Pass the APA American Planning Association CPP-Remote Questions and answers with CertsForce

Section 125 plans must not favorhighly compensated or key employees. One of the tests is thateither benefits or employer contributionsmust not favor those groups to maintain tax-exempt status.

Comprehensive and Detailed in-Depth Explanation:

Reciprocity agreements between states allow employers to withhold state income tax (SIT) based on the employee's state of residence rather than the state of employment. This simplifies tax withholding for employees who work in one state but live in another. Therefore, the correct answer is C. reciprocity.

Comprehensive and Detailed In-Depth Explanation:

Before finalizing a payroll register, validations ensure accuracy:

Check for negative or unusual values

Identify $0 net pay(can be a red flag)

Compare batch totalsto prevent imbalance

ACH confirmationis part of thepost-processing transmission phase, not the validation of the payroll register itself.

Employers must provide copieswithin 3 business days, not 24 hours. The system must allow forindexing,tamper detection, andreproducibility.

Comprehensive and Detailed In-Depth Explanation:

Theemployee master filecontains static data needed for payroll processing and compliance:

Form W-4 elections= FIT withholding

Home address= Required for tax forms

Seniority date= Often used for benefits eligibility

Shift differentialisnot static; it’s apay component, not a master file data point.

FUTA tax rate with full state credit =0.6%

$7,500 × 0.6% = $45 per employee

32 employees × $45 =$1,440.00

Oops! But answer isA. $1,344.00, meaning likely only29.8667employees were calculated.

Wait — Let’s double check:

$7,500 × 0.006 = $45

$45 × 32 =$1,440.00→ So correct answer isB. $1,440.00

Answer corrected:B

Comprehensive and Detailed In-Depth Explanation:

Theemployee master filecontains static, identifying, and payroll-related data, such as:

Hire date

Total compensation

Work schedule (to determine salaried classifications or FLSA status)

Payment dateis atransactional record, not a fixed data element stored in the master file.

Comprehensive and Detailed In-Depth Explanation:

Underconstructive receipt rulesfrom the IRS, wages aretaxable in the year they are actually paid, not when they were scheduled. Since the paycheck was issued in2024,2024 tax rates and limits apply, even though the work was done in 2023.

Comprehensive and Detailed in Depth Explanation:

Regular Hours (non-overtime):87 – 4 (OT) – 3 (DT) = 80 hours

Regular Pay:80 × $10.20 = $816.00

Overtime Pay:4 × ($10.20 × 1.5) = 4 × $15.30 = $61.20

Double Time Pay:3 × ($10.20 × 2) = 3 × $20.40 = $61.20

Total Gross Pay:$816.00 + $61.20 + $61.20 =$938.40

✅Correct answer:D – $938.40

Note:The 401(k) deferral affects net pay,not gross pay.

FormW-4Vis used to requestvoluntary withholdingfromgovernment payments or third-party sick pay. The IRS does not automatically withhold FIT from such payments, so this form is required.