APA Payroll Fundamentals 3

Question 1

Which of the following is NOT a payroll tax deposit schedule under IRS rules?

Accepted Answer

Quarterly

Answer

The IRS deposit schedules are monthly, semiweekly, and next-day (for $100,000+ liability); quarterly is a filing schedule, not a deposit schedule.

Question 2

What is the Medicare surtax rate imposed on employee wages exceeding $200,000 in a calendar year?

Accepted Answer

0.9%

Answer

The Additional Medicare Tax is 0.9% on wages exceeding $200,000 for single filers, withheld by the employer once that threshold is crossed.

Question 3

Which document establishes the legal basis for an employer to make involuntary deductions from an employee's paycheck for debt collection?

Accepted Answer

Court-issued garnishment order

Answer

A court-issued garnishment order legally requires the employer to withhold and remit a portion of the employee's wages to a creditor.

Question 4

Under the CCPA, the maximum amount that can be garnished from disposable earnings for ordinary debts is:

Accepted Answer

25% of disposable earnings or the amount by which earnings exceed 30× federal minimum wage, whichever is less

Answer

The Consumer Credit Protection Act caps ordinary garnishments at 25% of disposable earnings or the excess over 30× the federal minimum wage, whichever is lesser.

Question 5

What is the purpose of Form SS-4?

Accepted Answer

To apply for an Employer Identification Number (EIN)

Answer

Form SS-4 is used by employers to apply for an EIN, which is required to file payroll tax returns and make tax deposits.

(APA) American Payroll Association Certification Practice Test

(APA) American Payroll Association Certification Practice Test

APA Payroll Fundamentals 3