APA Payroll Certification Exam
Questions and Answers 100% Pass
Which of the following workers is classified as an employee? - ✔✔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. - ✔✔True
Common Law Test - ✔✔The primary way to determine whether an individual qualifies
as an employee or an independent contractor.
Employee - ✔✔The employer has the right to control what work will be done and how
that work will be done.
Independent Contractor - ✔✔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 - ✔✔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
Katelyn Whitman, All Rights Reserved © 2025 1
,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).
Reasonable Basis Test (Safe Harbor Rules) - ✔✔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. - ✔✔True
Form W-9 - ✔✔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. - ✔✔True
(T/F) Employers must report newly hired employees within 10 calendar days of the
date of hire. - ✔✔False. Must be within 20 calendar days of hire.
Fair Labor Standards Act (FLSA) - ✔✔1. Sets the minimum wage and overtime rates
covered employees must receive for their work
2. Requires record keeping by all covered employees
Katelyn Whitman, All Rights Reserved © 2025 2
,3. Places restrictions on the types of work minors can do and the hours they can work
4. Mandates equal pay for equal work
The Fair Labor Standards Act (FLSA) does NOT - ✔✔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 - ✔✔An employee who is paid a salary and who does not receive
overtime pay. These employees are not protected by the FLSA.
Nonexempt Employee - ✔✔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 - ✔✔$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. - ✔✔$4.25 per hour
Katelyn Whitman, All Rights Reserved © 2025 3
, 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
__________. - ✔✔$10.95 per hour
(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. - ✔✔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. - ✔✔$2.13 per hour
Tip credit - ✔✔$5.12 per hour
Regular rate of pay - ✔✔total regular pay divided by total number of hours worked
Shift differential (shift premium) - ✔✔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 - ✔✔Contractual or agreed-upon bonuses or incentives related
to productive, efficiency, attendance, quality, or some other measure of performance.
Katelyn Whitman, All Rights Reserved © 2025 4
Questions and Answers 100% Pass
Which of the following workers is classified as an employee? - ✔✔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. - ✔✔True
Common Law Test - ✔✔The primary way to determine whether an individual qualifies
as an employee or an independent contractor.
Employee - ✔✔The employer has the right to control what work will be done and how
that work will be done.
Independent Contractor - ✔✔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 - ✔✔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
Katelyn Whitman, All Rights Reserved © 2025 1
,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).
Reasonable Basis Test (Safe Harbor Rules) - ✔✔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. - ✔✔True
Form W-9 - ✔✔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. - ✔✔True
(T/F) Employers must report newly hired employees within 10 calendar days of the
date of hire. - ✔✔False. Must be within 20 calendar days of hire.
Fair Labor Standards Act (FLSA) - ✔✔1. Sets the minimum wage and overtime rates
covered employees must receive for their work
2. Requires record keeping by all covered employees
Katelyn Whitman, All Rights Reserved © 2025 2
,3. Places restrictions on the types of work minors can do and the hours they can work
4. Mandates equal pay for equal work
The Fair Labor Standards Act (FLSA) does NOT - ✔✔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 - ✔✔An employee who is paid a salary and who does not receive
overtime pay. These employees are not protected by the FLSA.
Nonexempt Employee - ✔✔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 - ✔✔$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. - ✔✔$4.25 per hour
Katelyn Whitman, All Rights Reserved © 2025 3
, 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
__________. - ✔✔$10.95 per hour
(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. - ✔✔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. - ✔✔$2.13 per hour
Tip credit - ✔✔$5.12 per hour
Regular rate of pay - ✔✔total regular pay divided by total number of hours worked
Shift differential (shift premium) - ✔✔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 - ✔✔Contractual or agreed-upon bonuses or incentives related
to productive, efficiency, attendance, quality, or some other measure of performance.
Katelyn Whitman, All Rights Reserved © 2025 4
