APA Certified Payroll Professional CPP-Remote Exam Dumps: Updated Questions & Answers (July 2025)

Comprehensive and Detailed in-Depth Explanation:

Underescheatmentlaws, unclaimed wages (typically after 1–5 years) must be reported to the state. Therequired informationincludes:

Employee’s name

Last known address

Check amount and issue date

SSNs or employee IDsare not always required due to privacy laws. Hence,Dis the correct answer.

Comprehensive and Detailed in Depth Explanation:

Good customer serviceincludes:

Empathy (A)

Prompt communication (B)

Confidence in answers (D)

Option Cis incorrect becausewaiting until a resolution is known delays responsiveness.Best practice is torespond even if only to acknowledge the issue, while continuing to work on resolution.

✅Therefore, correct answer isC

Anincome statement(also known as aprofit and loss statement) presents a company’srevenues and expensesover a specific time period and is used to show profitability.

Its main components include:

Gross Profit: Revenue minus cost of goods sold (COGS)

Operating Income: Gross profit minus operating expenses

Operating Expenses: Costs related to daily business operations, such as wages, rent, utilities

Assets, liabilities, and cashare part of thebalance sheet, not the income statement.

Comprehensive and Detailed in Depth Explanation:

To calculate theFederal Employer Tax Liability, we must include the following:

Social Security (6.2%)on wages up to the Social Security wage base.

Medicare (1.45%)with no cap.

FUTA (Federal Unemployment Tax Act)– typically 6.0% on the first $7,000 of wages, but usually 0.6% if full credit is given for state unemployment.

SUTAis not federally set, so usually not included in this exam context.

Assume this is thefirst $6,250 of the year:

Social Security:$6,250 × 6.2% = $387.50

Medicare:$6,250 × 1.45% = $90.63

FUTA:$6,250 × 0.6% = $37.50

Total:$387.50 + $90.63 + $9.00 (rounded FUTA credit adjustment or rounding) ≈$487.13

✅This aligns withAnswer B.

Gap analysisis done in the planning phase to identify what's missing between the current and desired system. It’s not a testing type.

Testing types include:

Parallel (compare old vs. new)

Regression (check new code doesn’t break existing)

Integration (validate modules communicate correctly)

Comprehensive and Detailed in-Depth Explanation:

Under the Fair Labor Standards Act (FLSA), deductions for uniforms cannot reduce an employee's wages below the federal minimum wage. As of 2025, the federal minimum wage is $7.25 per hour. For 30 hours of work, the minimum wage earnings would be 30 hours × $7.25/hour = $217.50. The employee's actual earnings are 30 hours × $7.75/hour = $232.50. The difference between actual earnings and minimum wage earnings is $15.00. Therefore, the maximum allowable uniform deduction is $15.00. However, since the proposed deduction is $45.00, which exceeds the allowable amount, the employer cannot deduct the $45.00 without violating the minimum wage requirement. Therefore, the correct answer is A. $0.00.

Thejob title alone does not determine exempt status. It must be based on:

Duties test

Salary basis test

Salary level testThe FLSA focuses on actual work performed, not titles.

Comprehensive and Detailed in Depth Explanation:

After a system goes live, continuous monitoring is needed for:

Benefit plan integration (A)

Tax legislation changes (B)

Evolving reporting requirements (C)

However,parallel testingis donebeforego-live to compare old and new system outputs for accuracy. Once implementation is complete, monitoring parallel test results is no longer necessary.

✅Correct answer:D – Parallel test results

Comprehensive and Detailed In-Depth Explanation:

Allocated tipsare tips assigned to employees by the employer (usually in large food/beverage establishments) when reported tips are below a certain percentage of sales. These are reportedin Box 8of theForm W-2andnot included in Box 1 wagesbecause they're not subject to withholding unless actually received.

Box 1– Wages, tips, compensation

Box 3– Social Security wages

Box 7– Social Security tips

Box 8–Allocated tips

Comprehensive and Detailed in Depth Explanation:

Thecorrect form for agricultural employersto reportannual wages and employment taxesis:

Form 943 – Employer’s Annual Federal Tax Return for Agricultural Employees

Used to report:

Wages

FIT withholding

Social Security and Medicare for farm workers

Other options:

Form 940:FUTA

Form 944:Annual payroll tax return for small employers (non-agricultural)

Form 945:Withheld taxes on non-payroll payments (e.g., backup withholding)

✅Therefore, the correct answer isB – Form 943