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| Section | Weight | Objectives |
|---|
| Audits | 9% | - Error Correction and Remediation - Audit Preparation and Response - Internal and External Audits
|
| Calculation of the Paycheck | 20% | - Tax Withholding - Gross Pay Calculations - Special Pay Scenarios - Voluntary and Involuntary Deductions - Net Pay Determination
|
| Payroll Administration and Management | 10% | - Policies and Procedures - Business Continuity Planning - Staff Management and Training - Vendor and Outsourcing Management
|
| Compliance / Research and Resources | 16% | - Compliance Best Practices - Regulatory Agencies - Reporting and Filing Obligations - Federal, State, Local Laws
|
| Accounting | 9% | - Financial Reporting - Accruals and Reconciliations - Cost Allocation - Payroll Journal Entries
|
| Core Payroll Concepts | 24% | - Taxation Basics - Recordkeeping Requirements - Benefits and Deductions - Compensation Types - Employee vs. Independent Contractor
|
| Payroll Process and Supporting Systems and Administration | 12% | - Payroll Cycle Management - System Selection and Maintenance - Workflow and Controls - Data Security and Privacy
|
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APA Certified Payroll Professional Sample Questions (Q90-Q95):
NEW QUESTION # 90
Employees covered under a collective bargaining agreement may be exempt from which of the following regulations?
- A. Overtime only
- B. Minimum wage and overtime
- C. Child labor restrictions
- D. Minimum wage only
Answer: A
Explanation:
While the Fair Labor Standards Act (FLSA) sets broad protections for workers, it contains specific exceptions for employees covered by a collective bargaining agreement (CBA) . Specifically, under Section 7(b)(1) and 7(b)(2) of the FLSA, employers and unions can agree to different overtime standards provided certain conditions are met, such as working a guaranteed number of hours over a 26-week or 52-week period. In these limited cases, employees may be exempt from the standard requirement to pay overtime after 40 hours in a single workweek (Option D). However, a CBA cannot waive the basic federal minimum wage (Option C) or child labor restrictions (Option B). These fundamental protections remain in place regardless of union contracts to ensure a basic floor of worker rights across the United States.
NEW QUESTION # 91
At the time of death, an employee was owed wages and accrued vacation. The employee ' s estate was paid on January 2 of the following year. What are the employer ' s reporting requirements for the payment for the year after death?
- A. Form 1099-MISC, Box 3 only
- B. Form W-2, Boxes 1, 2, 3, 4, 5, 6
- C. Form W-2, Box 1 only
- D. Form W-2, Boxes 3, 4, 5, 6 and Form 1099-MISC, Box 3
Answer: A
Explanation:
The tax treatment of payments to a deceased employee ' s estate depends on the timing of the payment relative to the year of death. If wages are paid in the same year as the death, they are exempt from FIT withholding but subject to FICA and FUTA (reported on W-2 and 1099-MISC). However, if the payment is made in the year after the death (as in this scenario, where the employee died in one year and payment was made on January 2 of the next), the payment is completely exempt from all payroll taxes (FIT, FICA, and FUTA). In this case, no Form W-2 is issued at all. Instead, the entire gross amount is reported as " Other Income " on Form 1099-MISC, Box 3 , issued to the employee ' s estate or beneficiary. This is a common trap on the CPP exam regarding the timing of deceased employee payments.
NEW QUESTION # 92
If an employee working abroad with a tax home in a foreign country passes the "physical presence test," to what may the employee be eligible?
- A. Hardship allowance
- B. Employer-paid housing expenses
- C. Foreign service premium
- D. Income exclusions
Answer: D
NEW QUESTION # 93
In 2009, an on-line payroll system alerts the payroll specialist entering data that an employee has a birth date of 1996 or after. What might this indicate?
- A. The employer may be able to suspend deductions of Social Security and Medicare
- B. A special Form W-4 is required each year for that employee
- C. Employee may have been hired in violation of child labor laws
- D. Employee is exempt from federal income tax
Answer: C
NEW QUESTION # 94
To confirm the payroll system is functioning properly, which of the following routine processes is used?
- A. Conduct gap analysis
- B. Execute data sampling strategy
- C. Perform parallel testing
- D. Reconcile payroll register to inputs
Answer: C
Explanation:
Comprehensive and Detailed In-Depth Explanation:
Parallel testing compares payroll results from the old system and new system for the same pay period. It ' s essential to ensure calculations, taxes, benefits, and deductions are correctly configured before going live.
* Gap analysis = Pre-implementation
* Data sampling = Not standard for full payroll validation
* Reconciling registers = Done during normal operations
References:
The Payroll Source, Chapter 7: Payroll System Implementation
NEW QUESTION # 95
......
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