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APA Fundamental Payroll Certification Sample Questions (Q11-Q16):
NEW QUESTION # 11
when a payroll department does not respond promptly to a penalty notice from a governmental agency against an employee, this is an example of:
Answer: C
NEW QUESTION # 12
All of the following statements are correct regarding independent contractors EXCEPT that they:
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Independent contractors do NOT receive a salary. They:
Invoice for services rendered rather than receiving fixed wages.
Risk profit or loss (Option B) based on how they manage expenses.
Can hire assistants (Option C) to help complete tasks.
Can end the relationship at any time (Option D) unless bound by a contract.
Option A (Receive a salary) is incorrect because salaries are paid only to employees, not independent contractors.
Reference:
IRS - Independent Contractor vs. Employee Classification
Payroll.org - Guidelines for Contractor Payments and Taxation
NEW QUESTION # 13
As of December 31, 2024, what is the MAXIMUM amount, if any, a 49-year-old employee can contribute to a 401(k) plan?
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
For 2024, the 401(k) contribution limit is:
$23,000.00 for employees under 50 years old.
$30,500.00 for employees 50 and older (includes $7,500 catch-up contribution).
Since the employee is 49 years old, they do not qualify for the catch-up contribution, so the maximum contribution is $23,000.00.
Reference:
IRS - 401(k) Contribution Limits for 2024
Payroll.org - Retirement Plan Payroll Compliance
NEW QUESTION # 14
What federal taxes, if any, must the salesperson's employer withhold for his personal use of the company vehicle?
Answer: A
NEW QUESTION # 15
when does an employer stop deducting a federal tax levy from an employee's wages?
Answer: B
NEW QUESTION # 16
......
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