Pass the APA American Planning Association FPC-Remote Questions and answers with ExamsMirror

Workers’ compensation benefits are tax-exempt if they are paid for work-related injuries or illnesses.

If payments are received for non-work-related illnesses (B), they become taxable.

Amounts that do not exceed federal or state limits (C & D) remain tax-exempt.

References:

IRS Publication 525 (Taxable and Nontaxable Income)

Direct deposit errors (A) may result in payroll mismatches and unrecorded transactions, causing the general ledger to be out of balance.

Other options (B, C, D) impact payroll costs but do not directly affect ledger balancing.

References:

Payroll Accounting Reconciliation Standards

Proper documentationensures uniformityin payroll and HR operations bystandardizing processes.

Conformity (C)refers to compliance but does not guarantee process standardization.

Responsibility (A) and adaptability (B)are important but not the primary reason for documentation.

References:

Payroll Process Standardization Guide (Payroll.org)

The Family and Medical Leave Act (FMLA)requires employers to keepFMLA-related records for at least 3 years.

These records include:

Employee leave requests

Employer responses

Payroll and benefits records

Medical certifications

The DOL may audit these records to ensure FMLA compliance.

References:

FMLA Recordkeeping Requirements (DOL)

Payroll Record Retention Guidelines (Payroll.org)

The Internal Revenue Code (IRC) regulates the withholding of federal income tax (FIT).

FICA (C) governs Social Security & Medicare taxes.

FUTA (D) applies to unemployment tax but does not regulate withholding.

References:

Internal Revenue Code (IRC) Section 3402

IRS Publication 15 (Employer’s Tax Guide)

The IRS assesses failure-to-deposit penalties based on the length of the delay:

1-5 days late: 2% penalty

6-15 days late: 5% penalty (Correct Answer)

More than 15 days: 10% penalty

After delinquency notice: 15% penalty

References:

IRS Deposit Penalty Guidelines (Publication 15)

Prenotification ensures that the receiving bank (C) accepts and properly routes the direct deposit transaction before funds are sent.

References:

NACHA Direct Deposit Standards

Wage assignmentsare voluntary deductions authorized by employees for things likeloan payments or union dues.

Garnishments, wage attachments, and medical support ordersarecourt-mandated deductions, making them involuntary.

References:

IRS Publication 15 (Employer’s Tax Guide)

Payroll Deduction 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)

Payroll account reconciliation ensures all financial data is accurate and balanced.

Payroll register reconciliation (D) is a separate processused for payroll audits, not monthly account reconciliation.

References:

Payroll Reconciliation Procedures (Payroll.org)

IRS Payroll Recordkeeping Guidelines