APA Payroll Fundamentals 2

Question 1

An employee earns $1,200 biweekly. What is her annual gross pay?

Accepted Answer

$31,200

Answer

$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?

Accepted Answer

Form W-2

Answer

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?

Accepted Answer

A salaried marketing manager earning $900/week

Answer

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?

Accepted Answer

Additional compensation such as bonuses, commissions, or severance

Answer

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?

Accepted Answer

$2,700

Answer

Pre-tax 401(k) contributions reduce federal taxable wages, so $3,000 − $300 = $2,700 is subject to federal income tax.

(APA) American Payroll Association Certification Practice Test