APA Updated FPC-Remote Exam Questions and Answers by avyaan

Comprehensive and Detailed Explanation:

Gross Pay Calculation:

Hourly Rate × Hours Worked = $10.00 × 40 = $400.00

Taxable Wages:

Gross Pay: $400.00

Pre-Tax Deductions: $50 (Medical) + $10 (Dental) + $25 (401k) = $85.00

Taxable Wages = $400 - $85 = $315.00

Federal Income Tax Withholding (Wage Bracket Method):

Based on IRS tables for single filers, FIT = approx. $20.00

Social Security & Medicare Taxes:

Social Security (6.2%) = $400 × 6.2% = $24.80

Medicare (1.45%) = $400 × 1.45% = $5.80

Total Deductions:

$20.00 (FIT) + $24.80 (SS) + $5.80 (Medicare) + $25.00 (Union Dues) = $75.60

Net Pay:

$400 - $75.60 = $259.99

Thus, the correct answer isD. $259.99.

Comprehensive and Detailed Explanation:Awage attachment(also called awage levy) is alegal withholdingfrom an employee’s paycheck to satisfy an outstanding debt.

IRS tax leviesare a type ofwage attachmentused to collectunpaid federal taxesdirectly from an employee’s wages.

Employersmust comply immediatelywhen notified by the IRS.

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

Option B (Creditor Garnishment)is incorrect because IRS tax leviesdo not require a court orderlike private creditor garnishments.

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

Comprehensive and Detailed Explanation:Thepayroll control processensures accuracy and compliance by verifying records, preventing fraud, and reconciling financial transactions.

Batch Totals (Option A)– Used to verifytransaction accuracy.

System Edits (Option B)– Automated controls toprevent errors.

Balancing & Reconciliation (Option D)– Ensures payrollmatches financial records.

Option C (Unauthorized Overtime) is incorrectbecauseovertime management is an operational issue, not a control process.

Comprehensive and Detailed Explanation:A457(b) planis anonqualified deferred compensation planoffered primarily togovernment and tax-exempt employees.

Option A (401(k))andOption B (403(b))arequalified retirement plansunderERISA.

Option C (408(p))refers to aSIMPLE IRA, which is also aqualified plan.