APA FPC-Remote Exam Dumps

Comprehensive and Detailed Explanation:

The tax deposit liability includes federal income tax withholding (FITW), Social Security tax, and Medicare tax.

Social Security Tax:

Employer & Employee each pay 6.2% on $40,000

$40,000 6.2% 2 = $4,960.00

Medicare Tax:

Employer & Employee each pay 1.45% on $35,000

$35,000 1.45% 2 = $1,015.00

Total Tax Deposit Liability:

$2,000 (FITW) + $4,960 (Social Security) + $1,015 (Medicare) = $7,975.00

Thus, the correct answer is A. $7,975.00.

IRS Publication 15 -- Employer's Tax Guide

Payroll.org -- Payroll Tax Calculation Best Practices

Employees report tips using IRS Form 4070 to their employer.

Form 940 reports FUTA taxes, not tips.

Form 941 reports quarterly payroll taxes, not tips.

Form 8027 is used by large employers to report tip allocation, NOT individual reporting.

IRS Publication 531 (Reporting Tip Income)

Comprehensive and Detailed Explanation:

Non-operating expenses are costs not directly related to the core operations of a business.

Option A (Insurance) is an operating expense because it is necessary to protect business assets.

Option C (Legal fees) is an operating expense if related to business operations.

Option D (Utilities) is an operating expense because they are required to keep business operations running.

Option B (Interest paid on income taxes) is a non-operating expense because it is not part of daily business operations but rather a financial or tax-related cost.

GAAP Accounting Principles -- Classification of Expenses

Payroll.org -- Payroll-Related Business Expenses

Topic 2, Exam Part 2

Step 1: Calculate excess GTL coverage

Employee GTL coverage = $78,000 2 = $156,000

Excludable amount = $50,000

Taxable excess = $156,000 - $50,000 = $106,000

Step 2: Use IRS Table for GTL Taxable Rates (for age 53: $0.23 per $1,000 of coverage)

$106 $0.23 = $24.38 per month

IRS Publication 15-B (Taxable Group Term Life Insurance)

Total Taxable Wages:

$5,000 + $10,000 + $7,500 + $1,000 + $15,000 = $38,500

Social Security Tax (6.2%)

$38,500 6.2% = $2,387.00

Medicare Tax (1.45%)

$38,500 1.45% = $558.25

Total FICA Tax (Employer's share)

$2,387.00 + $558.25 = $2,945.25

IRS Publication 15 (Employer's Tax Guide)