Free Practice Questions for APA FPC-Remote Exam

Comprehensive and Detailed Explanation:Reliabilityrefers to a company’sability to provide accurate and timely service. In payroll,failing to create an ACH file results in missed payments, affecting employees andviolating reliability standards.

Option A (Empathy)is incorrect because it relates tounderstanding and addressing employee concerns, not payroll processing.

Option C (Responsiveness)is incorrect because itdeals with reaction speedrather than payroll execution.

Option D (Tangibles)is incorrect because it refers tophysical aspects of service (documents, appearance, etc.).

Comprehensive and Detailed Explanation:Apre-notification (pre-note) processis used by payroll departments to verifybanking detailsbefore initiatingdirect depositpayments.

Azero-dollar transactionis sent viaACH (Automated Clearing House)to ensureaccount validity.

This stepprevents payment errorsandfraudulent transactions.

Option Ais incorrect becausepre-notes are usually processed 3–6 days before payday, but not necessarilyfivedays in all cases.

Option Bis incorrect becausenot all employers require a pre-note before direct deposit begins.

Option Cis incorrect becauseACH verification does not confirm the employee’s full legal name.

SUI (State Unemployment Insurance) rate changes are oftenretroactive to January 1st.

Since the system was not updated until October, payroll mustrecalculate all affected quarters (1st, 2nd, and 3rd).

References:

SUI Tax Compliance Guide (Payroll.org)

IRS Publication 15 (Employer’s Tax Guide)

TheEisenhower Matrixis a time management framework that categorizes tasks by urgency and importance:

Urgent & Important: Must be done immediately (e.g., payroll processing).

Not Urgent but Important: Planning and strategic tasks (e.g., compliance training).

Urgent but Not Important: Tasks that may be delegated (e.g., responding to non-critical emails).

Not Urgent & Not Important:These tasks have the lowest priorityas they do not contribute significantly to productivity (e.g., unnecessary meetings).

References:

Eisenhower Matrix Time Management Framework

Payroll Management Best Practices (Payroll.org)

A journal is known as the "original entry" because transactions are first recorded here before posting to the ledger.

The general ledger is the final entry (B), not the journal.

References:

Payroll Accounting Standards (Payroll.org)

TheFair Labor Standards Act (FLSA)isenforced by the Department of Labor (DOL)through itsWage and Hour Division (WHD).

ICE (Immigration and Customs Enforcement)handles immigration-related work issues, not wage enforcement.

IRS (Internal Revenue Service)enforces tax laws, not labor standards.

SSA (Social Security Administration)manages Social Security benefits, not wage laws.

References:

FLSA Compliance and Enforcement (DOL)

Payroll Compliance Guidelines (Payroll.org)

E-mail is NOT a secure methodfor protecting sensitive payroll and HR data.

Best practices includedata encryption, access control, and employee training.

References:

Data Security Standards (Payroll.org)

IRS Data Protection Guidelines

Constructive receiptmeans income isavailable to the employeeeven if not physically received.

Option C is correctbecause when a paycheck is mailed, it isnot immediately available, delaying constructive receipt.

References:

IRS Publication 15 (Employer’s Tax Guide)

Payroll Tax Compliance Guide (Payroll.org)

Total Taxable Wages:

$5,000 + $10,000 + $7,500 + $1,000 + $15,000 = $38,500

Social Security Tax (6.2%)

$38,500 × 6.2% = $2,387.00

Medicare Tax (1.45%)

$38,500 × 1.45% = $558.25

Total FICA Tax (Employer’s share)

$2,387.00 + $558.25 = $2,945.25

References:

IRS Publication 15 (Employer’s Tax Guide)

Total taxable wages: $384.62 + $76.92 + $38.46 = $500.00

Using IRS percentage method tables, withholding = $39.04

References:

IRS Publication 15-T (Tax Withholding Tables)