Practice Test Geeks(APA) American Payroll Association Certification Practice Test
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Payroll Administration and Management Flashcards

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  1. Under the FLSA, which employees are exempt from overtime pay requirements?

    Answer: Employees earning at least $684/week in a bona fide executive, administrative, or professional role

    FLSA white-collar exemptions require both a salary of at least $684/week AND that the employee's primary duties qualify as executive, administrative, or professional.

  2. An employer fails to deposit payroll taxes by the due date. Under the FTD penalty structure, what is the penalty for deposits 1–5 days late?

    Answer: 2%

    IRS imposes a 2% penalty for federal tax deposits made 1–5 calendar days late under IRC Section 6656.

  3. Which payroll register column tracks the cumulative year-to-date earnings used to determine when an employee reaches the Social Security wage base?

    Answer: YTD gross earnings column

    The YTD gross earnings column accumulates all wages paid to an employee during the year, which is compared against the Social Security wage base to stop withholding once the limit is reached.

  4. A company uses a semi-weekly deposit schedule. Payroll is paid on Wednesday. By when must the payroll taxes be deposited?

    Answer: The following Friday

    Under the semi-weekly rule, taxes on wages paid Wednesday through Friday must be deposited by the following Friday.

  5. What is the primary purpose of a payroll reconciliation at year-end?

    Answer: To ensure W-2 amounts agree with quarterly Form 941 totals and general ledger balances

    Year-end reconciliation confirms that wages and taxes on Form W-2 match the cumulative amounts reported on Forms 941 and recorded in the general ledger.

  6. An employee's Form W-4 is submitted without a signature. What must the employer do?

    Answer: Withhold at the highest single rate until a valid W-4 is received

    An unsigned W-4 is invalid; the employer must withhold as if the employee is single with no adjustments until a valid, signed W-4 is received.

  7. Which document must employers use to verify employment eligibility for all newly hired employees in the United States?

    Answer: Form I-9

    Form I-9 (Employment Eligibility Verification) is required by USCIS for all new hires to verify identity and authorization to work in the U.S.