APA Payroll Certification
(T/F) 401(k) plan deferrals are not subject to federal income tax when deferred. - ANS-True
(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. - ANS-True
(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. - ANS-True
(T/F) Employers are NOT responsible for validating the information on Form W-4 or for providing
advice relating to Form W-4. An employee's Form W-4 remains valid until the employee amends
the form or an exempt Form W-4 expires. - ANS-True
(T/F) Employers must report newly hired employees within 10 calendar days of the date of hire.
- ANS-False. Must be within 20 calendar days of hire.
(T/F) Employers reporting more than $50,000.00 in payroll taxes during the lookback period are
semiweekly depositors. - ANS-True
(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. - ANS-True
(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. - ANS-True
(T/F) The FLSA regulates overtime requirements, minimum wage, child labor, and equal pay
rules - ANS-True
(T/F) The information an employee provides in Step 4(a) of Form W-4 is only used if the
employer is using the Wage Bracket method, Worksheet 2 from Publication 15-T. - ANS-False.
The amounts listed in Step 4(a) of an employee's Form W-4 is used in both the Percentage
method and the Wage Bracket method for calculating federal income taxes.
(T/F) Under the FLSA, the an administrative exempt employee's primary duties must be the
performance of office or nonmanual work directly related to the company's management or
business operations with the duties requiring the exercise of discretion and independent
judgement in matters of significance. Administrative employees not meeting the administrative
exemption must be paid overtime for all hours worked over 40 in a workweek. - ANS-True
8/80 Rule for Hospitals and Nursing Homes - ANS-The employer must pay employees covered
by the agreement or understanding at least 1 1/2 times their regular rate of pay for all hours
worked over eight in a day or 80 in the 14-day period, whichever would result in a higher pay for
the employee.
A 15-year-old employee works part-time while school is in session. Under the FLSA, which of
the following hours can the employee work? - ANS-From 4:00 p.m. to 7:00 p.m.
A balance sheet equation is:
a. Assets = Owner's Equity - Liabilities.
b. Owner's Equity = Assets + Liabilities.
,c. Assets = Liabilities + Owner's Equity.
d. Net Earnings = Assets - Liabilities. - ANS-c. Assets = Liabilities + Owner's Equity.
A change in the company workweek may be necessary to:
a. reduce paying overtime.
b. meet changing business needs.
c. comply with the calendar week.
d. adjust pay schedules during holidays. - ANS-b. meet changing business needs.
A company consistently makes timely tax deposits. The deadline for filing its first quarter tax
return, May 10, falls on a Saturday. When is Form 941 due? - ANS-On Monday, May 12
A company deposited the $100,000.00 it owed in payroll taxes four days after the due date. The
company may be subject to: - ANS-Penalties for late deposit.
A company has 2,000 employees. The company filed its 2020 Forms W-2 electronically with the
SSA on May 15, 2021. The company is subject to: - ANS-Penalties for not filing in a timely
manner.
A company has received a child support order for an employee earning $936.00 semimonthly.
Deductions include $25.00 for federal income tax, $71.60 for social security and Medicare
taxes, $30.00 for a creditor garnishment, and $25.00 in insurance premiums. Calculate the
employee's semimonthly disposable pay. - ANS-$839.40
A company is a monthly depositor. Its paydays are on Wednesdays. If the payroll tax liability for
the month is less than $100,000.00, the company's payroll tax deposit is due: - ANS-On or
before the 15th day of the following month.
A company is a monthly depositor. On payday, the company accumulates a payroll tax liability of
$101,000.00. The payroll tax deposit must be made for this liability: - ANS-By the next business
day
A company is required to withhold taxes from an independent contractor when: - ANS-A TIN is
not provided
A company making its federal tax deposits via EFTPS has elected to have its bank initiate the
transactions. This method is defined as: - ANS-EFTPS-Through a Financial Institution.
A company recorded $52,543.00 of accrued payroll taxes. When the amount is deposited, the
$52,543.00 liability will be offset by posting it as a debit in the payroll tax liability account and as
a credit item in the payroll:
a. cash account.
b. tax expense account.
c. tax liability account.
d. expense account. - ANS-a. cash account.
A company recorded $52,543.00 of accrued payroll taxes. When the amount is deposited, the
$52,543.00 liability will be offset by posting it as a debit in the payroll tax liability account and as
a credit item in the payroll: - ANS-Cash account.
A company's cafeteria plan provides each employee with $200.00 per month to pay for chosen
benefits. After selecting benefits, one employee has $50.00 per month left and requests a
payment of $50.00 per month. This $50.00 is: - ANS-Taxable compensation for all federal taxes.
