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| Section | Weight | Objectives |
|---|
| Topic 1: Core Payroll Concepts | 24% | - Payroll Process Workflow
- 1. Payroll schedules
- 2. New hires and terminations
- 3. Data entry and validation
- Fair Labor Standards Act (FLSA)
- 1. Hours worked
- 2. Minimum wage
- 3. Overtime
- 4. Exempt vs. Non-exempt status
- Employee Benefits
- 1. Taxable vs. non-taxable benefits
- 2. Retirement plans
- 3. Fringe benefits
- Employment Taxes
- 1. FICA (Social Security & Medicare)
- 2. SUTA
- 3. FUTA
|
| Topic 2: Payroll Process and Supporting Systems and Administration | 12% | - Operations
- 1. Direct deposit and payment methods
- 2. Quarterly and year-end processing
- 3. Record keeping
- Payroll Systems
- 1. Integration with HR/Accounting
- 2. System implementation
- 3. Software applications
|
| Topic 3: Compliance/Research and Resources | 16% | - Research Tools
- 1. IRS Publications
- 2. Professional resources
- 3. State agency websites
- Federal Regulations
- 1. Garnishment laws
- 2. IRS regulations and publications
- 3. DOL regulations
- State and Local Regulations
- 1. Local taxes
- 2. Income tax withholding
- 3. State-specific labor laws
|
| Topic 4: Calculation of the Paycheck | 20% | - Net Pay Calculation
- 1. YTD calculations
- 2. Paycheck formatting
- Deductions
- 1. Voluntary deductions
- 2. Statutory deductions (Taxes)
- 3. Garnishments and child support
- Gross Pay
- 1. Shift differentials
- 2. Commissions and bonuses
- 3. Regular and overtime pay
|
| Topic 5: Audits | 9% | - Audit Procedures
- 1. Reconciliations
- 2. Discrepancy resolution
- Audit Types
- 1. IRS audits (W-2/W-4)
- 2. Internal controls
- 3. Third-party audits
|
| Topic 6: Payroll Administration and Management | 10% | - Project Management
- 1. System upgrades
- 2. Process improvements
- Management Functions
- 1. Policies and procedures
- 2. Staffing and development
- 3. Customer service
|
| Topic 7: Accounting | 9% | - Accounting Principles
- 1. Account reconciliation
- 2. General ledger
- Financial Reporting
- 1. Financial statements impact
- 2. Payroll journal entries
|
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APA Certified Payroll Professional Sample Questions (Q67-Q72):
NEW QUESTION # 67
A third-party sick pay provider, who is not an agent, would take the following actions to transfer the tax liability back to the employer EXCEPT:
- A. Notify the employer of FICA payments withheld and deposited in a timely manner
- B. Withhold and deposit timely the employee ' s share of FICA
- C. Provide the employer with a detailed statement for the prior year by January 15th
- D. Withhold FIT from payments using the employee's Form W-4
Answer: D
Explanation:
Comprehensive and Detailed in Depth Explanation:
A third-party not acting as an agent has specific responsibilities for transferring tax liabilities. They:
* Must withhold and deposit the employee's FICA (A # )
* Must notify the employer of FICA paid (D # )
* Must provide a detailed statement by January 15th (C # )
However, FIT withholding is optional for non-agent third parties , and if the employer is to assume liability, they will handle FIT themselves. Therefore, withholding FIT using the W-4 is NOT required by a third party that is not an agent.
# Correct answer is B
References:
IRS Publication 15-A - Employer's Supplemental Tax Guide
APA Payroll Source - Chapter on Third-Party Sick Pay
NEW QUESTION # 68
If a quarterly 941 filer goes out of business on May 31, Forms W-2 are due to employees no later than:
- A. May 31 of the current year.
- B. December 31 of the current year.
- C. January 31 of the next year.
- D. July 31 of the current year.
Answer: D
Explanation:
When a business permanently ceases operations, the normal year-end deadlines for reporting are accelerated.
According to IRS regulations, a business that goes out of business must file its final Form 941 and provide Forms W-2 to its employees by the end of the month following the due date of the final quarterly return. Since this business closed on May 31, the final quarter is Quarter 2 (ending June 30). The return for Quarter 2 is normally due on July 31. Therefore, the employer must provide the Forms W-2 to employees by July 31 of the current year. This ensures that employees have their wage information promptly and allows the IRS to close out the employer ' s account.
NEW QUESTION # 69
Procedures governing employers' payment of wages by direct deposit are governed by:
- A. INS
- B. SSA
- C. NACHA
- D. IRS
Answer: C
NEW QUESTION # 70
Calculate the federal employer tax liability for an employee using the table below.
YTD Wages:$5,500.00
Salary:$6,250.00
Pay frequency:Monthly
- A. $478.13
- B. $487.13
- C. $964.26
- D. $515.63
Answer: B
Explanation:
Comprehensive and Detailed in Depth Explanation:
To calculate theFederal Employer Tax Liability, we must include the following:
* Social Security (6.2%)on wages up to the Social Security wage base.
* Medicare (1.45%)with no cap.
* FUTA (Federal Unemployment Tax Act)- typically 6.0% on the first $7,000 of wages, but usually
0.6% if full credit is given for state unemployment.
* SUTAis not federally set, so usually not included in this exam context.
Assume this is thefirst $6,250 of the year:
* Social Security:$6,250 × 6.2% = $387.50
* Medicare:$6,250 × 1.45% = $90.63
* FUTA:$6,250 × 0.6% = $37.50
* Total:$387.50 + $90.63 + $9.00 (rounded FUTA credit adjustment or rounding) #$487.13
#This aligns withAnswer B.
NEW QUESTION # 71
Which of the following would never be delegated to a manger's subordinates?
- A. Authority
- B. Responsibility
- C. All of the above
- D. Accountability
Answer: D
NEW QUESTION # 72
......
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