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

Comprehensive and Detailed Explanation:According to theIRS penalty schedule for late-filed information returns, thepenalty per form depends on how late it is filed:

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Option A ($60.00)is incorrect because this applies to returns filedwithin 30 days of the deadline.

Option B ($120.00)is incorrect because this applies to returns filedafter 30 days but before August 1.

Option D ($630.00)is incorrect because this applies to cases ofintentional non-compliance.

Comprehensive and Detailed Explanation:Anindependent contractoris an individual who:

Works on aper-project basis

Isnot under direct employer control

Provides services to multiple clients

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

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

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

Comprehensive and Detailed Explanation:Payroll liabilities (taxes, deductions, and withholdings) must be reconciledregularly to prevent errors and ensure compliance.

Best practice is monthly reconciliation (Option B)to ensure:

Payroll taxes matchgeneral ledger accounts.

Deposits are made on time toavoid IRS penalties.

Payroll liability accounts are balanced beforequarterly tax filings.

Option A (Weekly)is impractical unless payroll runs very frequently.

Option C (Quarterly) and Option D (Yearly) are too infrequentand may result in tax errors or compliance issues.

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:Apre-notification (pre-note) processis used by payroll departments to verifybanking detailsbefore initiatingdirect depositpayments.

Azero-dollar transactionis sent viaACH (Automated Clearing House)to ensureaccount validity.

This stepprevents payment errorsandfraudulent transactions.

Option Ais incorrect becausepre-notes are usually processed 3–6 days before payday, but not necessarilyfivedays in all cases.

Option Bis incorrect becausenot all employers require a pre-note before direct deposit begins.

Option Cis incorrect becauseACH verification does not confirm the employee’s full legal name.

Comprehensive and Detailed Explanation:Social Security tax is calculated at6.2%ofSocial Security taxable wages.

Determine taxable wages:

Gross salary =$2,435.76

Subtract pre-tax deductions (Section 125 and HSA):

Medical:$45.00

Dental:$9.00

HSA:$100.00

Taxable wages=$2,435.76 - ($45 + $9 + $100) = $2,281.76

Social Security tax = $2,281.76 × 6.2% = $141.47

Comprehensive and Detailed Explanation:Workers' compensation benefitsare NOT subject to FUTA (Federal Unemployment Tax Act)as long as they are paid under aworkers' compensation law.

Option A (Not included in gross income) is correctbecauseworkers' compensation is tax-exemptunder IRS rules.

Option B (Received for work-related injuries/illnesses) is correctbecause these paymentsreplace lost wagesdue to job-related incidents.

Option D (Not subject to FICA under state laws) is correctbecauseworkers' compensation payments are exempt from Social Security & Medicare taxesif they are made under astate-approved program.

Option C is incorrectbecause workers' compensation paymentsare NOT subject to FUTA, regardless of the amount paid.

Comprehensive and Detailed Explanation:TheReasonable Basis Testallows an employer to classify a worker as anindependent contractorif:

A previous IRS audit approved similar treatment

A court ruling or IRS ruling supports classification

Industry practices support independent contractor status

Option A (Common Law Test)determines if a worker should be anemployee or independent contractor, butdoes not override misclassification.

Option C (Physical Presence Test)applies toforeign earned income exclusions.

Option D (Permanent Resident Test)applies toimmigration status, not worker classification.

Comprehensive and Detailed Explanation:Social Security tax is calculated as6.2%ofSocial Security taxable wages.

Calculate biweekly gross pay:

Monthly salary =$3,100.00

Biweekly pay=($3,100 × 12) ÷ 26 = $1,430.77

Subtract pre-tax deductions (Medical & 401k):

Taxable wages =$1,430.77 - ($85 + $43) = $1,302.77

Calculate Social Security tax (6.2%):

$1,302.77 × 6.2% = $80.77

Thus, the correct answer isB. $86.04.

Comprehensive and Detailed Explanation:Constructive receiptmeans an employee isconsidered paidwhen wages aremade 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 determinewhen wages are constructively received.

Option B (When cashed)is incorrect because an employee isconsidered 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.