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Payroll Fundamentals Flashcards

7 cards from real APA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. An employee earns $1,200 biweekly. What is her annual gross pay?

    Answer: $31,200

    $1,200 × 26 biweekly periods = $31,200 annual gross pay.

  2. Which federal form must an employer file to report annual wages and withholding for each employee?

    Answer: Form W-2

    Form W-2 reports annual wages and tax withholding for each employee to the IRS and the employee.

  3. Under FLSA, which of the following workers is classified as exempt from overtime requirements?

    Answer: A salaried marketing manager earning $900/week

    Salaried employees meeting the duties test and earning at least $684/week ($35,568/year) qualify for the FLSA white-collar exemption.

  4. What does the term 'supplemental wage' refer to in payroll?

    Answer: Additional compensation such as bonuses, commissions, or severance

    Supplemental wages are payments made in addition to regular wages, including bonuses, commissions, overtime, and severance pay.

  5. An employee's gross pay is $3,000 and pre-tax 401(k) deferral is $300. What amount is subject to federal income tax withholding?

    Answer: $2,700

    Pre-tax 401(k) contributions reduce federal taxable wages, so $3,000 − $300 = $2,700 is subject to federal income tax.

  6. Which IRS publication provides withholding tables and instructions for calculating federal income tax withholding?

    Answer: Publication 15 (Circular E)

    IRS Publication 15 (Employer's Tax Guide / Circular E) contains withholding tables and payroll tax instructions for employers.

  7. A non-exempt employee works 50 hours in a workweek at $16/hour. What is her total gross pay for the week?

    Answer: $960

    40 regular hours × $16 = $640, plus 10 overtime hours × $24 (1.5×) = $240; total = $960.