APA Cheat Sheet 2026

The 30 highest-yield APA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under the FUTA tax rules, what is the standard FUTA tax rate before any state credit is applied? → 6.0%
2. What is a common consequence of misclassifying an international contractor as an employee (or vice versa)? → Penalties, back taxes, and potential legal liability in both home and host countries
3. What is the purpose of employee benefits in payroll? → To provide employees with non-wage compensation like insurance and retirement plans.
4. Which of the following is a characteristic of a Section 125 cafeteria plan? → Employees may choose between taxable cash and nontaxable benefits
5. When a foreign national employee in the US holds an L-1 visa, what is their FICA tax status? → Generally subject to FICA taxes like US citizens
6. What is the penalty for failing to deposit payroll taxes on time under the IRS Failure to Deposit (FTD) rules for a deposit 6-15 days late? → 5%
7. Which of the following is NOT a payroll tax deposit schedule under IRS rules? → Quarterly
8. What is the lookback period used to determine whether an employer is a monthly or semi-weekly depositor for the current year? → July 1 of the second preceding year through June 30 of the prior year
9. Sick pay paid by a third-party insurer is subject to FICA taxes for how long after the employee's first day of absence? → 6 months
10. When implementing risk assessment & mitigation practices, what should a APA professional prioritize first? → Compliance with established standards and protocols
11. When implementing financial analysis & reporting practices, what should a APA professional prioritize first? → Compliance with established standards and protocols
12. Which of the following best describes a key competency required for regulatory compliance & ethics in APA certification? → Critical thinking and evidence-based decision making
13. Which document does a US employee working abroad typically need to claim the Foreign Earned Income Exclusion (FEIE)? → Form 2555
14. Which of the following correctly describes the taxation of employer contributions to a qualified 401(k) plan? → Excluded from both FICA and federal income tax wages when contributed
15. A nonqualified stock option (NSO) granted to an employee is generally taxable at which point? → When the option is exercised
16. Under a non-accountable plan, employee expense reimbursements are treated as: → Taxable wages subject to income tax, FICA, and FUTA withholding
17. Which payroll tax deposit rule requires a next-day deposit when total accumulated undeposited taxes reach $100,000 or more? → $100,000 one-day rule
18. What is the maximum limit for contributions to a 401(k) plan in 2025? → $22,500
19. What is the tax rate for Social Security? → 6.2%
20. What is the main purpose of calculating net pay? → To calculate the final pay after deductions.
21. When must a US employer file Form 1042 with the IRS? → Annually by March 15, to report tax withheld from US-source income paid to foreign persons
22. What is the significance of peer review in risk assessment & mitigation for APA professionals? → It promotes accountability, knowledge sharing, and quality improvement
23. What is the main purpose of calculating net pay? → To calculate the final pay after deductions.
24. Which IRS form is used to report and deposit Additional Medicare Tax withheld from employees earning over $200,000? → Form 941
25. When implementing tax planning & strategy practices, what should a APA professional prioritize first? → Compliance with established standards and protocols
26. Which documentation practice is most important for risk assessment & mitigation in the APA field? → Maintaining complete, accurate, and timely records
27. Which document is required for new employees to complete for tax withholding purposes? → Form W-4.
28. What should be included in the year-end payroll report? → Total wages, taxes withheld, and deductions.
29. Which type of cafeteria plan allows employees to carry over up to $660 (2024 limit) in unused health FSA funds to the next plan year? → Carryover provision
30. How does continuing education relate to risk assessment & mitigation for APA certified professionals? → It ensures professionals stay current with evolving standards and best practices