,A hospital employee working under the 8/80 provision works 5 days, 8 hours a day in the first
week and 4 days at 10 hours a day in the second week. Calculate the overtime hours, if any, the
employee must be paid. - ANS-8
A hospital employee working under the 8/80 provision must be paid overtime for working hours
over 8 in a day or 80 in the 14 day period. Even though the employee has worked 80 hours in
the two week period, 8 hours of overtime is due for the four days when the employee worked
more than 8 hours a day.
A journal consists of: - ANS-Debits and credits to specific ledger accounts.
A method for identifying phantom employees is:
a. requiring supervisors to come to the payroll department for their staffs' checks.
b. physical payouts.
c. having all employees sign up for direct deposit.
d. mailing all checks. - ANS-b. physical payouts
A monthly depositor becomes a semi-weekly depositor in all of the following situations EXCEPT
when the: - ANS-liability in a deposit period is $50,000.00.
A monthly depositor deposits its payroll tax liability: - ANS-By the 15th day of the following
month.
A monthly depositor's shortfall make-up deposit must be made no later than: - ANS-The due
date of Form 941 for the quarter.
A nonexempt employee earns $13.00 per hour. The employee worked 43 hours during the
week. Calculate the employee's gross pay for the week. - ANS-578.50
A nonexempt employee earns $15.00 per hour. Last week, the employee earned a production
bonus of $45.00 and worked 50 hours. Calculate the employee's gross pay for the week. -
ANS-$874.50
A nonexempt employee earns $17.00 per hour. The employee worked 47 hours during the
week. Calculate the employee's gross pay for the week. - ANS-$858.50
A nonexempt employee is provided room and board. Under the FLSA, the employee's regular
rate of pay calculation includes: - ANS-100% of the fair-market value of the room and board.
A nonexempt sales employee is paid $12.00 per hour and is paid weekly. She also receives a
10% commission on net sales each month. The commission is included in the second payroll of
the month following the sale. The company averages the commission for all workweeks in the
month. Last month, the employee had $13,000.00 in net sales and worked 49 hours during the
second workweek of the month and was paid her overtime premium for the week. Calculate the
additional overtime premium pay due the employee for the second week of last month. -
ANS-$29.88
To calculate the additional overtime premium pay, subtract the employee's overtime premium
paid in the prior month without sales commission from the overtime premium pay calculated with
the sales commission.
Step 1. Pay for time worked: 49 hours × $12.00 = $588.00
Step 2. Previous overtime premium pay: $12.00 × 0.5 × 9 hours = $54.00
, Step 3. One week sales commission: ($13,000.00 × 10%) × 25% = $325.00
Step 4. Total pay with commission: $588.00 + $325.00 = $913.00
Step 5. Regular rate of pay: $913.00 ÷ 49 hours = $18.63
Step 6. Overtime premium rate: $18.63 × 0.5 = $9.32
Step 7. Adjusted overtime premium: $9.32 × 9 hour(s) = $83.88
Step 8. Additional overtime premium pay: $83.88 - $54.00 = $29.88
A nonexempt sales employee is paid $14.00/hour and is paid weekly. She also receives a 9%
commission on net sales. The commission is included in the first payroll of the month following
the sale. Last month, the employee had $12,000.00 in net sales for the month (the company
averages sales for each workweek) and worked 45 hours during the second workweek of the
month. Calculate the employee's regular rate of pay for that week. - ANS-$20.00/hour
To calculate the regular rate of pay, add 25% of the employee's sales commission (1 week
average) to the pay for time worked during the week and divide by the number of hours worked.
Step 1. Pay for time worked: 45 hours x $14.00 = $630.00Step
2. Sales commission: ($12,000.00 x 9%) x 25% = $270.00Step
3. Total pay with commission: $630.00 + $270.00 = $900.00
Step 4. Regular rate of pay: $900.00 ÷ 45 hours = $20.00/hour
A payroll staff member responds to an employee's request for information by saying that he
does not know the answer but will look it up and get back to the employee. This is an example
of the customer service principle of:
a. assurance
b. empathy
c. responsiveness
d. reliability - ANS-a. assurance
A semiweekly depositor pays only 98% of its tax liability by the Friday due date. The unpaid
balance must be deposited:
a. by the next business day.
b. within three business days.
c. by the first Wednesday or Friday on or after the 15th day of the next month or the due date of
the return, whichever is earlier.
d. by the due date of its quarterly return. - ANS-c. by the first Wednesday or Friday on or after
the 15th day of the next month or the due date of the return, whichever is earlier.
A semiweekly depositor that has a payroll tax liability of $80,000.00 from a Thursday payroll
must deposit the liability by: - ANS-Wednesday
A semiweekly depositor with a payday on Friday and a tax liability of $60,000.00 must deposit
the tax liability:
a. on or before the Friday following the payday.
b. on or before the 15th day of the following month after the payday.
c. on or before the Wednesday following the payday.
