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APA Fundamental Payroll Certification Sample Questions:

1. What federal taxes, if any, must the salesperson's employer withhold for his personal use of the company vehicle?

A) federal income tax only
B) no taxes are required to be withheld
C) federal income tax, social security tax, and medicare tax
D) social security and medicare tax only

2. Under which type of plans are employee contributions subject to social security and medicare taxes?

A) 401k, 403b, and 457b
B) 403b only
C) 457b only
D) 401k only

3. Which of the following employee benefits is nontaxable compensation?

A) moving expense
B) company vehicle (business use)
C) company vehicle (personal use)
D) gifts, prizes awards

4. A computerized payroll system can help a payroll dept accomplish all of the following tasks except:

A) record retention
B) compliance w laws and regulations
C) recognize changes in laws and regulations
D) producing timely, accurate paychecks

5. If you need very rapid response time with minimal lag between input and output into your computer system, look for:

A) remote entry processing
B) batch processing
C) network processing
D) real time processing

Solutions:

Question # 1 Answer: D

Question # 2 Answer: A

Question # 3 Answer: B

Question # 4 Answer: C

Question # 5 Answer: D