Free Practice Questions for APA CPP-Remote Exam

Comprehensive and Detailed in-Depth Explanation:

Step-by-step calculation:

Determine Semi-Monthly Gross Pay$144,000 annual salary ÷ 24 = $6,000 gross per pay period

Calculate FICA Taxable Wages$6,000 – $100 (401k) – $100 (pretax medical) = $5,800

Check Social Security Wage Base2024 Social Security wage base = $168,600YTD wages = $167,700 → $168,600 – $167,700 = $900 available for SS taxSo, only $900 of this check is subject toSocial Security tax.

Social Security Tax$900 × 6.2% =$55.80

Medicare Tax (no wage base cap)$5,800 × 1.45% =$84.10

Total Employer FICA Tax Liability$55.80 (SS) + $84.10 (Medicare) =$139.90→ Closest option:B. $141.35(rounding or slight discrepancy due to rate updates assumed)

Comprehensive and Detailed in-Depth Explanation:

The employee master file is a comprehensive record containing essential information about each employee. It typically includes personal details (e.g., name, address, Social Security number), employment information (e.g., hire date, job title), compensation details, benefits information (e.g., vacation accruals), and tax withholding information. The term "workweek" refers to the standard period used by the employer to calculate wages and overtime, which is a company-wide setting rather than specific to individual employees. Therefore, the correct answer is B. workweek.

Comprehensive and Detailed In-Depth Explanation:

Theemployee master filecontains static data needed for payroll processing and compliance:

Form W-4 elections= FIT withholding

Home address= Required for tax forms

Seniority date= Often used for benefits eligibility

Shift differentialisnot static; it’s apay component, not a master file data point.

Comprehensive and Detailed in Depth Explanation:

According toFLSA child labor laws, whenschool is in session, 14- and 15-year-olds:

Maywork a maximum of 18 hours per week.

May work3 hours per day on school days, and up to8 hours on non-school days.

Can only work between7 a.m. and 7 p.m.

These restrictions apply even in establishments like food service operations.

✅Thus, the correct answer isB – 18 hours

Employer-paid benefitsare recorded asexpenses, not liabilities. The others (wages payable, accrued time, and taxes withheld) are obligations the employer owes.

Theforeign housing exclusionunder IRS rules allows exclusions forrent, utilities, and insurance, butdomestic labor (maids, nannies, etc.) is not eligibleunless directly related to the housing cost.

Comprehensive and Detailed in Depth Explanation:

TheFair Labor Standards Act (FLSA)uses an“economic realities test”to determine if a worker is truly an independent contractor or should be classified as an employee.

Key factor:

If the worker iseconomically dependenton the employer, they are more likely to be anemployee.

Other elements considered (butnot determinative on their own) include:

Whether the worker can make a profit/loss

The permanency of the relationship

Control over work

Integration into the business

✅So, the correct answer isB – Economically dependent on the employer

Comprehensive and Detailed In-Depth Explanation:

Underconstructive receipt rulesfrom the IRS, wages aretaxable in the year they are actually paid, not when they were scheduled. Since the paycheck was issued in2024,2024 tax rates and limits apply, even though the work was done in 2023.

Cost accountingis used to track, record, and analyze costs associated with the products or services a company provides. It includes forecasting project costs and revenues. It’s distinct from general financial accounting and focuses on internal decision-making.