APA Payroll Fundamentals 2 — Questions and Answers
Question 1: An employee earns $1,200 biweekly. What is her annual gross pay?
- $28,800
- $31,200 (Correct answer)
- $14,400
- $62,400
Correct answer: $31,200
$1,200 × 26 biweekly periods = $31,200 annual gross pay.
Question 2: Which federal form must an employer file to report annual wages and withholding for each employee?
- Form 941
- Form W-2 (Correct answer)
- Form 1099-NEC
- Form 940
Correct answer: Form W-2
Form W-2 reports annual wages and tax withholding for each employee to the IRS and the employee.
Question 3: Under FLSA, which of the following workers is classified as exempt from overtime requirements?
- A warehouse packer earning $12/hr
- A salaried marketing manager earning $900/week (Correct answer)
- A retail cashier on salary
- A part-time delivery driver
Correct answer: A salaried marketing manager earning $900/week
Salaried employees meeting the duties test and earning at least $684/week ($35,568/year) qualify for the FLSA white-collar exemption.
Question 4: What does the term 'supplemental wage' refer to in payroll?
- Regular hourly wages paid weekly
- Additional compensation such as bonuses, commissions, or severance (Correct answer)
- Wages paid to temporary employees
- Minimum wage adjustments
Correct answer: Additional compensation such as bonuses, commissions, or severance
Supplemental wages are payments made in addition to regular wages, including bonuses, commissions, overtime, and severance pay.
Question 5: An employee's gross pay is $3,000 and pre-tax 401(k) deferral is $300. What amount is subject to federal income tax withholding?
- $3,000
- $2,700 (Correct answer)
- $300
- $3,300
Correct answer: $2,700
Pre-tax 401(k) contributions reduce federal taxable wages, so $3,000 − $300 = $2,700 is subject to federal income tax.
Question 6: Which IRS publication provides withholding tables and instructions for calculating federal income tax withholding?
- Publication 15-B
- Publication 15 (Circular E) (Correct answer)
- Publication 504
- Publication 946
Correct answer: Publication 15 (Circular E)
IRS Publication 15 (Employer's Tax Guide / Circular E) contains withholding tables and payroll tax instructions for employers.
Question 7: A non-exempt employee works 50 hours in a workweek at $16/hour. What is her total gross pay for the week?
- $800
- $880
- $960 (Correct answer)
- $1,040
Correct answer: $960
40 regular hours × $16 = $640, plus 10 overtime hours × $24 (1.5×) = $240; total = $960.
APA Payroll Fundamentals 2
An employee earns $1,200 biweekly.
What is her annual gross pay?