https://examsempire.com/ For More Information – Visit link below: https://www.examsempire.com/ Product Version 1. Up to Date products, reliable and verified. 2. Questions and Answers in PDF Format. Accountant APA FPC Fundamental Payroll Certification Visit us athttps://www.examsempire.com/apa-fpc/ Latest Version: 6.0 Question: 1 In determining legal obligations with respect to workplace discrimination, an individual would be considered an employee of both the staffing agency and the agency's client to which he's assigned when... A. the employee works at the agency's job site B. the agency controls the employee's working conditions C. the staffing agency is a temporary employment agency D. the agency and the client are controlled by the same parent company Answer: C Explanation: There are many types of contingent work arrangements that may be made between a company, an agency and an individual. In most instances, the individual would be considered an independent contractor. In temporary employment agencies, the individual is actually considered an employee of the agency. In this scenario, the individual is hired and paid by the agency and the working conditions are controlled by the company (the agency's client). The agency pays the individual and collects a fee from the client company. The individual is considered an employee of both the agency and the company because both entities control the individual job performance. The agency hires, assigns jobs, pays workers' compensation and pays employee wages. The company supervises the individual and provides work space and equipment. Question: 2 Which of the following is a factor the IRS considers when determining if an individual is properly classified as an independent contractor? A. Whether the individual has a valid business license B. Whether the individual controls the work that will be done C. Whether the company for whom the individual performs work does not pay taxes on behalf of the individual D. Whether the individual controls how the work will be done Answer: D Explanation: A fundamental consideration that the IRS uses when determining whether an individual is properly classified as an independent contractor is the control that individual exercises over how the work will be done: the means rather than the end. If a company hires an individual to develop software but doesn't control how, then that individual is properly classified as a contractor. Whether the contractor has a Visit us athttps://www.examsempire.com/apa-fpc/ valid business license is not relevant. While a business should not pay taxes on behalf of a contractor, that doesn't make the individual properly a contractor; he could still be miscategorized. Question: 3 When an employer uses rounding practices to record an employee's start and stop times, which rule may result in back wages being owed? A. The three-minute rule B. The five-minute rule C. The six-minute rule D. The seven-minute rule Answer: D Explanation: Companies often round an employee's start and stop times to the nearest five-minute increment. This computation provides an average number of hours worked so that the employee is fully compensated for time worked. Under the five-minute rule, the employer rounds down at five minutes and rounds up at six minutes. Under the six-minute rule, time is rounded up at seven minutes, which favors the employee. Under the seven-minute rule, time is rounded up at eight minutes. Employees who habitually work a few extra minutes at the end of each shift will not be accurately compensated for time worked. Question: 4 What is the maximum number of hours that a 14- or 15-year-old may work per week when school is in session? a. 12 b. 15 C. 18 d. 24 Answer: C Explanation: Child labor laws are applied to minors, and differ depending on the minor's age. There are limits on the number of hours a minor may work in a given day or week, as well as limits on the time of day minors may work. Any minor under age 16 may work outside of school hours in a non-manufacturing, non- agricultural, non-mining or non-hazardous job. For 14- and 15-year olds, the limits extend to: • No more than 3 hours a day on school days • No more than 18 hours a week on school weeks • No more than 8 hours on a non-school day • No more than 40 hours a week when school is not is session Visit us athttps://www.examsempire.com/apa-fpc/ Question: 5 Which type of employee is excluded from coverage under the Fair Labor Standards Act (FLSA)? A. Movie theater employees B. Railroad workers C. Truck drivers D. All of the above Answer: D Explanation: Not all jobs are covered by the overtime rules of the Fair Labor Standards Act (FLSA). Ones that are excluded from coverage are those jobs that are specifically excluded in the statute or are governed by another federal labor law. Jobs excluded from the statute include movie theater employees and agricultural workers. Jobs covered by other federal labor laws include railroad workers governed by the Railway Labor Act, and truck drivers governed by the Motor Carriers Act. Question: 6 Which type of employee is exempt from coverage under