FPC-Remote Exam Dumps, FPC-Remote Practice Test Questions
PDF (New 2025) Actual APA FPC-Remote Exam Questions
APA FPC-Remote Exam is a valuable credential for payroll professionals who want to demonstrate their knowledge and expertise in the field. Fundamental Payroll Certification certification is recognized by employers and can lead to higher salaries, greater job opportunities, and increased professional credibility. To be eligible for the exam, candidates must have at least six months of experience in payroll processing or have completed a payroll training program. Overall, the APA FPC-Remote Exam is an essential tool for payroll professionals looking to advance their careers and demonstrate their expertise in the field.
NEW QUESTION # 31
If you need very rapid response time with minimal lag between input and output into your computer system, look for:
- A. network processing
- B. real time processing
- C. remote entry processing
- D. batch processing
Answer: B
NEW QUESTION # 32
To reconcile a general ledger tax liability account balance, verify all of the following items EXCEPT:
- A. Checks issued by accounts payable
- B. Account activity against the quarterly returns
- C. Account entries against the payroll register
- D. Entries from company accountants
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
To properly reconcile payroll tax liability accounts, the following steps are performed:
Compare account entries against payroll registers (C) - Ensures wages, deductions, and taxes are posted correctly.
Verify checks issued by accounts payable (B) - Confirms tax payments were made.
Match account activity with quarterly tax returns (D) - Ensures payroll taxes were reported correctly on Form 941.
Option A (Entries from company accountants) is incorrect because accountants do not create payroll entries; payroll is recorded based on actual payroll transactions, not estimates or adjustments from accountants.
Reference:
GAAP Accounting Standards - Payroll Tax Liability Reconciliation
Payroll.org - Best Practices for Payroll Tax Account Reconciliation
NEW QUESTION # 33
Using the following schedule for an employee who earns $9.00 per hour, calculate the overtime premium required under the FLSA.
- A. $13.50
- B. $9.00
- C. $0.00
- D. $4.50
Answer: C
Explanation:
Under the Fair Labor Standards Act (FLSA):
Overtime is required only when an employee works more than 40 hours in a workweek.
The total worked hours (excluding sick leave) = 25 hours (below 40).
No overtime is due.
Reference:
FLSA Overtime Rules (Department of Labor)
NEW QUESTION # 34
An employer maintains its employee master file in computer files. which of the following statements is true?
- A. under federal law, the employer is required to keep a backup of these records
- B. there is no federal requirement to update the data monthly
- C. employment records must be kept for 7 years
Answer: B
NEW QUESTION # 35
When supplemental wages are paid at the same time as regular wages, how are withholding taxes computer?
- A. withholding taxes are based on the total of the wages and supplemental wages
- B. withholding on supplemental wages is taxed separately
- C. supplemental wages are taxed at a different withholding rate
- D. supplemental wages are not subject to withholding taxes
Answer: A
NEW QUESTION # 36
When an employer allocates tips, which of the following statements is TRUE?
- A. No allocation is made for any reported tips
- B. Report the allocated amount on the employee's Form W-2
- C. Allocated tips are subject to federal income tax withholding
- D. The employer is not liable for amounts incorrectly allocated
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Employers must allocate tips if the total reported tips are less than 8% of gross receipts for establishments where tipping is customary.
Allocated tips are reported on Form W-2, Box 8 (Option C) but are NOT subject to withholding.
Option A is incorrect because allocated tips are not subject to automatic withholding unless voluntarily reported by the employee.
Option B is incorrect because employers are responsible for accurate tip reporting.
Option D is incorrect because tip allocation rules require reporting when applicable.
Reference:
IRS Publication 531 - Reporting Tip Income
Payroll.org - Employer Tip Allocation Rules
NEW QUESTION # 37
An employer may provide all of the following features in a 401k plan except:
- A. catch up contribution
- B. matching contributions
- C. lower ceilings on contributions
- D. higher benefits for highly compensated employees
Answer: D
NEW QUESTION # 38
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):
- A. Commissioned Salesperson
- B. Leased Employee
- C. Administrative Employee
- D. Independent Contractor
Answer: D
Explanation:
Comprehensive and Detailed Explanation:Anindependent contractoris an individual who:
* Works on aper-project basis
* Isnot under direct employer control
* Provides services to multiple clients
* Option A (Leased Employee)refers to employees hired through astaffing agency.
* Option B (Administrative Employee)is incorrect because administrative employees are typicallyW-2 employees.
* Option D (Commissioned Salesperson)is incorrect because commissioned employees arepaid based on sales, not per-project work.
Reference:
IRS - Independent Contractor vs. Employee Guidelines
Payroll.org - Worker Classification Compliance
NEW QUESTION # 39
Based on hours recorded for the 7-day workweek below, calculate the number of overtime hours, if any, under the FLSA.
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
Explanation:
Comprehensive and Detailed Explanation:Under theFair Labor Standards Act (FLSA),overtimeis calculatedonly on actual hours workedbeyond40 hours per workweek.
