Key details for this exam, checked against the published exam outline
Each question shows the correct answer and an explanation of why it is right
Under the rules of constructive receipt, the employee is considered paid:
Comprehensive and Detailed Explanation:
Constructive receipt means an employee is considered paid when wages are made available without restriction, even if they do not physically receive the money.
Option A (On the paycheck date) is incorrect because the date of the paycheck does not determine when wages are constructively received.
Option B (When cashed) is incorrect because an employee is considered paid before they cash the check.
Option C (When ACH file is created) is incorrect because the wages are not yet available to the employee.
Option D is correct because once wages are accessible (direct deposit or paycheck available for pickup), the IRS considers them 'received' for tax purposes.
IRS Publication 538 -- Constructive Receipt of Income
Payroll.org -- Payroll Taxation Rules
An employee has received $169,000.00 in YTD earnings. The employee receives a payment of $16,600.00. The employer Medicare tax, if any, is:
Comprehensive and Detailed Explanation:
Medicare tax is 1.45% on wages up to $200,000, and 2.35% (including the Additional Medicare Tax) on wages above $200,000.
YTD Wages before payment: $169,000.00
New total earnings after bonus: $169,000 + $16,600 = $185,600.00
Since total wages are still under $200,000, only the standard Medicare rate applies:
$16,600 1.45% = $240.70
Thus, the correct answer is C. $240.70.
IRS -- Medicare Tax Guide
Payroll.org -- Payroll Tax Calculation Rules
Employee privacy rights are NOT governed by:
FLSA governs wages and hours, not privacy rights.
Privacy laws are governed by federal/state regulations and company policies.
Employee Privacy Rights (DOL)
To stop payment on an employee's check, the employer must work with the:
Only the employer's bank (C) can place a stop payment request.
Payroll providers (B) may facilitate, but do not issue bank stops.
Payroll Banking & Direct Deposit Standards (Payroll.org)
Which of the following factors is NOT used to determine a SUTA state?
Comprehensive and Detailed Explanation:
State Unemployment Tax Act (SUTA) liability is determined based on where an employee works and receives direction from, not necessarily where a company is incorporated.
The key factors for determining SUTA state include:
Base of Operations (Option A) -- Where the employee works.
Employee's Residency (Option B) -- If an employee works in multiple states, residency may be considered.
Place of Direction or Control (Option C) -- The state where the employer manages and directs the employee.
Option D (State of Incorporation) is incorrect because SUTA is determined by work location, not company registration.
Which of the following forms is used by an employer to file an annual return of withheld FIT from nonwage payments?
Form 945 is used for reporting federal income tax withheld from nonwage payments, such as:
Pension distributions
Gambling winnings
Certain annuities
Form 941 (B) is for employment taxes on wages.
Form 940 (A) is for FUTA taxes.
IRS Form 945 Instructions
IRS Withholding Rules
The process used to verify and validate payroll system edits or warnings is called:
Balancing and reconciliation ensures payroll data is accurate, consistent, and matches financial records.
Gap analysis (A) is used to compare actual vs. expected performance.
Evaluating system performance (C) focuses on efficiency, not data verification.
Periodic auditing (D) is important but not the primary method of payroll validation.
Payroll Balancing & Reconciliation Guidelines (Payroll.org)
Exam domains verified against: Official APA FPC-Remote exam guide, last checked October 2026.
Covers fundamental payroll knowledge including worker classification, tax obligations, and employment regulations. Study the Fair Labor Standards Act requirements, employment tax calculations, benefit administration, and proper completion of employee and employer forms to build your foundation in payroll principles.
Focuses on regulatory compliance, record management, and penalty avoidance. Learn about escheatment requirements, legislative and regulatory frameworks, payroll reporting obligations, retention periods, and how to research answers using official resources and guidelines.
Tests your ability to compute pay accurately from start to finish. Master compensation structures, fringe benefits, tax and voluntary deduction calculations, employer contribution calculations, and verification of final payroll amounts to ensure accuracy in all calculations.
Sample question from this domain above: Q2
Covers the technical and operational side of payroll delivery. Understand master file components, payroll system functions, business continuity planning, and how to maintain and protect payroll data and systems for reliable ongoing operations.
Addresses the organizational and interpersonal aspects of payroll work. Learn to develop payroll policies and procedures, manage relationships between departments, and communicate effectively with employees and other stakeholders about payroll matters.
Prepares you to support and execute payroll audits. Study internal controls design, payroll system security, accounting controls, and audit procedures to ensure accurate, compliant, and secure payroll processing and record management.
Ensures you understand the financial reporting side of payroll. Learn accounting principles, payroll journal entries, financial statement preparation, and account reconciliation to connect payroll transactions to the organization's books.
Common questions about the exam itself
