APA FPC Exam
(1) Challenges in payroll - ANS-complexity, communication, technology, accuracy
(1) Payroll Process - ANS-employee (new hire, W4, I9), payroll (reports, reconciles), gov. (tax,
reporting), employee (W2, pay statements)
(1) Tax withholding for employees - ANS-FIT, SS, Medicare, state, local and pay employer share
(1) TIN - ANS-Taxpayer Identification Number (1099s)
(1) Worker status - ANS-workers, either W2 or 1099, W2 either exempt or nonexempt
(1) Common Law Test - ANS-sets own hours, can work for multiple employers, works by the job,
can employ assistants, own tools/equipment, terms
(1) Reasonable Basis Test - ANS-employers can classify certain workers as 1099 for tax
purposes even though the ee meets requirements of Common Law test for W2 if they have a
reasonable basis for doing so (longstanding practice, judicial precedent, consistently treated
workers as 1099 with 1099-MISC form)
(1) PEO - ANS-organization bears burden of paying, withholding, reporting, providing benefits
(1) Immigration Reform and Control Act of 1986 (IRCA) - ANS-requires employer to verify ee
eligibility for employment in the U.S.
(1) Illegal Immigrant Penalties - ANS-range from $375 for first offense, $16k for third
(1) Verification of eligibility - ANS-burden of verification falls to employer after 1986, need I9 by
1st day of work
(1) SSA - ANS-Social Security Administration, 240 million W2/yr with 10% having numbers that
do not match
(1) Earnings Suspense File - ANS-where SSA places unposted wage amounts
(1) Employee's Withholding Allowance Certificate - ANS-W4
(1) SSNVS - ANS-Social Security Number Verification Service to verify SSN, requires FEIN/ee
name, SSN, DOB
(1) Form SS5 - ANS-Application for a Social Security Card
, (1) New Hire Reporting - ANS-20 days of hire, ee name, address, ssn, date of employment,
employer name, addres, FEIN
(1) HHS - ANS-Secretary of Health and Human Services, multistate employers
(1) FLSA - ANS-Fair Labor Standards Act of 1938 guarantees minimum wage, overtime
premium, minors, equal pay protection
(1) Exempt - ANS-not covered by FLSA minimum wage/overtime requirements
(1) White Collar Exemptions - ANS-based on duties, level of discretionary ability,
responsibilities, minimum weekly salary
(1) Salary requirements for exempt ee's - ANS-exec ($455/wk), admin ($455/wk), professionals
($455/wk), outside sales (none)
(1) Federal Minimum Wage - ANS-$7.25 since 2009, under 20 paid $4.25 for first 90 calendar
days
(1) State Minimum Wage - ANS-employer required to pay higher minimum wage
(1) FLSA Tip Credit - ANS-tip credit is $5.12/hr, over $30 tips/mo. - lowest rate is $2.13/hr
(1) Shift Premium or Shift Differential - ANS-different rate of pay depending on the shift
(1) PTO - ANS-FLSA does not require employers to pay for unworked sick days, holidays or
vacation days
(1) Overtime - ANS-1.5 rate for all hours worked +40 in a workweek
(1) Portal to-Portal Act of 1947 - ANS-the beginning of a workday is the time when an ee
commences their principal activities and ends when they stop their principal activities
(1) Engaged to be waiting - ANS-considered overtime
(1) Remedial Education - ANS-10+ hours in excess of 40 not considered overtime if ee is
involved in remedial education program
(1) Major payroll tasks - ANS-compliance with local, state, fed regulations, issuance of
paychecks, periodic reporting, record retention, control/security
(1) Master file - ANS-employee data, employment data, tax and payroll data, payroll
period/calendar year information
(1) Challenges in payroll - ANS-complexity, communication, technology, accuracy
(1) Payroll Process - ANS-employee (new hire, W4, I9), payroll (reports, reconciles), gov. (tax,
reporting), employee (W2, pay statements)
(1) Tax withholding for employees - ANS-FIT, SS, Medicare, state, local and pay employer share
(1) TIN - ANS-Taxpayer Identification Number (1099s)
(1) Worker status - ANS-workers, either W2 or 1099, W2 either exempt or nonexempt
(1) Common Law Test - ANS-sets own hours, can work for multiple employers, works by the job,
can employ assistants, own tools/equipment, terms
(1) Reasonable Basis Test - ANS-employers can classify certain workers as 1099 for tax
purposes even though the ee meets requirements of Common Law test for W2 if they have a
reasonable basis for doing so (longstanding practice, judicial precedent, consistently treated
workers as 1099 with 1099-MISC form)
(1) PEO - ANS-organization bears burden of paying, withholding, reporting, providing benefits
(1) Immigration Reform and Control Act of 1986 (IRCA) - ANS-requires employer to verify ee
eligibility for employment in the U.S.
(1) Illegal Immigrant Penalties - ANS-range from $375 for first offense, $16k for third
(1) Verification of eligibility - ANS-burden of verification falls to employer after 1986, need I9 by
1st day of work
(1) SSA - ANS-Social Security Administration, 240 million W2/yr with 10% having numbers that
do not match
(1) Earnings Suspense File - ANS-where SSA places unposted wage amounts
(1) Employee's Withholding Allowance Certificate - ANS-W4
(1) SSNVS - ANS-Social Security Number Verification Service to verify SSN, requires FEIN/ee
name, SSN, DOB
(1) Form SS5 - ANS-Application for a Social Security Card
, (1) New Hire Reporting - ANS-20 days of hire, ee name, address, ssn, date of employment,
employer name, addres, FEIN
(1) HHS - ANS-Secretary of Health and Human Services, multistate employers
(1) FLSA - ANS-Fair Labor Standards Act of 1938 guarantees minimum wage, overtime
premium, minors, equal pay protection
(1) Exempt - ANS-not covered by FLSA minimum wage/overtime requirements
(1) White Collar Exemptions - ANS-based on duties, level of discretionary ability,
responsibilities, minimum weekly salary
(1) Salary requirements for exempt ee's - ANS-exec ($455/wk), admin ($455/wk), professionals
($455/wk), outside sales (none)
(1) Federal Minimum Wage - ANS-$7.25 since 2009, under 20 paid $4.25 for first 90 calendar
days
(1) State Minimum Wage - ANS-employer required to pay higher minimum wage
(1) FLSA Tip Credit - ANS-tip credit is $5.12/hr, over $30 tips/mo. - lowest rate is $2.13/hr
(1) Shift Premium or Shift Differential - ANS-different rate of pay depending on the shift
(1) PTO - ANS-FLSA does not require employers to pay for unworked sick days, holidays or
vacation days
(1) Overtime - ANS-1.5 rate for all hours worked +40 in a workweek
(1) Portal to-Portal Act of 1947 - ANS-the beginning of a workday is the time when an ee
commences their principal activities and ends when they stop their principal activities
(1) Engaged to be waiting - ANS-considered overtime
(1) Remedial Education - ANS-10+ hours in excess of 40 not considered overtime if ee is
involved in remedial education program
(1) Major payroll tasks - ANS-compliance with local, state, fed regulations, issuance of
paychecks, periodic reporting, record retention, control/security
(1) Master file - ANS-employee data, employment data, tax and payroll data, payroll
period/calendar year information