(T/F) 401(k) plan deferrals are not subject to federal income tax when deferred. - ANS-True
(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. - ANS-True
(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. - ANS-True
(T/F) Employers are NOT responsible for validating the information on Form W-4 or for providing
advice relating to Form W-4. An employee's Form W-4 remains valid until the employee amends
the form or an exempt Form W-4 expires. - ANS-True
(T/F) Employers must report newly hired employees within 10 calendar days of the date of hire.
- ANS-False. Must be within 20 calendar days of hire.
(T/F) Employers reporting more than $50,000.00 in payroll taxes during the lookback period are
semiweekly depositors. - ANS-True
(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. - ANS-True
(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. - ANS-True
(T/F) The FLSA regulates overtime requirements, minimum wage, child labor, and equal pay
rules - ANS-True
(T/F) The information an employee provides in Step 4(a) of Form W-4 is only used if the
employer is using the Wage Bracket method, Worksheet 2 from Publication 15-T. - ANS-False.
The amounts listed in Step 4(a) of an employee's Form W-4 is used in both the Percentage
method and the Wage Bracket method for calculating federal income taxes.
(T/F) Under the FLSA, the an administrative exempt employee's primary duties must be the
performance of office or nonmanual work directly related to the company's management or
business operations with the duties requiring the exercise of discretion and independent
judgement in matters of significance. Administrative employees not meeting the administrative
exemption must be paid overtime for all hours worked over 40 in a workweek. - ANS-True
8/80 Rule for Hospitals and Nursing Homes - ANS-The employer must pay employees covered
by the agreement or understanding at least 1 1/2 times their regular rate of pay for all hours
worked over eight in a day or 80 in the 14-day period, whichever would result in a higher pay for
the employee.
A 15-year-old employee works part-time while school is in session. Under the FLSA, which of
the following hours can the employee work? - ANS-From 4:00 p.m. to 7:00 p.m.
A balance sheet equation is:
a. Assets = Owner's Equity - Liabilities.
b. Owner's Equity = Assets + Liabilities.
,c. Assets = Liabilities + Owner's Equity.
d. Net Earnings = Assets - Liabilities. - ANS-c. Assets = Liabilities + Owner's Equity.
A change in the company workweek may be necessary to:
a. reduce paying overtime.
b. meet changing business needs.
c. comply with the calendar week.
d. adjust pay schedules during holidays. - ANS-b. meet changing business needs.
A company consistently makes timely tax deposits. The deadline for filing its first quarter tax
return, May 10, falls on a Saturday. When is Form 941 due? - ANS-On Monday, May 12
A company deposited the $100,000.00 it owed in payroll taxes four days after the due date. The
company may be subject to: - ANS-Penalties for late deposit.
A company has 2,000 employees. The company filed its 2020 Forms W-2 electronically with the
SSA on May 15, 2021. The company is subject to: - ANS-Penalties for not filing in a timely
manner.
A company has received a child support order for an employee earning $936.00 semimonthly.
Deductions include $25.00 for federal income tax, $71.60 for social security and Medicare
taxes, $30.00 for a creditor garnishment, and $25.00 in insurance premiums. Calculate the
employee's semimonthly disposable pay. - ANS-$839.40
A company is a monthly depositor. Its paydays are on Wednesdays. If the payroll tax liability for
the month is less than $100,000.00, the company's payroll tax deposit is due: - ANS-On or
before the 15th day of the following month.
A company is a monthly depositor. On payday, the company accumulates a payroll tax liability of
$101,000.00. The payroll tax deposit must be made for this liability: - ANS-By the next business
day
A company is required to withhold taxes from an independent contractor when: - ANS-A TIN is
not provided
A company making its federal tax deposits via EFTPS has elected to have its bank initiate the
transactions. This method is defined as: - ANS-EFTPS-Through a Financial Institution.
A company recorded $52,543.00 of accrued payroll taxes. When the amount is deposited, the
$52,543.00 liability will be offset by posting it as a debit in the payroll tax liability account and as
a credit item in the payroll:
a. cash account.
b. tax expense account.
c. tax liability account.
d. expense account. - ANS-a. cash account.
A company recorded $52,543.00 of accrued payroll taxes. When the amount is deposited, the
$52,543.00 liability will be offset by posting it as a debit in the payroll tax liability account and as
a credit item in the payroll: - ANS-Cash account.
A company's cafeteria plan provides each employee with $200.00 per month to pay for chosen
benefits. After selecting benefits, one employee has $50.00 per month left and requests a
payment of $50.00 per month. This $50.00 is: - ANS-Taxable compensation for all federal taxes.
