APA Payroll Administration and Management 2

Question 1

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

Accepted Answer

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

Answer

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.

Question 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?

Accepted Answer

2%

Answer

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

Question 3

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

Accepted Answer

YTD gross earnings column

Answer

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.

Question 4

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

Accepted Answer

The following Friday

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(APA) American Payroll Association Certification Practice Test

(APA) American Payroll Association Certification Practice Test

APA Payroll Administration and Management 2