the Federal Unemployment Tax Act (FUTA)? A. A driver who delivers laundry for an employer B. A full-time traveling salesperson C. A part-time student D. An international government agency worker Correct Answer: D Explanation: The Federal Unemployment Tax Act (FUTA) applies when there is an employer-employee relationship. The types of employees who are specifically exempted from FUTA coverage include: • Occasional workers, earning less than $50 in a three-month period • The director of a corporation or a business partner • Foreign or exchange students working in their field of study, nursing students or hospital interns, and work/study employees or interns • International government agency workers and government agency workers • Professionals in private practice offering services to the public • Children under 18 delivering or distributing newspapers, flyers, or shopping news, and anyone selling magazines and newspapers • Commission-paid insurance salespeople • Workers 21 years or older performing any type of service for their own child, spouse or parent • Anyone covered under the Railroad Retirement Tax Act or Unemployment Insurance Act • Fishermen working in a boat sized 10 net tons or less • Workers for a tax-exempt charity Visit us athttps://www.examsempire.com/apa-fpc/ Question: 7 Which factor determines whether or not an employee pays into Social Security and Medicare? A. The income is considered taxable under Federal Insurance Contributions Act (FICA) rules B. The employee is over 18 years old C. The work is considered employment under federal income tax withholding requirements D. The employee is employed with a nonprofit organization Answer: A Explanation: . Social Security and Medicare just are the programs funded by the law we call FICA. Consequently, income that is taxable under FICA rules is the income subject to Social Security and Medicare taxes. There is no age limit for this requirement. Whether the work is considered employment for federal income tax withholding requirements is not a condition for paying these taxes, even though most of that kind of employment would in fact also pay into Social Security and Medicare. Lastly, while nonprofit organizations do not themselves pay income taxes, they nevertheless must withhold Social Security and Medicare taxes from their own employees' paychecks. Questio n: 8 When supplemental wages are paid at the same time as regular wages, how are withholding taxes computed? A. Withholding on supplemental wages is taxed separately B. Withholding taxes are based on the total of the wages and supplemental wages C. Supplemental wages are not subject to withholding taxes D. Supplemental wages are taxed at a different withholding rate Answer: B Explanation: When supplemental wages are paid together with regular wages in one lump sum, taxes are withheld on the total amount as if it were a single wage payment. If the supplemental wages are indicated separately, 22% of the supplemental wages can be withheld. If the supplemental wages are made separately from regular payroll, the supplemental wages are treated as a regular wage payment and taxes withheld as if the payment is a regular wage payment. Supplemental wages include bonuses, commissions, overtime pay, sick leave, severance pay, back pay and payments for moving expenses. Question: 9 What is the effect on an employee's income when the employer pays that employee's share of Social Security and Medicare taxes on a fringe benefit? Visit us athttps://www.examsempire.com/apa-fpc/ A. There is no change B. The taxes paid by the employer are considered income to the employee C. The amount of the fringe benefit is included in the employee's income D. There are no Social Security or Medicare taxes on fringe benefits Answer: C Explanation: When an employer pays the Social Security and Medicare taxes on the taxable amount of a fringe benefit, the amount of the fringe benefit must be included in the employee's income. If an employee terminates employment and the employer has unpaid and uncollected taxes for these benefits, the employer is liable for these taxes. Question: 10 What is the valuation method used to determine the value of a fringe benefit that an employer provides to an employee? A. Actual market value B. Actual cash value C. Implied benefit value D. General valuation rule Answer: D Explanation: For Internal Revenue Service (IRS) purposes, the general valuation rule is used to determine a value for a fringe benefit. The general value of a fringe benefit is its fair market value, or the amount the employee would have to pay for the benefit from a third party. Fair market value does not take the employee's perceived value or the actual cost to the employer into consideration. Visit us athttps://www.examsempire.com/apa-fpc/ https://examsempire.com/ - 1 - Thank You for Trying Our Product Discount Coupon Code is: 20OFF2022 Email: support@examsempire.com Check our Customer Testimonials and ratings available on every product page. Visit our website. https://examsempire.com/ Powered by TCPDF (www.tcpdf.org) Visit us athttps://www.examsempire.com/apa-fpc/