Important APA FPC-Remote Exam Questions

Answer: C

Explanation:

Comprehensive and Detailed Explanation:

An independent contractor is an individual who:

Works on a per-project basis

Is not under direct employer control

Provides services to multiple clients

Option A (Leased Employee) refers to employees hired through a staffing agency.

Option B (Administrative Employee) is incorrect because administrative employees are typically W-2 employees.

Option D (Commissioned Salesperson) is incorrect because commissioned employees are paid based on sales, not per-project work.

IRS -- Independent Contractor vs. Employee Guidelines

Payroll.org -- Worker Classification Compliance

Answer: B

Explanation:

Payroll taxes owed by the employer (such as FICA and FUTA) are recorded as a current liability because they must be paid within a short period.

Long-term liability (C) applies to debts due over time, not payroll taxes.

Expense accounts (D) track costs but do not reflect unpaid obligations.

Payroll Accounting Guidelines (Payroll.org)

IRS Employer Tax Guide (Publication 15)

Answer: D

Explanation:

Comprehensive and Detailed Explanation:

A wage attachment (also called a wage levy) is a legal withholding from an employee's paycheck to satisfy an outstanding debt.

IRS tax levies are a type of wage attachment used to collect unpaid federal taxes directly from an employee's wages.

Employers must comply immediately when notified by the IRS.

Option A (Bankruptcy Order) is incorrect because bankruptcy payments are handled by court-appointed trustees, not wage levies.

Option B (Creditor Garnishment) is incorrect because IRS tax levies do not require a court order like private creditor garnishments.

Option C (Voluntary Deduction) is incorrect because IRS wage levies are mandatory, not voluntary.

IRS Publication 1494 -- Wage Levy Exemptions and Employer Responsibilities

Payroll.org -- Wage Attachments and Tax Levies

Answer: B

Explanation:

Step 1: Determine taxable wages

FUTA tax applies to the first $7,000 of an employee's wages annually.

Step 2: Calculate FUTA tax

FUTA rate: 0.6% (after state credit)

FUTA-taxable wages: $1,200.00

FUTA tax: $1,200 0.006 = $6.60

IRS Publication 15 (Employer's Tax Guide)

FUTA Tax Calculation Guide (Payroll.org)

Answer: D

Explanation:

Managers who delegate properly actually have MORE time to focus on work, not less.

Delegation improves efficiency and productivity by allowing managers to focus on strategic tasks.

Options A, B, and C are correct as they are key to successful implementation of processes.

Payroll Process Best Practices (Payroll.org)