APA Updated FPC-Remote Exam Questions and Answers by francisco

Comprehensive and Detailed Explanation:Social Security tax is6.2%forboth the employer and employee, so total liability is12.4%ofSocial Security taxable wages.

Calculate Social Security taxable wages:

Gross pay:$32,500.00

Less pre-tax deductions (Health Insurance & 401k do NOT reduce Social Security taxable wages):

Taxable Wages = $32,500.00 - $1,200.00 = $31,300.00

Calculate Social Security tax (12.4% total for employer & employee):

$31,300 × 12.4% = $3,881.20

Thus, the correct answer isC. $3,881.20.

Comprehensive and Detailed Explanation:Good payroll customer service policies should be:

Reliable (Option A)– Consistent and dependable for employees.

Accurate– Ensuring payroll is error-free.

Responsive– Quick resolution of inquiries.

Option B (Fluctuating) is incorrectbecauseinconsistent policies confuse employees.

Option C (Interchangeable) is incorrectbecausepolicies must be specific to payroll needs.

Option D (Intangible) is incorrectbecausecustomer service policies should be well-defined and enforceable.

Comprehensive and Detailed Explanation:Anemployee master filecontainsemployment-related datasuch as:

Shift Premium (A):Used to calculate earnings.

Workweek (B):Defines payroll schedules.

Hire Date (C):Essential fortenure and benefit eligibility.

However,Net Pay (D) is NOT part of employment databecause it is apayroll outcome, not an employment record.

Comprehensive and Detailed Explanation:Form 8922, Third-Party Sick Pay Recap,is used when athird-party administrator (TPA)payssick payon behalf of an employer and needs toreport taxable wages properly.

This ensures thatSocial Security, Medicare, and FUTA taxesare correctly allocated between theemployer and third party.

Sick pay is subject to FICA taxes, butnot always subject to FUTAif paid directly by an insurer.

Option A (Form 941)is incorrect because it is used forquarterly payroll tax filings.

Option B (Form 1099)is incorrect becausesick pay is reported on W-2, not 1099.

Option D (Form 1095-B)is incorrect because it relates tohealth coverage reporting.