FPC-Remote Exam Dumps - Fundamental Payroll Certification

Comprehensive and Detailed Explanation:Form 8922, Third-Party Sick Pay Recap,is used when athird-party administrator (TPA)payssick payon behalf of an employer and needs toreport taxable wages properly.

This ensures thatSocial Security, Medicare, and FUTA taxesare correctly allocated between theemployer and third party.

Sick pay is subject to FICA taxes, butnot always subject to FUTAif paid directly by an insurer.

Option A (Form 941)is incorrect because it is used forquarterly payroll tax filings.

Option B (Form 1099)is incorrect becausesick pay is reported on W-2, not 1099.

Option D (Form 1095-B)is incorrect because it relates tohealth coverage reporting.

Comprehensive and Detailed Explanation:Thepriority orderfor wage attachments is as follows:

Bankruptcy orders (Option A)– Court-ordered payments under the U.S.Bankruptcy Codetaketop priorityover all other wage deductions.

Child support (Option B)– Thesecond-highest priorityunderfederal law, governed by theConsumer Credit Protection Act (CCPA).

State tax levies (Option C)– Third in priority, varies by state.

Wage assignments (Option D)–Lowest priority, usually voluntary agreements by employees.

Comprehensive and Detailed Explanation:Apayroll system upgradeaffects documentationrelated to payroll processingbutdoes not change union contracts.

Option A (User manuals):Correct –New system features require updated manuals for payroll staff.

Option C (Business continuity plans):Correct –System changes must be included in disaster recovery plans.

Option D (Standard operating procedures – SOPs):Correct –Payroll procedures need updates for new workflows.

However,union contracts (Option B) remain unchangedunless anew agreement is negotiated.

Comprehensive and Detailed Explanation:If an employerover-withholds federal taxes from an employee's paycheck, the employer can file anadjustmentusingForm 941-X(Adjusted Employer's Quarterly Federal Tax Return).

Form 941 (Option A)is incorrect because it is used toreport current payroll taxes, not to correct past errors.

Form W-2 (Option C)is incorrect because itreports wages and taxes withheld but does not allow corrections.

Form W-4 (Option D)is incorrect because it isused by employees to adjust withholding allowances.

Direct deposit errors (A) may result in payroll mismatches and unrecorded transactions, causing the general ledger to be out of balance.

Other options (B, C, D) impact payroll costs but do not directly affect ledger balancing.

References:

Payroll Accounting Reconciliation Standards

Unauthorized access (B) is a direct result of security breaches.

Other options (A, C, D) may result from human error but not security violations.

References:

Payroll Security Guidelines (Payroll.org)

TheFair Labor Standards Act (FLSA)isenforced by the Department of Labor (DOL)through itsWage and Hour Division (WHD).

ICE (Immigration and Customs Enforcement)handles immigration-related work issues, not wage enforcement.

IRS (Internal Revenue Service)enforces tax laws, not labor standards.

SSA (Social Security Administration)manages Social Security benefits, not wage laws.

References:

FLSA Compliance and Enforcement (DOL)

Payroll Compliance Guidelines (Payroll.org)

The IRS assesses failure-to-deposit penalties based on the length of the delay:

1-5 days late: 2% penalty

6-15 days late: 5% penalty (Correct Answer)

More than 15 days: 10% penalty

After delinquency notice: 15% penalty

References:

IRS Deposit Penalty Guidelines (Publication 15)