APA FPC-Remote Exam Dumps

Comprehensive and Detailed Explanation:

Form 8922, Third-Party Sick Pay Recap, is used when a third-party administrator (TPA) pays sick pay on behalf of an employer and needs to report taxable wages properly.

This ensures that Social Security, Medicare, and FUTA taxes are correctly allocated between the employer and third party.

Sick pay is subject to FICA taxes, but not always subject to FUTA if paid directly by an insurer.

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

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

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

IRS Form 8922 Instructions -- Third-Party Sick Pay Recap

Payroll.org -- Sick Pay Taxation Guidelines

Comprehensive and Detailed Explanation:

Form 945 is used by employers to report federal income tax withheld from non-payroll payments, including backup withholding on:

Payments to independent contractors (when no valid W-9 is provided)

Certain gambling winnings

Dividend and interest payments subject to IRS backup withholding rules

Option A (Form W-9) is incorrect because Form W-9 is used by payees to provide taxpayer identification numbers (TINs), not for reporting withholding.

Option B (Form W-2) is incorrect because Form W-2 is used for employee wages and withholding, not backup withholding.

Option D (Form 941) is incorrect because Form 941 reports payroll tax withholdings, not backup withholding.

IRS Form 945 Instructions -- Annual Return of Withheld Federal Income Tax

Payroll.org -- Reporting Backup Withholding

Unclaimed wages must be handled according to state escheatment laws (A), which determine how long wages must be held before being turned over to the state.

State Unclaimed Property Laws

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)

Comprehensive and Detailed Explanation:

A disaster recovery plan (DRP) ensures payroll continuity during emergencies. Key tests include:

Option A (Direct deposit & check printing) is correct because payroll must still be processed during a disaster.

Option C (Access to online payroll data) is necessary to ensure payroll can be processed remotely.

Option D (Network connectivity verification) is vital to confirm off-site payroll access.

Option B (Validating new hire record counts) is incorrect because it is a routine HR function, not part of disaster recovery. DRPs focus on ensuring payroll continues for existing employees rather than hiring functions.

Payroll.org -- Payroll Disaster Recovery Planning

IRS -- Business Continuity Guidelines for Payroll Processing