* Paid leave hours (sick and vacation) do not count as "worked" hoursunder FLSA overtime rules.
* Calculate actual worked hours:
* Tuesday:10 hours
* Wednesday:9 hours
* Thursday:8 hours
* Friday:8 hours
* Saturday:8 hours
* Sunday:2 hours
* Total actual hours worked=45 hours
* Overtime hours = 45 - 40 = 5 overtime hours
Thus, the correct answer isB (3 overtime hours), based on hours worked exceeding 40, minus sick and vacation pay.
Reference:
Fair Labor Standards Act (FLSA) - Overtime Regulations
Payroll.org - FLSA Compliance Guidelines
NEW QUESTION # 40
In 2020, an employer must pay social security tax on an employees wages up to:
- A. 137,700
- B. 127,200
- C. $128,400
- D. 132,900
Answer: A
NEW QUESTION # 41
Which account type is used to classify accrued, but not yet taken, paid leave that is carried over from one year to the next?
- A. Expenses
- B. Current assets
- C. Long-term liabilities
- D. Deferred assets
Answer: D
Explanation:
* Accrued leave is classified as a deferred assetbecause it represents an obligation to employees in the future.
References:
* Payroll Accounting Standards (Payroll.org)
NEW QUESTION # 42
All of the following employee information is required when reporting unclaimed wages EXCEPT:
- A. Employee's Full Name
- B. Employee's Date of Birth
- C. Last Known Address
- D. Payment Amount and Date
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Employers must report unclaimed wages to the state under escheatment laws. Required details include:
Last Known Address (A) - To help locate the employee.
Full Name (B) - To identify the rightful owner.
Payment Amount & Date (D) - To track the missing wages.
Option C (Date of Birth) is NOT required in most state reporting systems, as name and address are sufficient for identification.
Reference:
State Escheatment Laws - Unclaimed Wages
Payroll.org - Handling and Reporting Unclaimed Wages
NEW QUESTION # 43
An employer contributes $175 per month to an employee's cafeteria plan. since her husband has medical/dental coverage through his employer, she wants to take the $175 per month in cash. which of the following statements is true?
- A. this option is not available; if the amount is not spent, it is lost
- B. the $175 becomes taxable income
- C. the $175 is a tax free benefit to her.
- D. only social security tax and medicare tax are withheld from the $175 per month.
Answer: B
NEW QUESTION # 44
Which of the following simulations would NOT be performed when testing a disaster recovery plan?
- A. Validating the ability to create direct deposit and check print files
- B. Verifying network connectivity from a remote location
- C. Validating the record count on a daily new hire file
- D. Verifying access to online payroll processing documentation
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
A disaster recovery plan (DRP) ensures payroll continuity during emergencies. Key tests include:
Option A (Direct deposit & check printing) is correct because payroll must still be processed during a disaster.
Option C (Access to online payroll data) is necessary to ensure payroll can be processed remotely.
Option D (Network connectivity verification) is vital to confirm off-site payroll access.
Option B (Validating new hire record counts) is incorrect because it is a routine HR function, not part of disaster recovery. DRPs focus on ensuring payroll continues for existing employees rather than hiring functions.
Reference:
Payroll.org - Payroll Disaster Recovery Planning
IRS - Business Continuity Guidelines for Payroll Processing
NEW QUESTION # 45
Which of the following deductions from pay is considered a voluntary deduction?
- A. Garnishments
- B. Medical support orders
- C. Wage assignments
- D. Wage attachments
Answer: C
Explanation:
* Wage assignmentsare voluntary deductions authorized by employees for things likeloan payments or union dues.
* Garnishments, wage attachments, and medical support ordersarecourt-mandated deductions, making them involuntary.
References:
* IRS Publication 15 (Employer's Tax Guide)
* Payroll Deduction Compliance Guide (Payroll.org)
NEW QUESTION # 46
Which form is used by third-party administrators to report sick pay paid on behalf of an employer?
- A. Form 8922
- B. Form 1095-B
- C. Form 1099
- D. Form 941
Answer: A
Explanation:
Comprehensive and Detailed Explanation:Form 8922, Third-Party Sick Pay Recap,is used when athird-party administrator (TPA)payssick payon behalf of an employer and needs toreport taxable wages properly.
* This ensures thatSocial Security, Medicare, and FUTA taxesare correctly allocated between theemployer and third party.
* Sick pay is subject to FICA taxes, butnot always subject to FUTAif paid directly by an insurer.
* Option A (Form 941)is incorrect because it is used forquarterly payroll tax filings.
* Option B (Form 1099)is incorrect becausesick pay is reported on W-2, not 1099.
* Option D (Form 1095-B)is incorrect because it relates tohealth coverage reporting.
Reference:
IRS Form 8922 Instructions - Third-Party Sick Pay Recap
Payroll.org - Sick Pay Taxation Guidelines
NEW QUESTION # 47
Which of the following items is NOT found on an employee's master file?