,A hospital employee working under the 8/80 provision works 5 days, 8 hours a day in the first
week and 4 days at 10 hours a day in the second week. Calculate the overtime hours, if any, the
employee must be paid. - ANS-8
A hospital employee working under the 8/80 provision must be paid overtime for working hours
over 8 in a day or 80 in the 14 day period. Even though the employee has worked 80 hours in
the two week period, 8 hours of overtime is due for the four days when the employee worked
more than 8 hours a day.
A journal consists of: - ANS-Debits and credits to specific ledger accounts.
A method for identifying phantom employees is:
a. requiring supervisors to come to the payroll department for their staffs' checks.
b. physical payouts.
c. having all employees sign up for direct deposit.
d. mailing all checks. - ANS-b. physical payouts
A monthly depositor becomes a semi-weekly depositor in all of the following situations EXCEPT
when the: - ANS-liability in a deposit period is $50,000.00.
A monthly depositor deposits its payroll tax liability: - ANS-By the 15th day of the following
month.
A monthly depositor's shortfall make-up deposit must be made no later than: - ANS-The due
date of Form 941 for the quarter.
A nonexempt employee earns $13.00 per hour. The employee worked 43 hours during the
week. Calculate the employee's gross pay for the week. - ANS-578.50
A nonexempt employee earns $15.00 per hour. Last week, the employee earned a production
bonus of $45.00 and worked 50 hours. Calculate the employee's gross pay for the week. -
ANS-$874.50
A nonexempt employee earns $17.00 per hour. The employee worked 47 hours during the
week. Calculate the employee's gross pay for the week. - ANS-$858.50
A nonexempt employee is provided room and board. Under the FLSA, the employee's regular
rate of pay calculation includes: - ANS-100% of the fair-market value of the room and board.
A nonexempt sales employee is paid $12.00 per hour and is paid weekly. She also receives a
10% commission on net sales each month. The commission is included in the second payroll of
the month following the sale. The company averages the commission for all workweeks in the
month. Last month, the employee had $13,000.00 in net sales and worked 49 hours during the
second workweek of the month and was paid her overtime premium for the week. Calculate the
additional overtime premium pay due the employee for the second week of last month. -
ANS-$29.88
To calculate the additional overtime premium pay, subtract the employee's overtime premium
paid in the prior month without sales commission from the overtime premium pay calculated with
the sales commission.
Step 1. Pay for time worked: 49 hours × $12.00 = $588.00
Step 2. Previous overtime premium pay: $12.00 × 0.5 × 9 hours = $54.00
, Step 3. One week sales commission: ($13,000.00 × 10%) × 25% = $325.00
Step 4. Total pay with commission: $588.00 + $325.00 = $913.00
Step 5. Regular rate of pay: $913.00 ÷ 49 hours = $18.63
Step 6. Overtime premium rate: $18.63 × 0.5 = $9.32
Step 7. Adjusted overtime premium: $9.32 × 9 hour(s) = $83.88
Step 8. Additional overtime premium pay: $83.88 - $54.00 = $29.88
A nonexempt sales employee is paid $14.00/hour and is paid weekly. She also receives a 9%
commission on net sales. The commission is included in the first payroll of the month following
the sale. Last month, the employee had $12,000.00 in net sales for the month (the company
averages sales for each workweek) and worked 45 hours during the second workweek of the
month. Calculate the employee's regular rate of pay for that week. - ANS-$20.00/hour
To calculate the regular rate of pay, add 25% of the employee's sales commission (1 week
average) to the pay for time worked during the week and divide by the number of hours worked.
Step 1. Pay for time worked: 45 hours x $14.00 = $630.00Step
2. Sales commission: ($12,000.00 x 9%) x 25% = $270.00Step
3. Total pay with commission: $630.00 + $270.00 = $900.00
Step 4. Regular rate of pay: $900.00 ÷ 45 hours = $20.00/hour
A payroll staff member responds to an employee's request for information by saying that he
does not know the answer but will look it up and get back to the employee. This is an example
of the customer service principle of:
a. assurance
b. empathy
c. responsiveness
d. reliability - ANS-a. assurance
A semiweekly depositor pays only 98% of its tax liability by the Friday due date. The unpaid
balance must be deposited:
a. by the next business day.
b. within three business days.
c. by the first Wednesday or Friday on or after the 15th day of the next month or the due date of
the return, whichever is earlier.
d. by the due date of its quarterly return. - ANS-c. by the first Wednesday or Friday on or after
the 15th day of the next month or the due date of the return, whichever is earlier.
A semiweekly depositor that has a payroll tax liability of $80,000.00 from a Thursday payroll
must deposit the liability by: - ANS-Wednesday
A semiweekly depositor with a payday on Friday and a tax liability of $60,000.00 must deposit
the tax liability:
a. on or before the Friday following the payday.
b. on or before the 15th day of the following month after the payday.
c. on or before the Wednesday following the payday.
