits
|
| Payroll Administration and Management | 10% | - Project Management
- 1. Process improvements
- 2. System upgrades
- Management Functions
- 1. Customer service
- 2. Policies and procedures
- 3. Staffing and development
|
| Payroll Process and Supporting Systems and Administration | 12% | - Operations
- 1. Quarterly and year-end processing
- 2. Direct deposit and payment methods
- 3. Record keeping
- Payroll Systems
- 1. System implementation
- 2. Integration with HR/Accounting
- 3. Software applications
|
| Core Payroll Concepts | 24% | - Payroll Process Workflow
- 1. Data entry and validation
- 2. Payroll schedules
- 3. New hires and terminations
- Fair Labor Standards Act (FLSA)
- 1. Minimum wage
- 2. Exempt vs. Non-exempt status
- 3. Hours worked
- 4. Overtime
- Employee Benefits
- 1. Taxable vs. non-taxable benefits
- 2. Fringe benefits
- 3. Retirement plans
- Employment Taxes
- 1. FUTA
- 2. FICA (Social Security & Medicare)
- 3. SUTA
|
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APA Certified Payroll Professional Sample Questions (Q11-Q16):
NEW QUESTION # 11
Jane voluntarily separated from employment. She is allowed to continue paying for her medical insurance at cost plus 2% under what legislation?
- A. Family and Medical Leave Act of 1993
- B. Tax Reform Act of 1986
- C. Consolidated Omnibus Budget Reconciliation Act of 1985
- D. Fair Labor Standards Act of 1948
Answer: C
NEW QUESTION # 12
After initial implementation of a new payroll system, all of the following changes must be monitored EXCEPT:
- A. Parallel test results
- B. New internal report requirements
- C. Unexpected payroll tax legislation
- D. Additional company benefit plan options
Answer: A
Explanation:
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 testing is done before go-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
References:
APA Payroll Source - System Implementation and Testing
APA Implementation Lifecycle Documentation
NEW QUESTION # 13
Employee Jack, a nonexempt employee, must travel by plane from Chicago to Houston to inspect the security system recently, installed at a client's site. Jack is normally scheduled to work from 8:00 a.m. to 5:00 p.m., Monday through Friday. Jack arrives at Chicago O'Hare airport on Sunday at 4:00 p.m. and lands at Houston Intercontinental airport at 6:00 p.m. Jack begins work at 8:00 a.m. on Monday, works through lunch, and returns to the airport for his return flight at 5:00 p.m. He arrives in Chicago at 7:00 p.m. Monday evening.
Under FLSA, how many hours of pay are due Jack for Sunday and Monday?
Answer: D
NEW QUESTION # 14
Employee Cindy's employer remits to her payment of $620 in 2009 for substantiated meal expenses she incurred while moving from her old residence to her new work location. How should this reimbursement be reported on Cindy's 2009 federal W-2?
- A. Box 12 only
- B. Boxes 1, 3, and 5
- C. Box 1 only
- D. Boxes 1, 3, 5, and 12
Answer: B
NEW QUESTION # 15
Assessed penalties for misclassification of a worker may be minimized when the IRS finds evidence of:
- A. statements prepared by the worker declaring status.
- B. Form I-9 verification procedures.
- C. an initial filing of Form SS-4.
- D. the annual reporting of Form 1099-MISC for the worker.
Answer: D
Explanation:
Worker classification as either an employee or an independent contractor is a major compliance area for the IRS. If the IRS determines that a worker was improperly classified as a contractor, the employer may be liable for unpaid Social Security, Medicare, and Federal Unemployment taxes. However, Section 530 of the Revenue Act of 1978 provides a " Safe Harbor " that can minimize or eliminate these penalties if the employer has a " reasonable basis " for the classification. One of the primary requirements for Section 530 relief is " reporting consistency, " meaning the employer must have filed all required federal tax returns (such as Form 1099-MISC or 1099-NEC) for the worker in a manner consistent with their status as an independent contractor (Option D). Simply having a worker sign a statement declaring their status (Option C) or having I-9 procedures (Option B) does not satisfy the IRS requirement for reporting consistency under the Safe Harbor rules.
NEW QUESTION # 16
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