1
APA Payroll Certification Questions
Which of the following workers is classified as an employee? - Correct
Answer-A day-care worker guaranteed a minimum salary plus a
percentage of the profits
(T/F) If an employee submits a Form W-4 indicating the desire to have a
flat dollar amount of tax withheld, the Form W-4 is not valid and MUST
be rejected. - Correct Answer-True
Common Law Test - Correct Answer-The primary way to determine
whether an individual qualifies as an employee or an independent
contractor.
Employee - Correct Answer-The employer has the right to control what
work will be done and how that work will be done.
Independent Contractor - Correct Answer-The only control of the
company is the desired results to be accomplished, and not the details
by which those results are accomplished.
Form SS-8 - Correct Answer-Determination of Worker Status for
Purposes of Federal Employment Taxes and Income Tax Withholding.
Contains a series of questions categorized into behavioral control,
financial control, and relationship of the parties designed to determine
the extent of the employer's right to control the result of the assigned
work and the methods used to perform that work (employee or
independent contractor).
1
, 2
Reasonable Basis Test (Safe Harbor Rules) - Correct Answer-Employers
may treat workers who would be employers under the common law test
as independent contractors, exempt from federal employment tax laws, if
they have a reasonable basis for doing so.
(T/F) A 24% backup withholding tax on nonwage payments is withheld if
a payee has failed to provide a Taxpayer Identification Number (TIN) or
the IRS has notified the payer that the TIN is incorrect. - Correct Answer-
True
Form W-9 - Correct Answer-Request for Taxpayer Identification Number
and Certification. Used by nonemployees to provide a taxpayer
identification number to the company for which the nonemployee has
received a reportable payment. This form also tells the company whether
the nonemployee is subject to backup withholding.
(T/F) A rehired employee must be reported when the individual has been
separated from employment with the organization for at least 60
consecutive days. - Correct Answer-True
(T/F) Employers must report newly hired employees within 10 calendar
days of the date of hire. - Correct Answer-False. Must be within 20
calendar days of hire.
Fair Labor Standards Act (FLSA) - Correct Answer-1. Sets the minimum
wage and overtime rates covered employees must receive for their work
2. Requires record keeping by all covered employees
3. Places restrictions on the types of work minors can do and the hours
they can work
4. Mandates equal pay for equal work
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, 3
The Fair Labor Standards Act (FLSA) does NOT - Correct Answer-1.
Require employers to provide paid vacations, sick days, jury duty leave,
holidays, lunch breaks, or coffee breaks, but some states require certain
employers to provide paid sick leave to employees meeting specific
requirements
2. Regulate how often employees must be paid or when they must be
paid after employment termination (voluntary or involuntary)
3. Restrict the hours employees over 16 years of age may be required to
work
Exempt Employee - Correct Answer-An employee who is paid a salary
and who does not receive overtime pay. These employees are not
protected by the FLSA.
Nonexempt Employee - Correct Answer-An employee who is paid at
least the minimum wage for all hours worked. An overtime premium for
hours worked over 40 in a single workweek must also be paid to these
employees.
The federal minimum wage since July 24, 2009 - Correct Answer-$7.25
per hour
The opportunity wage for teenagers for newly hired employees who are
under the age of 20. They may be paid this rate for the first 90
consecutive calendar days after they are hired. - Correct Answer-$4.25
per hour
Effective January 1, 2021, federal contractors are subject to an
Executive Order requiring employees working under the federal contract
to be paid a minimum wage of __________. - Correct Answer-$10.95
per hour
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, 4
(T/F) If an employer is covered by both state and federal law and the two
are not the same, the employer is required to pay the higher minimum
wage based on the state in which the employee works. - Correct
Answer-True
Under the FLSA, employers may pay tipped employees, who receive
$30.00 in tips during a month, at least __________ as long as the
amount of the employee' tips is enough to raise the employee's regular
rate of pay to the minimum wage for the workweek. - Correct Answer-
$2.13 per hour
Tip credit - Correct Answer-$5.12 per hour
Regular rate of pay - Correct Answer-total regular pay divided by total
number of hours worked
Shift differential (shift premium) - Correct Answer-An amount added to
an hourly rate to compensate an employee for working an evening, a
late night, or other undesirable shift. The FLSA does not require this to
be paid.
Nondiscretionary bonus - Correct Answer-Contractual or agreed-upon
bonuses or incentives related to productive, efficiency, attendance,
quality, or some other measure of performance.
Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage for a maximum of - Correct Answer-90 calendar days
An employer's responsibilities with Form W-4 include: - Correct Answer-
ensuring that Form W-4 is complete. Employers are responsible for
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APA Payroll Certification Questions
Which of the following workers is classified as an employee? - Correct
Answer-A day-care worker guaranteed a minimum salary plus a
percentage of the profits
(T/F) If an employee submits a Form W-4 indicating the desire to have a
flat dollar amount of tax withheld, the Form W-4 is not valid and MUST
be rejected. - Correct Answer-True
Common Law Test - Correct Answer-The primary way to determine
whether an individual qualifies as an employee or an independent
contractor.
Employee - Correct Answer-The employer has the right to control what
work will be done and how that work will be done.
Independent Contractor - Correct Answer-The only control of the
company is the desired results to be accomplished, and not the details
by which those results are accomplished.
Form SS-8 - Correct Answer-Determination of Worker Status for
Purposes of Federal Employment Taxes and Income Tax Withholding.
Contains a series of questions categorized into behavioral control,
financial control, and relationship of the parties designed to determine
the extent of the employer's right to control the result of the assigned
work and the methods used to perform that work (employee or
independent contractor).
1
, 2
Reasonable Basis Test (Safe Harbor Rules) - Correct Answer-Employers
may treat workers who would be employers under the common law test
as independent contractors, exempt from federal employment tax laws, if
they have a reasonable basis for doing so.
(T/F) A 24% backup withholding tax on nonwage payments is withheld if
a payee has failed to provide a Taxpayer Identification Number (TIN) or
the IRS has notified the payer that the TIN is incorrect. - Correct Answer-
True
Form W-9 - Correct Answer-Request for Taxpayer Identification Number
and Certification. Used by nonemployees to provide a taxpayer
identification number to the company for which the nonemployee has
received a reportable payment. This form also tells the company whether
the nonemployee is subject to backup withholding.
(T/F) A rehired employee must be reported when the individual has been
separated from employment with the organization for at least 60
consecutive days. - Correct Answer-True
(T/F) Employers must report newly hired employees within 10 calendar
days of the date of hire. - Correct Answer-False. Must be within 20
calendar days of hire.
Fair Labor Standards Act (FLSA) - Correct Answer-1. Sets the minimum
wage and overtime rates covered employees must receive for their work
2. Requires record keeping by all covered employees
3. Places restrictions on the types of work minors can do and the hours
they can work
4. Mandates equal pay for equal work
2
, 3
The Fair Labor Standards Act (FLSA) does NOT - Correct Answer-1.
Require employers to provide paid vacations, sick days, jury duty leave,
holidays, lunch breaks, or coffee breaks, but some states require certain
employers to provide paid sick leave to employees meeting specific
requirements
2. Regulate how often employees must be paid or when they must be
paid after employment termination (voluntary or involuntary)
3. Restrict the hours employees over 16 years of age may be required to
work
Exempt Employee - Correct Answer-An employee who is paid a salary
and who does not receive overtime pay. These employees are not
protected by the FLSA.
Nonexempt Employee - Correct Answer-An employee who is paid at
least the minimum wage for all hours worked. An overtime premium for
hours worked over 40 in a single workweek must also be paid to these
employees.
The federal minimum wage since July 24, 2009 - Correct Answer-$7.25
per hour
The opportunity wage for teenagers for newly hired employees who are
under the age of 20. They may be paid this rate for the first 90
consecutive calendar days after they are hired. - Correct Answer-$4.25
per hour
Effective January 1, 2021, federal contractors are subject to an
Executive Order requiring employees working under the federal contract
to be paid a minimum wage of __________. - Correct Answer-$10.95
per hour
3
, 4
(T/F) If an employer is covered by both state and federal law and the two
are not the same, the employer is required to pay the higher minimum
wage based on the state in which the employee works. - Correct
Answer-True
Under the FLSA, employers may pay tipped employees, who receive
$30.00 in tips during a month, at least __________ as long as the
amount of the employee' tips is enough to raise the employee's regular
rate of pay to the minimum wage for the workweek. - Correct Answer-
$2.13 per hour
Tip credit - Correct Answer-$5.12 per hour
Regular rate of pay - Correct Answer-total regular pay divided by total
number of hours worked
Shift differential (shift premium) - Correct Answer-An amount added to
an hourly rate to compensate an employee for working an evening, a
late night, or other undesirable shift. The FLSA does not require this to
be paid.
Nondiscretionary bonus - Correct Answer-Contractual or agreed-upon
bonuses or incentives related to productive, efficiency, attendance,
quality, or some other measure of performance.
Under the FLSA, an employee under the age of 20 can be paid the
opportunity wage for a maximum of - Correct Answer-90 calendar days
An employer's responsibilities with Form W-4 include: - Correct Answer-
ensuring that Form W-4 is complete. Employers are responsible for
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