- A. Date of birth
- B. Address
- C. SSN
- D. Marital status
Answer: D
Explanation:
* The employee master file contains essential payroll data, including DOB, SSN, and address.
* Marital status is typically recorded on tax withholding forms (e.g., Form W-4) but is not a standard master file entry.
References:
* Payroll Data Management Standards (Payroll.org)
NEW QUESTION # 48
All of the following preventative measures would help protect personally identifiable information EXCEPT:
- A. Signed confidentiality agreements for staff.
- B. Limiting communications to e-mail.
- C. Reviewing system security periodically.
- D. Locking files containing employee information.
Answer: B
Explanation:
* E-mail is NOT a secure methodfor protecting sensitive payroll and HR data.
* Best practices includedata encryption, access control, and employee training.
References:
* Data Security Standards (Payroll.org)
* IRS Data Protection Guidelines
NEW QUESTION # 49
Employers who properly repay over-withheld amounts to employees can claim a credit against taxes due by making an adjustment on:
- A. Form 941-X
- B. Form W-4
- C. Form 941
- D. Form W-2
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
If an employer over-withholds federal taxes from an employee's paycheck, the employer can file an adjustment using Form 941-X (Adjusted Employer's Quarterly Federal Tax Return).
Form 941 (Option A) is incorrect because it is used to report current payroll taxes, not to correct past errors.
Form W-2 (Option C) is incorrect because it reports wages and taxes withheld but does not allow corrections.
Form W-4 (Option D) is incorrect because it is used by employees to adjust withholding allowances.
Reference:
IRS - Instructions for Form 941-X
Payroll.org - Payroll Tax Adjustments and Corrections
NEW QUESTION # 50
Which of the following is true regarding payroll tax deposits?
- A. employers accumulating a tax liability of more than $50,000 in the lookback period file schedule B with form 941.
- B. employers are penalized for failing to deposit 100% of their tax liability by the due date.
- C. employers must withhold taxes on noncash fringe benefits at least quarterly.
- D. employers with accumulated payroll taxes under $2500 for a month can deposit the amount due with their quarterly tax return.
Answer: A
NEW QUESTION # 51
An upgrade to a payroll system can impact all of the following documentation within the payroll department EXCEPT:
- A. User manuals
- B. Union contracts
- C. Business continuity plans
- D. Standard operating procedures
Answer: B
Explanation:
Comprehensive and Detailed Explanation:Apayroll system upgradeaffects documentationrelated to payroll processingbutdoes not change union contracts.
* Option A (User manuals):Correct -New system features require updated manuals for payroll staff.
* Option C (Business continuity plans):Correct -System changes must be included in disaster recovery plans.
* Option D (Standard operating procedures - SOPs):Correct -Payroll procedures need updates for new workflows.
However,union contracts (Option B) remain unchangedunless anew agreement is negotiated.
Reference:
Payroll.org - Payroll System Implementation Best Practices
IRS - Payroll System Compliance Requirements
NEW QUESTION # 52
A waitress is paid $2.25 per hour and she receives $225 in tips during the week. She works 4o hours per week.
Which of the following is true?
- A. her employer is allowed to reduce her cash wage to no less than $2.13 per hour
- B. her base pay must be increase to $4.5 per hour after a 90 day training period.
- C. she must be paid $5.12 per hour by her employer
- D. her base salary must be raised to $3 per hour to comply with fed min wage requirements.
Answer: A
NEW QUESTION # 53
To identify an out-of-balance general ledger account, all of the following documents should be used EXCEPT:
- A. Payroll Register Totals
- B. Bank Account Statements
- C. General Ledger Account Details
- D. Copies of Paychecks
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
To find discrepancies in a general ledger, the following documents should be reviewed:
General Ledger Account Details (A) - To track postings and adjustments.
Bank Account Statements (B) - To ensure transactions reconcile with payroll expenses.
Payroll Register Totals (C) - To compare wages and tax liabilities against general ledger accounts.
Option D (Copies of Paychecks) is incorrect because physical paycheck copies do not verify account balances or identify out-of-balance errors.
Reference:
Payroll.org - Payroll Reconciliation Procedures
GAAP Accounting Standards - General Ledger Balancing
NEW QUESTION # 54
Which of the following plans may be treated as a nonqualified plan?
- A. 401(k)
- B. 408(p)
- C. 457(b)
- D. 403(b)
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
A 457(b) plan is a nonqualified deferred compensation plan offered primarily to government and tax-exempt employees.
Option A (401(k)) and Option B (403(b)) are qualified retirement plans under ERISA.
Option C (408(p)) refers to a SIMPLE IRA, which is also a qualified plan.
Reference:
IRS - 457(b) Plan Rules and Compliance
Payroll.org - Qualified vs. Nonqualified Retirement Plans
NEW QUESTION # 55
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Updated Dec-2025 Pass FPC-Remote Exam - Real Practice Test Questions: https://pdfdumps.free4torrent.com/FPC-Remote-valid-dumps-torrent.html