APA FPC-Remote Exam Dumps

Gross pay: $15 40 = $600.00

401(k) deduction: $50.00 (Pre-tax)

FITW, Social Security (6.2%), Medicare (1.45%) applied

Using the IRS Wage Bracket Method, net pay is $651.45

IRS Publication 15-T (Federal Income Tax Withholding Tables)

Comprehensive and Detailed Explanation:

State Unemployment Tax Act (SUTA) liability is determined based on where an employee works and receives direction from, not necessarily where a company is incorporated.

The key factors for determining SUTA state include:

Base of Operations (Option A) -- Where the employee works.

Employee's Residency (Option B) -- If an employee works in multiple states, residency may be considered.

Place of Direction or Control (Option C) -- The state where the employer manages and directs the employee.

Option D (State of Incorporation) is incorrect because SUTA is determined by work location, not company registration.

Comprehensive and Detailed Explanation:

Gross Pay Calculation:

Hourly Rate Hours Worked = $10.00 40 = $400.00

Taxable Wages:

Gross Pay: $400.00

Pre-Tax Deductions: $50 (Medical) + $10 (Dental) + $25 (401k) = $85.00

Taxable Wages = $400 - $85 = $315.00

Federal Income Tax Withholding (Wage Bracket Method):

Based on IRS tables for single filers, FIT = approx. $20.00

Social Security & Medicare Taxes:

Social Security (6.2%) = $400 6.2% = $24.80

Medicare (1.45%) = $400 1.45% = $5.80

Total Deductions:

$20.00 (FIT) + $24.80 (SS) + $5.80 (Medicare) + $25.00 (Union Dues) = $75.60

Net Pay:

$400 - $75.60 = $259.99

Thus, the correct answer is D. $259.99.

IRS Publication 15-T -- Wage Bracket Withholding Method

Payroll.org -- Payroll Tax Calculation Guidelines

Comprehensive and Detailed Explanation:

In accounting, a normal balance refers to the side (debit or credit) that increases the account balance.

Assets (Option A) normally have a debit balance because they represent resources owned by the company (cash, accounts receivable, equipment, etc.).

Liabilities (Option C) and Revenue (Option D) normally have credit balances, meaning they increase with credits.

Capital (Option B) also has a normal credit balance, as it represents owner's equity.

GAAP Accounting Principles -- Normal Account Balances

Payroll.org -- Payroll Accounting Basics

Comprehensive and Detailed Explanation:

A wage attachment (also called a wage levy) is a legal withholding from an employee's paycheck to satisfy an outstanding debt.

IRS tax levies are a type of wage attachment used to collect unpaid federal taxes directly from an employee's wages.

Employers must comply immediately when notified by the IRS.

Option A (Bankruptcy Order) is incorrect because bankruptcy payments are handled by court-appointed trustees, not wage levies.

Option B (Creditor Garnishment) is incorrect because IRS tax levies do not require a court order like private creditor garnishments.

Option C (Voluntary Deduction) is incorrect because IRS wage levies are mandatory, not voluntary.

IRS Publication 1494 -- Wage Levy Exemptions and Employer Responsibilities

Payroll.org -- Wage Attachments and Tax Levies